Price action is one way of forex trading which is uncomplicated and easy to pick up â and best of all it delivers excellent results. For me, the task of looking at a chart of forex prices is a pleasure when I'm using price action techniques to make my trading decisions. It's a type of technical analysis which takes a basic (or a naked) chart without lots of confusing boxes, lines and bells and whistles. When using price action trading techniques your experience will be less stressful, and easier and quicker to pick up.
Some basic techniques and terms must be learned if you want to implement price action trading. You may already be familiar with them if you are an existing trader in forex or stocks. If not, not to worry as you can easily learn them online through forums and newsletters (all free) or through books (at your local library or bookshop). But seriously â price action is probably the easiest trading technique you can learn when you're just starting out.
It revolves around a number of key factors including the actual price (the numbers themselves) and a view of past behavior of the currency pair you're analyzing in order to make an informed prediction on the price behavior in the future. You'll have to draw a few horizontal lines to determine resistance and support lines, but don't worry too much about that â it's easy to do, and any decent trading course should teach you exactly how its done. Either that or the trading platform you use should have a decent help facility to answer any questions you have.
Price action is the trading technique that works best for me, and I find the easiest to use. That might not be the same for you â you might like the multicoloured lines all over a chart, or you may only analyse announcements and barely look at price charts at all in your fundamental analysis of forex. Price action is a basic but effective trading technique that you can apply to forex trading as well as stock and other types of trading. If it has price fluctuations and can be traded on a financial market, price action will probably work for you.
Remember that you can get lots of free information online about forex trading and price action trading, but to get it faster and in a nutshell a trading course may be the thing for you. If you are serious about trading well and successfully, check out price action trading courses, have fun and enjoy!