Henry Kevin583_ Garcia

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What is price action trading in forex and why is it powerful?

Price action trading focuses on interpreting raw price movements without relying heavily on indicators. Traders study candlestick patterns, support/resistance zones, and market structure to make decisions. Institutions incorporate price action within algorithmic models, while retail traders use it for clarity and simplicity. Benefits: direct reading of market psychology, adaptability across pairs and timeframes. Risks: subjectivity—different traders may interpret patterns differently. Success requires consistent rules for entry, stop-loss, and exits. Price action reflects the market’s collective decision-making, making it one of the most versatile and enduring trading approaches.