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$XAU Price action trading is a method of buying and selling financial assets using raw, first-hand price movements on a clean chart instead of relying on lagging technical indicators.
💡 Core Principles
• Raw Data: Relies only on open, high, low, and close prices. • No Indicators: Ignores secondary tools like RSI or MACD. • Human Behavior: Reflects real-time market psychology and order flow. • Key Levels: Focuses heavily on major support and resistance zones.
📊 Market Phases
• Uptrend: Characterized by higher highs and higher lows. • Downtrend: Defined by lower lows and lower highs. • Consolidation: Sideways movement showing a temporary pause or rest. • Reversal: Occurs when a trend loses momentum and changes direction.
📌 Common Setups
• Pin Bar: A single candle with a long wick showing rejection of a price level. • Inside Bar: A smaller candle contained entirely within the range of the previous candle. • Failed Break: Price attempts to cross a key level but quickly reverses. Learn the foundational steps and framework for reading price action charts: