Wednesday, November 6, 2013

750 - Price Action Notes

Price Action strategy mainly consist of 2 most important factors.

Resistance/Support lines and Price Action. They have to exist together to form a confluence.

The faster way to look for any opportunity to trade this strategy is to actually scan for any Price Actions signals first. 
  • Pin
  • Big Shadow
  • Head n' Shoulders
  • Inside bars
The reason is because these signals happen rarely, and there is no point in wasting time looking at Resistance/Support zones when the signals are not there yet. 

Also, use 4 hour instead of Daily charts, as there is a higher frequency of Price Action. 4 hours is also the minimum recommended by Nial Fuller, any lower time frame will have a plenty of noise on the chart.

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