Why You Should Learn Price Action

One of the most overlooked methods of trading forex has to be price action. I can safely say this because you never hear about it in trading circles such as forex forums. It's really surprising also because there are so many people losing money trading, that it would make sense to use it.

I know reading this may make you feel like you don't have a shot at being successful at trading, but as long as you don't fall for all the shortcuts that you see other people doing, then you have an excellent chance of becoming a rich and successful trader. So how is it done? How can you become one of the rich traders. It's simple. Just do what they do. If you are a student of trading, you should know that almost every single successful trader lives and dies by trading price action. The only thing you have to know is that certain traders trade price action a little differently.


The most important thing to remember, though is that the famous traders don't use basic indicators like Stocbastics or MACD. Unlike traders of today who blast these kind of indicators on their charts, hoping to make some semblence of what they are looking at. You can tell how most modern traders, because all you have to do is visit any forex forum. Almost every thread you go to, there are images of charts with every draped with every possible trading indicator known to man. You can tell that price action is the very last thing on their mind.

They'd much prefer some random indicators, which are just lagging formulas telling you what has already happened, to tell them when buy or sell. Price action trading is pure. There are no gimmicks to it. It tells you what you need to know, and leaves out all the clutter. It's almost as if the market is speaking to you. The problem is with all those indicators, it's kind of hard to hear it.

By: Terry Long

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Find out how you can trade forex with price action.