Price Action Forex Trading and How You Can Benefit
Price Action Forex Trading is the trading of the Forex markets using an approach based on price itself. The price is the most important information on the chart, and this type of trading approach takes advantage of repeating patterns in the forex markets. It is the visual representation of the price of a specific market, normally over a specified period of time. It is the most important part of any chart, as it is contains the most recent and relevant price data.
Most, if not all indicators lag behind the current price. Sometimes they will give you the top or the bottom of that particular trading phase. One thing for sure, is that price action will give you the top or bottom of the market.
We typically view price as either 'bars' or 'candles'. They tell us exactly the same information, yet they are displayed in slightly different ways. Why Use Forex Price Action Trading Approach? There are lot of different methods and approaches for trading the Forex markets. You can use Bollinger bands, moving average bounces, MACD crossovers and many other types of systems. The trouble with a lot of these different approaches is that they don't work long-term. Whereas, price action has been proven to be a successful method to make money.