Forex Price Action Basics - Lesson 1: What is Price Action Trading?
Price Action is a form of technical analysis, which involves studying historical price data in order to predict where future price might be. This study of price data is usually performed on price charts (charts showing historical price data and price movement of Forex pairs).
Reviewing and studying price charts is the main concept of technical analysis. Using price action to analyse and trade Forex is a widely used amongst Forex traders. Hedge funds, banks and other trading funds often use price action as part of their trading process.
Samuel Morton is a price action expert and is part of our Technical Forex Team.
Forex Price Charts 101
The image below is a screenshot of a simple Forex price chart.
The y axis - the vertical axis to the right - graphs the Forex pair price.
The x axis - the horizontal axis at the bottom - graphs dates and time.
The Forex price chart shows historical price data of the Forex currency pair AUD/CAD (Australian Dollar/Canadian Dollar).