Price action trading is often touted as an elusive magic bullet for traders. Vsa forex pdf the truth is that it is neither elusive nor magical. In fact, you can grasp the essential concepts of price action trading with ease. But it is not magical as well.
Price action trading is a just one of the many trading approaches. It does not magically produce profits. The good news here is that you do not need a magical trading method. To succeed as a trader, what you need is a practical trading approach that suits your personality.
Want to find out if price action trading is for you? Want to learn how to trade with price action without all the complicated jargon? Want to pick up a bottom-up price action trading approach? If you answered yes to the questions above, this is the guide you need. Definition Of Price Action Trading Price action purists define price action trading as trading charts with no indicators.
This definition holds a strict view that demonizes indicators. This simplistic definition works well as a marketing line. It is attractive to traders who have grown disillusioned with indicators. But this is not the best way to define price action trading. What is the best definition for a practical trader? Definition: Price action trading is trading with price movement as your principal focus.
A realistic trader wants to do what works, regardless of its label or classification. Hence, the exclusion of other trading tools is irrelevant. If you find an indicator that is helpful, use it! But remember to use it with price action as an anchor. Price action must remain the cornerstone of your trading strategy. How To Read Price Action Price action is a continuous flow of data.