Price action is by far the best strategy to trade forex because of its simplicity, effectiveness, and freedom from the confusion and clutter of overly-complicated lagging indicator based trading systems. By obtaining knowledge of how to analyze and trade from a plain vanilla price action chart, one can trade in a nearly stress-free manner and on a schedule of their choosing. This is in direct comparison to the many confusing indicator-based trading systems that require you to check your charts every hour or more and can often give you a headache just by reading about them.
Watch This Free Price Action Forex Trading Tutorial Below
For those of you who are brand new to the world of forex price action trading and are unsure what exactly price action trading is, price action is the study of the movement of price across a period of time on a raw, indicator-free price chart. This strategy of trading the markets is one of the oldest, if not the oldest trading strategy in existence, as it has been used since the 1700s when rice traders in Japan first employed the analysis of simple price action candle stick patterns to predict the course of price movement in rice. Obviously price action trading has evolved and progressed since this time and new traders have added their own “tweaks” and perspectives on this time-tested trading strategy
The forex market is an especially excellent candidate to be traded with the method of price action for a variety of reasons. First off, the forex market is open 24 hours a day 6 days a week; this provides a plethora of price action trading opportunities for skilled price action traders to take advantage of. Once you learn the intricacies of price action trading from a qualified authority on the topic, you will begin to notice just how accurate and consistent price action setup trading can be across all time frames. The forex market also offers the deepest liquidity and trading volume out of all financial markets, this makes it possible to almost always get in and out of the market at the exact price you see on your screen, in other words there is very little “slippage”.
Learning to trade price action through forex price action videos can be an excellent way to clarify the price action concepts being taught to you. Check out some great forex trading articles on our forex price action trading blog as well. The free material you will discover on this website will give you some good insight into the power and simplicity of using price action to trade the forex market. By developing yourself into a simple thinking forex trader you will naturally begin to simplify all aspects of your forex trading including your trading psychology, and it is very important to maintain a simple and objective mindset while trading forex.
If you find yourself still partially confused about what exactly price action is, please click the following link to further clarify the topic: What is Price Action ?