Day-Trading Resources

Day-Trading

♞ Intraday Forex Trading Strategy -Forex Price Action

Introduction to Forex Price Action

"Price Action is a simple trading method that lets traders analyze any financial market without using indicators. This is often called "trading naked charts." 🔗 More: » Trading Naked Charts & Price Zones

〽️ Introduction to Forex Price Action

Understanding price action is essential when trading Forex intraday. Traders can use many methods and tools to read daily price moves, such as Elliott Waves, candlesticks, Chart Patterns, and key support or resistance levels.

Definition – What is Forex Price Action?

Price Action is a trading approach that shows how buy and sell orders shape the market within a set time frame. You can study Price Action through observation, but the most reliable way is by using technical analysis. What makes Price Action different from other intraday strategies is the use of clean candlestick charts without indicators or oscillators.

Price Action and the Use of Candlesticks

A candlestick is made up of (i) the closing price, (ii) the opening price, and (iii) two wicks.

  • The two wicks show the highest and lowest prices during the chosen time frame (for example, a 1-minute chart).
  • The candle’s body is the distance between the opening and closing prices, making it either bullish or bearish.

Price Action should always be read in the context of the current market conditions.

Day-Trading

💹 Key Types of Trading Orders for Online Trading

Knowing and using the correct types of trading orders is crucial for all traders, as these orders determine how and when a trade is executed.

Selecting the Rights Trading Orders

The selection and execution of the right trading order is a top issue. Market conditions influence the choice of trading orders, and any trading order type must align not only with individual strategies but also with current market conditions.

For example:

  • Volatile markets require wider trailing stops.

  • Ranging markets require fixed stops (placed below or above major support and resistance levels).

Here is a table showing leading trading platforms and the types of orders they support.

📌 Note: Complex orders, such as OCO and stop-limit, are not always available to traders. Before opening an account, check with your broker, as order types and their names may vary slightly.

Table: Trading platforms & supported types of trading orders

TRADE PLATFORM BASIC TRADING ORDERS PENDING ORDERS
Market, Stop, Trailing Stop Buy Limit, Sell Limit, Buy Stop, Sell Stop
Market, Stop, Trailing Stop Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, Sell Stop Limit
  • cTrader
 Market, Stop, Trailing Stop Buy Limit, Sell Limit, Buy Stop, Sell Stop
  • NinjaTrader
 Market, Stop, Trailing Stop, Stop-Limit Limit, OCO (One-Cancels-Other), Market If Touched (MIT)
  • TradingView
 Market, Stop, Trailing Stop Limit, Stop-Limit, OCO

Day-Trading

 🎲 Introducing the Optimal Trading Leverage Formula

⚙️ Building a Simple Money Management System to Trade Derivatives

Money management (MM) is a major determinant of success when trading in any financial market. Every trading strategy we implement must align with our risk profile and long-term objectives. The way we manage our capital should always reflect both our current capabilities and future needs.

The Dilemma When Using Trading Leverage

When we identify a potentially profitable trade, we must decide how much capital we are willing to risk on that position. This is a critical decision, as larger trade sizes can lead to significant profits—but also substantial losses. Trading is a game of probabilities, not certainties, and as has often been mentioned in TradingCenter, trading leverage can be your greatest ally or your worst enemy.

The following trading leverage formula is designed to provide a simple framework for evaluating the attractiveness of each trade and, accordingly, selecting the ideal leverage ratio.

🔩 The Simple Trading Leverage Formula

Here is the formula (briefly explained below):

◘ Optimal Leverage Formula = [ (P/L) * (1/Spread) * (R/2) ] %

Where: (P/L) = Profit to Loss Ratio

Spread = the difference between the bid and ask prices (in pips)

(R) = Risk Tolerance (values 1-20)

🏛️ About TradingCenter

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