Most of the trading strategies use a lot of indicators. That’s why new or inexperienced traders often get confused in the signal forest of the indicators. Therefore, in this article, I will introduce you to 6 best Price Action trading strategies which are very simple to use in Olymp Trade.
6 best Price Action trading strategies
Price Action is not a fixed trading strategy. It is a cross between candlestick pattern analysis, price patterns, and many other analytical tools. Price Action can be combined with Fibonacci or technical indicators as long as it is effective.
However, Price Action has 2 important characteristics for you to realize.
Enter orders at the support and resistance zones
There are very few or no indicators.

Of these, the first is the most important. All Price Action Traders analyze and enter orders at support and resistance zones. These are where the force of supply and demand increases sharply so the chances of winning are higher than entering at a random entry point on the chart.
Here are some of the best price action schools.
Pure Price Action
Price action has been around for a long time, about 250-300 years ago. The time when Mr. Steve Nison created the Japanese candlestick was also the time when Price Action began to be formed.
Usually, we always go for the complexity of trading with many indicators on the chart. We think that using sophisticated and diverse strategies is professional and accurate. But the answer is the opposite. Simplicity represents the most refined and pure. The simpler it is, the easier it is to dive into market sentiment analysis.

Pure Price Action has only Japanese candlesticks and nothing else. Pure Price Action Traders are those who understand candlestick patterns very well. And candlesticks are the most important source of information for them.
In addition, the ability of these traders to identify support and resistance zones is also approaching perfection. Pure price action traders don’t believe in trendlines. Because according to them diagonal levels like trendlines will not be as reliable as horizontal levels.
Pullback trading
Most of the pure trend-following Price Action that traders use is the Pullback strategy. They will rely on the price correction to go against the main trend and retest the resistance or support zone to enter an order.

Let’s say the price is in a downtrend and the market has formed a support zone. Once the price breaks through that support and comes back to retest it again. Then this is the right time for you to enter a bearish position. Through price action, traders can easily identify entry signals and good entry points.
Reversal trading strategy
Price Action reversal trading is also a popular strategy that many traders love to use. This strategy requires traders to identify strong support and resistance zones that are hard for the market to break through.
Compared to trend trading, reversal trades are said to be riskier. However, as long as you understand and follow the principles of capital management, you can completely control the risk according to your goals.

Price Action trading with the breakout strategy
The breakout strategy is always “hot” in the hearts of traders. There are 2 ways to use the price action breakout strategy as follows/

Enter the trade as soon as the price breaks out of the support or resistance zone. At this point, the market has formed a clear trend. You need to identify the current trend and wait for the price to break out to look for opportunities with high profits.
Enter the trade when the price breaks out of an important price zone. In this way, you only need to find an important level such as support or resistance. Then wait for the price to confirm a breakout of that level and trade with the new trend.
Price Action with volume
Volume is the total quantity of shares or security that have been made over a certain period of time.

The trading volume also shows a clear picture of the market. Does the market support a price trend? Current price and volume relationships will indicate the crowd’s interest in the market.
For the price to continue going up or down, there must be bears or bulls in control of the market. If you can calculate how many more buyers than sellers (or vice versa) through the volume indicator, then you will have a good idea of the future price.
If the trend is accompanied by a strong increase in volume, it will be a reliable trend. And when there is a divergence between the trend and the volume, the trend is weak and is about to reverse. Therefore, price action analysis along with volume is considered an extremely useful weapon if you know how to use it.
Price Action trading strategy with Indicator
Price Action is the preferred strategy for minimalism and less use of the indicator. However, there are some indicators that work very effectively with Price Action.

The most used indicator by Price Action Traders is the moving average. It helps them identify trends and make quick decisions. Price Action does not mean eliminating all indicators, just minimizing them.
Conclusion
Through the above article, I hope you could find a suitable Price Action trading strategy and dig deep into it. Take that as a premise to step to success on the trading path.
Let’s consider trading at Olymp Trade as a hobby. This is a game for you to control your emotions. Trading is a challenge and money is a gift. Take it easy and you will have what you want.
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