Price action trading is a strategy that can be used even without an indicator. Instead, forex scalpers conduct their analysis, which is based on parts of technical analysis, solely on price. This can be demonstrated by using candlestick charts, which employ support and resistance levels as well as trendlines to provide the same information as a technical indicator. Following an in-depth examination of the price, traders can make an informed decision based on trend continuations. Traders, on the other hand, will only execute a trade if the objective has an appropriate risk-reward ratio.
In forex, price action scalping ignores all aspects of fundamental analysis in favour of a more technical approach. Furthermore, traders who use this strategy do not consider any other external factors that may affect the price of a currency pair. Inflation, economic growth, supply and demand, trade status, interest rates, and account balance, for example, all have an impact on the price of foreign currencies.