Why Use Price Action Analysis? | Forex Beginning - Forex for beginners
Why Use Price Action Analysis?

1. It’s simple. You avoid cramming loads of MAs, RSIs, oscillators and lagging indicators onto your forex charts. Clean and easy-to-read charts help you have a clear-minded attitude and approach towards your forex dealings. It is not advantageous to you to overcomplicate your trading strategies when you try to learn forex.

2. PA patterns tend to repeat themselves again and again. Central banks, top-tier banks, institutional forex traders as well as purely speculative hedge funds create and maintain long-term trends. The setups repeat themselves and as a price action analyst you could spot where the rate of your particular currency pair is going, and just ride the trend.

3. It’s relatively easy to trade forex on large time frames using price action analysis. Having a balanced life is important. Of course, if you prefer to stay glued to your computer all day long clicking away on your trading platform, price action allows you that, too. PA is a very flexible trading strategy.

4. PA trading makes for a simple and logical trading strategy. This lets you concentrate your efforts on money management and trading psychology, which are, invariably, the most important aspects of forex.