nick's forex price action strategy

Welcome to the latest edition of my Forex trading strategy. My Forex trading strategy is based entirely on price action, no indicators, no confusing techniques, just pure price.

I have been developing, tweaking, and improving my price action strategy since 2005. This trading strategy is ten years in the making; it has survived major changes in market conditions, high volatility periods, low volatility periods and everything else the Forex market has thrown at it.

And that is the beauty of trading a price action strategy...

... Indicator based strategies are locked to the market conditions they were created for. Price action is fluid, it easily adapts to changing conditions, to different pairs, to different time frames and even to different traders. Most importantly, price action allows you to keep your trading simple.

Keeping Your Trading Simple
The key principle of my Forex trading strategy is to keep trading simple. I am against over complicating trading. Because the simpler your strategy is, the more effective you will be as a trader.

One of the main goals of my price action strategy is to keep my charts clean. The only thing I place on my charts are support and resistance areas. I use these support and resistance areas in conjunction with candlestick analysis to trade Forex. Packing my charts full of indicators would make it impossible for me to read price action.

Trading with no indicators makes my Forex trading strategy simple, stress free and highly effective. What does a clean Forex chart look like? Here's a picture of my EUR/USD 4hr chart.

Forex trading strategy
My clean and simple Forex trading strategy
This chart is clear and easy to understand, there is nothing that distracts you from reading price. This is why I love my Forex trading strategy.

Some trading strategies are an absolute mess of indicators. Check out the image below, some people actually trade like that!

indicator based strategies
A messy indicator based Forex strategy
Why would you want to trade like this?

Indicators Required for this Trading Strategy
So to trade my Forex Trading Strategy I use no indicators.

I generally don't like using Forex indicators, as I find the data worthless, as they lag current price. If you want to be in the moment and take trades based on what's happening right now then you have to base trades on current Price Action.

Which Currency Pairs can you Trade Successfully using Forex Price Action?
My Forex Trading Strategy will work on any currency pair, which is free floating and regularly traded.

This is because my method is based on Price Action. This means you can use this trading strategy to successfully trade any currency pair you find on your Forex trading platform.

That being said, I personally prefer to concentrate on just a few currency pairs at any one time. I find it too distracting to try and keep track of too many pairs at once.

I mainly trade the EUR/USD, USD/CAD and AUD/USD. I generally trade these currency pairs as they are the most predictable and their movement is smoother. You don't find random jumps unless there's been some highly unexpected news, which is pretty rare.

If you prefer to trade a particular Forex session such as the London, New York and Asian session then choose the main currency pairs that are active at those times.

Price Action Trading Works Better on Longer Time Frames
Since this Forex Trading System is based on Price Action you can trade any time frame from one hour and above.

I mainly concentrate on the one hour, four hour and daily charts. These are consistently the most profitable, as the patterns are easier to spot and lead to more consistent profits.

Types of Price Action Analysis
Primarily, I use two forms of Price Action Analysis:

Support and Resistance lines.
Candlestick analysis.
How to Enter Trades using My Forex Trading Strategy
Due to the recent economic uncertainty and countries losing their credit ratings etc, currencies aren't trading as they normally would. This has led to me to trade reversals exclusively.

I look for strong reversal setups forming on top of my Support and Resistance areas. Once a pattern forms, that indicates a reversal, I set up a trigger price and enter the trade. I take several trades each week and average at least an 80% win rate.

Trading Strategy Targets and Stops
Targets: My targets are on average 80 pips.
Stops: My stops are on average 40 pips.

These targets and stops differ during different market conditions. I usually allow price action to determine my target and stop. This means I will read the candles and set my stop based on recent highs and lows. A common place for a stop will be above or below the most recent high or low. I will be expanding on this subject in the updated version of my free strategy due to be released in August 2015.

How to Adjust the Trading Strategy Around News Releases
I use the Forex Calendar from ************.com to keep track of economic data. Statistically I have found that avoiding high impact news releases is not beneficial; in fact, by ignoring most news releases, I end up making more profit...

... Why is this?

Banks and other large trading institutions pay millions for analysts and data feeds; this allows them to make educated guess about upcoming economic data releases. These guesses are factored into price before the data is released.

If a trade set up forms before a major economic data release, it can be a sign that large institutions are position themselves for the release. If price action is telling you to short, there is usually a reason!

The only news I avoid is unpredictable news or very high impact news, here is a quick list:

Speeches by central bank leaders or politicians.
Interest rate announcements or anything directly related to interest rates.
NFP report, the name changed a while ago to the "Non-farm employment change" report..

trading main sab say strong strategy jo kisi bhe trader k leay sab say zeada useful hoti hy wo us ki price action knowledge k oper kerta hain koin k ye iss market main sab say best strategy hy

prise action ko samjna parta ha trading k liye ku k forex ma kuch batien bohat ahmyat ki hamil hain jin ma prize action b ha is ma sab say m,ain step chart hai jis par ham market ki movement deakhty hain pher trade karty hain

Price action easa knowledge hy jes trader k pass hota hy wo koi indicator use kiay bagheer uss forex market say acha profit earn ker leta hy price action candles knowledge ko khety hain our previous candle close pay ap trade lay k earn kerty hain

Main bhe abhe forex main price action knowledge ko hasel ker raha hoon our ye sab say best knowledge hy jes main app clear chart k oper candles ko study kerty hoey us say profit earn kerty hain

bai ap nay mashallah boht achay tariky sy ye strategy apny doston k sath share ki hai mujy umeed hain k jab main is strategy ko use krun ga to boht profit kamaya ja skta hai aur is strategy ko use krny sy pehly isko demo k auper experience krna chaye ta k real loss na ho

aray bhai itni bari strategy is ko to parhne main hi itna time lage ga kia aap koi simple and short strategy nahee bata sakte ya koi aro member jis k paas simple strategy ho please yaha share kare

gee bhai hmein apne trade ke lie price action stategy ko smjhna hota he aur hmein apne trading mein updates hon aur apne trading mien jo financial insitutes hote hein un ke news ko follow knra hota he aur phr hmein apne trade se sahih fiada milta he