Forex Trading Strategy: Using Price Action On ANY Chart
Hi traders it's Bruce banks here and I'm going to go over a key forex trading strategy and this is something I think should be taught as one of the first things any trader learns and should be one of the key things that every experienced trader looks at when they're doing technical analysis because there's so much value behind this it's the highs and the lows and that might seem like an incredibly common and simple subject but you can really go into depth on this and I have before but there's going to be a brief overview giving you an understanding of it now if we just mark off and look at this one chart we're on the euro US dollar right now and we see there's highs and lows in the market but the key thing to look at is exactly what these highs and lows represent and what they represent is extremely significant it's an agreement between buyers and sellers at that specific time on the maximum or minimum value of that forex cross it might not seem to significant but it really is because that's every trader out there who's trading right now and as a whole the people have their stops and people have their buyer and sell orders in that's an agreement on that price and so we have to pay a lot of attention when we're doing a high-low analysis on these levels take for instance is this high here now this is extremely significant because in this period that we're looking back right now in this is spanning multiple mon-sol away from August till now November this is as high as the market was able to make it so what that tells us exactly that at this point the market decided this is the most anyone who's willing to pay for this similarly relatively the more reasonable one here and this is the level where traders agreed as a whole that this is low enough you know whether it's going to be support in the market there's traders flooding into this market at this point saying that's low enough you know we're ready to buy as a whole now what causes these on a chart it's an important thing to actually dive into you know you're looking at the market psychology behind this and the market psychology one of the aspects of it is the agreement between these buyers and sellers what causes that agreement it could be an entire host of things you know the markets go up and down for varying reasons you know we're looking at a Forex cross here it could be bad economic date data coming from the USA or europe forec the market up or down it could be a trade deal going through and there's a lot of fundamental analysis that goes into those reasons now I'm more of a technical trader and I don't pay as much attention to fundamental analysis outside of a general overview and one of the reasons I'm able to do that is because I analyze the highs and the lows in the market because by analyzing these highs and lows I'm able to instead of looking at the fundamental analysis and picking apart the news data I'm able to analyze exactly what that news data displayed in the reaction to it on the charts now I've gone more into detail on this subject in other videos and other courses but the brief overview is you can see if you outline the highs and the lows we have a continued series of lower highs now what's that tell us that tells us the general consensus is the fact that say we made the market high here now as the trading continued on in the year they push down because you're going to get ups and downs in the market that's just what's going to happen they were only able to push it down so far now it's rarely going to be a straight run to the bottom unless you know say it's a stock and there's absolutely no value or you know say there's a horrible horrible thing happening in the currency or in the country that's the currency is based in and there's no faith left in that currency and the major crosses we're not going to really see that too often something like that happened with the euro CHF you know the Swiss franc when they decoupled themselves from the euro but again the faith came back you know wasn't a total erase the bottom there is a bottom where traders had faith in that again the key thing we're looking at here exactly how far down they were able to push the market because we had a lot of people you know there were people at the very top here who bought at 143 68 there were people that had faith in the market was continuing upwards and there were a lot of people who had faith the market was overbought and the fact that you could push it back down you know in the short term they were correct they pushed the market back down and this point is extremely significant here this first low because this is where the sellers lost their momentum this is where the buyers came in and said no no no this is this is a good price for this pair right now we want to take this and we want to actually put in a lot of volume and by here and they were able to regain control the market they managed to push the market back up to the new high now it's really important take a look here and see that it's a lower high in the previous so all the strength that the buyers had in this market wasn't enough to even push it up to create a new high not only that but it was a doji bar so it wasn't even able they weren't even able to push this market up and close the market of this level they were able to push the market up in today but the really key thing to look at here is the fact they didn't close the market at that higher level the reaction the next day from this low not only lower high but lower doji bar high was the fact that there was a contention the market they were still trying you know this the buyers were still trying to push this market up here but they failed and ultimately ended up with another low and if we look at this it's actually a lower low than the previous one not by a large margin and itself is a long wait going down to that but if we just look back you know we ignore the right side of the market here what do we have we have a sick definitely um a significant looking lower high and we have two lows that are near identical but the market had more strength here on the downside and that's extremely clear just by looking at this price contention or these highs in these lows and the disagreement between buyers and sellers so what happens next you know the markets not going to go straight down so the market makes another attempt upwards they push up in the market and they make a new high now here is really where the buyers case for you know thinking the market is going to go up kind of starts falling apart because the high they make is nowhere near