Traders were often astonished by the word Price Action especially when they saw profitable traders who are claiming price action or naked trading is the best.
What is Price Action?
is a trading technique that enable you to read the market and make trading decisions based on the actual price or action of prices as they move in a smooth wavelike motion on a chart, rather than relying on lagging indicators. Most indicators are derived from the actual prices on the chart, giving us information on past price movements.
Trend is your friend
One of the most popular saying in forex, traders always say that, follow the trend, don't fight with the trend. But how do we know when the trend was ending and a new trend will begin? This can be seen when there is an exact test of a high or low.