| Forex markets are inherently contrarian. This means | | | | the analysis of price action. All you really need to know |
| that they are regressive and have a natural tendency | | | | are a few simple patterns and basic chart support, |
| to pull back to the mean price. This is a big reason | | | | resistance, and trend lines and you have enough |
| why so many beginning traders lose all their trading | | | | information to put together a profitable trading method. |
| money and give up. The fact is that most of the time | | | | Some people try to program indicators and even |
| when it feels safe to enter the market it is probably | | | | develop new ones because they mistakenly believe if |
| not. When a move in the market is greatly extended in | | | | they put more math and study into their trading |
| one direction and looks like it will keep going this is | | | | technique they will be further ahead of other traders. |
| usually the exact time it is about to fall back and | | | | This simply is false. While you do need some sort of |
| correct itself. This extension also happens to be the | | | | education in technical analysis and price action, it |
| time most beginning traders tend to enter the market. It | | | | doesn't need to be complicated or involve programing |
| often takes months or years of losing money before | | | | expert advisors and other fancy nonsense. |
| traders learn that they have to wait patiently for the | | | | Once you develop a keen eye for price action setups |
| market to contract before entering, and many traders | | | | you will be able to tell if it's unsafe to enter a trend or |
| give up before they finally realize this truth. | | | | that the trend is ready to resume. It's all right there on |
| Most indicator based trading systems simply do not | | | | the chart, you just need to be shown the way by |
| work in strongly trending markets. They will give you a | | | | someone who has walked in your shoes and made it |
| sell signal long after a market has started correcting | | | | down the path to trading success. Price action can be |
| back down and the correction is almost over. | | | | a great aid to developing your discipline in the market |
| Sometimes they give you a sell signal at the very time | | | | and shaping a relevant market perspective. If you are |
| the correction is over and you should be looking to get | | | | just starting out and this is one of the first trading |
| long again, or vice versa. If you know how to tell based | | | | articles you have read than I strongly urge you to |
| off pure price movement when a market is exhausted | | | | check out an education in price action. Go to YouTube |
| or when it is ready to break out then you have the | | | | and type in "forex price action" or "forex price action |
| keys to building a highly profitable and consistent | | | | strategies" and see if you like what you find; there are |
| trading method. | | | | many good free sources of price action information on |
| Price action analysis is the best technique for learning | | | | YouTube. Price action analysis has been the key to |
| to profit from the forex market. There are usually | | | | my success in the markets and I hope it will be the |
| tell-tale signs a market is ready to correct or the trend | | | | key to yours. |
| is ready to resume that are readily apparent through | | | | |