Free Forex Education

What is a Price Action approach?

We trade our personal accounts based on a price action trading approach. This is a trading system where all signals are taken based on what the actual price action tells us about its most probable direction in the future.

We believe everything we need to know about the future value of any currency pair, can be obtained from price action. Throughout the course you will learn specific techniques on how to trade the Forex market based on price action in combination with technical indicators.

What is the difference in signals obtained from a regular system (indicator based) and a price action approach?

The main difference is that indicator readings are based on prior market action. All indicators take historical periods, so they show us how the market behaved in certain period. On the other hand, signals obtained from a price action approach tells us what is the market likely to do, it is predictive.

We are aware however that some traders like to trade based on technical indicators, such as stochastics, RSI, etc. What is interesting about the price behavior approach is that it can be used with other technical tools (such as technical indicators), in fact, when combined with other technical tools, the system tends to produce better results.

Throughout the course you will learn how to incorporate a price action approach to an indicator based system.