Trading activities on Forex prices can be defined as a decision-making on trade based on the price chart diagrams that provide traders simultaneous reaction to the news and world events. The then Trade event – the study of human emotions reflected in the forex price charts and presented to the trader in the form of price patterns that are repeated over and over again for all time frames and all currency pairs.
Before we elaborate why trading using the price – that's the way you have to trade in the Forex market, I would like to discuss the technical indicators. A trader in forex must realize that technical indicators are derived from the price itself, and as such is behind the price action. This means that if you are a & # 39; you are a technical trader, using only a strategy, based on indicators, then, unfortunately, you are likely to fail in your endeavors to trade the markets for profit. In particular, you will enter the market too late and close their trades too late when trading using indicators.
If you get a technical indicator of the cost, you will usually smooth out some of the troughs and peaks of the price itself, but more importantly you build inherent delay index compared to the price, it is vital to understand and relate to the point I made above – lagging technical indicators, and it will cost money.
If you look in the Internet search engines, you will find a variety of systems, based on indicators, for sale or for rent, as well as on the & # 39; the volume of articles, trading robots and other self fire systems that inform you about how you can earn money with the indicator system. This is all well and good, however, whether these methods and systems are making money?
If we recognize that more than 90% of traders will eventually lose money trading or deleting their accounts net trading forex, and if we accept that the vast majority of those people are using tracer techniques for trading on the market, I think it It tells us about the LED based systems themselves.
a system of indicators in the best case will help you get through even in the markets, and the price action methods will help you get the maximum benefit.
price study – it monitored the activities of traders in the market, and it is possible to see and capture the market by means of price action patterns. Templates traders express emotions.
In the next article I paglyblyusya into some depth about the price and start a discussion and explanation of the various types of trading activities methodology, which I see on a daily basis. Methods that work well in the Forex markets and which can be easily seen on the charts during live trading.