Price Action trading is not rocket science, it’s just a logical way to trade. Everyone that has been reading these articles and watching these videos for a while now will know this whole site is dedicated to helping traders learn to trade Price Action in the Forex markets.
Price Action is one of the best tools a trader can have in their trading tool box. Price Action is just looking at what price is doing and what it is telling us. We don’t need to carry a devise when we look a person’s face to see if a person is happy, sad or confused etc. We also don’t need indicators all over our charts to tell us that price is going up, down or sideways. We don’t need indicators or black box systems to show us that price is rejecting a support/resistance line as we can tell by how price behaving if it is respecting a level or not.
This article is going to go over some recent setups and exactly how traders could have used the information that was there for all to see in the raw PRICE only.
The Aud/Jpy 4 hour chart below shows that price is in a nice down trend. Once again we don’t need moving averages and trend lines to see this. We can tell that from left to right price is falling away. A simple horizontal line at a previous swing high shows us that price pulled back twice to this area and gave us two solid Bearish Engulfing Bars that were both very simple and logical trades. These trades form all the time in the Forex market. Both trades could have given about 2:1 risk reward depending on how you played them.
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