According to the traders’ price action, high probability trading signals are easier to find in trading charts that are ‘clean’ or without indicators. By simply focusing on price action setup on the trading chart, usually between price action traders rarely different interpretation, because the pattern or setup tend to be clear and in accordance with market sentiment. This is different from the technician traders who often differ in interpretation because they use different indicators.
Price action traders argue that all technical indicators are based on price action, so using many technical indicators will add many variables that must be analyzed.
An example of a price action setup on a trading chart
Like what is the price action pattern, form or setup? There are several setups, the popular ones are pin bars and inside bars . Here’s an example of some price action setups formed on the AUD / USD daily chart:
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