Before going into the discussion on Price Trade Action, it may be noted that traders are classified into various types, on an analysis of “How they trade “in the markets and the “Basis on which they trade” in the market. Let’s limit our discussion to traders who base their trading methodology on a concept called PRICE TRADE ACTION. To put it in a pure sense, these traders trade based on the movement of the price of the security, commodity, currency in their respective markets. We could simply call them as PRICE ACTION TRADERS for our convenience.
Objective And Focus
They give more attention to the movement of PRICE in the market with the help of the CHART PATTERNS to notice Swing movements, Support areas, Resistance areas, Consolidation and Trending phases, Volumes, etc., Their objective remains to be an increased capability to read the minds of enormous number of buyers and sellers involved in a time frame .
Price Trade Action Knowledge Areas
PRICE TRADE ACTION could be called a strategy to make trades. This strategy requires sufficient knowledge about Candlestick analysis, various types of candlesticks like Doji, Marubozu, Spinning tops, Hammers, etc. Ability to study Combinations, Retracement levels, and Patterns of Candlesticks will equip a trader with a capacity to determine the buying and the selling points of stock in a chart.
Price Trade Action Merits
Since there is a reasonable amount of time spent on the REAL TIME RAW DATA which would be decoded from observing the charts, traders give less attention to the so-called indicators like MACD,RSI ,ADX etc., which primarily are lagging indicators which collect the raw data from the market and then process it and come out in the form of indicators .
A psychological factor also works out well when a trader watches a screen with PRICE ACTION along with few other indicators VIS A VIS a screen which shows a simple PRICE ACTION chart. Focus doesn’t get affected if it’s pure PRICE ACTION chart.
These traders derive various clues from reading the real-time charts and make profits from entering at an appropriate point and making an exit at the right time. They would be able to estimate the near price movement based on charts and accordingly make profits. However, it may be noted that losses are also a part of all this entire trading environment given the best of the strategies chosen. In other words, traders wait for the right setups, right pattern formations, and then position themselves expecting gains from that trade.
Although PRICE TRADE ACTION seems to be having a simplistic style, it needs the in-depth understanding of CHARTS which should give an ability to decode the mass behavior of the people involved in a trading counter. Traders with higher levels of accuracy in decoding would have more profits in their pockets when compared to traders with lower levels of efficiency in determining the movement of the prices in a market. Pls, feel free to get a detailed text on PRICE TRADE ACTION and the connected strategies by sending a request mail to us at the below mail address with the subject as “REQUEST -CONTENT ON PRICE TRADE ACTION.”