Price action trading combines trend structure, key levels, and candlestick patterns into one cohesive approach.
Author: FXM680 Editorial Team
A trendline connects swing highs or lows to visually map a trend’s trajectory and act as dynamic support or resistance.
Swing highs and swing lows are identifiable turning points forming the basic building blocks of market structure.
Lower highs and lower lows form the structural signature confirming a genuine forex downtrend remains intact.
EUR/USD holds near a two-month high as US-Iran developments swing oil prices and pressure the dollar.
Higher highs and higher lows form the structural signature confirming a genuine forex uptrend remains intact.
Market structure is built from the sequence of swing highs and lows, revealing trend direction and turning points.
Retracement is a temporary pause within a trend, while reversal marks a genuine change in trend direction.
Pullback trading enters in the direction of a trend during a temporary counter-trend retracement for better pricing.
A false breakout briefly pushes past a key level before reversing, trapping traders expecting continued momentum.