Is price action trading viable

Please is price action trading viable? I see it on some sites and some courses n forex offer it. Is it good to follow?

1 Like

I’m no pro… But I think so.

Here’s an exercise you should do. I also think you’d find it tremendously helpful moving forward and helping to locate some of the quote-unquote action zones.

Go on a daily chart scroll back to 2015 zoom out so there’s a lot of it, the candles bars or lines are really small.

Sometimes it’s easier to do with a line graph.

Draw a few lines using the horizontal line tool where you try to catch as many of those little peaks as possible .

And go to present day, zoom in
a bit switch to the candle or bar look at it over the past year or so 2019-2018 and see if there’l are similar price action around those lines.

Be aware that those lines actually represent zones not hard turning points to give you an idea of when price is approaching potential turning points or consolidation area to help you in your analysis.

I have Drawn lines from 2012/2013 and they still represent important zones present day.

Good luck let us know how you do.

KC

What does ‘price action’ actually mean? What does it cover?

If you’re talking about the above, support and resistance lines on a daily or monthly chart. Then no, its unreliable.

Price action works, in that it can provide you with a tradeable edge. However, it is quite different from the more mechanical indicator based trading. That difference can take some getting used to.

The theory behind indicator trading is that you can take price data and distill it down to certain mathematical factors and relationships that, when combined, give you an edge. Thus, most of the work is done before you ever place a trade, as you back-test your system to prove profitability.

Price action trading, though, treats every situation as unique, but draws similarities to previous situations to gain an edge. Because the situation is unavoidably discretionary (which is not the same as having no rules), back-testing is of more limited value. This makes it much harder to ‘prove’ or ‘sell’ a price action system. However, there are many successful traders, like Bob Volman and Al Brooks, who successfully trade exclusively on price action.

Overall, I have found price action trading more enjoyable than indicator based trading, but I would point out that emotional control is especially important in a discretionary system. Depending on the trader, this could be a big deal, or a non-issue.

to be experienced about Price action is a long term process , for that reason we the traders always quit on this above all the beginners.

If by “price action” is meant the usual definition, i.e. trade set-ups and entries identified by reference to price chart, not signalled by off-chart indicators, then yes it is definitely viable.

This means that a training course in price action trading could be of value. But I would suggest only paying for training if you are in a real hurry and need to complete training and practice quickly so you can get into trading quickly. If not, you can learn price action trading for free or very cheaply via the internet.

nice reply you have dome and thanks for the post. got new something.