What is the Price Action Strategy?
Why do we call this method the Ropewalker method?
Step by Step to learn and action!
Risk management of this strategy.
One of the most popular strategies between forex traders, especially for who does not have time or any interest to follow the news and economic data as well as fundamental analysis. Or they believe that economic data does not effect on the market and it goes where it has to go under control of Big Players and all that they can do is to use opportunities. To be honest I can even say it is one of the most successful strategies.
First of all let's see what mean price action generally, in the first step. The price of all symbols in the market always moving up and down. Price action traders believe that it is always following from specific methods and by following these methods by learning more about candelas action, you can find always where to Buy / Sell and where to exit the market. We call this method Ropewalker because you have to keep your eyes on two lines of Moving average and must be able to walk accurately between them!
In this method, we will learn one of the specific ways of using this strategy. Remember that Price action by itself seems a very complicated strategy, that's why we will teach you some very helpful methods of using this amazing and profitable strategy!
Time to go!
Platform : Any - Trying on PC will work better than mobile APP
Symbol: Currency - Commodities - Cryptoes
Time: No limit
Time Frame: M30
Steps to get ready and Act:
1 - Select the symbol you want to trade.
2- Set your time frame on M30
3 - Insert SMA (Simple Moving Average) and add these levels :
- Currencies: 14 days Period - Add Level 100
- XAUUSD (Gold) - 14 days Period - Add Level 100
- XAGUSD (Silver) - 14 days Period - Add Level 5
- OIL - 14 days Period - Add Level 50
4 - Find the trend.
5 (A) - Uptrend: Wait for the time when Candles touch or become so close to MA main line > Buy.
5 (B) - Down trend: Wait for the time when Candles touch or become so close to your Added level > Sell.
Risk management & Exit strategy:
1- Based on your Risk management:
In this system you can Set your SL and TP based on your Risk management, for example:
SL:1-2 % of your capital for each position!
TP: 5% of your capital for each position.
2: Based on Trailing Stop:
In this system, set your SL based on Risk management (SL:1-2 % of your capital for each position) and for TP, use Trailing Stop.
3- Based on Market movement.
In this system, put your SL, up to
- 70 Pips for currencies.
- 7 Pips for Silver.
- 200 Pips for Gold -50 Pips for Oil.
And TP based on market movement can wait for good time to close at the points you can see reasonable profit!