The currency will have few trendlines if it is not trending, which is a significant disadvantage. Many traders, however, draw horizontal lines around key price points. There can be a recent high or low (a price that the currency has repeatedly reached), or simply large, round digits that many traders consider significant.
Prices tend to return to these levels of support (the lowest price) and resistance (the highest price) (the top price). These levels are frequently used as clever price points for taking profits or placing stop losses.

Price action trading is easy to learn for beginners. Additionally, it can be easily integrated with others for greater precision. There's a reason why this is one of the oldest and most widely used trading approaches.

Price action trading, while popular for its simplicity, has several drawbacks. One major issue is subjectivity traders interpret price charts differently, leading to inconsistent results. Additionally, price action strategies lack indicators or fundamental analysis, which can overlook broader market trends or economic factors. Emotional bias is another challenge, as traders might make impulsive decisions based on short-term fluctuations.

Price action also struggles in low-volatility markets, where clear trends are absent, making it difficult to find reliable signals. Furthermore, this approach often requires extensive screen time and real-time market monitoring, which can be time-consuming. Finally, price action trading is less effective in choppy or sideways markets, where erratic movements can lead to frequent stop-outs or false signals.