Learn Forex price action techniques for sticking with your trades

When learning Forex, people don’t tend to learn the nitty-gritty details of trading.

Things like what happened with last weeks EUR/CAD long.

What happens when you enter a trade, and it doesn’t go in your direction? Instead, price starts ranging, getting excruciatingly close to your target, and then falling away…

…If you have been trading for a while, you know the kind of trade I am talking about. If not, take a look below.

Here are two trades we took last week in the advanced course forum.

First, is an AUD/USD short.

AUD/USD Short trade
Great AUD/USD short trade that ended up pushing down 100 pips.

This trade hits it’s first target without much hassle. There were a point at which price slowed down a little. However, the lower lows and lower highs were consistent, and sellers had control the whole way down to the first target at 0.9400.

This trade did not manage to hit the second target by the end of the week, so some people closed it out. Others kept this trade open and if you look at you chart today, you will see this trade is now close to 100 pips in profit.

So, while it was not the perfect trade, it was profitable. The thing to note is how well sellers controlled price.

Now, let’s take a look at the next trade…

… This is the EUR/CAD long trade we took last week.

Average EUR/CAD Long Trade
EUR/CAD trade took a long time to hit target and many traders bailed before it moved.

This one is not nearly as good looking. After my entry, things got messy. Price ranged for days, my first target was almost hit twice, before finally being hot on the third attempt. It looked like buyers simply weren’t controlling price.

A lot of people jumped out of this trade early. Some of us stuck with this trade, which as a good move, because the trade paid off in the end.

And that is what I am going to show you in the video below. I will play back this trade and explain exactly why I stayed in.

Like I said at the start of this post. When you start learning Forex, you do not learn this kind of stuff. So hopefully this video will help you understand when to stick with your trade.

Check out My Price Action Techniques for Managing Trades

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If you enjoyed this video, or have any questions, please leave a comment below. I reply to every comment.

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49 thoughts on “Learn Forex price action techniques for sticking with your trades
  1. Great video explanation around your thought process. Thank you for sharing I did not see this trade I missed it. However if I come across a similar situation ill know what to do.
    by asking myself whose in control buyers or sellers.

    1. That is one of the most important questions in trading.

      “Who is in control, buyers or sellers?”

      I ask myself that every time I look at a chart.

      1. Very well explained Nick, I learnt a lot and I liked the replay feature of the charting software you using, please let me know which charting software is this?

        Thanks… :)

  2. Always instructive. I always learn something from your videos, Nick. With all the conflicting info out there you always make everything clear and understandable, even for a really newby like me. Thanks.

  3. Budy, you should use Fibonacci levels, The trade you show, just 4 hr chart, exact fibo level 61.8 was there, and that was reversal zone at 1.4450

    1. Not sure what you mean. What was wrong with my support area? The reversal formed on the the 1.4440 support level, which is why I took the trade.

      Looks like the trade would have worked out the same way regardless. The main difference is that I have had my support level at 1.4440 for weeks. With Fibonacci I would have had to draw the level in just a few candles before the trade. I prefer to know where buyers and sellers are days before price reaches the area, not only a few hours after price has been in the area.

  4. Wonderful video Nick. I can’t tell you how many times I have closed out a trade when it is starting to go against me and I wind up with 1:1/2 only to see, if I would have let the trade run, I could have achieved a 1:3 or 1:5. Your video has help me so much and I will certainly work on being more confident with my trading decisions. I know that your strategy is the best for me. It is easy to understand and apply. As always, thank you.

    1. Glad I helped Linda, and I am glad you enjoy my strategy. If you have any questions or need any help feel free to email me.

  5. Great staff, thanks Nick. This is kind of information that you do not get from text books, well done . My trading will improve from your infor and videos.

  6. Loved the Video as always. Keep up the good work. Would love to know the Video Screen Capture software you use?

  7. Hi Nick,

    Your lesson came at just the right time. I shorted AUD/NZD yesterday. Earlier today it looked very iffy on the 4hr and 8 hr chart. I watched your lesson and stayed in the trade. I am still in and all is working in my favor.

    1. Glad it helped you Linda. You still in? it bounced off of the 1.0960 resistance area and it looks to be ehading back down. NFP had a significant impact in price though, I probaly would have closed out prior to NFP.

  8. Great video Nike! I found this video and the last one you did especially interesting and helpful because you go into detail about managing trades once your in them rather than just the setups. For me managing active trades is the hardest part.. I’ve had a few sideways ranging, patience testing trades recently – glad to know I’m not the only one.

    1. Glad you found it useful Dave. The sideways trades are pretty common in Summer. The low volatility leads to a lot of ranging.

  9. I bought USD/cad the other day and because I like to break even as soon as price reaches my TP1, I got stopped out. Happens to me a lot, but then, I don’t risk much either.

    1. This is pretty common in Summer. I prefer to break even as soon as price reaches TP1. Obviously, in this trade I didn’t, and it paid off, but most times I do. The issue with this is that in Summer volatility is low, so price reaching your second target without retracing first won’t happen as often. Perhaps you could use a different stop loss strategy until volatility picks up again.

