Category: Price Action Trading Articles

I firmly believe that one of the big reasons price action is the best way to analyze and trade a market is because it is a type of leading indicator that leads the news many times. Allow me to explain… Why Price Action is a Leading ‘Indicator’… Traders operate on their expectations of the outcomes of upcoming events, in other words, they anticipate the future value of a particular market based on any number of different analysis tools and decision-making models. The exact specifics of these models and tools is not important to us, as price action traders. The reason they are not important is because (lucky for us) the price action on the charts shows us all of the decisions made by all of the players in any market. Think of it almost as a different language that provides

One of the biggest reasons you should make price action your one and only trading strategy, is that it will simplify every aspect of your trading, and that’s a good thing. Trading, perhaps more so than any other profession, bombards people with excessive amounts of information, in the form of economic news releases, trading systems and strategies, ‘gurus’, talking heads on financial news networks, etc. It’s important you have some type of filter for all this information, otherwise you’ll experience information overload, which can fry both your mental state and your trading account. You do not need multiple lagging indicators messing up your charts, despite what many Forex and trading websites would have you believe. All indicators do, is cover up the real story of the market below; the price action. Trading from the raw price data of the market

One of the simplest and most effective trading strategies in the world, is simply trading price action signals from horizontal levels on a price chart. If you learn only one thing from this site it should be this; look for obvious price action patterns from key horizontal levels in the market. If you just stick to that ‘formula’ you will have plenty of high-probability trading opportunities over the course of one year. Don’t over-complicate the process of analysing the markets / charts and finding trades. The market will generate signals for you when it’s ready, all you need to do is learn what the signals look like and where to look for them at. This is what you will learn in this lesson… Price action signals + Horizontal levels = Success It doesn’t really matter which component you find first,

With so many different websites and ‘gurus’ teaching price action trading and various versions of it, how do you know which price action trading strategy is the best? Furthermore, how do you know which particular price action setup is ‘the best’? My belief is that simplicity wins out in trading, always. In regards to price action trading, I teach my students to master one setup first. Once that setup is mastered, they can move on, but not until then. It takes discipline and patience on your part, but if you really want to become a master price action trader, this is how it’s done. Wax on, wax off Just like the ‘Karate Kid’ had to learn from his teacher Mr. Miyagi, repetition and simplicity are the building blocks of success. Daniel had to master a basic single action first in