Forex price action strategies
——Never use failure price action techniques like fibos, trendlines and candles as price never react at those levels randomnly and if you expect trendline to hold the price when it is tested then think about it again because when I have to buy some dollars I wont check if a downtrendline is provide support but rather I would use that trendline to catch stops and always look for initial breakouts failure to catch the buy stop orders and after taking the stops for long trades I will catch sell stop orders just below the retesting candle and when market catch all the stops of sell orders then once again I have the best low price to buy and that is the logic of not using trendlines to predict randomn price movements.
Price action is the only and most effective tool
for trading, not only because it helps a trader to see the higher probabilities areas of trading but also most recent price level is used which can attract lot of orders e.g News can drive the price anywhere but after targets have been met we can see starting and ending points of targets provide strong trading levels and they are much more reliable in any case because that might be the areas where large bulk orders were placed and those who are still looking to enter the market after stop hunts can look to enter at the same levels and hence giving you an area to work with which is very reliable and logic behind is very clear.
We trade fibonacci waves, harmonic patterns in such a way to catch reactions at particular level again and again but common why market take turn at those levels again and again as price reaction at those levels is not random.
We just keep on learning different advanced price action techniques but never use our brains to come out with conclusions that what are the probabilities that a paricular fibo number will hold the price and a down or uptrend line will force rejection.
Shocking truth is these fibos trendlines and candles only tells 10% of the price history but as a matter of fact I never believe that a term trendline ever exists or helps trader to take trading decisions.
But as a matter of fact breakouts. Failed breakouts and approach to certain demand and supply level or retest of a particular are the most reliable and offer strong attribution of trading facts and as a matter fact are more reliable.