A lot of people have this question in mind, what exactly is FOREX PRICE ACTION? And why's it KING IN FOREX?
To answer the above question, I start off with talking about indicators.
There are tons of indicators out there, be it or others eg. stock, options trading, etc. All of them work mostly the same way. And there are new indicators that coming out every other day.
A lot of traders when they first started trading , they've tons on indicators on their charts. Trying different combination of which works best for them. And at the end of the day, they get confused all over as one indicator may be telling you to go long. The other is telling you to go short. So what'll he do ???
Which will result in you making bad decisions and end up blinking your account with a frustrated mind. Why does it happen this way? Indicators are derived from the chart movements. Some indicators react faster, some slower.
However, as they're derived from the chart movements. they're 1 step slower than the chart. Which is in fact Price Action!
FOREX Price Action leads the indicators. When price reverses it movement from short to long (example). The indicator which you're watching is one step too late. And by the time the indicator confirms it's going short, Price Action has taken the market to go Long.
This happens most of time, if not all of the time. Period.
Therefore = ALL INDICATORS ARE LAGGING INDICATORS! PRICE ACTION IS WHAT LEADS…