When trading foreign exchange, smart people will use the method of price movements to trade, because this is very helpful for foreign exchange transactions to find high-quality trading signals, improve decision-making and strengthen risk analysis, but there are many insiders who are concerned about prices. There are also some misunderstandings about trend trading and some difficulties. So what are the skills to get rid of these dilemmas?

There are many price trend traders who only trade based on candlestick charts and do not perform any other types of analysis on the data. Because if you simply look at the candlestick chart and isolate it from other types of analysis, you won't have the advantage in the market. This is how many price action traders react to certain candlestick signals. Anyone who does foreign exchange transactions knows to look at price movements on candlestick charts, but do they really know the data? So you can't just rely on the candlestick chart as the only reference, you can use other technical price action trading factors on the chart to lock in your signals, such as turning points, support/resistance levels, price structure levels, and so on.

There is another element of price trend trading: identifying structure through technical analysis. The way to identify structure is to define and generalize current market behavior. The simplest example is to determine a range, the structure is at the top and bottom boundary. They have included the price, and the best trading opportunities will appear here.

There are some price action traders who prefer to trade in a lower time frame. This is because their thinking has formed a consistent concept: more trends = more opportunities. There are also some traders who prefer day trading and those who seek to stimulate trading, who will invest in scalping strategies. I think these two methods are not a good method, and will cause psychological harm. You can use a "lower" time frame to capture entry opportunities earlier so that you can see clearer price trends on the big picture. Generally speaking, the 4-hour-12-hour chart is the intraday volatility trading time frame. On the 1-hour chart, you can see it very clearly.

There are some very important but easily overlooked things in price movement trading...that is: the whole market always seems to have a focal "theme". This means that there will almost always be a set of "hot" interconnected markets, showing beautiful price trends, and innumerable opportunities for easy money.

Through the above, I hope to help the majority of foreign exchange traders to find their own trading mistakes and correct them in time, better analyze and trade, so as to obtain better investment returns.