To become the best trader possible in the forex market, it is important to understand the many different types of methods. While we recommend that you stick with one, we encourage you to explore all of the different trading methods before picking which one you want to become an expert at. One of the less talked about methods is the Synergy Trading Method developed by Dean Malone. Synergy was developed in order to simplify trading decisions with high probability precision. It takes the market forces of Price Action, Trend, Momentum, and Market Strength in order to produce much higher probability trades. This is a real time method that depicts the interaction of the market forces, thus providing traders with the tools to make better trading decisions with more confidence. So, how exactly does it work?
—-
With Synergy, traders identify and use two important trading components in real-time: Price Action and Sentiment.
Price Action is market movement, such as the oscillation of Open, High, Low and Close prices. Too often, traders are mesmerized by trivial price flucuations and lose sight of the underlying trend of the market. Many traders tend to jump in and out of the market instead of staying with the trade as a trend develops. Synergy is designed to eliminate price distortions. It reveals periods of market strength and trend and periods of consolidation.
Sentiment is the intuitive feeling or attitude of traders and investors in the market. For example, if the sentiment of the market is bullish, then traders and investors expect an upward move in the market. Often, sentiment is an indication of optimism or pessimism in the market based on recent news announcements or political events. The Synergy method uses a hybrid custom indicator developed to show positive (buyers) sentiment or negative (sellers) sentiment.
Working in unison, Price Action and Sentiment give traders a distinct trading advantage. When both are in agreement, favorable trading conditions exists. For instance, when price action is showing upward movement with buyers sentiment, there is higher probability of a Long position having a favorable outcome. Similarly, when price action has a downward movement in conjunction with sellers sentiment, a short position has a favorable outcome.
Source
Traders use the Synergy method by identifying two important components of trading- Price Action and Sentiment (done in real time.). For a better understanding of what these two terms mean- basically, Price Action is market movement and Sentiment is intuition or attitude of traders and investors in the market. When working with Price Action and Sentiment, traders will have a very distinct advantage in the forex market. If the Price Action and Sentiment are both in agreement, that is the perfect mixture for favorable trading conditions. This is essentially what synergy trading in forex means- its watching market movement and combining that with the gut feeling about where it’s going next.
To apply this inaction, when Price Action is showing upward movements with buyers sentiment, there is a probability of Long position having a good outcome. On the other hand, when Price Action has downward movement and the seller’s sentiment is the same, the short position stands to have a favorable outcome.
Does the Synergy method seem realistic? Or is it too basic for real trades?
Our Rating: [yasr_overall_rating]