What if I told you that all trading indicators in existence today are derived from price? That’s right, if you removed everything else, and got rid of all the clutter, the only thing that would remain on your trading charts would be the price. That is what the price action trading is all about.
We can all agree that the above chart’s simplicity is alluring, especially in a world of complex automated trading and technical indicators such as (ATR Indicator, RSI Forex Indicator, Bollinger Bands Forex, Trendline Trading). Price action trading is all about going back to the simple, basic financial trading ingredients.
What Is Price Action?
Price action trading meaning: The easiest way to define price action trading is that it’s a method where the trader’s eye is always on the price.
Price action trading involves careful observation of a financial instrument’s price movement and, in so doing, anticipate that instrument’s future price movement. As is the case with all other forex trading strategies, the goal of price action trading is to profitably transact in the financial market.
Price action is a technical analysis that takes into account various chart patterns to study current and past price action. By observing an instrument’s historical price movement, a trader can then pick up essential clues on possible future market movement.
Critical price action trading patterns analysis sits at the core of price action trading. This includes analyzing chart patterns, candlestick patterns such as Doji Candle, and bar patterns. The most commonly used indicator in price action trading is the candlestick. Click here price action trading
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