Price action trading in forex is a method that focuses on analyzing historical price movements to make trading decisions, without relying on indicators. By studying the behavior of price, traders can time their entries and exits more effectively. Here’s how:

1. Identify Key Levels: Spotting support and resistance levels on a chart is crucial. These are areas where price has previously reversed or paused. Entering trades near support in an uptrend or resistance in a downtrend increases the chances of catching strong moves while minimizing risk.

2. Understand Candlestick Patterns: Patterns like engulfing candles, pin bars, and inside bars give insights into market sentiment. For instance, a bullish engulfing pattern near support could signal a reversal, providing an entry point. Similarly, a bearish pin bar at resistance could be an exit signal.

3. Wait for Confirmation: Patience is key in price action trading. Rather than jumping in as soon as price reaches a level, wait for confirmation through patterns or additional price movement. This approach reduces the risk of false signals.

4. Follow Market Structure: Higher highs and higher lows indicate an uptrend, while lower highs and lower lows show a downtrend. Entering trades in the direction of the trend, using pullbacks or breakouts, aligns with the market’s momentum.

Using price action analysis can help you achieve well-timed entries and exits by aligning with market dynamics, reducing reliance on lagging indicators.