What is Price Action…
As we know all indicators are output of Price (or Volume), all these indicators are legging in nature, these problem lead us to need of Price Action Study & its importance.
Price action study is the methodolgy which invistigate in details about Candles ( shapes, price,volume etc), it works more effectively in liquid market/stocks/commodity. Price action study ignores the fundamental rather it focus mainly on pattern. common examples are Higher High, Lower Low, Opening Range Breakout etc
Price Action is the pure form of Technical analysis because it depends upon first hand information.Price action helps you in anticipation the impact of News & events on stock prices in a much better way
Price Actions study can be divided into following steps :-
- Chart Reading,(Types/timeframe etc)
- Study of Candlestick(will discuss in details in next blogs),
- Volume analysis ( (will discuss in details in next blogs),
- Breakout or Breakdown trading # Following runing trend either on the Long side or Short side this is the classical form of Breakout trading strategy.
5.Retracement trading # A temporary rversal in trend towards its important support,resistance,pivots,moving average or VWAP
6. Reversal trading # One of the most powerful & rewarding trading strateg is reversal trading, under this category we try to predict price movement much earlier and it can done only with the help of Price Action (Price+volume), basically its a counter trend trading
