Core of Price Action

In this Book, I will explain how to make sure price action strategy is fully utilize when you are in trading. I will explain the core of what is the price action, the step, the process to identify and to filtering all the false signal so you will understand .

with all the principle, if you practice and study well. you will gain consistency on your trading with dicipline and long run.

Did you know that price action trading strategies are one of the most commonly used methods in today's financial market? Whether you are a short-term or long-term trader, analysing the price of a security is perhaps one of the simplest, yet also the most powerful, ways to gain an edge in the market.

After all, every single trading indicator in the world is derived from price, so it makes sense to actually study it, understand it, learn from it and use it in your trading. In this article, we cover all you need to know about price action trading such as: what is price action and why you should consider trading price action forex - as well as - go through how to trade four price action trading strategies.

What is Price Action?

The term 'price action' is simply the study of a security's price movement. In price action trading, traders would look to study historical price to identify any clues on where the market could move next. The most commonly used price action indicator is the study of price bars which give details such as the open and closing price of a market and its high and low price levels during a specific time period.

Analysing this information is the core of price action trading. In fact, in answering the question 'what is price action?', it could be said that it is really the study of the actions of all the buyers and sellers actively involved in any given market. Therefore, by analysing what the rest of the market participants are doing, it can give traders a unique edge in their trading decisions.

The most commonly used price bars which are used as a price action indicator, are called candlesticks. All trading platforms in the world offer candlestick charting - proving just how popular price action trading is.

What is a Price Action Indicator?

As discussed above, we now know that price action is the study of the actions of all the buyers and sellers actively involved in a given market. The most commonly used price action indicator is a candlestick, as it gives the trader useful information such as the opening and closing price of a market and the high and low price levels in a user-defined time period.

Price Action Forex Trading

As price action trading involves the analysis of all the buyers and sellers active in the market, it can be used on any financial market there is. This includes forex, stock indices, stocks and shares, commodities and bonds. You can view instruments within all these markets on candlestick charts and, therefore, implement a price action strategy on them.

However, the forex market has some specific advantages for price action traders, such as:

Open 24 hours a day, five days a week - a true representation of buying and selling across all continents.
Large liquidity - enabling you to trade in and out of markets within nanoseconds.
Low spreads - some, not all, forex currency pairs offer low spreads which could keep the traders' commission costs low.
Leverage - forex trading is a leveraged product meaning you can control a large position with a small deposit. This could mean big wins but also big losses, so please trade responsibly.

These are just some of the reasons why price action forex trading is popular. In the next section, we will use price action forex as examples before moving on to a forex price action scalping strategy.

Dettagli