Tuesday, November 5, 2013

Forex Price Action Overview

Instead of giving you guys a quick update on events which happened today I wanted to take the time to answer a question which is often asked by new forex traders. First of all I hope everyone has done the proper amount of basic research about forex trading. Those who have done so at least came across the term price action and those who are clueless don't even bother trading and get back to educating yourself.

The more research you will do the more you will read about price action and how many forex traders who claim to be profitable swear by trading price action only.Before you read any further, there is no one right approach to trading currency pairs or any other asset you trade; it all depends on the individual trader.

Here are some key facts you need to know about price action trading:
  • Price action traders only look at charts without any indicators. This is also known as naked trading as you only look at the charts and nothing more
  • Candlestick charts are the most common used chart for price action trading 
  • Trading signals are generated by chart formations as well as candlestick formations
Trading price action sounds very simple, it is very simple but it is not easy. It requires years of experience which you need to gain in a live account and not in a demo account. Those of you who still think you can accomplish anything in a demo account please read the following post and check out the infographic:


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