Friday, 10 January 2020

Before Trading With Price Action You should first understand the guide below

Having a trading strategy that is easy to use and simple is not the desire of some people. Both beginner and professional traders certainly want to use trading strategies that are considered anti-complicated but still profitable



Understanding Trading With Price Action

If interpreted literally, Price Action means price movements. Further, the Price Action strategy is defined as trading activities carried out by relying on observing price movements, including decision making for its entry and exit. Thus, certainly no wonder that most traders prefer to use this strategy.


On the other hand, trading with Price Action also cannot be classified as technical analysis, because this one strategy uses very few technical indicators. Technical aids are only limited to Moving Average indicators, horizontal lines, and Fibonacci retracement levels.

Trading Tips With Price Action

1. Determine Price Movement Trends

Because trading with Price Action is very dependent on changing candlestick patterns, knowing the direction of the trend is considered necessary; whether it was trending or ranging (sideways or consolidation).


2. How to Trade When Trending and Ranging Markets

Trading with Price Action from time to time requires analysis to determine the direction of price movements. If no higher high, higher low, lower high or lower low patterns are found, it means the market is consolidating and prices will move ranging or sideways.


3. Determine Key Levels as Support

 After identifying market conditions, the next step is to determine key levels as supporting factors. Apart from forming Pin Bar, Inside Bar, or Fakey Pin Bar patterns, traders can also determine key levels through Resistance Support levels.

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