1. Price action transaction must have the linkage and system: As mentioned above, knowledge about price action discrete will not help you to make money. We need to learn how to combine them, sort them into a systematic mode of transaction. When the system is in place, the trading principle will be formed, so the probability of success for the strategy will be much higher. When using this knowledge independently, not only does not see the power of price action, not see profit but also causes the trader to lose confidence in price action trading.

2. Always evaluate the context: Whether it is using price action or an indicator, assessing the market context is always the factor that should be of top priority. Big and small price action needs to support each other for trading signals to be really valuable.

3. Do not go against the momentum of the market: This is also an important principle that a price action trader must grasp. Market momentum is the driving force to help prices move further. If you go against the momentum it means that the chance of our stop loss will be higher.

4. Do not complicate: Price action is a simple trading method, but many traders do not really understand the price action, so the usage is often complicated. Ideally, traders should not analyze the market based on individual price actions, but should have a methodical, processed analysis, each price action is mutually reinforcing so that the price action trading becomes. should be easier.

5. Systematic trading: As I mentioned before, price action also needs to be systematic. Not suddenly reading a candlestick pattern or some price action trading trick, apply to what is a profitable trade immediately. Instead, you need to know how to use the right price action type to make the analysis work. For example, to determine whether to buy or sell a currency pair, you need to rely on price action to assess context, momentum, and identify support and resistance. Then consider reactive price action at support resistance to find entry signals.

6. Price action is just one of technical analysis, not holy grail: Many traders overstated price action into a very magical trading method, more than many other types of analysis. But in fact, each method of analysis always has advantages and disadvantages. Like price action, the biggest downside is the high subjectivity. In fact, if you use the indicator correctly, you can still make a profit. We cannot compare any other way, the important is which method is right for you. Remember, there is no bad method, only the trader does not know how to use it.