Module 23: Price Action Trading
Key Takeaways
- Price action reads the chart directly, with few or no indicators.
- Wait for confirmation before entering.
- Trade continuations with the trend and reversals at key levels.
Entry confirmation
Rather than buying the instant price touches a level, wait for confirmation: a rejection wick, an engulfing candle, or a break-and-retest. Confirmation filters out many false signals at the cost of a slightly later entry.
Trend continuation
In a clear uptrend, look to buy pullbacks to support, a moving average, or an order block, entering on a bullish confirmation candle. You’re joining the dominant trend at a discount — the highest-probability type of trade.
Reversal setups
At a major level, watch for a failure to continue: a liquidity grab, a strong opposing candle, and a change of character. Reversals are lower-probability than continuations — demand more confirmation and tighter risk.
A clean chart with structure and S/R often beats a chart cluttered with indicators. Learn to read what price itself is telling you.
Frequently Asked Questions
Yes — many profitable traders use pure price action. Some add one MA or RSI for confluence.