Trade up today - join thousands of traders who choose a mobile-first broker.
Deepen your knowledge of technical analysis indicators and hone your skills as a trader.
From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.
No matter your experience level, download our free trading guides and develop your skills.
Trade smarter: boost your skills with our training resources.
All the latest market news, with regular insights and analysis from our in-house experts
Make sure you are ahead of every market move with our constantly updated economic calendar.
Harness past market data to forecast price direction and anticipate market moves.
Boost your knowledge with our live, interactive webinars delivered by industry experts.
Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts
Harness the market intelligence you need to build your trading strategies.
Grow your business and get rewarded. Find out more about our Affiliate Programme today.
Invest or become a money manager, enjoy a mutually beneficial partnership.
ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.
Partner with us to build your own prop trading business. Enquire with our account managers today.
We supply everything you need to create your own brand in the Forex industry.
Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.
Receive $50 for you and your friend when you convert them into an active trader of ThinkMarkets.
Plug into the next-gen platforms and the trades your clients want.
Check out our sponsorships with global institutions and athletes, built on shared values of excellence.
Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.
Discover a range of rewarding career possibilities across the globe
Keep up to date with our latest company news and announcements
When it comes to the speed we execute your trades, no expense is spared. Find out more.
Our multilingual support team is here for you 24/7.
Global presence, local expertise - find out what sets us apart.
Conveniently access and manage all your trading accounts in one place.
Access the most powerful trading tools and features directly from your browser.
Trade on one of the most established and easy-to-use trading platforms.
Explore the latest MetaTrader platform and access advanced trading features and tools.
Join thousands of traders who choose a mobile-first broker for trading the markets.
Get virtual funds, test your strategy and prove your skills in real market conditions.
Free guides to help you get started with trading and market analysis.
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 all 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.