Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Nial Fuller

Price Action Forex Trading

Recommended Posts

What is forex trading with price action?

 

Price action is the behavior of the price of a specific currency, commodity, stock, or other security over a specific period of time. All financial markets display the price movement of a security over varying periods of time on price charts. The price action on a price chart reflects the aggregate belief of all market participants about the value of a security’s price during the specified period of time reflected by the price chart.

 

Price action analysis allows you to see exactly what is happening in any given market at any given time because price action is the visual trail of the supply and demand situation of the given trading instrument over a specified period of time. A chart’s natural price action reflects the expectations and beliefs of all market players; the bigger more informed players obviously leave a more noticeable trail, so by analyzing the behavior of price over a specified period of time we can make an educated guess as to what those “in the know” are doing in the markets.

 

Forex trading with price action is the application of price action analysis to the forex market, or more specifically, to a forex currency pair. Price action analysis deals with the predictive capacity of specific price patterns or setups that occur on a semi-regular basis over a given period of time. Certain price patterns re-occur in the markets and can be used to develop a high-probability trading system or strategy. Price action setups can be used to trade any financial market; however the forex market has the deepest liquidity and lowest startup costs as well as widest accessibility of any financial market, for these reasons and others, it is the most popular market today among retail traders.

Why trade the forex market with price action vs. other methods?

 

Price action trading has many advantages over most other methods and virtually no disadvantages. When you trade the forex market with a “clean” or indicator-free price chart, you are getting an uninhibited view of the movement of a currency pair’s price action. This is in direct opposition to many indicator-laden trading systems and strategies that essentially cover up the most important data that a market provides; price action. Having this uninhibited view of a currency pair’s price action allows you to make clear and accurate decisions about the possible future direction of a particular forex currency pair via price action setups, or patterns.

 

Price action setups and patterns give you an easily recognizable and high-probability edge due to the repeating behavior of the forex market; this edge is clean, logical, and less haphazard than any other trading edge out there. Once you properly learn how to spot and trade price action setups, you will develop a refined market perspective that will allow you to trade the market only at the times you see a high probability price action setup present. Viewing the forex market from this clear and logical perspective also works to positively influence your trading psychology by keeping your charts and your mind clear and uncluttered from any unnecessary or overly-complicated indicators or trading software.

Price action is the foundation for all technical analysis.

 

The ability to interpret price action; the dynamics of a market’s price movement, is necessary to correctly understand all forms of technical analysis and improves your ability to utilize them. Essentially, price action analysis is the foundation which you should build your understanding of technical analysis upon because the movement of a security’s price over time is the single most important piece of information in any financial market, and it is also the information from which every other form of technical analysis is derived.

 

Trading the forex market, or any market, with simple price action analysis, allows you to accurately enter into trending markets, consolidating markets, quite or volatile markets. It is this flexibility of price action, combined with the fact that it is a clear and logical trading strategy which makes use of first-hand market data (price), instead of second-hand data (lagging indicators), that makes price action analysis a necessary and widely traded strategy by professional traders and institutions all over the world.

 

The difference between a clean price action chart and one laden with lagging indicators:

 

By comparing the two screen shots below, we can see a clear difference in the clarity and usefulness of price action on an indicator-laden chart vs. price action on a plain vanilla price chart. In the chart containing the indicators, it is obvious there are more variables to look at; it naturally distracts your attention away from the raw price movement and onto derivatives of this price movement. In contrast, the plain vanilla price chart contains no lagging indicators, therefore, your eyes stay fixed on the raw price data the entire time you are looking at the chart; there is simply nothing else to analyze on the chart, and this is arguably the most accurate and natural way of looking at any financial market.

 

The idea behind using lagging indicators to analyze a markets price movement is that it will somehow give you a clearer view of the impending direction of a market’s price, or will otherwise provide you with some sort of insight not available with the indicators. The fact that is forgotten by most believers in lagging indicators is that raw price action data without any indicators provides traders with the most accurate and clear trading strategy in existence.

 

Price action setups form each day in the markets which give traders obvious and useable clues as to the possible future direction of a security’s price. These setups allow traders to develop their own trading strategy or system, using nothing but a plain vanilla price chart, important levels in the market, and price action setups. The main advantages of trading with Forex price action setups are that they give the most accurate and up to date picture of what a market is doing and what it might do in the future, and also that they allow for nearly stress-free trading assuming one manages their risk effectively and does not over-trade.

 

Nial Fuller is an expert on price action forex trading strategies, you can visit his website at Learn To Trade The Market

3.jpg.fb9dd062ef58d055a6ccb3230196a7d1.jpg

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.