To open a ThinkMarkets AU account, please read and sign the below document.
Join thousands of traders who choose a mobile-first broker for trading the markets.
Get $50,000 of virtual funds and prove your skills in real market conditions.
Disclaimer: The trading guides provided do not contain and should not be considered to contain any personal investment advice or recommendations. It does not guarantee a better trading performance on your live trading account. You could lose substantially more than your initial investment when trading on a live account.
The “Price Action” method of trading refers to the practice of buying and selling securities based on the fluctuations, or “action,” of their prices; typically the data of these price changes is represented in easily-readable candlestick or bar charts, which are the bread and butter of the price action trader.
Traditionally, price action traders rely on a “naked” chart; they reject the inclusion of indicators with the conviction that, since all supplemental indicators are necessarily lagging interpretations of the basic data available on the price chart, the action of price is itself the most reliable and accurate indicator. The patterns of price movements reveal in real time the balance between the supply for sale and the buying demand of any given security or currency pair. Any price change implies a shift in the relationship between buyers and sellers; an increase in supply will push price down, whereas an increase in buying demand will send price higher.
The price action trader bases their trades on predictions of whether buying demand is greater than the supply of sellers, and therefore price is poised to head higher (or vice versa). In the Forex market, this means that a trader will endeavor to buy (or “go long on”) a currency pair when the base currency, the one quoted first, is likely to appreciate against the counter currency, the one listed second; conversely, they will sell (or “go short on”) a currency pair wherein they expect the counter currency to appreciate relative to the base currency. In order to make these predictions, price action traders interpret the confluence of many factors, particularly trends, candlestick patterns, and price levels known as “support and resistance.”
This guide is intended to provide an introduction to these interpretive factors, to the risk management practices essential to profitable trading, and lastly, some examples of real trades that demonstrate these ideas in action.
Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary. It's important for you to consider relevant legal documents (Product Disclosure Statement and Financial Services Guide) before you decide whether or not to acquire any of our products.
TF Global Markets (Aust) Pty Ltd is the holder of Australian Financial Services Licence (AFSL) number 424700. Registered address: Level 12, 636 St. Kilda Road, Melbourne, VIC, Australia 3004. ABN: 69158361561.
This AFSL authorises us to provide our services to people or businesses that are located in Australia.
The information on this site is not directed to residents of the United States, Canada and Japan and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
© 2019 This website is owned and operated by ThinkMarkets Group.