      If you keep a record of your trades, you can go back and analyse which stop loss strategy is the most effective. I have done this and I have found that I can get up to a 90% win rate if I move my stop to b/e after my first target is hit. If I am only for target 2 my win rate drops down. It make a lot more money in the long run by locking in profits.

  10. Nick–

    I truly appreciate your videos. It is most illuminating to be in the mind of a successful trader.

    I would like to know what trading platform you are using, it has some very useful features.

    Bruce

  11. Another very enlightening video, Nick. I love that you explain your thought process as the trade unfolds, pausing the price action at important points to discuss why you do or do not take specific action on the trade. This is a treat for novice Forex traders like me looking for exactly that sort of in depth insight and analysis.

    This EURCAD trade illustrates perfectly how a questionable setup, if managed properly, can result in profit. Sometimes it seems to me that prudent management of open trades – not just the trade setup – can make all the difference between success and failure in this business. Thanks again!

    1. Management is vita and it is something that is often ignored when people are learning to trade. A good lesson is to stick to the trades you take. As long as you took that trade for a good reason, and it falls within your rules, stick to it and see it out.

  12. Hi Nick,

    Great video on the Price Action techniques for managing trades – it all look so simple when seen this way and I learnt quite a bit from it.

    However, I have one question regarding your Stiop Loss; why place it where you did? Wouldn’t the perceived wisdom have been to place it just below the Low of the previous candle, which would have been at about .4415 whereas you put it at around .4420?

    I know that, as it happened, you never hit that SL although it came mighty close but, knowing my luck . . . !

    Cheers

    1. There are several factors when deciding where to place a stop. Two of these factors are.

      1. Best price to place stop so buyers/sellers will struggle to reach it.
      2. Money management.

      While #1 is important, and I use it often, #2 overrides everything else. Money management is the most important factor by far.

      Had I placed my stop at 0.4415, I would be breaking my management rules.

  13. . . . and what was the reason for setting your initial Stop Loss where you did when, I would have thought (in my newbie ignorance) that the perceived wisdom have been to place it just below the Low of the previous candle, which would have been at about .4415 whereas you put it at around .4420?

    I know that you didn’t hit it, although it came close, but I’m also pretty sure that if I rocked that particular boat it’d be ‘lost with all hands’!

  14. Hi Nick

    Great video again. I’m learning a lot from you and am just rebuilding my account to the point where I can enrol on your advanced course. I see you trade a lot from your phone and I am about to upgrade mine, so I wondered what phone you use or would recommend? + what charting package you use with it?

  15. Just found myself on this page… Do you have a beginner video you would recommend to someone completely new to Forex?

  16. Hello Nick,

    Thanks for sharing your trading strategy using price action and support and resistance. I have watched your videos a couple of times and my trades have improved tremendously. Thanks so much. Will this strategy be good for trading S&P e-mini futures?

  17. Great simple strategy,thanks for all your free video’s which are very informative and well explained.

    I was just wondering what pairs you currently trade using this method?

    In the advanced course do you reveal more about the strategy not already shown ?

    Do you get access to a forum where you post and discuss potential trades?

    Thanks

  18. hi nick ive been watching your trade vids on youtube excellent can i ask how do i join your webinars and live trades? Also can i ask what platform you use in your vids? Im a very new begginer ive had to takw in that much info i start getting confoicting strats to use yours seems a simple to understand way. I would love to get involved also if you could talk me through this >>> if i have only $20-50 to start with my first trade for example if i done the same trade as you for say 20 and won the 30 ppips/points what profit would that bring? I use plus500 on demo acc m in the uk.. But ive been told there charges are really high. Any info would be great thnks and a big thumbs up on your vids

  19. Just found your website yesterday. Enjoy your commentary and analysis very much. What you say makes sense. Thank You

  20. Hi Nick. Thanks for all the useful videos. One question. You often have more than 1 target. How do you manage them? In MT4 I don’t think one can predetermine more than one TP target. Please correct me if I’m wrong. I know how to adjust the volume on a trade should I want to exit and take partial profit but then I have to be monitoring the trade. One “solution” would of course be to take 2 trades with half the lot size on each with different TP targets, but if there’s a better way I’d like to know.

    And btw I don’t see a thumbs up button anywhere on the blog.

    Thanks,
    Greg

  21. A good example reading a group of candles to monitor a trade during its progress to your anticipated target, and a lesson on being cautious about moving a stop loss too early, and a lesson in cold discipline in trading your plan………..Great

  22. Hi Nick =) could you help me out by telling me whether could your price action strategies work on options trading? Thank you so much =)

  23. I consider you the best Price action instructor in Youtube,I appreciate what you have done to the traders,Nick

  24. Although this was an old trade I found it very interesting and informative.
    Can I ask what chart software you use? I’m a newby in forex trading!

    many thanks

  25. Hello,
    Question about target 2.

    Did you open new position when first target was reached on that place or its trailing stop or semething else?

    Thank you Nick

    1. No you don’t open a new position, you can close out part of your position or open two positions at the start and exit one when your first target is hit. Using trailing stops is good too!