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.
