Fxequity

The best way to Learn Value Motion (For Dummies)


A Easy Value Motion Buying and selling Technique That Works in Any Market Circumstances

Many merchants suppose that it’s a “technique” if it tells you find out how to enter the markets.

Nonetheless, that couldn’t be farther from the reality…

As a result of not solely do it is advisable to know find out how to enter the markets, you additionally have to know whenever you’ll exit whenever you’re proper and whenever you’ll exit whenever you’re unsuitable!

That’s why on this technique, we’ll use a easy but efficient framework referred to as the T.A.E.E. framework.

Which stands for:

  • Development
  • Space of worth
  • Entries
  • Exits

Perhaps you’ve already heard of this framework earlier than, however I’ll put this in context with the whole lot you’ve realized to this point on find out how to learn worth motion.

Development

Trying on the instance beneath, you may see that CADJPY on the every day timeframe is in a sound uptrend because it makes its 2nd higher-high:

how to read price action

It signifies that you wish to search for long setups to benefit from this market.

Now that you’ve got confirmed which kind of development it’s, the place precisely do you enter?

Space of worth

Since we’re in search of the “space of worth,” you’d wish to anticipate the value to go down and retest the earlier larger excessive

CADJPY Every day Timeframe:

how to read price action

On this case, we’d be seeking to purchase low and try to promote excessive in an present uptrend.

Fairly cool, proper?

However we’re not finished but.

The following query could be:

“How can I enter this commerce?”

Entries

In fact, you do have the choice to position an automated purchase restrict order.

Nonetheless, you’d wish to see a powerful candlestick rejection to keep away from this from occurring…

CADJPY Every day timeframe:

how to read price action

I’m certain there are many candlesticks to study, however the fact is you solely have to give attention to how massive the physique of a candle is relative to earlier candlesticks.

Right here’s an instance…

how to read price action

You’re ready for a candlestick with a big physique as a affirmation to enter the commerce.

So going again to our instance, your entry set off could be right here…

CADJPY Every day Timeframe:

how to read price action

Lastly…

The place would you are taking income if issues go proper and reduce your losses when issues go unsuitable?

Exits

Essentially the most cheap place to set your take income is earlier than promoting stress kicks in, which is normally earlier than the earlier excessive

CADJPY Every day Timeframe:

how to read price action

As a result of if you happen to set your targets too excessive, there’s a excessive likelihood the market will odor your take revenue and begin going in opposition to you.

On the identical time, you’ll wish to give room when setting your stop loss to keep away from being stopped out prematurely…

CADJPY Every day Timeframe:

how to read price action

That’s just about it!

However after all, I’m not going to go away you hanging.

So I’m going to share find out how to apply this technique each in ranging and downtrend markets…

Downtrend: NZDJPY every day timeframe

how to read price action

As you may see…

The market is presently in a sound downtrend, which means that you’ll wish to search for shorting alternatives.

The market ultimately made a retest from the earlier decrease low and made a sound entry set off with a powerful bearish rejection candle.

Lastly, the take revenue is about simply above the closest decrease low earlier than potential shopping for stress kicks in, and cease loss simply above the closest excessive.

Vary: USDJPY 8-hour timeframe

how to read price action

The market is presently in a sound vary as the value is contained between the highs and lows.

So, you enter the commerce on the retest of the lows with a affirmation of a bullish candlestick.

Lastly, you have to set your take income beneath the earlier excessive and your cease loss beneath the lows.

Superior?

With that stated, let’s do a fast recap…





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