I notice that many newcomers to the market often feel confused between trading based on indicators or based on price action. Actually, among the three basic principles of trading, what is price action and why is it the most effective? Today, I will share my experience about this trading method.

What is price action? Simply put, it is a method of making trading decisions entirely based on the price movements of an asset. No need for complicated indicators, no need for mathematical formulas—just being able to read the message that the price is sending through the chart. I use historical prices, trading volume, speed, and intensity of price movements to find the best entry points.

The beauty of price action is that it is simple but very powerful. When you understand how prices move, you will see that the market is no longer something mysterious. Every candlestick on the chart tells a story—the story of the battle between buyers and sellers. Many experienced traders like myself agree that understanding and feeling the price is the key to profitable trading.

To trade using this method, you need to pay attention to four important components: analyzing the chart and market structure, recognizing trading signals from candlestick patterns, checking if you are in the right position, and finally, making accurate forecasts based on available information.

The main goal when using price action is to identify important price zones—areas where the trend often reverses or slows down. Support and resistance are the two most basic concepts. When the price moves up and hits a resistance zone, if the selling pressure is strong enough, it’s a selling opportunity. Conversely, when the price drops to a support level and buying pressure is strong, it’s a buy signal.

Candlestick patterns are also extremely important. Patterns like Inside Bar, Pin Bar, Fakey pattern—all have their own meanings. I have spent a lot of time learning how to read these patterns, and it really helps me identify better trading opportunities. You need to observe candlesticks carefully to understand what they are telling you.

The trading process with price action has five main steps: first, perform technical analysis to determine the current market structure; second, identify potential areas where signals are expected to appear; third, wait for the actual signal to occur; fourth, check if the trade has enough profit potential; and finally, execute the order and let it run.

The biggest benefit is that once you master a strategy, you don’t need to spend too much time researching. Just wait for the right conditions to appear. Moreover, you will often have more good entry and exit points compared to indicator-based traders.

However, price action also has its disadvantages. It is very difficult to automate—you have to observe and trade manually. Additionally, price movements do not always behave as theory suggests. Sometimes, false signals can cause losses. But the important thing is to win more than you lose. It takes time and a lot of practice to make money from price action.

I recommend that beginners choose a single strategy to learn deeply, rather than trying to learn everything at once. Trading history over the past 3-6 months will give you many clues about how the market operates. Be patient, observe carefully, and you will see what price action really is and why it is a powerful tool for those who truly want to understand the market.