Welcome to Easy Life Forex, this site is your hub for everything price action trading. If you want to get rid of the noise and confusion that often accompanies trading, then learning to trade with simple price action trading strategies is your best bet.
Price action trading (price action or p.a.), is the art and skill of trading based on raw price data with no third-party indicators, news or fundamental data. The cliché expression to describe price action trading is “naked trading”, because it involves trading on a ‘naked’ price chart, i.e., a chart devoid of any indicators or other technical analysis tools, besides the raw price data or price action of a market.
More specifically, the discipline of price action trading does not utilize lagging indicators, trading systems or algorithms, instead the trader’s intent is to ‘read’ the price and map out key market levels, identify price action signals and other chart patterns which provide clues as to the future direction of the market over different time periods (short and long-term).
All financial markets generate data about the movement of the price of a market over varying periods of time; this data is displayed on price charts in the form of price action. Thus, price charts reflect the beliefs and actions of all participants (humans or computers) trading a market during a specified period of time and these beliefs are portrayed on a market’s price chart in the form of raw price action.
The price action trader subscribes to the belief that all economic data and world news that causes price movement within a market is ultimately reflected in that particular market’s price chart, via its price action. Whilst economic data and other global news events are often the catalysts for price movement in a market, as traders, we don’t need to analyze these variables to trade the market since all this data ends up being reflected by a markets price action anyways.
Since a market’s p.a. reflects all variables affecting that market at any given time, using lagging price indicators like stochastic, MACD, RSI is not required and is considered ‘second-hand lagging data’ and a complete waste of time to a price action trader.
The naturally occurring price movement in a market provides all the trade setups and signals one would typically need to develop a profitable and high-probability trading method. These signals collectively are called price action trading strategies and they provide a way to make sense of a market’s price movement and help predict its future movement with a high enough degree of accuracy to build a complete strategy and trading plan around.
Here’s a preview of just some of the price action topics you will learn more about on this site:
- You will be better able to answer the question “what is price action?” This site will provide you with a solid basic understand of exactly what price action trading is and how to use it in the market.
- Price action trading strategies such as inside bar break out patterns, pin bar reversal patterns, fakey patterns, false breakout patterns and pin bar / inside bar combo patterns will be discussed.
- My beginners price action trading course will provide you with a complete course on introductory price action trading and give you solid price action trading skills you can begin implementing in the market.
- Combining price action strategies with key chart levels of support and resistance.
- Trading price action with confluence, i.e., from confluent levels on a price chart.
- Much more to come in the future!
Thanks for stopping by and I hope this site becomes and integral part of your price action trading journey.