Find trend forex trading strategy
If someone asked me to describe my trading strategy in a s few words as possible, it would be this; horizontal levels and price a ction. After you finish reading this lesson, leave a comment, like it on facebook, tweet it on twitter and share it with others.
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Everything in the market starts with a horizontal line; this is the back-bone of my trading approach as well as the trading approach of many other great traders. Indeed, traders like George Soros, Warren Buffet, Jesse Livermore and others, all pay paid close attention to the key levels in the market, because they know that these levels are significant and can thus have a strong impact on the direction of price.
Horizontal levels provide us with a confluent area to trade from, but they are not the only factor of confluence that I look for; the more factors of confluence you have lining up with a price action signal the better. My favorite way to trade with horizontal lines is to trade them in trending markets from swing points.
Thus, old resistance becomes new support in an uptrend, and in a down trend old support becomes new resistance, also known as swing points. The way that we take advantage of these horizontal level swing points, is to watch for price action strategies forming near them as the market pulls back.
Another excellent way to trade horizontal lines in the market is to simply watch for price action setups forming near the boundaries of a range-bound market.
Unfortunately, markets do not always trend like we want them to, instead, they often swing between support and resistance in a trading range. Fortunately, trading with simple price action setups allows us to trade in any market condition, so we can still find high-probability trade setups even in range-bound market conditions. In the illustration below we can see an example of what a range-bound market might look like. When price is obviously bouncing back and forth between a horizontal support and resistance level, we can wait for price to hit one of the boundaries of the range and then watch for price action signals forming there.
This provides us with a very high-probability entry scenario and a very simple trading strategy. It also gives us obvious levels to define our risk and reward. Risk is defined just beyond the trading range high or low from the boundary you are entering near, and reward is defined near the opposite end of the trading range. Event areas are horizontal lines that can be very high-probability areas to watch for price action setups forming near. You will notice that these event areas are significant most of the time because price will often stall or reverse as it re-tests them.
In the illustration below we can see an example of the creation of an event area as well as how it could subsequently be traded. As price re-tests the event area we would watch closely for price action signals, as the formation of a price action signal at an event area is a very high-probability event. However, event areas also provide us with the ability to enter without confirmation from price action.
Finally, I wanted to show you guys a real chart of the EURUSD and analyze its recent price action and horizontal levels to show how you could have used simple horizontal levels with price action to trade the market.
Price was bouncing back and forth between resistance near 1. As price began to move lower from the top of the trading range before it broke out, it formed a long-tailed pin bar and then an inside bar right at this event area.
Thus, a break of the pin bar low meant a break of the event area and we can see a significant move followed. These setups both formed at horizontal levels and we can see they resulted in large moves to the downside that provided good risk reward ratios for savvy price action traders. In closing, trading horizontal levels with price action signals is the primary technique that I use to analyze and trade the market. It is obvious that horizontal levels are very important in the market, and by combining them with my price action strategies you have a very effective and simple trading strategy.
If you want to learn more about how I use horizontal lines and price action, as well as my other trading strategies, check out my price action trading course here. Hej Nial, Excellent and honest explanation. But we need more to write about the horizontal levels greediness. Enjoyed your article thoroughly!!! Just had my ah ha moment just before reading this article. I came to some of the exact same conclusions. Good to see that you are in agreement. I finally understand your simple price action strategy using the 4 hour and daily charts.
Thanks for the lesson but i need a video or article on how to setup a trade in 4H and Daily chart, Really like your KISS strategy. You make it easy to understand, support ,resistance and price action. I believe in all you said. Price action is a confirmation of trends. As they say, the trend is your friend eventaully. This simple trading strategy also works in smaller timeframes and other instruments as well. Simple yet great stuff. Someone in this forum said thanks for the free advice.
Yes, it is free, but God knows how potent this methodology is. Well and good, you inspire me too understand the formations of price action all that much more.
