Did you know that there is a currency trading
technique that has been around forever? Well....ok.....that may be a bit of an
overstatement. But it has certainly been around since the beginning of the stock
market. What's funny, though, is that most people are seemingly unaware of it. I would take a
guess and say that about 10-15% of all the currency traders probably use it.
It's a little technique called price
Honestly, I can see why so many people might consider
price action a little confusing.
A lot of it has to due to with the fact that it is
more subjective than some people are used to. It's not as mechanical as some traders are
It also has to do with the fact that price action can
mean a lot of different things. It's not a one size fits all kind of trading
To some, price action could mean trading elliot
waves, trading candlestick formations, etc... This is where it's important to learn forex trading the right way.
This may be a big departure for some, as
they may be used to only trading when there is 5 or 6 indicators on their charts. For
instance, certain traders are just comfortable trading with stochastics. They'll buy when
the indicators show as oversold or sell when the indicators show as
This may work for a short while, but in the long
term, you'll probably see your profits start to dwindle. You are going to have to step out of your
comfort zone if you want true success in the currency trading market.
Price action eliminates the need for
indicators. After all, the purpose of indicators aren't to help you trade. They are
there to distract you.
Think of it this way, as a forex trading guide. Which trader do you think has the highest
chance of success? The trader who has to have MACD, Moving averages, RSI indicators
plastered over their chart in order to pull the trigger on a trade, or the trader who can just
look at a simple price chart, and know when to buy or sell.
The answer should be REALLY obvious.