Introduction to Price Action – Trading Naked Charts

Jasper Osita - Market Analyst

2025-07-14 09:10:41

Goal of This Lesson

To help beginner traders understand what price action is, how it works, and—most importantly—why learning it is essential, even if you eventually trade with indicators, algorithms, or systems. Price action gives you a direct relationship with the market—one every trader needs.

Real-Life Analogy:

Think of trading like learning a language. Indicators are like translation tools, they can help. But price action is like learning the language fluently. Once you understand how price speaks, you don’t need to rely on anything else. You’ll see the market for what it truly is not just what a tool tells you.

Why Is Price Action Essential?

Learning price action is not just another strategy—it’s a core skill that underpins everything in trading.

"Everything you need to know is reflected in the price." — Jesse Livermore

"Price is the only truth in the market." — Mark Douglas

“The market is never wrong.” ****— Richard Wyckoff

Whether you use indicators, news, or even AI, price is the final result of all those influences. If you don’t understand what price is doing, you’re missing the foundation. That’s why many successful traders—from prop firms to self-taught scalpers—build their edge around price.

Why it’s essential:

Clarity: You can see market behavior before any indicator reacts.
Control: You make decisions based on what price shows you, not just what signals say.
Adaptability: You’re able to trade in any market condition, timeframe, or asset.
Discipline: It forces you to slow down, think, and wait for high-probability opportunities.
Repetition: Price patterns repeat because human behavior repeats.
Confirmation: Price confirms the overall context and narrative of the market.

What Is Price Action?

Price action is the study of raw price movement—candlesticks, swing highs/lows, breakouts, rejections, and momentum. It’s the real-time narrative of the market without filters.

You’re not predicting—you’re reading and reacting.

Why Price Action Works

It reflects market psychology in real time
It removes the lag of indicators
It’s universal—applies to forex, stocks, crypto, commodities, and more
It trains your eye, your patience, and your decision-making
It reveals intent: Are buyers committed? Are sellers exhausted?

It’s Not Either/Or—It’s Foundational

Learning price action doesn’t mean you must ditch your RSI, EMA, or Fibonacci tools. In fact, combining price action with other tools makes them stronger.

Think of it as the grammar of the market. Indicators are like fancy words—but without grammar, there’s no clarity.

Beginner’s Roadmap: How to Learn Price Action

Rather than treating price action as a standalone strategy, learn it as the core layer that connects everything else you’ve studied—Fibonacci levels, Fair Value Gaps, liquidity, structure, and confluence.

Step 1: Master Candlestick Behavior and Candle Psychology

Before anything else, study how candles form, close, and interact with previous candles.

Focus on:
- Body & Wick Anatomy
- Candle Stick Patterns

Step 2: Understand Market Structure Deeply

This is the skeleton of all price action. Everything you build—Fibonacci, zones, entries—must respect market structure.

Learn to identify:
- Trends: HH/HL (uptrend), LL/LH (downtrend)
- Trend Continuation vs. Reversal scenarios

Step 3: Learn Key Support, Resistance, and Reaction Zones

These are where price decisions are made. Plot areas where price reversed or broke previously.

Focus on:
- Daily, weekly highs/lows
- Previous session levels
- Psychological round numbers

Step 4: Study Liquidity and Traps (Sweeps, Grabs, and Stops)

This is where Smart Money Concepts truly begin to shine.

Recognize:
- Equal highs/lows (liquidity magnets)
- Fake breakouts and reversals
- Stop hunts before true moves

Step 5: Session Timing and Volatility Zones

Learn when price is most reactive and tradable:

Asian Session: 6PM-12NN UTC+4
London Session: 12NN-6PM UTC+4
New York Open: 9:30AM–11AM UTC+4
Avoid lunchtime dead zones unless backtesting or swing trading

Pro Tip:

Don’t learn everything at once. Focus on 1–2 setups, 1 pair, and 1 timeframe. Let price action teach you in layers—one clean trade at a time.

Daily Practice Routine

Pick one asset (e.g., NAS100, EUR/USD)
Use Daily + H1 or H1 + M5 chart combo
Mark structure, highs/lows
Observe how price reacts by outlining levels
Screenshot 1–3 setups per day—even without entry
Journal what you learn daily

Consistent screen time + journaling = exponential growth.

Final Thoughts

Price action is not about rejecting indicators or other styles. It’s about building a direct relationship with price, which benefits every trader whether discretionary, algorithmic, or quant-based.

“It’s not that price action is better—it’s that it teaches you to think like a trader. And when you can think, you can adapt.”

Whether you’re new to trading or building on another system, price action gives you the language of the market. Every candlestick tells a story. Every level reveals intent. The better you read it, the clearer your edge becomes.

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This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely

ผู้เขียน

Jasper has been in the markets since 2019 trading currencies, indices and commodities like Gold. His approach in the market is heavily accompanied by technical analysis and of course, supported by fundamentals. He has a background in trading proprietary firms and has been teaching students how to navigate themselves in the markets from basic to advance concepts.

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ราคาเป็นตัวบ่งชี้เท่านั้น

Introduction to Price Action – Trading Naked Charts

Goal of This Lesson

Real-Life Analogy:

Why Is Price Action Essential?

Why it’s essential:

What Is Price Action?

Why Price Action Works

It’s Not Either/Or—It’s Foundational

Beginner’s Roadmap: How to Learn Price Action

Step 1: Master Candlestick Behavior and Candle Psychology

Step 2: Understand Market Structure Deeply

Step 3: Learn Key Support, Resistance, and Reaction Zones

Step 4: Study Liquidity and Traps (Sweeps, Grabs, and Stops)

Step 5: Session Timing and Volatility Zones

Pro Tip:

Daily Practice Routine

Final Thoughts

Start Practicing with Confidence — Risk-Free!

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