Price action is the market’s native language. Each candle compresses order flow into a visible story—who’s in control, where traders are trapped, and which levels matter. When you strip away noise and focus on structure and reaction, you trade what the chart shows, not what you hope.
The core framework
Great trades don’t start with entries; they start with context. First define direction on a higher timeframe, then mark where price has reacted before. When price revisits those areas, avoid guessing. Wait for the chart to confirm—through a decisive candle or break—then execute with a predefined stop and target. This keeps your process simple, repeatable, and enforceable.
Step-by-step guide (use anywhere)
- Identify direction (HTF bias)
- Scan D1/H4/H1 to map trend and major swing points (HH/HL or LH/LL).
- Aim to trade with the dominant flow.
- Mark key zones
- Draw prior highs/lows, consolidation bases, and clear support/resistance.
- These are “decision areas” where reactions are likely.
- Wait for price to arrive
- No level, no trade. Let price come to your zone—don’t chase mid-range candles.
- Demand confirmation
- Examples: strong rejection wick, engulfing break, clean close beyond/inside the zone, or a micro break of structure on the execution timeframe.
- If confirmation is weak or messy, stand down.
- Plan the trade
- Entry: Next candle close or a measured retest of the trigger.
- Stop: Beyond the invalidation point (past the swing/zone).
- Target: Next logical level or opposing liquidity.
- Aim for a minimum positive R:R (e.g., 1:2–1:3).
- Execute and manage
- Place orders, then let the plan run.
- Avoid moving stops impulsively; partials are optional at interim levels.
- Review
- Screenshot: structure → zone → confirmation → execution.
- Log what matched the plan and what didn’t; refine rules, not impulses.
Final thoughts
Price action rewards clarity and patience. If you consistently wait for your zones and clear confirmation, the chart does the heavy lifting. Keep the workflow simple, protect your risk, and let repetition build your edge—one clean setup at a time.
RISK WARNING: Foreign exchange and derivatives trading carry a high level of risk. Before you decide to trade foreign exchange, we encourage you to consider your investment objectives, your risk tolerance and trading experience. It is possible to lose more than your initial investment, so do not invest money you cannot afford to lose。 ACY Securities Pty Ltd (ABN: 80 150 565 781 AFSL: 403863) provides general advice that does not consider your objectives, financial situation or needs. The content of this website must not be construed as personal advice; please seek advice from an independent financial or tax advisor if you have any questions. The FSG and PDS are available upon request or registration. If there is any advice on this site, it is general advice only. ACY Securities Pty Ltd (“ACY AU”) is authorised and regulated by the Australian Securities and Investments Commission (ASIC AFSL:403863). Registered address: Level 18, 799 Pacific Hwy, Chatswood NSW 2067. AFSL is authorised us to provide our services to Australian Residents or Businesses.
Editors’ Picks
EUR/USD edges higher to mid-1.1600s; looks to US PCE Price Index for fresh impetus
The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and recovers a part of the previous day's retracement slide from the 1.1680 region, or the highest level since October 17. Spot prices currently trade around mid-1.1600s and remain on track to register gains for the second straight week.
GBP/USD: Constructive view prevails above 1.3300 ahead of US PCE inflation data
The GBP/USD pair trades on a flat note near 1.3330 during the Asian trading hours on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation report later on Friday. The US delayed Personal Consumption Expenditures Price Index report for September could offer some hints about the US interest rate path.
USD/JPY stays pressured near 155.00 on Fed-BoJ policy divergence
USD/JPY remains weak near 155.00 in the Asian session on Friday. The pair faces headwinds from expectations of the Fed-BoJ monetary policy divergence, which outweighs the fall in Japanese Household Spending in October. All eyes are on the delayed US Personal Consumption Expenditures Price Index data for September later on Friday.
Editors’ Picks
EUR/USD edges higher to mid-1.1600s; looks to US PCE Price Index for fresh impetus
The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and recovers a part of the previous day's retracement slide from the 1.1680 region, or the highest level since October 17. Spot prices currently trade around mid-1.1600s and remain on track to register gains for the second straight week.
GBP/USD: Constructive view prevails above 1.3300 ahead of US PCE inflation data
The GBP/USD pair trades on a flat note near 1.3330 during the Asian trading hours on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation report later on Friday. The US delayed Personal Consumption Expenditures Price Index report for September could offer some hints about the US interest rate path.
Gold flat lines above $4,200 mark; looks to US PCE Price Index for some meaningful impetus
Gold struggles to capitalize on the overnight bounce from the $4,175 area, or the vicinity of the weekly trough, and oscillates in a narrow trading range during the Asian session on Friday. Traders now seem reluctant and opt to move to the sidelines ahead of the September Personal Consumption Expenditures Price Index, or the Federal Reserve's preferred inflation gauge.
Pi Network: Bearish streak nears critical support trendline
Pi Network edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges experience a surge in inflows. Technically, the pullback in PI risks further losses, as the Moving Average Convergence Divergence indicator is flashing a sell signal.
Why the Fed may cut rates in December: Understanding the policy shift
The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.
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