Technical traders within forex markets are rife, as they seek to find a means to gain an advantage of markets that typically do not have the same historical bias as those seen within stock markets. Given that currencies are traded against one another, the ability to find trends rather than presume one is always going to be key for the FX space.
Price action trading utilises the price as the number one component that informs decision making, setting aside popular aspects such as indicators. Importantly, this approach makes sense given that it involves a focus on the one aspect that will make or lose a trader money: the price. You cannot make money through the stochastic oscillator or the relative strength index (RSI) falling when you are shorting a market. Nevertheless, many will pin their hat on indicators rather than the price itself.
The use of price action typically centres around significant peaks and troughs, providing traders with swing highs and swing lows. The use of historical levels of support and resistance levels are also key tools for a price action trader.