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Advanced Price Action Course by i3t3 Mega Webinar - What Is Price Action?

Price action,
which can be translated as “price action,” is a trading method based on the
analysis of price movements. It is, therefore, a method of technical analysis
(as opposed to fundamental analysis), and it adapts to any market and all
trading profiles (swing, daily, scalping).

In practice,
price action consists of identifying the support and resistance levels
respected by the price. The price action trader will use these levels to
identify:

• Areas on which
the price can rebound;

• Key levels
that the price can break out.

It is the
behavior of the price as it approaches these levels that will or will not give
the trader a signal to enter a position.

A minimalist
approach characterizes the price action. In its purest form, only the price
appears on the charts. It is possible to add one or more technical indicators
to provide additional information. Nevertheless, those given by the price will
always be preponderant. To know more about Price action trading it is
recommended to do Simplified Price
Action Trading course
.

Price action
enthusiasts will tell you… What matters is price, price, and price!

Understanding
Price Action

Price Action Trading is a technique in which
all trading options are usually based on the price action of the price chart.
There is no need for indicators to help determine consensus in support and
resistance areas and trends for trading in this way. The reason being the
resistance and support areas already exists on the chart. This discipline in
making business decisions is based on the fact that financial markets generate
data on market power changes over time. This complete data will be displayed on
the price chart. Ultimately, the price chart is used to show the behavior and
beliefs of trading participants and is eventually represented in the market
price chart in the form of price actions. Each price chart is different to
convey the difficulties buyers and sellers have experienced in the past, and
day traders make decisions based on these results.

The advantages
of price action

The first
advantage of price action is its reactivity. You enter a position at the start
of the movement, unlike technical indicators. Indeed, these are always late
because they are a derivative representation of past price movements. This
means a certain amount of time between when the price begins to move and when
the indicator gives a signal. Thanks to price action, you, therefore, have
greater earning potential.

The second
advantage of price action is that it dramatically reduces contradictory
signals. With a strategy based on technical indicators, one indicator gives a
buy signal while another shows a sell signal. The price action protects you
from this risk because, by definition, you only look at the price.

Finally, the
price action delivers a clear message. The multiplication of technical
indicators on the charts makes the market analysis longer and confusing due to
the flood of information given by all these indicators.

In summary

Price action is
a trading method that focuses on the essential: the price. It is suitable for
all profiles, from swing trading to scalping, and works equally well on
indices, forex, or commodities. It makes it possible to take a position as
early as possible in a movement where technical indicators lag.

Despite its
simplistic appearance, price action requires an undeniable learning curve to
master its subtleties. But if you manage to pass this milestone, price action
could become your best asset to build your profitable strategy.If you want to know more about Price Action
trading, it is recommended to do a Simplified Price Action Trading course.