Price action trading strategy is one of the most popular trading strategies in the financial market. Most of the novice traders in the forex market tends to use the indicators based trading strategy but nowadays due to the availability of the online resources, even the rookie traders are learning the art of price action trading strategy. If you look at the professional traders than you will notice that every single one of them in the financial market is trading the live assets by using price action confirmation signal in the market. In this article, we will give three amazing tips to become a professional price action traders in the forex market.
Key support and resistance level: One of the most common mistakes that every novice price action traders in the financial market make is trading the minor support and resistance level. But if you truly want to execute the high-quality trades in the market it’s highly imperative that you trade the key support and resistance level. In order to find the key support and resistance level, you must use the daily and weekly time frame in the forex market. Finding the key support and resistance level is comparatively easy but trading them is extremely hard since you need to have the strong patience for this. So make sure you develop strong patience inside you.
Fibonacci retracement tools: Fibonacci retracement tools are one of the key tools for the professional long term trades in the market. Most of the novice traders in the financial market tends to trade all the levels in the financial market but as an intelligent trader, you should only trade the highly reliable retracement levels in the market. In the eyes of trained professional 31.2%, 50 % and 61.8 % are the most important Fibonacci retracement level. So make sure that you trade them with price action confirmation signals in the market.
Don’t add a position to your open trades: One of the most common mistakes by the novice traders are adding a position to the open trades. But this is one of the fatal mistakes that can ruin your account capital in single trade. As a trader, you should always focus on high-quality trade execution in the market and never execute your orders in the market based on the emotional decision. Make sure that you follow risk management factors in every single trade since it is one the most vital element that will keep you profitable in the long run.
Summary: By now you have read the most three important elements for becoming professional price action trader in the financial market. So when you trade the key levels in the market make sure that you use the higher time frame and trade the with price action confirmation signal. Since the trend is your friend so it’s better to use the Fibonacci retracement tools to enter into a trade in favor of the long-term prevailing trend. Last but not the least always follow proper risk management factors.