Profit by Understanding Price Action can be very profitable when you know what you are doing and when you know exactly how to approach it, for example when you have a market that is being bought and it has been bought so much that the next ebb and flow of the market is for it to go down, right? but how can you profit just by knowing such a simple type of information. In forex there are prices and levels that market makers are looking to sell and there are levels they are looking to buy. Having the correct understanding price action can help a lot because once market makers have shown their hand and have faked everyone out, it is our job to interpret that and be able to trade the specific currency that is is being watched at those specific price action levels.
I want to explain, if you watch the video below, you will noticed it is a USD/CAD chart, at the time there was a sell at that 1.3414 level, noticed that dark colored red shaded area. The sell was right on that line of dark shaded area of red. At the moment by understanding price action you will see that particular price level was being respected and instead of USD/CAD continuing to go higher, it went lower thus giving some points and making it a profitable trading setup.
Anyone can do this and learn how to be able to master the art and skill of understanding price action. But you will have to put in the work. Nothing great gets done without putting in the work. Remember, when you where born you didn’t just get up and start running, you didn’t you have to learn how to crawl, how to stand, then how to walk and later you were eventually able to run.