One forex trading strategy that does not get the credit it so desperately deserves would have to be price action. Its older than any other trading method, more importantly, a lot more accurate.

So it’s really surprising to see how many people aren’t fully aware of its power.

It’s a real shame that this has happened. But traders can only blame themselves for this. As technology has improved, so has the level of laziness from traders. They would rather spend the hundreds of dollars on trading software that is just not needed.

Nowadays, you can find your own special indicators, mechanical trading systems, trading robots, etc… anywhere online. Just pick any forex forum.

Sure all these things may be popular, yet you never seem to hear about price action. It could be that it’s just too general of a term, so traders don’t cling to the idea as easy as they do with all the shortcuts that are available, but here is what they are missing:

Price Action Patterns: Here is something most people aren’t aware of. The market has price action movements which can be used to tell where the future direction of the price is headed. The great thing is that it is duplicated over and over again, so you can literally enter and exit a trade a bunch of times during the day.

The Trend: Every trader worth his weight in gold should be able to spot and trade with the trend. The sad thing is most really don’t. The think oscillators like moving averages can tell them where the trend is. Sadly, that is just not the case. It can be seen by just looking at the price.

Support and Resistance Areas: I’m sure many of you who use a Metatrader MT4 charting platform, probably have the custom pivot indicator that gives you the 3 support areas and the 3 resistance areas. Don’t feel bad. I used those too when i was first starting out. But the truth is the REAL support and resistance areas can’t be calculated. It’s just not that cut and dry. To find out the real, there is only one place to look, and that’s in the price action. There is no indicator that can just spot it for you.