Last Updated on January 26, 2025 by Arif Chowdhury
Ever stared at a forex chart and thought, “Where the hell do I even start?”
You’re not alone.
Most beginners overcomplicate things. Indicators everywhere. Strategies that sound like rocket science. It’s overwhelming.
Here’s the truth: Price action trading is one of the simplest and most effective ways to trade forex.
No lagging indicators. No clutter. Just pure market movement.
As a seasoned forex trader since 2015, I’ve tested it all. I’ve built 15 trading bots across four major currency pairs, and I know what actually works.
If you want a no-BS approach to forex trading that actually makes money, keep reading.👇
What Is Price Action Trading?
Price action trading is trading based purely on the movement of price.
No MACD. No RSI. No Bollinger Bands. Just candlesticks, key levels, and trends.
Why? Because indicators lag. They tell you what’s already happened.
Price action is real-time.
It’s what professional traders use to make decisions. And trust me, if you learn to read the market correctly, you’ll never need another indicator again.
The Simple Forex Strategy for Beginners
Let’s get to it.
A price action strategy that actually works. Simple. Effective. Zero fluff.
Step 1: Identify Key Support and Resistance Levels
Support = Where price bounces up repeatedly.
Resistance = Where price bounces down repeatedly.
How to find them:
- Look at the daily chart and mark out obvious turning points.
- Switch to the 4-hour or 1-hour chart for more refined zones.
- The stronger the bounce, the more significant the level.
Example: If EUR/USD has rejected 1.0850 multiple times, that’s a key resistance level.
Step 2: Wait for a Clear Price Action Signal
Patience. No chasing. Wait for the market to show its hand.
Best price action signals:
- Pin Bar (Reversal Signal) – Long wick, small body = Rejection.
- Engulfing Candle – A big candle swallows the previous one = Strong momentum.
- Break and Retest – Price breaks a level, then comes back to test it before continuing.
Step 3: Enter with a Smart Risk-to-Reward Ratio
Most traders fail because they risk too much for too little reward.
Follow this:
- Risk 1% per trade – Never risk more than 1% of your account on a single trade.
- Go for 2:1 or 3:1 reward-to-risk – If you risk 50 pips, aim for at least 100-150 pips in profit.
- Set stop-loss BELOW support (for buys) or ABOVE resistance (for sells).
Step 4: Manage the Trade Like a Pro
Once in a trade, don’t mess with it unless you have a plan.
- Move stop-loss to breakeven once price moves in your favor.
- Trail your stop to lock in profits if price keeps pushing.
- Never revenge trade. One trade won’t make or break you.
🚀 Pro Tip: Most traders lose not because of strategy, but because they lack discipline. Your mindset will determine your success.
Why Price Action Works (Backed by Data)
- 80% of retail traders lose money because they rely on lagging indicators (Source: ESMA Report).
- Professional traders use price action and structure-based trading over 70% of the time (Source: FXCM Trading Survey).
- A risk-to-reward ratio of 3:1 means you only need to win 30-40% of your trades to be profitable (Simple math, but most traders ignore it!).
This isn’t just theory. It’s how successful traders make money consistently.
Want to Take Your Trading to the Next Level?
Look, trading manually is great. But let’s be real—it’s time-consuming.
That’s why I built 15 fully automated trading bots that trade major currency pairs with insane precision.💡
Each bot is:
- Backtested for high probability setups.
- Diversified across EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
- Internally designed to avoid correlated losses (so they don’t all fail at once!).
👉 If you want to see how they work and how they can level up your trading, check them out [here].
Choosing the Right Forex Broker Matters
I’ve tested dozens of brokers over the years. Some are great, some are absolute trash.
The right broker gives you:
- Tight spreads (so you’re not losing money before you even start).
- Fast execution (to avoid unnecessary slippage).
- Regulated protection (so you don’t get scammed by shady platforms).
I’ve put together a list of the best forex brokers I personally use and trust.👇
🔗 Check them out [here]
Final Thoughts
Price action trading is simple, but not easy.
Most people fail because they lack patience, discipline, and a solid plan.
Use this strategy. Stick to the process. And if you want to fast-track your success, let my bots do the heavy lifting.
Trading doesn’t have to be complicated. You just need the right approach.
🔥 Let’s get to work.