How to filter the price Action signals ?

How to filter the price Action signals ?

At the moment there are many ways and ideas of trading in the forex market and every day there is new to learn, and naturally this information affects the trading decisions made by the traffickers, and in this article we will use this information to liquidate the inaccurate or erroneous trading signals..

1-The first rule of trading signals filtering rules is to trade on power signals that are not traded on weak signals and can be filtered for example, if you have a sales signal based on the bin bar model, you should check the length of the upper shade and this shade has failed to penetrate a previous resistance area.Failure to penetrate a previous level adds great power to the models you are now trading based on two signals not one which increases the probability .

2- The length of the candle tail has a great role in the credibility of the model where, the stronger the tail the greater the likelihood of success of the signal, that does not mean that any long shadow will be a successful trading opportunity. But if you keep in mind the length of the tail and a failure element breakthrough or failure to break a price zone Better results.

3- Avoid the trading that appears in the neutral zones and the meaning of the neutral zone is the area that is not traded in a clearly defined direction by its rules.Because these areas usually include a cross-reference set between buying and selling, we recommend that you avoid trading signals that appear in these areas.

4-Trading based on re-testing provides more confidence in the success of the current trading center, meaning not to rush the sale or purchase signal but wait for a re-test and execute your decision accordingly.

5-Areas of support and resistance are important areas and we advised during previous topics to trade based on them and now we would like to clarify that, there are areas are weak and there are other strong levels.

6-Think like a pro and trade like them let's get to know some of their habit. They do not trade on any trading opportunity offered to them by the market, but they are waiting for a purchase signal or a sale according to their trading plan confirmed by their specific rules.
At times the market does not give trading opportunities they know they appreciate that this is not to waste money by trading on opportunities but waiting for strong trading opportunities supported.