There are a lot of people who have a very difficult time understanding the complexities of how to trade the forex market. It seems like most new traders are really struggling when they get started. I know we live in the internet age, and that’s great. But the thing is there are seemingly millions of different people telling you something different. It can be completely mind numbing, because I went through the same kind of thing.

You never really get the information you need though, do you? All you ever seem to get is a guy will tell you to put a bunch of indicators on your charts, and as long as you follow them, you will be rich, right?

I’m going to have to give you some startling news. Trading with generic indicators like stochastics or moving averages, and using them as your only reason to take a trade, you will not see a whole lot of success trading the forex market. Understanding price action is so critical if you want to make money long term. After all, its the basis of technical analysis.

Here are just some of the many advantages of price action:

Real support and resistance areas: That’s right, REAL. I don’t mean to use all these generic indicators that will put these s/r on a chart. That’s not the real deal. For the real stuff, you have to see it with your own eyes.

You actually comprehend why the market moves the way that it does. When you use indicators, do you really have any idea of the underlying reasons why the market moves the way that it does.

With price action, you are able to predict possible important turning points. This is so critical to a trader. Also, you can use any kind of time frame you wish to use. So, theoretically, it doesn’t matter if you are either a long term trader or short term trader. This is proof that price action is for every kind of trader.

It makes no difference the kind of market that you trade. You can trade forex, stocks, e-mini. It really doesn’t matter because it is so universal.