Studying Price Action in Forex Trading

in Trading

After learning various methods of trading Forex. It was obvious that there was something missing in my trading. After a massive quest for information over a 4 year period, It soon became clear that I was over complicating my trading. I soon became an avid fan of keeping things simple, and that meant studying clean raw 'price action.'

In the process of this massive search for quality trading information,  I encountered trading methods which used nothing more than a raw forex price chart, that's right... nothing but price action!

One of the things that got my attention and something I have always been a fan of is the 'KISS' trading methodology, which is the acronym for 'Keep It Simple Stupid'. All this means is the more simple a strategy is, the easier it will be to follow and still to this day,  I believe it to be the most powerful lesson learnt in my currency trading career.

Most traders plaster their charts with indicators hoping they are going to tell them something to give them an edge, Been there, done that, in fact I spent 4 years, chopping and changing from one thing to another which lead me to a spiral of solid declines in my trading account. It only changed for me when i completely removed all the mess, and that left only the candlesticks and the price lines.

The problem is,  most indicators are based on Raw Price Action and only plot the indicator signal after the actual market has moved.  This Makes them all lagging information, and almost useless for real world trading. I have found that studying price action is really the best way to get hints on where the market is headed because its first hand information, right there on your screen, with no magic at all.

In my opinion the best thing any trader can do is to learn a price action method and the real beauty of it is that that most simple price action based  trading methods work with ALL markets. Not just Forex, so the doors really open up with this style of trading.

That's not to say it will be best for everyone but it's a very good place to start your own search. Good luck with your search.

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Nial Fuller has 1 articles online

Nial Fuller has been successful Price Action Forex trader for many years. He started trading price action when he was 15. Now at 25 he has traded at a major firm for over 6 years. He Runs Forex Training and Education Website, To get his free video tutorials visit this link forex price action strategies

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Studying Price Action in Forex Trading

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This article was published on 2010/03/29