Those who learn Forex for the first time tend to wonder what the basics of price action trading in the Forex market are. They are typically asking these fundamental questions as they are learning about the best trading method to be employed in the market. In this article, we have collected any information you need about these basic questions.
Price Action Trading and Some Basic Questions about It
We cannot deny that there can be so many things to talk about when it comes to this trading method. For novice traders, there must be a bunch of questions to ask about the basic of this method. If you find some problems in finding the answers, here we have put together some of the most basic questions about it.
What Is Price Action Trading Actually?
First of all, you will want to know what price action trading is. Price action is generally considered as a study about price movement in the aim of understanding things that have been happened, are happening and will happen in the market. Traders who trade based on this method are typically not engaged in technical indicators which use math formulas.
Other Basic Questions about Price Action Trading
In addition to the basic question about price action above, there are more questions that tend to be asked by new traders about price action trading. For instance, they may ask whether price action is useful or not in trading Forex and which time frame is perfect for this method. To get in touch with the answer, check this out!
#1 Is Price Action Useful for Trading Forex?
The answer is absolutely yes! Price action is known as one of the most helpful methods for understanding the market sentiment at the moment. This understanding is important for traders to formulate the right point of entry and exit in trading Forex. However, you should still remember that you need to keep learning and practicing constantly for the better.
#2 Which Time Frame Is Suitable for Price Action Trading?
A time frame is the first input that you need to set once you open a price graphic. There will be a lot of choices for sure, so you may find it hard to select the best time frame among the options. What you need to remember is that there is no time frame which provides such great result constantly.
#3 Which One Is Better: Trading with Indicator or Price Action?
This is another question that most traders ask about price action trading. It is said that this kind of question is actually unnecessary because you can actually employ both technical indicator and price action to forecast the Forex market. In case you find it hard to choose, you should explore both of the methods and find the right one.
#4 Is Price Action Trading an Element of Technical Analysis?
The answer for this question is yes. Well, price action is actually a form of technical analysis. As you may have ever known, technical analysis is about collecting market data including prices, volumes and times. In this case, price action focuses on the movement of price and time which makes it a method that is a part of technical analysis.
#5 Where Is the Best Site to Learn Price Action?
Lastly, you will like to know where to learn price action. It isn’t easy to find a good to learn
Forex trading. As one of the most excellent brokers, DIDIMAX offers
the best Forex education site for anyone who wants to learn further about Forex. You can take your time to explore this broker’s site for best Forex education materials.