Price Action strategy in PFOREX Assist
Eighty Sixth session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- How Price Action strategy works
- The Price Action strategy examples in PFOREX Assist
Price Action Strategy
Price Action is one of the best strategies on financial market that delivers highly successful trading signals. There are video and text formats of educational materials about Price Action with various algorithms and strategy structure for traders.
PFOREX provides profound and reliable trading courses about Price Action. The courses are in PDF, Text and video formats available on PFOREX Assist apps, PFOREX website as well as our YouTube and Facebook channels and other social networking websites.
Now let’s review brief description about this strategy.
In this strategy, traders can find spots where the price trend direction would change due to less tendency on the current trend. For instance, a Head & Shoulders pattern has generated a reliable signal in which the Take Profit is touched by the price trend.
In case that trader could not place an order based on that successful formed pattern, still he/she can place another order on the reversal direction after the Take Profit price is touched.
The Price Action strategy brings two Take Profit prices that increase the ratio of reward to risk. Traders can select one of them based on the other conformation as well as fundamental analysis. Those orders, traded based on that Head & Shoulders pattern, will be close hence the current direction will become weaker and the probability of a reversal trend will become much powerful.
In this strategy, traders must find the reversal spot correctly so the Take Profit price of the formed pattern must be detected accurately. Most of the time, the price trend will move sharply after the Price Action strategy is formed.
PFOREX Assist detection system applies the Price Action strategy based on Classic Chart patterns like Head & Shoulders and Double Top/Bottom to deliver highly powerful short/long term signals. The generated signals, based on Price Action strategy, are confirmed by other patterns and strategies such as Dark Cloud Candlestick or Overbought/Oversold conditions by RSI and Stochastic.
The specifications of this strategy are as follows;
- Market type: Trend & Range market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price:
- Buy Order: Over the Take Profit price of formed bearish pattern
- Sell Order: Below the Take Profit price of formed bullish pattern
- Stop Loss:
- Buy Order: Below the last candlestick on the reversal spot
- Sell Order: Over the last candlestick on the reversal spot
- Take Profit:
- Buy Order: Equal to length of the candlestick, over the entry price
- Sell Oder: Equal to the length of the candlestick, below the entry price
- Confirmations: Hidden Divergence, Divergence/Convergence, Overbought/Oversold and powerful reversal candlestick pattern
Now let’s check some examples of this strategy.
The formed Triangle pattern has showed the bearish trend and price trend decreased until the speculated Take Profit price equal to the height of that Triangle pattern below the Breakout spot.
The oversold condition is detected by the RSI indicator. This signal is confirmed by Engulfing candlestick, overbought condition as well as Hidden Bullish Divergence. It is highly probable that price would go up after the Entry Price is crossed by the market price.
On the next example, a Flag pattern has shown bullish trend in which price increased until the Take Profit price of this pattern that is equal to the half of the shaft of the Flag pattern. The overbought conditions, by RSI, Engulfing candle pattern as well as Divergence confirm the bearish trend. It is speculated that if the price crosses the Low Price of Engulfing candlestick then this signal would become active
Like other signals and analysis, the signals of this strategy would become active after the Low/High Price of candlestick on the reversal spot is crossed. Also, traders must use other confirmations for higher success rate on each one of the generated signals.
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.