Trading Forex With Price Action

Trading Forex With Price Action
By John Templeton

There are a seemingly infinite amount of ways to trade the forex market. There are thousands of indicators which you can use to create many mechanical forex trading systems.

The sad thing is that for every 100 traders who want to use only stochastics to trade the market, you could probably find 1 traders who wants to learn how to trade forex just by using price action. I'm beginning to see why so many traders fail to make money.

It's pretty obvious how overly dependent many traders have become with using indicators. Believe it or not, all the important information you'll need to trade can be seen on a basic bar or candlestick chart.

You can do yourself a favor right now. Go pull up you favorite charting platform, open up a chart of your favorite currency pair, and DO NOT put indicators on it. I know this may seem pretty awkward for some, especially if you have been an indicator junkie.

What I'd like you to do next is quite simple. I just want you to focus on price movement. I want you to really focus when the market is at its most volatile. When you see big upward or downward, you can start to notice that there are inherent support and resistance areas when this happens.

You can actually begin to predict the price's future movement just by noticing these kind of setups. It's a great way to predict if a price is going to continue to trend or if there is a good chance of a countertrend move happening.

John Templeton has been a successful forex trader after learning about price action trading. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

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