Today we will deal with the most useful price action patterns that I myself use in trading. I will explain how they form on the chart and how to trade them. We will also analyze the most useful indicators for trading Price action. This article covers everything you need to know about trading price action and discusses strategies that are suitable for both beginners and experienced traders. In this article we will analyze: What are Price Action strategies? Price Action Pattern Price Action Indicators What are Price Action strategies? Price Action is a unique approach based on the analysis of price movements in order to generate entry and exit signals in trades. Now let's decipher the combination of English words to understand it. Price means "price." Action means "action." It literally translates as "price action.
From the name it bears we can deduce that it is based Mexico Mobile Number List on the analysis of price fluctuations and decision making (action) based on this analysis. And how can you analyze price fluctuations? One way is to represent the price in the form of "Japanese candlesticks". In this approach, each "candle" represents a certain period of time, for example, 1 hour. Price Action Pattern By analyzing the entire series of Japanese candlesticks, one can discover particular patterns on the chart, which repeat from time to time. These patterns, if applied correctly, can be used to your advantage to make money in the financial markets. The Price Action method is distinguished by its reliability and does not require any technical indicators.
Price Action is a form of technical analysis because it does not consider fundamental factors and basically focuses on historical price data. What distinguishes Price Action from most forms of technical analysis is that it focuses on the relationship of the current price of a trading instrument to its previous prices, rather than the values from this price history. Price Action takes into account the highs and lows of price swings, trend lines and support resistance levels. Well, let's get into practice, shall we? For some it is more comfortable to “read” the price chart using the so-called “bars”. There is not much difference. In my opinion, Japanese candlesticks are easier to apply in price action trading, so I will describe the patterns using the candlestick chart as an example. Pin bar pattern A Pin bar pattern is the most important price action pattern in my opinion.