Welcome!

My name is Aaron Kruger and I created this thread to discuss price action and to create an educational environment that teaches both the fundamental and advanced techniques that create a successful price action strategy. Price action is simply the study of price over time. The best medium to read and understand price action is through candlestick charts. When you combine key price action candlestick with key support and resistance areas, it can create high probably trade setups with high reward and low risk. In this thread the discussion will be all things price action, and focus on the “price action that matters”. When I say “price action that matters”, I am talking about anything that moves the market and creates those powerful and highly accurate entry signals we are looking for as price action traders. My opinion is that if it matters to the market, it matters to me.

Price action is used to help determine if supply/demand is shifting and will soon trigger a price reversal or if price is likely to continue a given trend. I believe that learning price action is fairly easy and provides the best trading edge compared to anything else that may exist out there such as indicators or EAs. Here I will strive to strike a balance between keeping PA as simple as possible, without sacrificing your trading edge. You as a trader will have to decide how many tools you want to have in your trading basket. The larger your trading basket, the more advanced your trading the more profit you will be able to make.

Focus: My primary focus of this thread will be to discuss price action and the patterns/tools I believe are effective in price action. I have found these to be effective over years of experience and study. These patterns/tools will be boundaries of what is discussed here. My secondary goal is to teach how I specifically use price action and method I use to be successful trader. After a trader learns PA and my method of trading, they may want to continue to trade that way, or may decide to tweak it a bit to fit their own personality and style. Either way is fine, and I want to make sure you have the flexibility to make this price action "your own".

Price Action… : The first two words of this thread are “Price Action”. Price action is simply looking at the price movements of a given instrument over time. Every tick on a chart is price in action. Since price action is studying price movement on a chart, we can categorize two different types of price action signals: individual candles and patterns.

Candles - Price action candles are individual candlestick formations that occur such as a pin bars or inside bars. These signal the trader to immediate shifts or continuations in price.
Patterns – Price action patterns don’t focus on the individual candles but rather the shape or pattern of a group of candles. These signal a potential reversals or continuations in price.

…that Matters: Price action by itself generally doesn't tell us much. But when price action occurs at key support/resistance levels, it can tell us key pieces of information about the likelihood of a reversal or continuation in price. Through my experience, I have found are a handful of key S/R areas that the market reacts strongly to. These include horizontal support and resistance lines, trend lines, channels, EMAs, Fibonacci retracements and volume. By learning and understanding everything that the market reacts to, you can know key areas to look for good PA candles/patterns to form, and also be aware of areas your trades might stall or reverse. You can choose to watch or ignore these key areas, but it doesn't change the fact that the market is always reacting to them. What matters to us is whatever matters to the market, and causes reactions from the market. The list of S/R tools I use, I have found to be the ones that the market reacts strongest to.

Conclusion: Hundreds of pages could be written on all of the dynamics of price action and the tools that are used to find those key S/R areas. I won’t individually discuss all of those in this first post, but they will all be discussed and analyzed as this thread develops.

MyFxBook: This is from a demo account, but I for the most part mirror trades from my real account. This way I can post my trading results while keeping some of my financial information private. My biggest fear is that others will use me as a benchmark and this will do more harm than good. So let me say this, we all trade differently and are at different levels of our trading experience. You may do much worse or much better than me but that doesn't mean anything. What matters is that you are comparing yourself to yourself. By that I mean use your own trading history as your standard, and try to constantly improve on it. Also, month by month trading results don't mean much. A quarterly or yearly result will be much more accurate, so don't get down by comparing your months results to someone else. There are simply not enough trades taken in a month to get a good long term view of someones trading ability. Also, I am constantly trying out different patterns and tweaking my trading style, and I use this demo account so I don't throw away my hard earned money on testing. Because of that this won't exactly match my live account but it should give a general idea of my results using the methods I teach here. If I do a lot of experimental trades I will let everyone know as it will probably show up on the trade results.

Why am I doing this? To be honest I think most Forex teachers are full of crap about the success of their methods(pardon my bluntness). They offer valid reasons why they won't show their live trading account and I fully agree with those reasons, but I think there are ways to show your method works without showing the world your personal account info and trading history. As time has gone on I tend to be more and more skeptical of teachers asking for big money for their course but they can't show one iota of evidence that it actually works. I tend to believe that many do not work.

There may be some that are on the fence about price action in general or about the specific way I approach price action and perhaps this will help push them over the edge to join up here. There will always be skeptics and I'm not interested in appeasing skeptics. This is for those here that are risking their hard earned cash by using methods and techniques taught here by me, and this will hopefully give them a little more confidence in what is being taught here.