Price Action Trading Vs Algorithmic Trading (Pros, Cons and Your Experiences)

I have to admit that when I started Forex Trading, I was solely focused on technical analysis (candlesticks, Chart patterns and indicators) however, over the last two years, I have increasingly grown to embrace price action.

Initially I never fancied myself, but I have come to realize that with price action trading, my win-rate has increased significantly.

Anyone had a similar experience? I still use technical analysis at times (solely) while in other occasions i combine technical analysis with price action.

I am seriously considering digging deeper into price action and possibly ditching technical analysis if everything plays out well, but I guess it will take some time.

Anyone using a price chart and making a decision based off what price is doing, is trading price action via technical analysis.
This is just semantics…

Hi middaytrader

Price action trading is a form of technical analysis.

You might want to explain exactly how you traded before and how you trade now so we can better answer your question.


Ok, this is how I understand price action trading. There can be several ups and downs in a price chart, but most of them are really down to the forces of demand and supply. With price action, there are key supply and demand zones, which are mostly triggered by heavy institutional buying/selling. For me, these supply/demand zones need no indicators to identify.

I’d recommend looking into Sam Seiden’s work w/ Supply/Demand zone trading.
He’s pretty much the authority on it, and has a live trading room to prove it.

What you have referenced above isn’t technically a supply zone. It’s a resistance level.
Supply does not equal resistance.
Demand does not equal support.

S/D zones are very different than S/R levels.
Did you sell that .55 level? Of course it’s a nice spot to short seeing that price broke down heavily afterward. What would have been your signal to enter short? The mere fact that price is trading toward a level which previously acted as resistance?

Algorithmic trading is NOT technical analysis trading. It is a whole different ball game.

As stated previously, price action is a part of technical analysis, but differs from technical indicator trading.

I am new to forex, interesting ideas thank you. i was surprised to see the charts horizontal axis displaying months. I was expecting day trade activities here.

The way you look at it is odd.

Price action trading IS technical analysis, chart patterns, and candlesticks.

It’s just that there are strategies that are so confusing.

I had the similar experience. It really killed me mentally. I bumped into The Forex Guy then I modeled my strategy from his. The Forex Guy is a site btw.

It’s all about price action swing trading btw.