Profithills Education
Price action trading is one strategy based purely on asset price alone in determining decisions without any form of technical indicators or complicated algorithms involved. The analysis of price patterns helps traders find the right opportunities to enter their trades or close out their positions.
These will include support and resistance levels, candlestick patterns like the Pin Bar and Engulfing patterns, and, last but certainly not least, trendlines. These will allow them to determine the level of market sentiment and when possible reversals or continuations are likely to occur in trends.
The strategy is very popular in all markets- Forex, stocks, and commodities because it is simple. It gives the traders a clear, unbiased view of the market free from indicator noise, which is owing to its focus on price. Discipline, patience, and the ability to interpret price action accurately are what are required.
Price action trading can be done in any time frame and in any market. This makes for a very flexible and powerful way of trading with the financial markets for both novice and professional traders alike.
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