A Simple Guide to Price Action Trading

A Simple Guide to Price Action Trading

Introduction to Price Action Trading

If you are reading this particular blog, then it is likely that you are interested in Price Action Trading and looking forward to investing money. One you are able to understand the price action, you have complete knowledge of all the fundamental aspects of trading and can help you become a successful trader. You might be having this question running in your mind “What is Price Action and How It is Helpful in Trading?” For beginners, they should know that it is the most powerful and sophisticated manner through which one can easily trade in the financial market. It is something like the technical analysis that makes use of “candle” so as to represent the data telling about the existing market conditions. The only thing that separates Price Action Trading from other kinds of trading is the fact that it makes use of naked and clean charts. There are not any kinds of indicators showing but only some data displayed in the form of the candle and that is it. This, in turn, makes this format of trading simple learn and easy to use.

Basic Definition of Price Action Trading

There is no basic definition of Price Action Trading but still one should know that it is the art of trading from the charts without making use of any indicators. Wikipedia simply explains it as “…the analysis of basic price movement as a methodology for financial speculation!”. Many traders would consider impossible to trade without indicators but once you are getting used to it, you will understand its true relevance and regard it as a Holy Grail for trading Forex. This form of trading is exactly very elusive and not many traders are aware of it including the experienced and skilled ones. The best thing about Price Action Trading is that you are free to trade any kind of market at any point of time and you will be getting the similar results every time. For someone who wants to take their trading to an altogether different level, they should definitely try out Price Action Trading. Since it is free from indicators, hence you will have a great mindset over charts reading which in turn will improve your overall trading considerably.

Price Action Trading Chart

Price Action Trading Chart

There are numerous advantages of this format of trading that will ultimately provide you with a better grip over your decisions and make you a successful trader. Using Price Action Trading, you will be in a better position to interpret a single piece of raw data which in turn will make other forms of trading effective for you in return. When this type of trading is mixed with Forex or Binary Options, your overall trade experience will be precise, immaculate, relevant and most effective as compared to your counterparts in the industry. Price Action Trading is indeed the missing link in your overall trading that can catapult you to success if you are able to use it properly. It will give a big boost to your self-confidence and you will be able to look out what you are searching for in the market without ever getting confused. It offers the simplicity and effectiveness that you could ever ask for any kind of trading.

How to Trade Price Action Trends

5 Reasons How Price Action Trading can Boost Forex Trading

1) You will be able to sense the movement of the market and help you make better trade decisions. You will be in a better position to analyse which way the price would go and hence you will be able to anticipate well.

2) Once you are able to learn the basics of this format of trading, you can then able to get the true picture of the market like how it works, price movement, its volatility etc. You will be able to get great insights about the market directions no matter what the situation is.

3) There are numerous Forex demo accounts provided by brokers for Price Action Trading. You can learn the basics of trading with the virtual money and hence be able to devise trade strategies which could be beneficial in the long run.

4) Price Action Setups are very beneficial, valid and get stronger with larger time frame trade. As a result of which, you would trade less but precisely and accurately thereby keeping risks at bay. You don’t have to spend a massive amount of your time sitting in front of your computer because a small time would now suffice.

5) There are numerous traders who don’t get what they are looking for and hence become frustrated and irritated. But when you learn the art of Price Action Trading, you will have a good composure and you will exploit the market when the right opportunity is made available. Just like a lion sits for its prey, you will wait for the right time and pounce on the opportunity.

Price Action Trading Requires Patience & Diligence

In the recent times, Price Action Trading has become quite a buzz because one does not have to undergo the clusters and confusions of adding indicators. Although this format of trading is not easy but not difficult either provided you are able to learn its nuances and use its application accordingly. You will have to spend some amount of time and don’t be in a hurry to speed up the learning process. Once you are able to grasp the fundamentals of this format of trading, you will be lucky to find yourself in the elite club of successful traders which accounts for only 10% of total traders in the financial industry. There is a lot of information available on the internet where you can learn about Price Action Trading and there are some dedicated websites that help you build a strategy as well. You need to find a decent instructor or some mentor who can teach you about this format of trading and you will be then able to make wonders in your overall course of trade.

Conclusion

If you are someone who wants to make a mark for yourself in the trading, then you should definitely give some thought to Price Action Trading. You should be encouraged to understand its importance and how to use it in your day to day trading. In the beginning, you might find it slightly confusing and get lost, but if you devote a considerable amount of time, then it is likely that you will prosper and be in a good position to trade. Once you are thorough with the Price Action Trading, then you will start seeing the price charts from an altogether different angle and you would never have to clutter the price charts that have got lagging indicators.

 
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Steve Gardner

I am living in London. I am an e-entrepreneur. I have been working in the financial trading industry as a professional since 2003. I am a fan of Chelsea team. I am married. I like cycling.

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