Introduction to Trading With Price Action Strategies

Price action is the behavior of price of a specific currency, commodity, stock or other trading instrument over a specified period of time.

Price action analysis is the study of specific price patterns that we see reoccurring in the markets.

By learning what these price patterns, or price action strategies, look like and exactly how to trade them, we can develop a complete Forex trading strategy around them.

Price action analysis allows you to see exactly what is happening in any given market simply by studying the behavior of price over time.

Price action is the visual trail of the supply and demand situation of a market and it 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.

As retail Forex traders, our goal is to jump aboard the price moves created by bigger players who have the power to move the market.

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