Forex price action trading can be defined as commercial decision-making based on graphic price patterns, patterns being created by reactions Simultaneous merchants, world events. Price action trading, is, then, a study of human emotion described in the Forex price charts and presented to the trader in the form of price patterns, which repeat over and over again over all time frames and all Currency pairs
Before discussing in detail why trading with price is the way you should trade Forex, I would like to discuss the technical indicators. The Forex trader must understand that technical indicators are derived from own price and as such lag the price action. This means that if you are a technical marketer solely based on indicator strategies, then unfortunately you are more than likely to fail in your efforts to trade the profit markets.
When you derive a technical price indicator that would normally soften some of the depressions and the price spikes themselves, you will enter the market too late and close your trades too late when you trade using indicators, but more importantly That you build delays inherent in the indicator when compared to the price, this is vitally important to understand and relates to the point I made above – technical indicators delay and this will cost you money.
Internet search engines, you will find a plethora of indicators based systems, for sale or for rent, along with volumes of articles, trading robots and other sure fire systems that informs you how you can Make money using a indicator based system. This is all well and good, however, do these methods and systems really make money? If we accept that more than 90% of traders eventually lose money trading or clean their trading accounts clean Forex trading and if we accept that The vast majority of these people use indicator based methods to trade the market, I think it tells us something about the Based on their own indicators.
The indicator systems at best will help you to break even in the markets, while the price Action methods will help you to stay well profitable.
The study of price is then the observation of the activity of traders in the market, this can be seen and portrayed in the market through the pattern of price action. The patterns express the emotions traders.