How Do You Analyze Price Action Strategy Method with other Gold Indicators?

How to Analyze Price Action Strategy Method with other Gold Indicators

Good indicators to combine price action strategy with are:

• RSI

• MA Indicator

Traders should use these two indicators to confirm if the direction of price action break out signal is in line with the trend direction shown by these two technical indicators.

If the direction of price action breakout is also the same direction as that of RSI & Moving Average then traders can open a trade in the direction of signal. If not traders shouldn't open a trade as there's more likely a chance that this signal might be a whipsaw.

Just like any other indicator in gold, price action also has whipsaws & there a requirement to use this as a combination with other signal trade setups as compared to just using this trading strategy alone. This combination of trade set ups forms a price action system that traders can use to generate signals with.

RSI & MAs with Price Action Strategy Method - Price Action Trading System

What's Gold Price Action Strategy?

Price action strategy is use of only gold price charts to trade instruments, without the use of chart indicators.

When trading with this price action strategy, candlestick gold price charts are used. Price action setup uses lines and pre-determined price action patterns such as the 1-2-3 price action pattern that either develops one price action pattern or series of price action patterns.

Traders use price action patterns strategy because this price action analysis is very objective & allows a trader to interpret market price moves depending on what they see on the price charts alone.

Price action setups are used by many traders: even those that use technical indicators also integrate some form of price action strategy in their overall system like in the above example.

The best use of this price action strategy is achieved when the signals generated are combined with line studies to provide extra confirmation such as in price action system above example

Price Action 1-2-3 Break Out Pattern

This price action 1-2-3 strategy uses three chart points to determine break out direction of price action.

The 1-2-3 price action method uses a peak & a trough, these chart points forms point 1 and point 2, if market price moves above the peak the price action signal is a buy signal, if price action moves below the trough the price action signal is a sell signal. The price action break out of point 1 or point two forms the third price action point.

Price Action Strategy - Price Action Patterns

How Do I Interpret Price Action Strategy Method with other Indicators