The Price Action Trader

   Good patterns are self evident. If you cannot spot a pattern within seconds, you are likely injecting bias into your analysis. There is always a better trade coming for those who preserve their capital You faith should be placed on a process, not on a position or opinion. Thinking that a market is going up is never a good enough reason to be long. Charts are useful for trading only when patterns are clear and prices follow through When in doubt, stay out. Higher timeframes have more influence on price than lower timeframes Successful trading entails having both the trend and probability on your side. Put work and time into developing the mindset that gets you where you want to be. More chat work is not always the answer. Profitability over an extended cycle will be the cumulative result of good decisions made and bad decisions avoided on a compound basis over time.

 A classic chart pattern runs the risk of failure when unfavourably  located within the bigger picture                                                       Strong signs of contrarian aggression within a correction should instill suspicion if positioned in  line with  the break. Potential companions may view the correction with less appetite. When is such a position it is best to embrace a better safe than sorry principle. Overrule the instinct of flight and judge the situation purely on technical grounds.  The first pullback to the moving average after a breakout is typically the strongest to trade, but it has to be supported by additional confluence. If you are regularly caught in ventures that are okay on the onset yet rather questionable in hindsight, chances are your perception of odds is affected by your desire to trade. W...

Welcome to today's weekly forex forecast. I will take you through how I plan to trade the EURUSD and GBPJPY for the week ending 19 January 2024. Watch the video below and scroll down for the annotated charts and analysis : EURUSD The price has been ranging since the false break event was confirmed at the beginning of the year. As long as 1.100 holds as resistance, I will remain cautiously bearish targeting a move towards the 1.0800 region, the next key support area. GBPJPY Price action is bullish following the breakout event on Wednesday 10 January. I anticipate the breakout area of 184 to act as a role reversal level i.e. new support for the PA to be convincingly bullish. Given the overall trend is still ranging, I will approach this setup very cautiously.

Missing a true opportunity due to lack of vigilance, persistence, and preparation can be as harmful to your full cycle P&L as taking unnecessary large losses. Automaticity, coupled with experience is the difference between master and novice. Get there through practice, contemplation, and absorption of patterns. Invest in proper form and technique. Having a learned discipline, fluidity, and focus in one area, the mind then has a foundation for advancing to more challenging areas with a sense of structural familiarity. Mounting danger signs should be noted and heeded and risk control for the sake of avoiding severe losses is half the battle if not two-thirds of it. It’s rarely a mysterious technique that drives us to the top, but rather a profound mastery of what may well be a basic skill set. Profitability over an extended cycle will be the cumulative result of good decisions made and bad decisions avoided on a compound basis over time. The more that form and technique are perfecte...

The current resistance is at the 0.6400 - 0.6375 range. Last week's price action saw the level hold as the price reversed and is currently at  0.6200 , a swing point on the chart. For the coming week, a close and hold below 0.6200 could see the pair rally back to the recently broken 0.6050 role reversal level. If 0.6200 holds as support and the price paints a continuation of the bullish rally, I will be taking a long take targeting 0.6400 and 0.6500 depending on what the chart prints. Check out the video analysis for the analysis