Price action strategy is one of the best methods to make profits in forex market, because the best indicator from the entire market is the price itself. As a beginner trader, I tried a lot of methods and I used tons of indicators and oscillators and, at some point, every single one failed.
When I first started to read about price action I was amazed in the first place by the simplicity of this concept and how easy to understand it is. Here are some advantages of price action methods:
- Easy to understand, even for a beginner trader;
- It’s very simple to use;
- It’s very simple to backtest;
- Clean chart – this is one of the most important advantages of this concept, because you don’t get different (opposite) signals from different indicators, and you can always read the chart in a very simple way;
- As in the forest market past + present = future, another advantage is that this concept is used since almost 100 years ago, which makes price action methods very known and used by traders from all around the globe;
- The fact that price action patterns are very known around the world represents another important advantage, because all these patterns are easy to recognize by almost any trader and every time, one of these patterns appear, it is traded by a majority of traders and this thing makes them fail in very few cases.
As you may guess there are several methods which can be used for a successful trading and here is one of my favorite price action strategy (price action method) for GOLD trading which I successfully use for sending signals. You can also check this method’s results here.