TradeIQ
A price action trading strategy to make a lot of money by 2023 is explained. It involves using indicators such as fluid trades and engulfing candles. The rules for buying and selling trades are simple and easy to follow.
Introduction: Simple Price Action Trading Strategy
If you are looking for a simple yet effective trading strategy to make money in 2023, you have come to the right place. This article will guide you through a price action trading strategy that can be implemented on any market. By following the rules of this strategy, you can avoid the use of complex indicators and enjoy profitable trades.
Step 1: Prepare the Chart
The first step in this trading strategy is to prepare the chart on tradingview.com. This website allows traders to access various markets, including stocks, futures, forex, and cryptocurrencies. Once you have selected the market you want to trade, open the chart.
Step 2: Add Indicators
The next step is to add the required indicators to the chart. Click on the indicators tab and search for “fluid trades.” This particular indicator was created by PMG jiv access and has some features that can be customized in the input section. For the second tool, add an engulfing candle indicator created by rmunis.
Step 3: Rules for a Buy Trade
The rules for a Buy trade using this strategy are simple. First, wait for the price action to retest the level of demand. This level can be identified on the chart using the fluid trades indicator. When the price approaches this level, wait for the rejection to occur. This is indicated by a bullish engulfing candlestick, which must form.
Once the bullish engulfing candlestick has formed, it is time to enter a Buy trade. Place the order at the close of the price bar, and target at least two times the risk. The risk is calculated by subtracting the entry price from the stop loss price.
Step 4: Example of a Buy Trade
To illustrate a Buy trade, let us look at an example. In the chart below, we can see that the price approaches the level of demand and respects it. A bullish candle has formed, indicating a possible reversal. The trader can enter a Buy trade at the close of the price bar and place a target at least two times the risk.
Step 5: Rules for a Short Trade
If you want to take a Short trade, the rules are similar to the Buy trade. First, wait for the price action to reject the level of supply. This level can be identified on the chart using the fluid trades indicator. When the price approaches this level, wait for the rejection to occur. This is indicated by a bearish engulfing candlestick, which must form.
Once the bearish engulfing candlestick has formed, it is time to enter a Short trade. Place the order as soon as the candlestick closes, and aim for a target that is at least twice the risk.
Step 6: Example of a Short Trade
Let us look at an example of a Short trade using this strategy. In the chart below, we can see that the price approaches the level of supply and respects it. A bearish candle has formed, indicating a possible reversal. The trader can enter a Short trade as soon as the candlestick closes and place a target that is at least twice the risk.
Conclusion: Simple, Yet Effective Price Action Trading
In conclusion, this price action trading strategy is an excellent technique for traders who want to avoid using complicated indicators. By using simple rules, traders can make profitable trades in any market. By waiting for the price action to retest the level of demand or supply and confirming the reversal with an engulfing candlestick, traders can enter Buy or Short trades. By targeting a minimum of two times the risk, traders can enjoy a profitable trade.
This strategy is not foolproof, and traders are advised to backtest it on historical data before implementing it on live trading. However, with patience and discipline, this strategy can be a valuable addition to any trader’s toolbox.
