Price action means trading based directly on how price moves — without relying on lagging indicators. It focuses on reading candlestick patterns, breakouts, and market structure to spot opportunities.
The idea is simple: every candlestick tells a story of how buyers and sellers fought during that period. By recognizing repeating patterns in these candles, you can identify areas of support, resistance, or trend reversals.
Why Price Action Matters
It reacts faster than indicators (which often lag).
It works across all markets and timeframes.
It’s easy to combine with other tools (like moving averages).
Common Price Action Patterns
Here are a few key patterns, all of which you can test and automate in Profectus.AI:
Doji: A candle with almost no body (open ≈ close), showing indecision. Often appears before a strong move.
Tweezer Top/Bottom: Two candles with matching highs or lows. Signals potential resistance (top) or support (bottom).
Imbalance-Impulse: An indecision candle (small body, long wicks) followed by a strong impulse candle (large body, little wick). Shows momentum shift.
Inside Bar (Breakout): A candle that fits inside the high/low of the previous candle. Signals consolidation and possible breakout.
How to Use Price Action in Profectus.AI
Choose a pattern you want to detect.
Build it block by block in the editor — or use one of our ready-made templates.
Add management styles (like trailing stop or lock-in profit) to control exits.
Export to MetaTrader 5 and backtest before going live.
Conclusion
Price action gives you the foundation to understand the market’s raw movements. By recognizing patterns like dojis, tweezers, and inside bars — and then automating them in Profectus.AI — you can create strategies that are simple, transparent, and effective.
Also check out all the price action templates we provide within the trading bot library!