Through the first topic on the construction of the Forex trading system, you know the importance of the Trading System to be successful in trading FX. This article will introduce a specific transaction method called: Naked Trading. This tactic was used a long time ago, came from a Japanese Trader, pp facility is based on the majority sentiment expressed through the price pattern. The components in a system according to Price Action include: Models Japanese Candles price + model, a very simple but effective remedy due to the disadvantages of using Indicator System as immediate calculation changes according to price and easy occurrence of conflict between Inicator, actual g / d would feel worried if on command Buy and then back to the other signal System! true to its name, this method does not use any public Indicator but merely using price Action pricing model, without Indicator can still read price charts. So what is the pricing model and how to deal with Price action, we will look at: 1. What are the pricing models? Observation Chart after, this is the chart EUR / USD on timeframe M15 time frame: No need to plow more Indicator else, just guys that demonstrates Trendline support and resistance levels, Highlands trendline who rules fairly simple, just a minimum of 2 points to connect top or bottom of the trend line (trendline). Basically, a trend stopped and began to reverse when prices break the Trendline. In my experience, after breaking Forexcanban Trendline prices tend to revert back to test again. Now we have the opportunity to command, but to confirm trading signals in the Japanese candlestick pattern. The model appeared at every price chart from M1 to Weekly, so there are more opportunities for transactions Trader surfing on the M5 to M15 Chart. According to the authors should analyze Chart 1H 30M due to the short time frame is too prone to fluctuating noise. 2. Methods of dealing with Price Action Trading Steps Naked Trading with price patterns. Observe the chart below, do not need to pay any attention to the Indicator, focusing on the trend line to see clearly the Trendline Breakout point breaks and the next trend. First we define mainstream in the market Trend, blue Trendline shows EUR / USD is rising. The guys Trendline quite simple, just connect two bottom support, this makes PSYCHOLOGY called support, whenever approached Trendline prices, the majority tend to turn up again following the trend, so the opportunity to buy to appear at the point of Trendline Support. On a larger trend with small waves, the adjusted reduction, you see the rectangular channel (term expertise in Price Action called pennant pattern) Whenever increased break "rectangle", the it is also appropriate to buy. Closing command when? I will escape to the touch commands profit target (take profit) or Stop losses (Stoploss) The hole is cut below the Trendline, reasonable set here to protect the safety of your account. Do not be hit Stoploss swoj every week as a rule manually after the command will remain profitable. After long time business by pricing model, the authors found that the probability of winning the game was very positive (70%), therefore, simply a "bargain" rate of eating: lose 100% greater than 1, it will be war win. the trick to define a good trading opportunity? Based on the criteria that are low risk and high profit opportunities, the author has one tip to share your Trader, which is used to confirm the pattern candlestick reversal signal, when prices approach the trendline, not necessarily going to immediately order that it appears WAIT reversal candle patterns, after the candles Confirm then confidence in order and stop loss point below the shadows. Conclusion: the model is the method of price price Action current transactions effective, this strategy has many advantages as consistency, Trader by heart models could read quickly understand the market, identify opportunities attractive deals with high probability of winning and risks low, then do not forget this lesson practical application on a virtual demo account then, if you are trading on a live account, add Price Action in the toolbox of your transactions.
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