The extent to which fundamentals are considered varies from trader to trader. Similarly, price action is an essential component of any successful Forex trading strategy. This practise is frequently referred to as "technical analysis." Trend following and countertrend trading are the two broad categories of technical currency trading strategies. Both of these approaches to foreign exchange trading assume that price patterns can be identified and used to one's advantage. The two most fundamental concepts in analysing price patterns are support and resistance. These phrases describe, in the most basic terms, how markets tend to recover from extreme lows and highs.
The tendency of the market to rebound from a previous low is support.
The market encounters resistance when it attempts to break down from a recent high.
This is because traders often base their expectations for future prices on the levels set by recent highs and lows.
The question is, "What happens when the market gets close to recent lows?" Buyers will be drawn to what they perceive to be a good deal.

Price action trading plays a pivotal role in shaping effective forex strategies by focusing on the analysis of raw price movements, rather than relying on indicators or oscillators. Traders employing this approach closely study candlestick patterns, support and resistance levels, and chart patterns to make informed decisions. The method is rooted in the belief that historical price data reflects all available information, allowing traders to anticipate future market movements.

Understanding price action aids in identifying trend reversals, entry and exit points, and potential market turning points. It emphasizes the importance of market psychology and sentiment, enabling traders to gauge the strength of buyer or seller dominance. Price action trading fosters a holistic comprehension of market dynamics, encouraging a disciplined and flexible trading mindset. While not devoid of challenges, mastering price action equips traders with a valuable skill set for navigating the complexities of the forex market and making well-informed trading decisions.