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Friday, 26 April 2019

There are 4 Price Action Things That Must Be Mastered By Traders

Market conditions always change from time to time, as well as volatility. At a time when market price fluctuations can be very high with a large daily trading range, but at other times the market can remain almost motionless for a certain period of time. When volatility is low many traders complain that there is something wrong with price action. Even though they trade by observing price action, they may not understand the price action itself. There is nothing wrong or right at the price action, the price action only reflects the market reaction to the sentiments of the perpetrators.


1. Price action is not a trading system
Many traders who consider price action is a rigid trading system and must be run according to certain rules. Price action is not a trading system that implements many technical indicators, but rather discretionary trading that is based more on experience and does not rely too heavily on technical indicators. So far no trading software has been programmed based on price action.

In trading with price action observations there is no need for calculations such as technical indicators but rather observations of changing market movements in accordance with the sentiments of market participants. Most professional traders use discretionary trading, which is certainly not separated from observations on price action.

2. Price action is universal and always works
Some traders complain that "this time the price action method doesn't work" or "there might be something wrong with the price action". Trading based on price action observation has been used in Japan since the 18th century to predict rice price movements along with the introduction of ways to read market price movements with candlesticks. At that time no indicator was used, and until now, 300 years later, candlesticks and price action observations are still used in trading.

Trading with price action is how to read candlestick patterns naturally, and this can always be applied because the sentiment patterns of market participants will tend to recur, including greed and fear, which is always reflected in the price action pattern.

Raed to 10 Tips for Trading Strategies, so you can get Profit

3. Price action is not just a series of candlestick bars
Price action is not just a row of candlestick bars with certain formulas, but shows the overall market movements that are driven by the sentiments of market participants. The longer you observe market movements (or the higher the time frame trading), the more you will understand market sentiment.

Read to Is the Indicator Important in Trading?

4. Consistency and discipline are needed to understand price action
Unlike technical indicators that can be quickly understood, the interpretation of price action requires time and experience. To understand the pattern of price movements that change according to market sentiment you must be consistent in practicing and disciplining.

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