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Price Action Trading: How & when to go against the crowd

DAX 9 January 2019

Some the best trades a trader devises come from mistakes. What can be learnt from a mistake is that other traders are also going to be making the same mistake and by identifying the pattern that precedes the mistake, a new trade can be created taking advantage of those caught not recognising the early characteristics of a misjudged trade.

A common place for a mistake is at a technical indicator – in this case VWAP: a well known trade is to use VWAP for a continuation of a move. For this trade to work, a reaction at VWAP is needed, moving price away and establishing new direction. Where a mistake is often made is holding onto a trade when the market can’t move away. As more time is spent close to VWAP and any bounces get progressively smaller, the chance of a break catching those still playing continuation increases. Recognising the mistake of holding a trade that is not yielding results for too long gives an entry to catch out those trades.

In this live Axia mentored session, the price action is showing an inability to move away from VWAP and a subsequent break of VWAP are assessed for entry point clues to improve timing of an entry as well as an order flow based pyramid of the trade.

The use of technical analysis as well as a variety of indicators is covered in the introductory stage of the 8 week Intensive Trader ​Training giving traders numerous practical methods to use them, thereby creating a solid foundation to build more advanced skills.

If you are looking to develop a career as a trader within a professional and successful environment then the Axia Futures 8 week Intensive Trader ​Training is the most comprehensive in the industry based​ ​upon​ ​skill​ ​development​ ​within​ ​the​ ​proprietary​ ​futures​ ​trading​ ​environment. 

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