Price Action

An abundance of complicated chart indicators, studies and other tools has led some people to question the wisdom of this approach.

A morning star strategy is used for trading on short swings in a downward trending market. The pattern usually shows up where the market has reached an oversold level.

Not all channels are easy to trade. In practice most aren’t. So an essential part of a price channel trading system is deciding which to trade and which to ignore.

There are three common price actions that happen at support and resistance. These are 1) price testing, 2) fake outs, and 3) breakouts.

This strategy works by detecting breakouts in EURUSD at times when volume is increasing sharply. Usually this coincides with the open of London markets.

You may have seen there are countless articles on the web declaring engulfing strategies are a sure bet and offer high probability trade opportunities. But does this approach really work? In this article I will do a thorough analysis of the data to prove if this method really stacks up.

This momentum strategy is very straightforward. All you need is the Bollinger bands indicator and to do some basic checking of chart candles. It trades on chart patterns that display signs of pending momentum – that is upward or downward acceleration in price.

Because of their properties hammer candles are a useful trading signal in two situations: Trend reversals and retrace scalping.