If you’ve ever sat staring at a candlestick chart, feeling like it’s mocking you in some secret code, you’re not alone.
I remember my early days trading Forex and gold. Indicators stacked on indicators. RSI, MACD, Bollinger Bands… my charts looked like a Christmas tree on acid.
And yet—I kept getting wrecked.
False signals. Choppy markets. That cruel spike that stops you out right before the price rockets in your original direction.
Eventually, I threw away half my indicators and learned to focus on price action.
It was the single biggest turning point in my trading.
So if you’re sick of feeling lost, let’s cut the crap and talk about how to actually read price action in Forex and gold—and trade with way more confidence.
🤔 What Is Price Action, Anyway?
Here’s the no-BS definition:
Price action is simply what price is doing right now.
No lagging indicators. No magic formulas.
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Are candles getting bigger or smaller?
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Is price respecting certain levels?
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Are there repeated patterns in how price moves?
All of that is price action.
It’s the purest form of market information. Everything else—indicators, algorithms—comes after.
Why Forex and Gold Love Price Action
Forex and gold are some of the most liquid markets in the world. They:
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Move fast
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React sharply to news
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Often follow technical levels beautifully
Unlike some stocks, there’s no hidden balance sheet shenanigans. It’s just buyers vs. sellers.
That’s why price action trading can shine in these markets. If you can “read the story” on your charts, you’ll often spot opportunities before lagging indicators catch up.
🔥 Key Price Action Concepts You Must Know
Let’s break this down real talk style:
1. Support and Resistance
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Support = a floor. Buyers step in.
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Resistance = a ceiling. Sellers push price back down.
In Forex and gold, major support/resistance levels often align with:
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Previous highs/lows
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Round numbers (e.g. $2,400 gold)
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Pivot points
✅ Real talk: Price doesn’t care about your feelings. But it does care about where money changes hands.
2. Candlestick Patterns
Forget memorizing all 83 patterns. Focus on a few reliable ones:
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Pin Bars (aka Hammer/Shooting Star): Rejection of price. Big wicks, small body.
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Engulfing Patterns: One candle completely engulfs the previous one. Momentum shift.
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Inside Bars: Compression. A breakout is often coming.
✅ Real talk: Patterns don’t guarantee reversals. Context matters. A pin bar at resistance is meaningful. In the middle of nowhere… not so much.
3. Trend Structure
One of the biggest rookie mistakes:
“But the RSI says it’s overbought…”
Who cares? If the trend is strong, price can stay “overbought” for days or weeks.
Look for:
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Higher highs + higher lows = uptrend
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Lower highs + lower lows = downtrend
✅ Real talk: Fighting the trend is the fastest way to donate money to the market.
4. Price Compression and Breakouts
Markets often coil up before big moves.
Signs of compression:
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Small candles
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Lower volume
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Tighter range
Then suddenly… BOOM.
In gold, for example, a few days of tight sideways movement can precede a $50+ breakout.
✅ Real talk: Don’t trade the chop. Wait for the breakout and confirm direction.
Price Action in Gold vs. Forex
Gold (XAU/USD):
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Loves big impulsive moves.
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Reacts violently to news (CPI, Fed, geopolitical tension).
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Spikes can fake you out, so wider stops are often necessary.
Forex pairs (e.g. EUR/USD, GBP/JPY):
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Smoother trends
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Respond well to levels and sessions (London, NY)
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More predictable during high-volume times
✅ Real talk: Gold trades like a drama queen. Forex is more polite—but equally ruthless.
How to Start Trading Price Action
Here’s my simple roadmap:
✅ Pick a few pairs or gold to focus on.
✅ Draw support/resistance levels on higher timeframes (Daily, 4H).
✅ Drop to lower timeframes (1H, 15M) to look for price action signals at those levels.
✅ Enter trades with the trend or on clear breakouts.
✅ Keep stops logical—not random numbers.
And remember: The market owes you nothing. Patience pays more than any indicator.
My Hot Take
Indicators are fine. They’re tools. But in Forex and gold, price action is the real language of the market.
When you learn to read it, the game changes:
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You stop second-guessing yourself.
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You trust your analysis instead of jumping into every spike.
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And you finally stop feeling like the market is out to get you.
So if you’re tired of false signals, strip your charts back and listen to the story price is telling you.
Because it’s the story that moves the money.
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