Bustamante
New member
- Joined
- Feb 3, 2023
- Messages
- 21
- Reaction score
- 0
- Points
- 1
Price action (PA) is a term in technical analysis that refers to the movement of a security's price. Unlike using indicators or other technical analysis tools, price action involves studying the price itself to make trade decisions.
There are several ways to incorporate price action into Forex trading:
There are several ways to incorporate price action into Forex trading:
- Support and resistance: Identify areas where the price has repeatedly found support or resistance in the past. These levels can be good places to enter or exit trades.
- Trend lines: Draw trend lines on the chart to determine the underlying trend. Look for price action signals, such as a break of a trend line or a false break, to enter or exit trades.
- Candlestick patterns: Look for specific candlestick patterns, such as the doji or the hammer, which can indicate a potential change in the trend's direction.
- Breakouts: Keep an eye out for breakouts of key levels, such as a previous high or low, as these can indicate a shift in the trend.