If you've been a part of the forex trading community long enough, then you probably have heard of an infinite amount of forex trading techniques. But what really astounds me is the fact that you barely ever hear about the oldest technique of them all: price action. It's been around since the first share was traded in the stock market.
You'll hear a million techniques on trading with indicators. You'll hear about every Tom, Dick, and Harry who are trying to create their forex robot, so they don't have to sit in front of their computer anymore, and they can just let a piece of software do the trading for them. But you almost never hear about somebody trading price action.
I suppose that just goes to show the kind of world we are living in right now. Instead of traders trying to understand how to read the market, they would much prefer to let a robot or an indicator tell them when to buy or sell. I suppose that takes the pressure off of them, but I wouldn't exactly call that trading.
If you are going to trade, YOU are the one who is responsible for your trades. This all starts with truly understanding patterns in the market. There are inherent patterns in the market that occur over and over again, that predict it's future movement. You'll be able to tell where there strong support and resistance areas are, where the trend has been, and more importantly where its headed.
John Templeton has been a successful forex trader after learning how to trade price action. 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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