#education Today we're going to continue our weekly Friday | OctaFX Official

#education

Today we're going to continue our weekly Friday educational tips. Let's talk about Price Action.

Price Action is a trading strategy based on price behaviour. This strategy helps traders enter the market based on their understanding of different candlestick patterns without forex indicators. The method is based on combining patterns with price levels and using them to set targets and sometimes Stop Loss orders.

Price Action is a method, not an automatic system. It means that everyone applies Price Action tactics in their way, developing their unique trading style. You can use this methodology with another strategy (based on indicators or anything else) and improve your trading results.

The main difference between Price Action and technical analysis patterns is that each subsequent candlestick in the Price Action model meets specific criteria. You should open an order immediately after the last candle in the pattern was formed. In technical analysis, you can set a pending order after basic pattern conditions execution without waiting for the pattern to be finished.

We'll show you the most common Price Action patterns in our next post. Stay tuned, and have a lovely weekend and a thriving trading week after!