Secret of Forex Price Action Trading

In simple words, price action is a Forex trading system that lets us to identify the market fluctuation and decide trading levels built on the real price fluctuation on metatrader chart software, it is big different with forex lagging indicators. There are so many Forex indicators are based on the real market price on the metatrader chart, even though both of them are bringing traders trading signal from previous movements.


So, why we need previous data for our trading activities? If the important part in FX trade is what market is moving right now, and what market seemly to move in the next period? By trading with definite systems, previous data can aid the foreign exchange trader to understand what market is seemly going to move in the next term, quite than guessing with forex technical indicators.


Another word about price action is


Price action is the fluctuation of the price. This price action is covered in forex technical analysis, which tries to get bias in the random fluctuation of currency pair. Swing trading like swings high and swing low, test movements with support of resistance and strengthening movement are few examples of price action.


Price bar and candlestick are the significant trading tools for determining price action, since they aid traders read price action. Candlestick trading pattern like as bullish / bearish harami, evening star pattern, doji, engulfing, black and white marubozu, dark cloud cover, doji star, evening star, gravestone doji, hammer, hanging man, long lower shadow, inverted hammer, morning star, separating line, shooting star, spinning top, three white soldier, tweezer top and tweezer bottom candlestick pattern are all pattern examples of applied price action strategy.



Price Action traders

These traders always keep their trading activities easy and simple, but effective and accurate trading strategy when it applies in trading. Price action traders always use technical approach but they don’t apply technical indicators to help them in determine the market trend direction.



Price action traders use a combination system of trading chart patterns, candlestick patterns, price fluctuation, volume data and other simple information to define whether or not they should open a trading position. Price action method is the easiest method to trading forex but it doesn’t means easier than other trading system. This price action trading needs information in reading which direction the markets move and the main method inside the trading chart, but the good news about price action trading is this method will fit in any currency pairs (GBPUSD, EURUSD, USDJPY, USDCHF, AUDUSD, GBPJPY, etc.)



The hardest method of price action trader is a tape reader. These traders do not use metatrader trading charts, forex lagging indicators, they only use support and resistance levels to open a trading position and to close their trading position or to decide profit target levels. This trader does not use any forex indicators at all.



Price action strategy is very technical and works with determining the previous price data. Most price action traders know about support and resistance levels, but you should know that using market price history data is not simple as most you think.



Support and resistance levels are only few part of price action, there is many more inside the price action trading. These traders read to determine for more information not only what market is trending now, but why the market price move bullish or bearish, so that is why these trader can be able to make good trades in the future.



And here are some benefits of price action trading system

- It is totally no cost, in other words a trader doesn’t have to get trading software like indicators, expert advisor or robot trading. Trader only use bars, candlestick patterns, support and resistance level to get data for trade.

- Price action trading system can be traded on any currency pairs such as EURUSD, GBPUSD, AUDUSD, USDJPY, GBPJPY, USDCHF and other pairs.

- This system also can be traded with any trading software such as metatrader 4, metatrader 5, net dania, tradestation, ninja trader, etc.

- It is very simple and fast – lagging indicators is not very relevant.

- This strategy can be used with other trading strategy which is no conflicting trading signal.



Even though, a price action trader should use time to practice and learn, and know how to use it. Knowledge is needed to improve the systems and trading practice is the must. There is no trader will read price action the same way, & that is why there are so many traders have the price action method very unique. When we want to choose just 1 term to describe price action it should be “simple”. This trading type is the simple trading system but considered the most accurate and stable strategy.


You can’t be millionaires in one night with only using price action, but when you use this method properly, this system can help you to become better trader. The simple method can be understood in short term, and can be very attractive method to trade forex.