Price action is one of the methods pursued by many traders in the trading world and there are also many successful traders. A lot of praise for price action makes many traders, especially new traders, mistakenly think that this is the holy grail of trading.

In fact, price action is more difficult to access than we think and another fact is that this method is highly subjective. When I first approached price action, everyone thought it was so simple. But that's just a theory. When officially applying price action in analysis, traders really see its confusion. If you do not know how, the trader will never make a profit.

Many inexperienced traders, the more they trade price action, the more confused they become and eventually have to switch to using technical indicators. So, not every good trading method can help traders make money. It has to work for you first, and price action is not a method that works for everyone.

If any trader in price action trading has not been effective, then try to check if you have made the mistakes below or not.

1. Find trade setups based solely on candlestick patterns

This is the first mistake that many price action traders make. This means that traders will only focus on finding trading signals based on candlestick patterns and ignore the context. There are traders who also analyze the context but mostly just analyze it for a while, ultimately still focusing on finding candlestick patterns.


Reading trading tips is to see 3 consecutive bullish candles, buy up, 3 consecutive bearish candles, sell down. At first, the trade saw the truth. Think of it as the holy grail. Then the hole in the face turns white. After learning more, these 2 candlestick patterns are 3 black crows and 3 soldiers. And the more I understand about price action, the more I know that candlestick patterns are only a very small part of reading price action.

So, if you are new to price action, do not rush to apply candlestick patterns to trade. Because the first thing you need to grasp is to determine the context based on price action. Doing this can help you take a long-term view and better understand the dynamics of the market.

2. Read the price action of each candle

This is the most painful and time-consuming task. Before, to read price action well was to read what each candle meant. In fact, this is the skill a price action trader needs, but it's not all about jumping into candle-by-candle price action. Even doing this will make the trader feel confused and the transaction will become even more subjective.


To understand single price action, traders must first understand how to analyze the market context based on price action. This looks simple, but when you start doing it, a lot of people get confused. However, if there is a method to read the price action of the market context then gradually traders will understand how the market moves and the dynamics behind it. It provides a very good foundation for understanding individual price actions.

These are the two mistakes that many price action traders make. And the way you can fix this is to be patient. Don't be in a hurry to expect price action to make you money right away. Like any other trading method, price action also takes time for traders to perfect their skills. It is important that you first need a price action trading system.

Learn to read the contextual price action first, find the price zones that are of interest to many traders, and then follow the price action at those price zones. From there, find the transaction clues. You may not see any results at first but as you gain experience, a better understanding of how the market moves your trading results will also gradually improve.