What Is Price Action
If you have been studying Forex for any length of time I’m sure you have heard the term “Price Action” thrown around as the Holy Grail of Forex Trading.
While there is no “Holy Grail” in Forex, we do agree that Price action is a key component to long-term consistent trading results.
However, the large majority have the wrong impression of what price action really is.
Raw Price Action Trading is NOT:
- Candlestick Formations
- Technical Chart Patterns
- Support & Resistance
Raw Price action Trading IS:
The way in which the price is moving, how far and how fast in a given time period.
Price Action Is Not A Strategy
Price action alone is not a strategy, it is typically a supporting factor or a rule within your set of strategies.
For us that use the FxPM Software, we combine raw price action as a supporting factor to Dynamic Fibonacci and that gives us an extremely high probability edge in the market.
In summary, we are monitoring (How Far) x (How Fast) price has traveled to our support or resistance level.
Ideally, you want to see an extended amount of price action as it is hitting your level. This will likely provide a better bounce and quicker profit.
Here is a short video to explain.
For over 9 years I have been trading Forex and working closely with Armando Martinez, the Founder and creator of The FxPM Software to develop FxPM. It is our goal to develop a Forex Software that not only simplifies trading decisions but also delivers institutional performance to the retail trader.