How to improve Price Action: double Deposit protection

How to improve Price Action: double Deposit protection

How to improve Price Action: double Deposit protection

Decades of practice prove the success of Price Action. However, this method works much more effectively when combined with an additional filter that few people know about. It is about him and will be discussed in our article.

In this publication, you will learn how to use a simple method – using volumes and candle patterns – to analyze price behavior and determine high-quality entry points. Do you want to learn more about this topic? Then watch our webinar! In just one hour, you will learn how to analyze the Forex market using exchange volumes, find high-quality entry points to the market, and profitably scalpate within a day.
Probably, there is no such trader who at least once in his life has not asked himself the question of how to consistently trade in plus. There are two ways for a person who wants to trade Forex profitably. The first is the longest and most difficult – self – study, gigabytes of information, mountains of books and a lot of bumps on the forehead. The second is to seek the help of an experienced trader and save on time, Deposit and your own nerves. If this article is read by an experienced trader who has independently gone from novice to professional, they will agree with me.

In this publication, we will analyze several methods that allow us to analyze the price qualitatively and determine the best entry points. In a few examples, we will analyze the method of linking volumes to Price Action patterns, but we will leave all the most "delicious" things for the webinar.

First, let's look at how to interpret the "Absorption" candle pattern. Figure 1 shows an example of a bearish pattern (figure 1), i.e. a decline.
Figures 1 and 2 show examples of the candle model in the classic form, i.e. without volumes. Now let's look at how these candlestick patterns should be interpreted when using exchange volumes.

Remember: in the "Absorption" pattern, the volume of the absorbed candle must be less than the volume of the absorbing candle. In this case, the pattern is considered to be of the highest quality and has a higher probability of working out. If the situation is different – the volume of the absorbing candle is less than the volume of the absorbed candle – this pattern should be considered invalid.

The VSA analysis trading system is based on the logic of price behavior on volume. And if the absorbing candle has a larger volume than the absorbed candle, it means that the seller, in the case of a bearish absorption, is currently stronger than the buyer.

Figure 3 shows the same situation that was discussed in figure 1, but with the display of volumes. Note that the absorbing candle has a smaller volume than the absorbed one. And even though the pattern worked, i.e. the price went in the right direction, such a transaction is considered high-risk.
Figure 4 shows the same example as in figure 2, but with the display of volumes. As you can see in this example, the volume of the absorbing candle exceeds the volume of the absorbed one, the price has worked out the pattern, i.e. growth has begun.
As a result, we got a positive outcome in both cases, but pay attention to the number of points that the price passed in both examples. In the first example, when the pattern was not confirmed by volume, the price passed only 21 points, then turned around and went in the opposite direction (see figure 5). In the second case, the price from the entry point passed the distance equal to 65 points.
The conclusion is that if you want a successful, profitable trade, pay attention not only to patterns, but also to volumes.

Do you want to learn more about this topic? Then welcome to the course that will help you make a profit on Forex using exchange volumes! They speak about the interests of market makers, allow you to see their actions and recognize the moment of trend reversal.

Comments (0)

    Top