the previous two so all the buyers are looking at this data before them and they're seeing the exact same thing that all the sellers were seeing and they're seeing that the buyers are seeing that they just don't have the strength in this market and that's when you get the fall off that's when you get all the faith that the buyers had slowly dwindling you know they're putting in their stop-loss levels right around this level because these lows were retested once and twice so they're putting their stop levels in below there cuz they're like you know if you know the sellers thinking if it goes below this then we're in for a bad time and you see this as the market you know we fail on this new high and the market starts coming back down and as soon as it breaks this low you know we tried one day here and then my sellers were able to keep it up but as soon as the buyers came in and started forcing the market down down the stop orders got hit and the marker rocketed down to a new low which again is extremely significant because we have to look at this new low and this new low is stating the fact that all the sellers that you know all extraordinary all the buyers that were back up in here you know all the way in the chart months ago they're coming in now and they're saying no no this is the level this is a line saying that we're drawing and we think this is a good price to buy this particular forest cross so they come in with strength and like I said it's never a straight run up we're never going to see that we're going to see a run up and there's going to be that point where the market turns around and we've just recently hit that here with this new high now what's that tell us well it actually bounced right off of level right here where we had the two previous lows and it came right up to those two previous lows one thing we have to think about is the fact that these levels of price agreement where the market turns around can be considered as points of support as a lowes and resistance as the highs but also once the markets broken below them they actually become points of resistance for the market so now the markets going back up here to break through these two lower levels is an area of resistance for the market so we ended up having the market come up bounced off of that point of resistance that used to be prior support for the market is extremely brief overview on this subject but it's one that I've gone to detail in many of my videos and I think it's such a basic simple concept that you can look at on any chart without any charting software you know you can pull this up on any of the online platforms and take a look at it and do a really in-depth analysis on exactly what highs and lows are telling you about the market and more importantly understanding exactly why these highs and lows are created this is Bruce banks saying enjoy trading
Forex Trading Strategy, price action, forex trading for beginners, Forex, forex market, daytrading, Price action trading, day trading, how to trade, forex trading strategies, trading, technical analysis, daytrader, swingtrading, NinjaTrader, trading system, trading forex, FX, market, Envisionchart, Bruce Banks, trading 101, forex trading strategy, price action trading strategies, price action forex, forex price action, short term price action
Hi traders it's Bruce banks here and I'm going to go over a key forex trading strategy and this is something I think should be taught as one of the first things any trader learns and should be one of the key things that every experienced trader looks at when they're doing technical analysis because there's so much value behind this it's the highs and the lows and that might seem like an incredibly common and simple subject but you can really go into depth on this and I have before but there's going to be a brief overview giving you an understanding of it now if we just mark off and look at this one chart we're on the euro US dollar right now and we see there's highs and lows in the market but the key thing to look at is exactly what these highs and lows represent and what they represent is extremely significant it's an agreement between buyers and sellers at that specific time on the maximum or minimum value of that forex cross it might not seem to significant but it really is because that's every trader out there who's trading right now and as a whole the people have their stops and people have their buyer and sell orders in that's an agreement on that price and so we have to pay a lot of attention when we're doing a high-low analysis on these levels take for instance is this high here now this is extremely significant because in this period that we're looking back right now in this is spanning multiple mon-sol away from August till now November this is as high as the market was able to make it so what that tells us exactly that at this point the market decided this is the most anyone who's willing to pay for this similarly relatively the more reasonable one here and this is the level where traders agreed as a whole that this is low enough you know whether it's going to be support in the market there's traders flooding into this market at this point saying that's low enough you know we're ready to buy as a whole now what causes these on a chart it's an important thing to actually dive into you know you're looking at the market psychology behind this and the market psychology one of the aspects of it is the agreement between these buyers and sellers what causes that agreement it could be an entire host of things you know the markets go up and down for varying reasons you know we're looking at a Forex cross here it could be bad economic date data coming from the USA or europe forec the market up or down it could be a trade deal going through and there's a lot of fundamental analysis that goes into those reasons now I'm more of a technical trader and I don't pay as much attention to fundamental analysis outside of a general overview and one of the reasons I'm able to do that is because I analyze the highs and the lows in the market because by analyzing these highs and lows I'm able to instead of looking at the fundamental analysis and picking apart the news data I'm able to analyze exactly what that news data displayed in the reaction to it on the charts now I've gone more into detail on this subject in other videos and other courses but the brief overview is you can see if you outline the highs and the lows we have a continued series of lower highs now what's that tell us that tells us the general consensus is the fact that say we made the market high here now as the trading