Let’s start with the concept of price action analysis. Price action analysis is based on price movements, ignoring the impact of fundamentals and focusing on historical price movements.
The biggest difference between THIS TECHNICAL ANALYSIS and other technical analysis is that it focuses on the current trading price compared with historical prices, which include highs, lows, trend lines, resistance and support levels.
Don’t know how to do price action analysis?
This should come as no surprise, as many traders don’t know much about it, and you shouldn’t worry too much about it.
Because many people are also unable to grasp the key points of price trend analysis for various reasons, let’s find out these reasons and solve these problems together: 1.
You don’t fully believe in price action analysis and you have to get rid of all the doubts about price action analysis.
Part of your mindset is that trading should be technically difficult, so you think you “need” indices and very complex and expensive trading systems to help you make your judgments, which makes you fearful of price-action analysis methods.
Dispel this fear and trust in price analysis.
Solution: Embrace price action analysis Once you start using price action analysis, give it more time to work and stick with it.
It takes time to master price movement analysis, so you should take all the courses (not just a few) and spend enough time to understand the theory of price movement analysis, then develop your own trading plan and test it using a simulation account before you actually trade.
You should give your trading rules at least 6 months to determine if they are valid, anything less than that will not be clear about the validity of the method.
Studies have shown that most traders don’t last more than six months. They usually give up after several losing trades and move on to other methods, eventually becoming disdisciplined and indiscriminate.
You have to understand that once you trade, there will be gains and losses, and if you can’t stick to your trading methods for six months or more, then you will never become a proper trader or make a profit.
2. You don’t wait for the really obvious price action Signal. In my years of experience, I have found that the most painful thing about price action analysis for traders is the inability to identify the obvious trading signal from the trading movement.
Solution: waiting for the signal to real patience is very important, as well as the “valuable” a clear understanding of price action signal is also key, it’s back to the question I mentioned before – you’ll be the first to learn at the same time to carry out an effective price action method to use, to get really good prices signal will appear when in the market.
If you don’t, you will never master a price action trading strategy.
You’re just making deals by chance.
If you have learned and mastered a method of price action analysis, then you should do what I recommend, which is to stick with it and wait until the signal comes.
Take profits even if the price action feels like a “better” trend after the price has reached the set threshold. Greed will never help you make money. What I can tell you is that the most helpful and fastest way to make money in the market is to be “patient” and not rely on intuition.
Patience means waiting for your strategy to form a signal, and then patiently trading when you find one.
Whether you admit it or not, everyone wants to speed up monetization, and more trading seems to be the way to go for the novice.
But it doesn’t take long for the market to prove that this is not the way to go.
It is often only through years of learning, trial and error that disciplined trading opens the door to continued profitability.
Solution: develop good trading habits you want to market the idea of a “quick money” about long, can you make money the time it takes longer, I want to tell you that the price trend analysis and any other trading success stems from good habits of trading and maintain this habit for a long time, in order to increase your income.
Good trading habits mean you don’t have to make a profit on every trade, and you have to be patient enough to wait for obvious trading opportunities to develop.
You can’t rush into a trade before the pattern has fully signaled itself.
You need to risk manage your trades and be aware that any trade can lead to a loss.
You can only truly reduce your trading risk if you honestly accept all of this.
4. You don’t really have a consistent method of analyzing price movements One of the biggest frustrations for traders is that they don’t have a solid method of analyzing price movements.
Instead, many traders choose from a variety of sources (websites, blogs, friends) that they “think” really know how to trade.
In other words, they don’t take the time to learn and think about a truly stable and effective method of analyzing price movements.
They may still look at a price chart and make a haphazard judgment about where prices are going.
Solution: Learn a real set of price action analysis methods. The first step to learning a real price action analysis method is to get rid of your doubts about the price action analysis trade.
This means that you need to acquire knowledge from a source that has developed an integrated trading system, develop your own analytical approach and apply it consistently in future trading;
Don’t mix different ideas or change your approach every time. It’s never a good idea.
