If you’re interested in learning to trade Forex using the price action strategy but don’t know where to start, this guide is for you.
Step 1: Build a foundation in Forex trading basics
Before you can start trading with Forex price action, it’s important to understand the core principles of Forex. If you’re not familiar with what Forex is, why it exists, or how it’s traded, take a beginner’s Forex trading course to get up to speed. This will help you seamlessly transition into learning how to trade with price action strategies.
Step 2: Strip your charts of unnecessary clutter
To trade with price action, it’s essential to remove all indicators from your charts. Indicators are second-hand information, not first-hand price action from the market. Complex trading methods can also cloud your judgment. Creating a simple and logical trading plan based on the core price action of the market can reduce stress and help form positive trading habits.
Step 3: Learn simple price action strategies
Price action trading means trading off the raw price movement of the market without using any fancy systems or strategies. It’s one of the simplest and most profitable ways to make money on foreign exchange market fluctuations. Once you remove confusing indicators and learn a few price action trading strategies, the visual price patterns and signals will become clear. Simplify your charts, focus on plain vanilla price action, and avoid cluttering them with complex methods and indicators.
In the chart below, we can see a good clean example of trading one of my favorite price action setups, the pin bar trading strategy…
Start learning to trade Forex today by downloading a Forex charting platform, setting up daily candlestick charts, and keeping it as simple as possible. Remember to focus on reading the plain vanilla price you see on the charts.