Price action trading is a technique based on historical prices (open, high, low, and close) to help traders make effective trading decisions. Every technical trader who makes his decisions based on price charts and technical analysis without using indicators called price action. Simply price action means your trading decisions behalf on the price movements of an asset.
· Price action is a method of trading which allows a trader to read the market behavior, momentum and make trading decisions behalf on the recent and actual price movements.
· In price action trading no lagging indicators outside of maybe a couple moving averages to help identify Support & Resistance areas and trend.
· Price action help in the analysis of the basic movement of the price and generate signals of entry and exit in trades.
· Price action is a form of technical analysis and it ignores the fundamental factors of an asserts.
· Price action trader focus on the size, shape, position, growth, and volume of the bars on the candlestick chart.
· Price action simply the combination of candlesticks chart patterns, technical analysis such as Moving Average, Trend Line or Trading Ranges.
Trader, Equity Advisor
IFM TRADING ACADEMY