Those who are new to the trading industry are always looking for the Holy Grail. They want to make a profit in any market condition. Trading is all about finding the best trades at the complex market condition. Even after knowing all the details of the market, you are most likely to lose money on a regular basis. But the pro traders in the United Kingdom simply use a risk management policy to protect their trading capital. They never trade the market with a negative risk-reward ratio because it makes trading extremely hard.
Being a new trader in the Forex market, it’s better to learn the price action trading strategy. Never think you can make a profit with an indicator based trading strategy. Indicators are nothing but helping tools. So, which trading strategy should you use? The simple answer is the price action trading strategy. In this article, we will give you a precise guideline to trade the bullish price action confirmation signal with an extreme level of precision.
Single candlestick pattern
Before you start to trade the market, you need to learn about reliable price action signals. Though there are many complex price action signals, the pro trader prefers to trade the signal candlestick pattern. Being a new trader you should never trade the market with real money unless you can demo trade the market with proper confidence. Start to trade life using the single candlestick pattern. Since this article is about the bullish price action signal, we will highlight the key way to execute quality trades.
Find an uptrend
The first thing which you need to do is find the uptrend. Finding an uptrend in the CFD trading industry is a very challenging task. However, if you use the daily time frame and simple trend line tools you can easily make a profit at any market condition. Let’s assume you have found the bullish trend. Instead of executing the trade in the trend line you need to look for bullish price action signal. Being a new trader, it will be hard for you to trade the market with multiple candlestick patterns, so it’s better to stick to a single candlestick pattern trading strategy.
Though there are many single candlestick price action signal, you need to learn about the pin bar trading strategy. A pin bar is a reversal signal which has long wick or tail. The body is relatively small. If you spot such patterns in the key support level, you can easily execute long trade and make a decent profit in this market. Executing quality trades at the key support level based on a bullish pin bar is really easy. However, you need to learn more about risk management policies to become a better trader.
Use the demo account
Learning to execute long trade in the Forex market is not so easy. However, if you use the demo account offered by Saxo you can easily learn to trade the market with an extreme level of precision. Some retail traders often consider demo trading as a boring task but if you look at the professional traders, you will understand the importance of the demo trading account.
Learning to trade the bullish price action signal is really easy. Just find a bullish trend and wait for a minor retracement of the price. Once the price retest a critical support level, look for bullish pin bar. Execute the long trade with a tight stop below the tail of the bullish pin bar. Though the trading system is very you need to consider the associated risk factor. No matter how well you trade the market, you will never win all the trades. Losing trades are inevitable. But if you follow the basic rules of risk management and trade the higher time frame you can easily master a long term trading strategy. If required, seek help from trained traders to learn more about bullish price action trading strategy.