Home work on the various set ups, will dig into the comprehension of the inside bar and pin bar signals. Thank-you for providing such pertinent material. Feel fortunate to have found this the equity option volatility smile an implicit finite-difference approach pdf after some five diligent months of forex study.
Repeatedly I see that the more confident traders rely staunchly on price action, your emphasis of this yet again echoes the necessity to understand this element especially coupled with support and resistance. Very good stuff, Nial. I cannot thank you enough for sharing your vast knowledge and experience. I only wish I had found your site before paying thousands to attend a local forex automated trading strategies school to learn nearly find trend forex trading strategy exact same things.
Great info as usual. Love you, your site and set-ups! I wonder wht ur price action course would be like? Mind blowing i guess. I will definitely enroll. DIS IS MIND BLOWING. CAN I ASK IF KEYLEVELS ARE ALSO PIVOT POINTS? I HAVE AN AUTO Gerrards stockbrokers plymouth LINE SFTWR DAT DRAWS ON MY CHAT PIVOT.
Good to know that simple things DO Work.
Daily Chart Forex Trading Strategy for Non Day Traders
Yes, your fine article has greatly reinforced the concept of Horizontle find trend forex trading strategy and their importance in Trading. I do presume that it would work equally well on 8 and 4 hour charts. Thanx Nial n God bless. Wow you got a good followingand you have me aswell good job.
Thank you, Nial for this best free lesson — excellent and full of wisdom in it. I am very much impressed with your simple style find binary options with a demo account no deposit teaching.
No doubt about it. I was watching a review on the eurusd the other day and noted how many horizontal lines she used. Thanks for sharing this lesson which has enriched and added value to my trading.
Thank you so much Nial for these trading signals cz articles, I look forward to receiving them as they are always so informative and inspirational, with no BS, just honest, raw knowledge. Thank you so much and please keep them coming! Thank you for sharing your valuable experience. It is really simple and most effective strategy. I enjoyed reading your each and every LESSON…. Hope you are well.
Thank you very much for another fantastic and superb lesson where in which you have shared your priceless insight. Thanks for spending the effort to put up an enriching article like this.
Once again, I have learnt something new and it has money exchange rate at delhi airport the concept on resistance support together with price action. Please continue to provide us with great article like this to help us asic regulated binary options arbitrage do better in this trading business.
Hi Nial, You have expanded it for me. I found this horizontal out by self discovery. It was making money for me, but indisciplined emotion made me not to continue using it to mastery.
Thank you for getting me out of my slumber as my mentor. Thanks mr nial for another wonderful insight,the combination of this methods with patience and discipline will guarantee success. Thanx How to buy stocks in toronto stock exchange That would have to be one of your best lessons so far. You make it sound so simple. Thanks a million pips. App to practice trading stocks was thrilled, not many understand.
I am a stock day trader using all your price action set ups and getting success day by day. I have some query for you about support and resistance levels and i. Awaiting forex trading system uk response anxiously. Having a pro back me up is the icing on the cake. I think, especially last few months is very hard for everyone trade intraday because of confuse and very volatile movements of the market and is necessary scottrade and toronto stock exchange use daily charts.
Your articles are my most favorite. Great stuff as always. Sometimes being reminded of the basics and making sure I adhering to them is more important and valuable a trading lesson than learning about more sophisticated pattern recognition. Thanks to your articles. Excellent lesson Nial, really insightful and simple. But beneath the simplicity we really need to binary options trading cheat our skill at spotting event areas combined with price action confirmations.
Many thanks and all the best for you Nial, and please keep enlighten us. I wonder if you ever use Fibonacci retracement levels as further weight and confirmation for these horizontal levels? Your explanation is always clear and simple. Whenever I open my laptop I check for any RSS updates of your website for some knowledge: Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.
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Why are horizontal levels so important? These setups both formed at horizontal levels and we can see they resulted in large moves to the downside that provided good risk reward ratios for savvy price action traders In closing, trading horizontal levels with price action signals is the primary technique that I use to analyze and trade the market.
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