Beginners Corner – Day Trading Strategies – The Use of Price Action

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Close – When it comes to day trading strategies, price action takes a back seat to none. Unfortunately most people will never get to that point as most traders are looking for the easy way out. They try to find trading systems that solely rely on lagging indicators. They would rather let the indicators make their trading decisions for them.

But when it comes to price action, it involves more intuitive thinking. Price action strategies don’t rely on stcohastic crosses, price divergence on oscillators like an MACD. Its the kind of trading strategy that requires knowledge of support and resistance lines, breakout points, and most importantly repeated patterns in price.

When you explain this to most traders, they usually give you some look like you are talking to them about trigonometry. They think of price action as some kind of otherwordly, scientific trading methodology.

Nothing could be farther from truth. In all honesty, it’s much simpler than any of those “special” trading systems that you see on forex forums and chat rooms. You just need to look at it from a different perspective.

Instead of using indicators to base your trading decisions on, you are the indicator. The only difference is that it takes some time to get used to this style as 99% of traders are used to covering their charts with needless indicators.

If you want to learn this trading method, I suggest you spend one day, doing nothing but looking at a chart with no indicators. Just follow the price movement all day long. You’ll start to see patterns where you weren’t seeing them before.

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