Access to this page has been denied because we believe you are using automation tools to what is a candlestick in forex trading the website. This ADX Swing Trading Strategy is based on the ADX Indicator.
The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. ADX will not tell you if the trend is up or down-it just tells you the strength of the current trend, whether it be uptrend or downtrend. High readings indicate a strong trend and low readings indicate a weak trend. When this indicator is showing a low reading then a trading range is likely to develop. Avoid trading currency pairs with low readings!
You want to be trading pairs that have high readings. Trying to trade according to these two lines is your surest way to lose money-and its even more confusion. The only thing that we are concerned with is the ADX indicator itself. In the chart above, the ADX indicator is the blue line .
The area in the brown rectangle box shows how this indicator identifies trading ranges and times when the market is not trending. The ADX is showing a low reading and notice that the currency pair is trending sideways. Now look at what happens when the indicator gets into higher territory, generally above 25. If you are looking to trade the ADX indicator, then trade when the ADX indicator is above 25. You will have a box pop up and then you can add ADX scale values like 25 as shown on the previous chart above. If ADX is between 0 and 25 then the currency pair in a trading range.
It is likely just chopping around sideways. Once ADX gets above 25 then you will begin to see the beginning of a trend. ADX is right around this number. When the ADX indicator gets above 30 then you are staring at a currency pair that is in a strong trend! You should be looking to trade these pairs when this happens. Note:You won’t see very many currency pairs with the ADX above 50.
Once it gets that high, you start to see trends coming to an end and trading ranges developing again. What forex trading strategies can you use with the ADX Indicator? In this website, here are a few I believe that you can use with the ADX indicator. You can leave a response, or trackback from your own site. The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition.
Below I talk about a Forex Candlestick Reversal Bar , one of my favorite Trading Strategy I use when trading from horizontal support and resistance areas of the daily charts. Often we see a trading range develop on the major pairs and following the simple laws of market rotation, we can trade reversal bar entry triggers from the higher resistance and lower support points of the trading range. In this video we are looking at how to trade forex price action horizontal levels and price reversals on the daily chart, nothing intra-day, I discuss how I made a 3 to 1 risk to reward daily time frame trade. Only clean charts in this video, no indicators, just price bars at significant horizontal levels. Price action actually means the activity of price or the ebb and flow of price itself, the facilitation of price from a to b then to b to c. It is very important that people realize that applying anything over their charts is second hand lagging data. A price-only daily chart shows you everything you need to see, which is the raw price data for each day, all you should be thinking about is plain vanilla price action.
Draw levels at the start of each week and leave them on the chart until they are no longer valid. The video shows a price bar reversal at 0. 8120 on AUDUSD, we had a false break of this key level, the long tailed candle in the video is a pin bar reversal, this shows us the market is likely to reverse lower or at least consolidate. When we have a resistance point and a price action sell signal as we did in this video it is called a confluence of sell signals, confluence of signals is what we want to see before entering any trade. Looking to make 3 times our risk, our risk was 70 so reward is 210. How you read the market or interpret these signals comes with experience and screen time, price action is a work in progress, you need to spend at least 10-20 minutes a day looking for setups after the daily close.
You won’t get good at price action trading without effort. I came across your site while I was trying to find info on the best trading tools. I have been reading, studing and thoroughly enjoying learning the price action method. As others have said its great to use a clean chart. I am back demo trading after a long break and am really excited and am feeling more confident about using price action.