We need to master a handful of trading strategies to master ourselves as a Price Action Trader. As Bruce Lee said ‘I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.’
As a price action trader, you will come across many strategies by reading books or watching video courses. I recommend you learn one of the best strategies that I use personally and advise my fellow traders to follow the same as it gives best result and easy to use and follow.
Enter a trade near Price Magnets. i.e., At or nearby –
Previous Day High, Low, Close
Previous Week High, Low, Close
Previous Month High, Low, Close
Below is the Screenshot of the chart-
EURUSD- Timeframe: 1 Month
Line Drawn on Previous Month High, color code Red (Line Width Highest, i.e., 4)
Line Drawn on Previous Month Low, color code Green (Line Width Highest, i.e., 4)
Line Drawn on Previous Month Close, color code Blue (Line Width Highest, i.e., 4)
Next Step- Shift to weekly timeframe
Line Drawn on Previous Week High, color code Red (Line Width, i.e., 3)
Line Drawn on Previous Week Low, color code Green (Line Width, i.e., 3)
Line Drawn on Previous Week Close, color code Blue (Line Width, i.e., 3)
Shift to Daily Timeframe
If you use Tradingview to do analysis, you can use an indicator to draw Previous Day High, Low & Close Price. Go to indicator section and type- PriorDayOHLC. Choose this Indicator.
Use Settings as:
Use an Indicator named EMA 21 to know the average price of a script.
Choose setting as
Save the chart and your chart will look like this
You have your important levels drawn on chart
Now, if you enter in a trade in any script at these levels you will have a higher probability of making money as these levels are price magnets and price retest these levels for confirmation. Even if you go wrong, the market will give you a chance to exit at breakeven. It is my experience in the last 8 years of active trading.
You can mark these levels in any chart and you will find that price is retesting the level and making good moves. Examples-
You can do the retest yourself. Happy Trading!!!
For any question, Please contact www.tradiify.com
Thanks you!!!
