Price action is comprised of technical and chart analysis. Traders analyse charts to find out patterns within the movement of price and predict for future movement. They look for swing high and swing low point to identify a trend, they also look for support and resistance to identify the potential setup. At last, they look for price action (i.e the candle stick pattern) as a trigger to enter and exit the market. Basically, price action is purely analysis on price itself without using any complicated indicators, most professional traders use candle stick to analyse price action.
Why price action?
Keep it simple is the key to success in Forex trading. The more indicators you use, the more confuse you are. Almost all trading indicators are lagging, they are based on price history to produce a so call indicators so they are basically telling you what has already been happened in the past. They are here to confuse you.
The more you rely on indicators, the more you confused because you would have no idea what is actually going on. All you do is just waiting for the indicator to cross some point and you enter the market.
The distinction between a professional trader and an amateur is that the professional trader use price action, no moving averages, no MACD, no Stochastics but a simple bar chart.
Up trend - Higher high and higher low
Price action first step is to identify trend. An up trend consists of higher high and higher low, i.e. the swing high is higher than previous swing high (higher high); swing low is higher than previous swing low (higher low)
Down trend - Lower high and lower low
A down trend consists of lower high and lower low, i.e. the swing high is lower than previous swing high (lower high); swing low is lower than previous swing low (lower low)
Support
A support level is a previous tested level which has enough demand to keep the price above this level. When the price falls close to this level, buyers will be more inclined to buy and sellers will be less inclined to sell. Until this level is reached, demand will be more than supply and prevent the price from falling further.
Resistance
A resistance level is a previous tested high and the selling power will keep the price from rising further. When the price rises close to this level, buyers will be less inclined to buy and the sellers will be more inclined to sell. Until this level is reached. Until this level is reached, supply will be more than demand and prevent the price from rising further.
Level of confluence
To trigger a trade we need to combine all factors together to form a "level of confluence". The more factors supporting your trade, the higher the probability the trade will succeed. The level of confluence can be a combination of the followings:
1) Price reaches the support or resistance level e.g. key horizontal level, moving averages.
To trigger a trade we need to combine all factors together to form a "level of confluence". The more factors supporting your trade, the higher the probability the trade will succeed. The level of confluence can be a combination of the followings:
2) Price reaches the Fibonacci retracements, the 38%, 50% and 61% levels
3) Price is currently with trend
4) Price action triggered at the key level e.g. price breaks out from the congestion area.
Where to next?
We introduce the Hector Trade Price Action Forex Course developed by Hector who is a full time professional trader. He introduces the "3 SMA Trading System" to identify trend (trend following system). He teaches you a high probability trading system based on trends, chart pattern and more importantly price action. He shows you what to trade, when to trade, when not to trade, setup trading plan, money management. The course structure as follows: Where to next?
CHAPTER 1 - Analyzing the trend (First chapter is Free!)
CHAPTER 2 - Pattern breakouts
CHAPTER 3 - Swing trades
CHAPTER 4 - Stop loss and targets
CHAPTER 5 - Blending the news
CHAPTER 6 - Trade management
CHAPTER 7 - London open breakout
CHAPTER 8 - The Golden Rules
If you purchased this kind of courses before, you know that it will easily cost up to $2,000, but HectorTrader only $197. The best thing is that this is a risk-free purchase. If you are not fully satisfied with the course you have 60 days to get your money back guaranteed! You have nothing to lose!
A quick video from Hector introducing one of his trading strategy:
A quick video from Hector introducing one of his trading strategy:
Lets look at some of the customers' review (extracted from http://forextradingcoursereviews.com):
 hector trader course review, Oct 09, 2009 | |||||||||||
| reviewer: Edward | |||||||||||
I bought hector traders course and I love it. It is far too excellent in its training and techniques compared to many other courses I have seen and bought as well. Oh, and the price is reasonable as well, not $2000 like some other courses on the market, but each its own. I have already made off with some wins on my trades. Don\'t get me wrong here, I have had my share of losses before, but I\'m getting the hang of it now with hector trader\'s course. Thanks hector.
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Hector trader blog and course, Aug 15, 2009 
