Forex trading with Price action Strategy
The price action strategy based on the price movements that come over in the currencies involved at the Forex trading platform. This strategy always keep in concern that the target of achieving success at the platform is maximum profits with minimum loss so all that is required is the focused approach in combination with the significant strategy.
One such strategy, a part of price action strategy is the Inside bar strategy- system accepted all over with a thorough loss and win ratio depending on the proper entry conditions in to the system. There is no need to trade through indicators and can be applied on the Forex bar charts or candlestick charts for making trading more interesting.
Characteristics of Inside Bar Forex trading strategy:
1. Clearly defined entry conditions
2. High rate of success
3. Very simple chart system
4. Proper condition seldom occurs
This trading strategy of inside bar or a candlestick that suitably fits into the first earlier bar or the bar refer to as container bar involving high and lows of the value of the involved currency pairs helps in making trades better.
When the current bar has an index of 0 and the preceding bar has an index of 1 and the following conditions holds true for the current bar that is considered as an inside bar- High[0] < High[1] and Low[0] > Low[1].This equation formulates the success at the trading platform.
The bearish inside bar, which follows a bullish container bar on the noticeably perceptible upward moving signaling a short position at the Forex market. While the bullish inside, which follows a bearish container bar on the noticeably observable downward moving trends signaling a long position at the Forex trading platform.
The stop-loss is placed to the low of the container bar for the long positions and to the high of the container bar for the short positions at the Forex market, then trying to take profit from the closest support and resistance level formulated by the trends.
Source: http://bestfxadvice.com/