A little confused here, would this be just watching the price bounce up and down and trying to make sense out of it? Or is it more like analyzing the highs and lows, open and close and making sense out of that?
Well one simple way of explaining it would be a form of technical analysis that uses candles on a chart which represents data. This data shows what the market has been doing for the specified time range. For example if it is a daily candle then it shows what the market did for that day. All economic data and global news that effect price in any way will be reflected on the price chart so it eliminates almost any use of following the news.
The main thing that separates price action trading from all other trading strategies is that it uses “clean” or “naked” charts. There are no indicators or anything confusing on your chart, the only thing that is there is raw price displayed as candles. This makes trading simpler and easier to read.
You made mention of analyzing highs and lows well there again In Price action trading,higher highs and high lows show an upward trend. Lower highs and lower lows show a downward trend.
Hello WillSucceed…
Sarah gave you a very good explanation…
But
There are countless threads on this topic…
People get fed up and stop answering
Please, do a search for ‘price action’ in the search box…
Good luck
I am a Forex trader who still believes in the theory of Price Action which means that if my trades are correct and i am doing them right then my profits will also start coming to me.
And this is the reason i may have to wait for them.