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Price action trading

Price action means making decisions from price movement itself: structure, levels and candles. Indicators are derived from price; price action goes straight to the source.

Market structure

  • Uptrend: higher highs and higher lows.
  • Downtrend: lower highs and lower lows.
  • Range: highs and lows at similar levels.
  • Break of structure: when the last relevant low of an uptrend (or high of a downtrend) gives way.

A price action entry, step by step

  • Identify the trend on the 1h or 4h chart.
  • Wait for a pullback into support or resistance.
  • Look for a rejection candle on the 5- or 15-minute chart.
  • Enter with the stop behind the candle or the zone and the target at the last extreme.

Frequently asked questions

Does price action work without indicators?

Yes. Many traders use only levels and candles, or at most a moving average to filter the trend.