PASR Forex Trading Strategy
PASR: Price Action
Price itself is price while action is action.It can be concluded that price action is an action system of price movements in the past that is used as a reference source for a trader in making transactions. Many people mistakenly think that relying on this price action pattern can guarantee the next price direction. And many traders also mean that price action can provide benefits in transactions. Well, this price action must be balanced with an analysis mechanism to make a decision because price action cannot stand alone. By understanding this trading price action method, when the pin bar forms a pharmacy trader can activate and identify the trend that is happening. This can help traders to make the match even better. In this price action method, to enter the market the trader must see the trading signal from the pin bar formation. The longer the axis on the pin bar, the stronger the reverse trading level, the shorter the pin bar axis, the trading level will be weaker. A good trading signal usually the pin bar will stand out at the support and resistance levels indicating revelsal.
Support and Resistence
The support resistance itself is the highest or lowest limit of a price movement where in a range it cannot be penetrated and held to move further in the same trend. Well, this support and resistance level is closely related to supply and demand laws. Where in this condition will create a market saturation point that makes the trend can turn around to look for new movements. The support resistance says, when the price movement approaches market support it will react to the price being lower. Whereas when the price movement nears the resistance line the market will assume the price has soared. Even so, sometimes if price movements can penetrate the support resistance level , because it is caused by the price and demand and supply factors. For traders, this support and resistance can determine the level that can determine their position in the market.
In studying trading it is necessary to determine the price action method and resistance support. Both cannot be separated and are related to each other. A beginner’s trading success is determined by how the trader learns trading methods and strategies properly. How come? Traders must be able to hone strategies so that success and profits in trading can run as desired. If a trader is unable to use it properly, trading will have a negative impact on traders.