Price action forex technical analysis important pillar of TerraSeeds Forex Tflow®

Technical analysis is a field of study that looks for price phenomenon inside forex charts. By spotting high probability setups, technical analysts look for clues that will reveal direction of currency pairs as well as support and resistance levels. Due to a proliferation of forex trading indicators that were poorly understood or misused by forex traders, there is a return to emphasis on naked price action. Price action trading became a byword (see development of price action trading).

While fundamentals of the market dictate long term trend of currency pairs and may be more appropriate for long term investments in foreign currencies, technical analysis is considered a superior method for short term analysis. Technical analysis concepts are able to explain many types of price action that is witnessed in short term fluctuations. In fact, price action-based technical analysis is the core of TerraSeeds Tflow® forex trading course.

 

Concepts of price action forex technical analysis used in TerraSeeds Forex Tflow®

  1. Candlesticks
  2. Trendlines, horizontal support and resistance
  3. Chart patterns
  4. Elliott Wave structure, fibonacci expansions and fibonacci retracements
  5. Fibonacci Ratios
  6. Documented phenomenon such as false trendline break
  7. Multiple time frame analysis

 

price action at key levels

This is a candlestick chart showing price reacting to key levels

chart patterns

Chart patterns are highly documented price phenomenon; they are high probability setups that are widely followed and has comprehensive rules

fib ratios

This chart reveals price behaving according to Elliott Wave structure and fibonacci ratios; price action at Fib levels can clearly be seen according to the shape of candlesticks

price action

In this last chart, TerraSeeds Forex Tflow® has a proprietary way of dealing with price movement and understanding price phenomenon

price action

This chart of XAGUSD shows how price reacts to March open price for nearly whole month.

 

Example of looking at price action

Telling a story about forex price action trading using gold (XAUUSD)

EURAUD chart: 5 elements of price action trading

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Soh Tiong Hum is a forex trader, investor and co-founder of TerraSeeds Market Technician Pte Ltd. He is father of 2, business owner, webmaster, writer and speaker, seo amateur and webmaster. Together with Binni Ong, Tiong Hum created Tflow® Forex Course training individuals to trade forex with their own proprietary forex strategy. Come find Tiong Hum on Google+