Why Price Action is the Best Way to Trade
If you’ve been around trading for a while as I have, you’ve probably seen a lot of strategies and systems out there — all promising to be the “holy grail” of trading. You’ve also probably learned that most of these strategies are based on indicators, algorithms, and theories that don’t always work in real-life market conditions.
So, what’s the alternative? What’s the strategy that can help you trade with clarity, consistency, and a deep understanding of the markets? The answer is Price Action.
Price Action trading is not about relying on lagging indicators or oscillators. It’s all about reading the market itself, focusing on price movements, understanding what stage the market is in and using that information to make better decisions.
What is Price Action Trading?
At its core, Price Action is the art of reading the market directly from the price movements on the chart. It’s all about analysing candlestick patterns, market structure, and price levels to predict future price movements.
The best part is that you don’t need complex indicators, convoluted theories, or complicated setups to trade based on price action. Instead, you’re focusing on what actually happens in the market with no fluff or distractions. Al says it’s difficult to read what so many different indicators are telling you, which I agree with, and it’s much easier to just focus on what the clean chart in front of you is telling you.
Here’s an example Price Action Video of a ‘Short’ trade
This is a demonstration video (speeded up) of ES (S&P 500 Futures contract, 5 minute candlestick chart) to show the power of understanding price action to anticipate a trade. This is a possible short trade - selling the futures contract. So how would I know to anticipate a short trade, i.e. sell the market? It’s all due to understanding price action. I’ve seen this setup so many times over the years. A double top, with a wedge top and buy climax (also a bull trap incidentally - trapping bulls who thought we’re going up and breaking out of a trading range!).
Price had fallen from the high of the days trading, with 5 bear bars (the black coloured candles) which was very bearish. I could therefore anticipate a second ‘leg’ (move) down because price often moves in 2 legs. It’s knowing these sorts of price action behaviours which gives you confidence to take trades. This is what Al Brooks teaches.
Example price action trade in the S&P 500 Futures Index called ES
If you’ve ever traded with indicators, you know that they often lag behind the market. By the time an indicator tells you to buy or sell, the market may already be moving in the opposite direction. This can lead to missed opportunities and increased risk.
But Price Action is real-time. You’re reading the market as it moves, based on what is happening now, not what happened yesterday. This helps you react quickly and make decisions that are more in tune with the market’s current state.
Al Brooks often says “Price action is the best way to trade because it’s based on the actual data of the market, not the theories that may or may not apply in real time.”
Al Brooks’ Approach to Price Action Trading
Al Brooks has written several books on the subject of price action trading, and his approach is a logical, practical, and discerning way to trade. He emphasizes a few core principles:
Market Structure – Price moves in trends, channels, and ranges. Understanding how these work helps you identify high-probability setups.
Price Bars – Candlesticks aren’t just pretty shapes on a chart; they tell you what happened during a specific period. By analyzing the patterns they form, you can better predict what might happen next.
Context – It’s not just about individual price movements. It’s about reading the context of the market — the bigger picture. Are we in a trending market? Are we in a tight range? Is price reversing or continuing its movement?
Risk Management – Al teaches that understanding price action is about managing risk, not just making profits. His methods help you enter trades with minimal risk and give you clear exits, whether the trade works out or not.
Why Price Action is the Best Way to Trade
1. Simplicity and Clarity
One of the biggest benefits of Price Action is its simplicity. If you’ve been trading for a while, you know that the more complicated a strategy gets, the harder it is to consistently follow. The beauty of price action is that it’s straightforward. You’re not bogged down with dozens of indicators, each giving you conflicting signals.
With price action, you’re looking at the movement of price, and from there, making logical, informed decisions. It’s the purest form of trading because it’s based on the actual behaviour of the market. No distractions. No noise. Just what the market is telling you.
2. Real-Time Decision Making
Price Action gives you the ability to make decisions on the fly. You’re not waiting for an indicator to tell you when to enter or exit. You’re analyzing the market live, responding to its movements, and adjusting your strategy based on what’s happening right now.
This is especially important for futures traders, who need to be able to make fast, confident decisions in the heat of the moment. Price action trading gives you the ability to react quickly, based on the market’s actual movements, rather than relying on lagging indicators.
3. It’s All About Price Movement
In the world of trading, price is the only thing that really matters. Everything else — indicators, news, and even theories — are all just reactions to the price. Price action focuses on what actually happens in the market. By understanding price behavior, you can identify trends, reversals, and areas of support/resistance, helping you make more accurate predictions.
4. Adaptable to Any Market
One of the best things about Price Action trading is its versatility. It works for any market — whether you’re trading stocks, futures, forex, or even crypto. Price Action is universal. You don’t have to learn a different set of rules for each market you trade; you can apply the same principles across all of them.
Whether you’re trading a fast-moving futures market, like the E-mini S&P, or slower-moving assets, price action gives you a flexible foundation for reading the market.
5. Focuses on Risk Management
As any trader knows, managing risk is key to long-term success. Al Brooks’ approach isn’t about making huge profits on every trade — it’s about minimizing risk while looking for high-probability setups. Price action trading allows you to enter the market with clear entries, tight stops, and solid exit strategies, reducing the emotional stress that often comes with more complicated setups.
How Can You Get Started with Price Action Trading?
If you’re new to trading or already have some experience, learning price action will transform how you approach the markets.
Here’s how you can get started:
Start with the Basics – Learn the core concepts of price action: support and resistance, trendlines, candlestick patterns, and market structure.
Get the Al Brooks Trading Course – This is the most comprehensive source of information on reading and trading price charts you can get with over 120 videos and 59 hours of study material covering the basics upwards.
Practice, Practice, Practice – Like any skill, mastering price action takes practice. Use a demo account to hone your skills without risking real money.
Stay Disciplined – Price action is about discipline and consistency. Stick to your plan, manage your risk, and avoid emotional trading.
Summary
Price action trading is the best way to trade because it’s clear, practical, and direct. It teaches you how to read the market in its purest form, without relying on external indicators or noise. It’s a method grounded in logic and simplicity, and it can be applied to any market or timeframe.
By following Al Brooks’ teachings, you’ll learn how to become a more confident, consistent, and disciplined trader — all while reducing the noise and confusion that often comes with trading.
If you’re ready to start your price action journey, I assure you, you’ll be in great hands with the Al Brooks’ Trading course; it’s a proven blueprint that will guide you through each step of the process. I know, I’ve been using it for years as my go to resource.