2024-12-24T16:40:05+0800

Intraday Trading I 4 Lines Tukka I Revisited I Lesson 38 Price action trading is a popular trading strategy that focuses on analyzing historical price movements to make trading decisions. It is widely used in financial markets such as forex, stocks, and commodities. Unlike strategies that rely heavily on technical indicators, price action trading emphasizes reading the "naked" price chart, often using candlestick patterns, trend lines, support and resistance levels, and other chart-based tools. Key Concepts in Price Action Trading Candlestick Patterns Candlestick charts are a cornerstone of price action trading. Common patterns include: Pin Bar (Hammer/Inverted Hammer): Signals potential reversals. Engulfing Pattern: Indicates a strong shift in momentum. Doji: Suggests market indecision. Support and Resistance Levels Support: A price level where demand is strong enough to prevent the price from falling further. Resistance: A price level where selling pressure prevents the price from rising further. Traders look for price reactions at these levels to determine potential trade entries and exits. Trends Uptrend: Series of higher highs and higher lows. Downtrend: Series of lower highs and lower lows. Sideways (Range-Bound) Market: Price oscillates between defined support and resistance levels. Breakouts and Fakeouts Breakout: When the price moves outside a significant support or resistance level, signaling potential continuation in the breakout direction. Fakeout (False Breakout): Price breaks a level but quickly reverses, trapping traders. Price Patterns Patterns like triangles, flags, and double tops/bottoms provide clues about potential future price movements. Benefits of Price Action Trading Simplicity: Avoids cluttering charts with too many indicators. Real-time Analysis: Reacts directly to market moves rather than lagging indicators. Works Across Timeframes: Can be applied to short-term (scalping) and long-term (swing or position) trading. Challenges of Price Action Trading Subjectivity: Interpreting price action can vary between traders. Market Noise: In lower timeframes, price action can be less reliable due to random fluctuations. Discipline Required: Success requires patience, discipline, and risk management. Basic Steps in Price Action Trading Identify Market Structure: Is the market trending or ranging? Mark Key Levels: Identify support, resistance, and significant price zones. Wait for Confirmation: Look for candlestick patterns or price behavior near these levels. Place Trades: Enter trades based on defined criteria, with stop losses and take-profits. Monitor and Adjust: Evaluate the trade based on ongoing price action. Would you like to dive deeper into any specific aspect, like strategies, patterns, or risk management? Disclaimer :- We are not any registered members. Any information you see & hear at this channel is for the purpose of education only We are Traders by profession & Teachers by passion. We do not have any courses, memberships, books, etc of any sort to sell you. We are not here to sell you anything. We just love to share, what we have gained from the Live Mighty Market. We do not and will never give tips, tricks, trade recommendations, get rich quick schemes etc ever. If you wish, you can write back at : - [email protected] https://t.me/officialfinfront TECHNICAL ANALYSIS - FULL COURSE LINK :- https://youtu.be/u1s0erRRb9Y?si=_HEEGvZcq8_J_L1l Join this channel to get access to perks: https://www.youtube.com/channel/UCL7sH-JXh-3PN-iBS5lFDmw/join