A Beginner’s Guide to Reading Price Action

Price action trading involves analyzing historical price movements to make trading decisions without relying heavily on indicators.

Understand candlestick patterns, support and resistance levels, and trend lines.

Learn key formations like pin bars, engulfing candles, and dojis that indicate market sentiment.

Recognize higher highs and higher lows in uptrends, and the opposite in downtrends.

Price action helps traders time entries and exits within prop firm rules, supporting risk management and discipline.

Mastering price action is a valuable skill that enhances your ability to trade consistently and profitably.