Friday, 3 January 2020

Know before you trade with Price Action

Basically, price action is a series of price movements from time to time, and price action analysis is done by observing the candlestick bar formation



Up Bar 

Also called the 'bullish bar', which is a bar with a high level that is higher than the previous high (higher high) and a low level that is higher than the previous low (higher low). The series of up bars in the picture above shows the uptrend movement. In general, the closing price of the up bar is higher than the opening price, but it can also be lower as seen in the black candlestick bar in the series of up bar images above.


Down Bar 

Also called the 'bearish bar', which is a bar with a high level lower than the previous high (lower high) and a low level that is also lower than the previous low (lower low). The series of down bars in the picture above shows the downtrend movement, and shows that at that time the seller or 'the bears' is controlling the market.


The Outside 

Bar The Outside Bar is also called the 'mother bar', which is the bar that 'swallows' inside the bar, or the engulfing bar formation is the bar that 'swallowed' the previous bar. In principle, outside bars are bars with high levels that are higher than the previous high bar level or the bar afterwards, and low levels that are lower than the previous low bar level or the bar afterwards.

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