What is Price Action Trading?

 

What is Price Action Trading?

All price movement in Forex comes from bulls (buyers) and bears (sellers). When GBPUSD moves up it’s because there are more bulls than bears and vice versa.

The Forex market (and any market for that matter) is in a constant state of struggle between bulls and bears.

Price action trading is about analysing who currently controls price, bulls or bears, and if they are likely to stay in control.

If your analysis shows that bulls are in control and that they are likely to stay in control, then you can buy (long).

If it shows that bears are in control and that they are likely to stay in control, then you can sell (short).

How do you analyse who’s in control of price?

By using two simple price action techniques.

Support and Resistance Areas

These are buy and sell areas you can easily identify and place on your chart. Once price hits these areas you know it is likely to stall or reverse completely.

This allows you to buy or sell at the right time.

Advanced candlestick analysis

This is not that basic doji equals reversal stuff you may have seen elsewhere. Advanced candlestick analysis goes much deeper than that so that you have a full understanding of what a chart is telling you.

Once you understand this, one glance at a chart will tell you who’s in control of price (bulls or bears) and if you should buy or sell.

These two techniques make up the core of my price action trading strategy. In fact, those are the only techniques I use to find and trade high probability setups.

My trading strategy differs from most courses you will come across as it is based entirely on Price Action…

• There are NO indicators.
• There are NO confusing techniques.
• There is NO stress.

It’s simply about reading price and making smart trading decisions.

Forex Price Action Strategy

My Forex price action strategy was born in 2005 and has been constantly improved over the last 14 years – this strategy has seen it all.

It has survived major market changes from the financial crisis in 2008 to the Swiss Franc disaster in 2014, to Brexit in 2016. It really has seen it all.

My price action strategy works in all market conditions.

From trending markets to low volatility, to ranging, to high volatility, it has weathered it all with consistent profits.

Indicator based strategies work well in specific market conditions. If you have a strategy that works in low volatility markets, it will fail in high volatility, ranging, or trending market conditions.

Price action adapts, indicators don’t!

Price action doesn’t only adapt to changing market conditions though, it adapts to different pairs, different time frames and, crucially, to different traders.

Above all, Price Action keeps your trading simple.

In fact, my Forex trading strategy is so simple that you can trade it from your smartphone. I use this strategy to trade on the go – as of 2017 I take over 70% of my trades from my smartphone.