What is Price action?

[asiaforexmentor1]

A lot of people have this question in mind, what exactly is PRICE ACTION.
And why is PRICE ACTION KING IN FOREX?
To answer the above question, i start off with talking about indicators.
There are tons of indicators out there, be it forex or others. They work mostly the same way.
And there are new indicators coming out every other day.
Alot of traders when they first started trading forex, they have tons on indicators on their charts. Trying different combination of which works best for them. And at the end of the day, they get confused all over as one indicator may be telling you to go long, but the other is telling you to go short.
Which will result in you making bad decisions and end up blowing your account with a frustrated mind.
Why does it happen this way? Indicators are derived from the chart movements. Some indicators react faster, some slower.
However, as they are derived from the chart movements. They are 1 step slower than the chart. Which is in fact Price Action!
Price Action leads the indicators, and when price reverses it movement from short to long (example). The indicator which you are watching is one step too late. And by the time the indicator confirms it is going short, Price Action has taken the market to go Long.
This happens most of time, if not all of the time.
Therefore = ALL INDICATORS ARE LAGGING INDICATORS!
PRICE ACTION IS WHAT LEADS THE INDICATORS, IT IS KING IN FOREX!
By understanding Price action in forex trading, we are able to understand the ENTIRE PICTURE of the market.
WHY is the market moving up,
WHAT causes it to stop moving,
WHY is the market reversing
WHY is the market in consolidation
IT is like reading a book once you have mastered price action in forex. And the best thing is, It is not difficult!
It is even easier than you reading an indicator.
And when you mastered price action, with combination of our system. You will almost be able to pick absolutely MARVELLOUS TRADES all the time. CONFLUENCE is the King of the game. This is what equates to our high probablity trades with a high winning ratio.
To an Awesome Trading as Always,
Ezekiel Chew

[Easy Trader]

Show me the way, with alittle PA!!

[Haley12]

Thanks Ezekiel Chew for sharing detailed article about Price action. I was familiar with Price action term but not in deep.

[f123x]

i think price action is consider all the items of forex trading such as timing, leverage, and many more when they going to Open position.

[Klinger]

I was really surprised at how easy it was to understand Forex, once I got started. I like the points made here. Once you've managed Forex, you will wonder why you didn't get started sooner.

[Eugene]

The analysis on forex trade can help to find the reasons for falling... The price action is used to find the reasons for ups and downs in trade!

[SebastianBermudes]

You have the right point...

Price action is the study of Behavior of price at certain important levels of price .
This may seem a bit difficult in worlds but when you see a chart it will be clear ..
You can see a price hitting say a psychological level of 1.3000 on USD/cad and see sellers come in ..how do u know this? look at the charts and you will see behaviors of price around the important levels which we call price pivot zones acting as support and resistance . This is real gem when we call trading NAKED CHARTS ..This is what trading naked charts is ..I bet once you start to understand this price behavior you will forget using any indicator and start with naked charts ...

I hope this helps..

[Alchemist]

Originally Posted by SebastianBermudes

Price action is the study of Behavior of price at certain important levels of price.

That's a great definition. Draw trend lines, horizontal support and resistance levels and see how price reacts to them. Learning a few simple candle/bar patterns will help to signal entries, but that comes later. Once you have learnt the basics, it's a lot easier than using indicators, as well as being far more effective.

[Eugene]

Nice SebastianBermudes! your share on price action (trade analysis) might be a useful point for the traders.. Some other suggestions are also invited to share.

[Rob Taylor]

Once you have a complete understanding of price action, trading Forex becomes a whole lot easier.