What is Price Action Forex Strategy? - Price Action Setups in Forex Trading

Price action forex trading strategy is use of only price charts to trade Forex, without the use of forex technical chart indicators.

When trading with this forex price action trading method, forex candlestick charts are used. This price action trading strategy uses lines & pre-determined price action patterns such as the 1-2-3 forex price action pattern that either develops one price action pattern or series of price action trade setups.

Forex traders use this price action trading setup strategy because this price action analysis is very objective & allows a trader to analyze the market price moves based on what they see on currency price charts & market movement analysis alone.

Price action forex strategy is used by many traders: even those that use technical indicators also integrate some form of price action strategy in their overall forex trading strategy.

The best use of this forex price action technique is achieved when trading signals generated are combined with forex line studies so as to provide extra confirmation. These forex line studies include trend lines, Fibonacci retracement, support & resistance areas.

Price Action 1-2-3 Breakout Pattern

This price action forex strategy uses 3 chart points to determine the break-out direction of a currency pair price action.

The 1-2-3 forex price action trading technique uses a peak & a trough, these points forms point 1 and point 2, if market price moves above the peak the price action signal is long, if price action moves below the trough the price action trading signal is to short. The price action break-out of point 1 or point 2 forms the third point.

What is Price Action Forex Strategy? - Price Action Setups in Forex

Series of price action breakouts

What is Price Action 1-2-3 Forex Trading Strategy? - 1-2-3 Price Action Patterns in Forex Trading