Price action trading strips away all indicators and makes decisions based purely on how price behaves — the patterns it forms, the levels it reacts to, and the speed and momentum of its moves.
THE CORE PRINCIPLE: Every buy and sell order in the market is visible in price. No indicator can show you anything that price itself does not already contain — indicators simply reorganise that information.
KEY PRICE ACTION PATTERNS: Inside bars (consolidation), pin bars (rejection), and engulfing candles (momentum shift) are the most reliable setups. All are defined by context, not just shape.
ENTRY AND MANAGEMENT: Price action traders typically wait for the pattern to complete, enter on a break of the pattern's high or low, and place the stop on the opposite side of the pattern.
