This lesson will also teach you how to use forex candlestick charts before you start your first trade. To understand price action, you need to learn how to read and interpret candlestick charts. The focus of the course will be on the Japanese candlestick chart, and there will be a fuller discussion in subsequent courses.

8.1 Important Candlestick Types - Part 1

The candlestick chart, which originated in Japan, presents the price trend visually and is generally considered to be more descriptive than the western bar chart. Candlestick charts make price information easier to perceive by the human eye, so the course begins by explaining how to draw different types of candlestick charts. The opening price, highest price, lowest price and closing price of each K-line chart are meaningful, but the focus of this lesson is to teach you how to identify three of the five most important K-line chart patterns: the Pin Bar, the Inside Bar, and the Outside Bar.

8.2 Important Candlestick Types - Part II

After studying 8.1, we will continue with the topic of Japanese candlestick chart types and patterns in the last lesson. The focus of this lesson is to learn how to identify the remaining two of the "five most important candlestick chart types with market forecasting functions" : Engulfing K-line (also known as engulfing line or holding line), and doji. We discuss and conclude why the position of the candle is often more important than the shape itself, and explain why their relationship is a key factor for support and resistance.

8.3 Price Action Basics

In this pivotal lesson, we'll tie together everything we've learned so far in Forex Academy to help you understand the various methods of price action trading. Most novice traders, as well as many seasoned traders looking for greater success, have discovered price action trading to be a refreshing, relatively easy and profitable way to trade Forex. Fundamental to price action trading are identifying points like strong support and resistance, and the ability to read Japanese candlesticks and candlestick patterns, neither of which is as difficult as it seems. Trading must be astute, but it doesn't have to be complicated. Sometimes less is more, and price action trading can make your forex graphics as simple as possible.

8.4 Support and resistance levels

This lesson is especially important because we'll go into detail about identifying and determining the strength of different types of support and resistance levels using tried and tested techniques. Identifying support and resistance is very important and is the most important technical skill to master in order to trade profitably. The support resistance strategy should prove to be more effective than any other type of trading strategy in the trading process of retail forex brokers. We will explain the following types of support and resistance levels, and arrange them in descending order of reliability, as follows: levels support resistance Fibonacci retracements of major market fluctuations long-term trend lines moving averages, pivot points and Integer pass

8.5 Trading Strategies for Price Action

In this lesson, we will show these aspects: how to identify high-probability trades in real life, how to read price action by using combination techniques, and how to identify and determine support and resistance. While there are no simple price action indicators to use, it is possible to rely on and use simple price patterns and combinations of these patterns to identify support and resistance, leading to effective price action trading strategies. Now, let's show how to apply the price action trading strategy to USD/JPY for several months in 2013.