A Winning Price Action Trading Strategy

A Winning Price Action Trading Strategy
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Money Making Traders

It’s no secret that one crucial factor price action distinguishes those who evolve into money-making traders, consistently profitable, from the majority who find themselves in the unfortunate 95% – those who give up on trading, blow their accounts, or fail altogether. This decisive factor is a strategy that remains consistent and yields profits over time.

While it’s essential to recognize that a money-making strategy is not the sole requirement for becoming a profitable trader, it stands as a non-negotiable foundation. Without such a strategy, achieving consistent profitability becomes an elusive goal. In this video, my aim is to dissect a trade I executed on the New Zealand dollar. Simultaneously, I’ll impart the comprehensive strategy I’ve employed for over eight years, successfully extracting profits from the market throughout this entire period.

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Trading Strategy

I’ll catch you after the intro and disclaimer. First off, let’s go through what a trading strategy is, along with why we need one and how to create one for those of you who are brand new. Then, we’ll dive into the entire rule set for the whole strategy itself price action. Let’s get started with what a trading strategy is.

A trading strategy is simply a method of buying and selling based on a set of predetermined rules that we use to make trading decisions. This strategy and set of rules constitute a fixed plan that we use every time we step into the markets to place trades. Think of this as counting cards in blackjack. In a casino, the house always has an edge, even in the game of blackjack. dvantage over the market. This is how professional traders consistently extract profits, relying on a methodical and rules-based trading strategy.

Potential Trade

Moving on to how to create a trading strategy, we use the acronym CEST: Conditions, Entries, Stops, and Targets.This phase sets the stage for a potential trade.

For a bullish trade entry, we wait for a pullback into the top layer of the accumulation zone. This forms the entry condition (E).

Moving to stops and targets, we employ the Average True Range (ATR) indicator for setting stop-loss levels price action. The ATR provides an average of the last 14 candles’ price movements, helping adapt the stop-loss to market volatility.

Targets, on the other hand, involve looking at the structure on the chart. The goal is to achieve a favorable reward-to-risk ratio.

The triangle of trading success emphasizes the need for a proven strategy, sound risk management, and a disciplined trading psychology. These three elements work together to create consistent profitability over time.

Remember, a strategy alone won’t make you profitable price action.


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