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[Oluti]

I am sure that this article will be one of the most important concepts you will read in trading financial instruments electronically based on a charting system, and it is one the main strategies used in managed Forex accounts. We’re going to talk about is an introduction to ‘Price Action’ trading and how to apply it to Forex trading?

What is ‘Price Action’ trading?

Price action trading actually is an art and a skill of making all of your trading decisions using a clean or “naked” price chart. Therefore, no indicators are plotted on the charts except maybe a couple of moving averages to help identify various supply and demand zones.

Financial markets produce data which affects the price of a security over a period of time, which is basically the Price Charts. Price Charts reflect all market participants’ trading beliefs during the specified period of time. Economic data leads to price movements in a market, and that is because the human mind assumes that this data will affect the price of a security. Therefore, these beliefs turn to real actions from a trader which leads to a price move on the price chart. So, a price basically reflects all variables that affect the market at a given period of time. This is also the reason why using lagging price indicators like stochastic, MACD, RSI, and others is just a waste of time.

Price movement, or Price Action, provides all the signals you will ever need to develop a high-probability, profitable trading system. These signals combined altogether are called price action and they provide an easy way to understand market moves and predict the future ones with a high degree of accuracy.

How do I apply price action to the Forex market?

Price action trading can be used to trade any financial market; however, the Forex market has the deepest liquidity and the lowest startup costs, not to mention accessibility to any financial market, for these reasons and more it is the most popular market today among retail traders.

The philosophy of price action trading is that you only need to master a few solid setups to be consistently profitable. In fact, in my opinion what differentiate between profitable traders and losing traders is having a simple trading method that consists of the least chart indicators, which will reduce confusion and stress and allows you to concentrate more on the psychological aspect of trading.


Trading using clean vs. messy Forex charts

The first step you need to take when trading “Price Action” in the Forex market is to take off all indicators in order to set-up a clean “Naked” price chart. Next, you have to master a few patterns used as technical indicators, They are mainly different candle shapes such as the pin bar, the inside bar, the fakes, and chart patterns such as the Head and Shoulders, Double Tops and Double Bottoms. You can make money consistently by mastering just one of these setups, I suggest you work on one at a time, master it, and then move on to the next.

In this way you will develop a price action “tool box” which will provide more tools than you need to take advantage of quality price action signals.

• Messy Charts vs. clean “Naked” Price Action Charts

If you have been trading for a while, then most probably you are using numerous indicators on your charts that are, at one point, definitely confusing you and, most probably, are one of the main reasons why your decisions are random. Take a look at the two charts up, which one seems more logical and less confusing?

Doesn’t it seem silly to use a messy chaotic chart when you can work on clean price chart? Trading is hard enough without a messy chart full of lagging indicators. Stop fooling yourself by believing that they are helping you trading or timing entry and exit points.

Price action setups are the best way to predict a future price move, and they are one of the main tools used to release Forex trading signals. All markets operate in “future time”, this means market participants base their trades on what they believe will happen to a certain security in the future. Price action is the best indicator of the aggregate belief or attitude of all market participants.

What happened in the past is in the past; indicators only analyze past data statistically, and therefore they are lagging, not to mention that they display it to you in a format that is less clear and less precise than the price action itself. The bottom line is that there is just no logic in using lagging indicators. Price action analysis takes all market variables into account

 

[kerryjoy]

Because price action trading eliminates noise and concentrates on actual market behavior, I find it to be incredibly empowering. My trading decisions become clearer and more confident when I purge my charts of unnecessary information and only use price movements and basic patterns like inside bars or pin bars. Indicators often just confuse me or lag behind, while price action shows me what traders are actually doing in real time. Learning a few essential setups feels like laying a strong foundation that will help me stay away from haphazard trades and concentrate on real signals and market psychology.

 

[lioralace]

Okay, let’s get real for a second—this article? Total goldmine for anybody messing around with online trading, especially if you’re poking around in Forex. It’s basically shouting from the rooftops about Price Action trading—and honestly, if you ask me (and, c’mon, you sorta did), this is the one thing every serious trader should have locked and loaded in their toolkit.

So what’s the deal with Price Action? Strip it down to the basics: you’re reading the market like it’s a story unfolding in real time, using nothing but the price moves you see on your bare, “naked” charts. Fancy indicators? Yeah, you might toss in a moving average now and then just to mark the good stuff like key price zones, but the real decisions come straight from how the price dances across your screen. There’s something weirdly liberating about ditching all the extra bells and whistles.

Why do people swear by Price Action? Because—big shocker—markets are literally just a bunch of humans (and let’s be real, now a bunch of bots too) all reacting, scheming, panicking, and celebrating over the smallest bits of news. You see all that emotion and logic and chaos reflected in the price, second by second. Indicators like RSI, MACD, all those squiggly lines—cool, but they’re kinda like reading last week’s weather report when you want to know if it’s about to rain RIGHT NOW. Price Action’s already told you if you were paying attention.

And why does this work like a charm in Forex? Well, Forex isn't your grandma’s local stock exchange. We're talking oceans of money sloshing around, crazy liquidity, easy to jump in and out, and pretty low costs. Perfect playground for regular folks. Most new traders totally overthink it, trick themselves into adding five thousand indicators and still end up confused as heck. Honestly, you’re better off mastering just a couple rock-solid Price Action setups, keep it chill, and let your mind focus on what matters. Trust me, your stress levels will thank you.

Switching to clean charts—that’s the first big “aha” moment. It’s wild how clear things become when you kick all the clutter off your screen. Want real actionable patterns? Start with candlesticks like pin bars or inside bars. Or bigger deals like Head and Shoulders, Double Tops—you see where I’m going here. Don’t try to eat the whole buffet at once; pick one pattern, learn it inside-out, THEN move on. Eventually you’ll have your own personal arsenal of moves you know work for you.

Seriously though, if there’s one thing traders get tripped up on, it’s analysis paralysis. Too many signals? Too much noise = too many dumb mistakes. And trading’s stressful enough without having to squint through a spaghetti chart jam-packed with lines and colors. You want peace of mind and better focus? Simplify, man. Less is more.

Kind of the whole point of this method is: markets live in the future. Because, let’s face it, nobody’s making trades based on yesterday’s news—everyone’s thinking, “What’s about to go down?” Price doesn’t lie, and it sums up every single bet in the market at that moment. If you know how to read it? Game changer.

So, bottom line—ditch the lagging, old-school indicators for once and give Price Action a real shot. All you need are a few killer patterns, nerves of steel (okay, at least nerves of slightly-less-jumpy rubber), and a clear screen. Keep it simple, keep it focused, and Forex might just stop feeling like a minefield and start feeling like a game you can actually win.

 

[Professional Writer]

We must try to understand that forex trading is a very tricky thing. Not all the people are able to make money in the forex market. As far s price action trading is concerned, I must say that it is one of the hardest things to do. Do you know why? This is due to the fact that price action requires you to analyse and interpret the market in a correct manner, which is, in fact, one of the hardest things to do. You can misinterpret the market and analyse the market in a wrong manner, which could lead to disasterous results.