Price Action Trading: The Complete Beginner's Guide

Price action trading is a methodology that relies on reading raw price movements to make trading decisions, rather than depending on lagging indicators.

What is Price Action?

Price action is simply the movement of a security's price plotted over time. Every candlestick tells a story of the battle between buyers and sellers.

## Key Concepts

Support and Resistance

Support is a price level where buying pressure exceeds selling pressure, causing price to bounce. Resistance is where selling pressure exceeds buying, causing price to fall.

### Candlestick Patterns

Learn to recognize patterns like:
- Doji (indecision)
- Engulfing patterns (reversal signals)
- Pin bars (rejection of price levels)

### Trend Analysis

The trend is your friend. Learn to identify:
- Higher highs and higher lows (uptrend)
- Lower highs and lower lows (downtrend)
- Ranging markets (consolidation)

## Conclusion

Price action trading gives you a pure view of the market. Master these basics before adding any indicators to your charts.