Price action is undoubtedly the oldest trading methodology in existence. However, for many traders it is quite unknown. After we live in the era of trading, where there are robots that automatically trade people’s accounts. So it goes without saying that as a trading company we have become a bit lazy.

What does price action tell us?

In a word: Everything. It gives us all the valuable information we need as traders. It tells us the key support and resistance areas. It allows us to know where the trend is heading and allows us to trade with it. Price action even allows us to forecast future price movement.

The amazing thing is that this has been around forever. When the stock markets originally opened, floor traders like Jesse Livermore became trading legends just by trading price action. It really was the modus operandi of technical traders.

What happened?

Well I think we (traders) have made trading VERY complicated. Ever since trading with indicators has become the norm, traders have abandoned any kind of real market analysis. They have let these indicators make their trading decisions for them.

Everyone is so fascinated with finding a mechanical trading system that can be traded without any in-depth knowledge of the market that no one bothers to learn about what REALLY makes the market tick, and that is price action.

How do you learn it?

Well… the way I learned to trade price action was to get rid of all the indicators I had on my charts so I was left with just a bar chart. I then simply followed the market, until I noticed patterns that would repeat themselves, forecasting future price movement.