FX Growth Fund
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Lesson 6 of 11 8 min read

Price action trading

Trading from the naked chart: candlestick patterns, market structure and key levels.

What price action means

Price action trading reads the raw movement of price without relying on indicators, focusing on structure, levels and candle behaviour.

Candlestick patterns

Pin bars (long wicks) show rejection of a price. Engulfing candles show a strong shift in control. Inside bars show consolidation before a breakout. Doji show indecision.

Market structure

A break of structure (BOS) continues a trend; a change of character (CHoCH) hints at reversal. Pullbacks to previous structure often offer entries.

Liquidity tends to rest above highs and below lows, so price frequently sweeps these levels before reversing.

Putting it together

The highest-quality setups combine a key level, the direction of trend and a clear candlestick signal — confluence.

Key takeaways

  • Location matters more than the pattern itself.
  • Read structure before looking for entries.
  • Wait for confluence.