Trading with Price Action

Hello! I am new to forex trading, and I am wondering if its possible to trade profitably with just price action i.e., candlestick, along with say EMA or SMA? Many thanks in advance!

If you are new in trading you should learn about how to trade successfully. So before invest learn about forex trading in detailed. If you have any question let me know.

Yes it is possible to be profitable just trading price action.

You don’t even need MAs. Just candlesticks and S/R zones can do the job quite well without distraction caused by indicators.


Yes it is possible to trade profitable with price action strategies. Using EMA or SMA along with price action can be helpful for better prediction. However, usually price action trading is called a naked trading, which means no other indicators.

Yes you can, and you can also add a momentum indicators such as Stochastic or MACD to see how the prices are more likely to move.

I think it’s possible, but I, personally, can’t do it. I do trade using candlestick patterns a lot, but I need indicators like Bollinger Bands or Moving Average to help me make a decision.

Thank you for all your advices! I shall start reading up on candlesticks. Any good reads that you would recommend?

Btw, is there a difference between candlesticks and pin bar trading?

Not so much, because if a bar/candle really is a “pin”, i.e. it literally opens and closes at the same price, having swung either up and then back down or down and then back up in-between (but not both), it has exactly the same appearance whether you’re using bar-charting or candle-charting.

This can be more clearly understood by thinking carefully about the information presented in bars/candles, how they’re constructed, and what they look like when they open and close at the same level.

Candles have attracted a special “mystique” among amateur and aspiring traders. There’s a widespread but typically unspoken assumption, or belief, that candles somehow give some additional information not shown with bars. It’s untrue. Both give exactly the same information about the price movements during the selected period: the open, the high, the low and the close. (In forex, because it doesn’t gap within each week, the open is the same as the close of the previous bar/candle.) The difference is that because of the way each is constructed, candles visually accentuate the open and close, whereas bars visually accentuate the high and the low.

People use whatever they prefer, become used to it and find it more helpful. Many aspiring traders who effectively learn to trade in forums, from service/information-sellers, from online PDF’s and from the most recent generation of popular trading books and information, and so on, tend to prefer candles. Rightly or wrongly.

Many price action traders prefer to use bars, partly because highs and lows are objective and factual whereas opens and closes are trader-selected, more subjective and have less significance, and partly because the “older generation” of trading textbook writers used them.

Imagine the effect of trading from hourly bars or candles but starting off each at five or ten past the hour, instead of on the hour: the significant highs and lows would be basically the same on such a chart, but the opens and closes would almost all be completely different, wouldn’t they? But both charts “describe” exactly the same price movements. With forex, opens and closes are actually arbitrary and trader-defined (apart from the week’s opening and close, arguably).

Anyway, to answer your question, in the case of pin bars, it makes no difference whether they’re bars or candles: they look the same and give the same information.

Hello Oyaren, and welcome to the forums…

Lexys says it right: there is no real difference between pin bars and Japanese candlesticks:

certainly, it is all about how you use that information.

One thing is for sure: a lot of newbies in Forex may find it easier to start with charts and

technical analysis, because that is just the way that the learning curve normally pans out;

however, trading the best probability should take into account three things:

  1. technicals;

  2. fundamentals;

  3. market conditions.

For example: you spotted a great technical set-up on a chart for a big move, but as you execute it, nothing

happens… price has stalled… Reasons to consider: there is a big announcement in a couple

of weeks, which will affect positioning for that pair in a big way, so nobody is committing to

buy or sell… Which leads to the third point: are the market conditions right for the kind of trade you

were hoping to profit from? If there is uncertainty, there may be ranging, or a stall, which may lead your

trade to sit without doing much until fundamentals and market conditions find conviction again, one way or

the other.

Trading is never just about ‘pure price action’…

However, some people are successful at trading without looking at fundamentals or market conditions, but

I think it is certainly worth having an understanding of where the big players are likely to park their capital

and how that may affect the particular instrument that you intend to trade…

That is my opinion… Some traders here do not trade with anything but the charts, and volume bars, but

that is not how long-term trading works, for example, so if you intend to be a ‘buy and hold’ (or ‘sell and hold’)

trader, then the intraday/tech approach would not serve you well; conversely, delving deep into fundamentals

when you only targeted very small intraday moves would also be counterintuitive.

The choice, in the end, remains with you.

Price action is what traders are doing at the moment.
Welcome back Lexy.
Bulls and Bears.
Data releases…so prominent in the travel of price action, my opinion.
Strategies work at times and they don’t, all of them, don’t give a hoot which one is used. Your mission is to keep your losses small, close out half your winners and let the other half run, as you use a trailing stop to lock in your 2nd half.
Sounds good to me.

Na zdrowie,

Buy and hold , in this day and age, rather go to the t-bred track and bet on number 5.

I need with price action on daily time frame but boy you need extreme patience in order to do this :wink:

You dont need patience for that, you need to know what your doing. I’d rather trade price action then bet on number 5 at the t-bred track.

If you know what your doing its simple and it works.Skill > Luck.