continued on in the year they push down because you're going to get ups and downs in the market that's just what's going to happen they were only able to push it down so far now it's rarely going to be a straight run to the bottom unless you know say it's a stock and there's absolutely no value or you know say there's a horrible horrible thing happening in the currency or in the country that's the currency is based in and there's no faith left in that currency and the major crosses we're not going to really see that too often something like that happened with the euro CHF you know the Swiss franc when they decoupled themselves from the euro but again the faith came back you know wasn't a total erase the bottom there is a bottom where traders had faith in that again the key thing we're looking at here exactly how far down they were able to push the market because we had a lot of people you know there were people at the very top here who bought at 143 68 there were people that had faith in the market was continuing upwards and there were a lot of people who had faith the market was overbought and the fact that you could push it back down you know in the short term they were correct they pushed the market back down and this point is extremely significant here this first low because this is where the sellers lost their momentum this is where the buyers came in and said no no no this is this is a good price for this pair right now we want to take this and we want to actually put in a lot of volume and by here and they were able to regain control the market they managed to push the market back up to the new high now it's really important take a look here and see that it's a lower high in the previous so all the strength that the buyers had in this market wasn't enough to even push it up to create a new high not only that but it was a doji bar so it wasn't even able they weren't even able to push this market up and close the market of this level they were able to push the market up in today but the really key thing to look at here is the fact they didn't close the market at that higher level the reaction the next day from this low not only lower high but lower doji bar high was the fact that there was a contention the market they were still trying you know this the buyers were still trying to push this market up here but they failed and ultimately ended up with another low and if we look at this it's actually a lower low than the previous one not by a large margin and itself is a long wait going down to that but if we just look back you know we ignore the right side of the market here what do we have we have a sick definitely um a significant looking lower high and we have two lows that are near identical but the market had more strength here on the downside and that's extremely clear just by looking at this price contention or these highs in these lows and the disagreement between buyers and sellers so what happens next you know the markets not going to go straight down so the market makes another attempt upwards they push up in the market and they make a new high now here is really where the buyers case for you know thinking the market is going to go up kind of starts falling apart because the high they make is nowhere near the previous two so all the buyers are looking at this data before them and they're seeing the exact same thing that all the sellers were seeing and they're seeing that the buyers are seeing that they just don't have the strength in this market and that's when you get the fall off that's when you get all the faith that the buyers had slowly dwindling you know they're putting in their stop-loss levels right around this level because these lows were retested once and twice so they're putting their stop levels in below there cuz they're like you know if you know the sellers thinking if it goes below this then we're in for a bad time and you see this as the market you know we fail on this new high and the market starts coming back down and as soon as it breaks this low you know we tried one day here and then my sellers were able to keep it up but as soon as the buyers came in and started forcing the market down down the stop orders got hit and the marker rocketed down to a new low which again is extremely significant because we have to look at this new low and this new low is stating the fact that all the sellers that you know all extraordinary all the buyers that were back up in here you know all the way in the chart months ago they're coming in now and they're saying no no this is the level this is a line saying that we're drawing and we think this is a good price to buy this particular forest cross so they come in with strength and like I said it's never a straight run up we're never going to see that we're going to see a run up and there's going to be that point where the market turns around and we've just recently hit that here with this new high now what's that tell us well it actually bounced right off of level right here where we had the two previous lows and it came right up to those two previous lows one thing we have to think about is the fact that these levels of price agreement where the market turns around can be considered as points of support as a lowes and resistance as the highs but also once the markets broken below them they actually become points of resistance for the market so now the markets going back up here to break through these two lower levels is an area of resistance for the market so we ended up having the market come up bounced off of that point of resistance that used to be prior support for the market is extremely brief overview on this subject but it's one that I've gone to detail in many of my videos and I think it's such a basic simple concept that you can look at on any chart without any charting software you know you can pull this up on any of the online platforms and take a look at it and do a really in-depth analysis on exactly what highs and lows are telling you about the market and more importantly understanding exactly why these highs and lows are created this is Bruce banks saying enjoy tradingForex Trading Strategy, price action, forex trading for beginners, Forex, forex market, daytrading, Price action trading, day trading, how to trade, forex trading strategies, trading, technical analysis, daytrader, swingtrading, NinjaTrader, trading system, trading forex, FX, market, Envisionchart, Bruce Banks, trading 101, forex trading strategy, price action trading strategies, price action forex, forex price action, short term price action
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