One of the most effective yet extensive day trading approaches would be Price Action Trading. For those of you unfamiliar with Price Action Trading (PAT), it is a trading strategy derived from the analysis of Price Action, which is the summation of all buy and sell orders during any duration of time.
Price Action is also referred to as the direct derivative of Order Flow. Perhaps the best advantages in regards to this trading strategy would be that it can be applied to virtually any time frame along with the use of zero technical indicators are required.
Access To A Charting Solution Is Needed!
(To watch the price and live feed of the asset, not to have technical indicators)
Choose A Low Volatility Currency Pair As Your Targeted Asset
Examples: Euro/Usd, Usd/Cad, Usd/Chf, Nzd/Usd, and the Aud/Usd
Time Frame Can Range From One Minute to Daily
(Statistically it has proven to be more accurate if you stick with expiry times ranging from 15 minutes to 1 Hour)
How are support and resistance levels created?
Support and Resistance Levels are created once the price of an underlying asset has “bounced” off an imaginary level of resistance. If the trend of the underlying asset is currently bearish (heading in a downward direction) then we are looking for the creation of a Support Level.
However, if price is heading in an upward direction (bullish direction) then we look for the creation of a Resistance Level. Below are examples of Support & Resistance Levels…
Support Level Image 1
Support Level Image 2
Resistance Level Image 1
Resistance Level Image 2
Support & Resistance Level Image
As always if you guys have any questions in regards to Price Action Trading Strategy please feel free to ask. It is imperative to remember to keep your expiry time relatively near the time frame that you are currently watching your underlying assets.
So if you are watching your targeted asset on a 15 minute time frame then choose an expiry time near 15 minutes. Make sure to use low volatility currency pairs as listed above because those currency pairs are less prone to be affected due to market volatility and minor fluctuations that may occur throughout the duration on an investing period.