Forex Trading Strategies l Beginners Price Action Based On Supply and De...

Momentum trading

I take some time to update the text, But in the meantime we have some more clues that market activity was balanced inside the bracket and market was ready to squeeze outside the bracket but soon afterwards we saw some selling and Again today after the test we see some aggressive traders participate again and mark the price higher even strongly than earlier.

Another classic example of Momentum trading

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Role of Candlesticks and Trading Mistakes

Volatility bias.

Many traders become to trade move actively after volatility breaks, in other words they tend to be more active after «trending» days – days with extended trading range. But if you analyze market statistics for at least last 5 years, you will see that more often market tend to consolidate within a body of the elongated candlestick (of course, I’m talking now about daily charts) for 2-3 days.

Role of candlesticks In Strong volitality breakouts

There is a very simple explanation for such market mechanics. Big market participants rarely come to the market and drive it to a new prices, instead they prefer to act as a market makers – to provide liquidity. In other words – they don’t chase running market, they try to accumulate position in consolidation before (most frequently) or after (more rarely) the breakout to make sure that their average fill will not be the worst.

On Forex market, days with extended volatility often don’t mean anything, it can be simply a «shakeout» or a single player stepping in the market without intention to continue pushing it to whatever side.

Solution: Don’t chase the market, find accurate trade location after market settles or when breakout is ready to occur, not after that.

I have posted an example of both charts in two different ways of looking at both of them as It will clear the thoughts

Intraday updates Scalping techniques

Scalping in forex

It is important that we chose Smart logic when we decide to trade Intraday for scalping and "Scalping techniques" does not means that we have to trade daily and make 10-20 trades for 50-60 pips which is totally asking too much or target more than your potential.

For me its Scalping been 5-6 setups a week should be good enough for whatever comes my way and Never try to overtrade and always try strong trend currency pairs to offer me pullbacks whether long or short and That is what happen on Last Friday with usd/chf setups I target for Intraday scalping.

Excellent example OF Scalping

In the above mention chart price was in strong trend and then we see extended range which is a strong sign of Imbalance and then we have strong spike and immediate selling was seen the following day but I eyed that as an opportunity because price ended the day on lows and value was shifted immediately to that lows and also that was the confluence of the prior spike and that is what we need to target while it is also low of Blue Rectangle I mark on the charts.

That sort of state is called balance and when market sentiment is balance and Nobody dominate, then there is strong that prior trend will continue and that is what happened after consolidation for a session price finally breakout and gives us good 60-70 pips profit on the day.