Learn to Trade Forex: Our basic price action swing trading strategy explained
|My name is Zan and I am going to teach you and explain the basic top-down approach of the BecomingTraderFX Academy trading system. To become a successful forex trader you need 3 fundamentals: Trading Strategy , Trading Mindset and Risk Management rules. The basic trading system is based on technical analysis and easy to understand.
If you understand how it works you will figure out how profitable trading the Forex market can be, but without the positive attitude, focus and correct money management it will be as useless as every other system out there. Welcome to this trading strategy , style video where do the simple but powerful top-down approach to identify market behaviour, direction. Simple trading strategy, approach with powerful money management rules and simple trading rules combined with right trading mindset, psychology is the key to long-term success in trading forex.
Risk management rules and correct trading psychology is our best trading edge, once we learnt to read the price action and market behaviour. Before we will go into our entry and exit trading rules, we will cover our top-down approach. Top-down approach simply means that we start on high timeframes first, and then go to lower time frames. Before you try to look for possible trading opportunities you need to understand the general market direction and market behaviour based on the price action and support & resistance zones.
My trading style is swing trading which means trading based on the higher timeframes in the direction of the major trend. In Uptrend we want to look for buying opportunities. In Downtrend we want to look for short opportunities. I am using Weekly, Daily and 4-Hourly charts to prepare myself for every trading day. Trades are taken from 4-Hourly charts. Please note you can also use 1 Hourly charts when it makes sense and if you like trading lower time frames. On a daily basis I focus on bullish or bearish candlesticks Price action found around Support & Resistance Levels, and in Trend Direction. By mastering our trading approach you will be able to find a lot of trading opportunities, but that does not mean you should try to trade and catch every single market move.
Try to limit your number of trades taken every week or month, by picking only “great looking” opportunities that look good in terms of price action context and make sense in terms of approx. Risk:Reward ratio. I prefer to trade less, and better than overtrade to lose money. I believe not trading in bad market conditions is making money too. But, I must make sure that every trading idea looks good and makes sense. Our trading strategy relies only on technical information. I do not care about the news and predictions about the economy. I believe all fundamentals and news are in charts already. The Price is only a real indication of the market. I do not listen, watch or analyse the fundamentals and news.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.