What is Price Action Trading: Guide and Examples
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- Опубликовано: 14 окт 2024
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Price action in trading is one of the most basic terms and among the first you will learn once you embark on your investing journey. So, what is price action? The price action definition is fairly simple and, as per Investopedia, states that it's "the movement of a security's price plotted over time".
Price action explained in layman's terms is just the up and down movement of the price of a given security over a certain period of time. As you will see in our price action guide here, this is what any technical analysis is based on and what you need to have at hand to make any conclusions or decisions in trading.
In fact, price action technical analysis is very often the only type of analysis many traders rely on in the short-term. But in addition to that, we need this fundamental part of trading in order to make informed long-term trading decisions as well, and be able to extrapolate future trends. Then once you learn to do that, you will learn how to use price action for more complex technical analysis tools.
For instance, candlestick charts and patterns are a common way to employ your price action strategy. These are convenient visual interpretations of price action that can, among other things, help you spot trends, interpret reversals and determine breakouts.
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Good info David. Appreciate your time and effort.
Thanks for watching Mike, hope it helps out with your trading!
Bit late here but this is actually something I have been looking for this topic from your channel so thank you so much for making this video!!
The videos are very good examples of how to narrate a trade, which, I believe, is essential for building a profitable strategy. I appreciate David's effort and the recordings.
David explains price action really well. Please upload more price action videos!
Im 14 yrs old and im learning all about trading to prepare for when im legally allowed to trade at 16 😊 hope you can give me advices to help me learn more.
Keep it up !
Very informative and educational. Many thanks for taking the time to do this.
Hey Mr. Jones, How would you judge when to book your profits? As many trades, after reaching a position which is in the favor of the direction of the trade, meaning it generates profits, might flip over. So would you use moving stop losses or are there an indicators that would tell you that the max profit from the trade has been reached and the market might move the other way?
thanks david! great video, helps re enforce my methods and bias:) wish i could use your platform and trade cfds but im in usa
This was beautiful
Can you please talk about how to scan for such low risk, high reward stocks?
Thanks for the very instructive video, David. It seems to me that you're doing quite well in all the other trades except for PM. It's a tough nut to crack those PMs aren't they.
Great info thanks a lot !
well said man, keep it up
This looks like your using support and resistance but without the resistance
How do you recognize false breakouts?
Only after they have happened! I don't think there is anyway of knowing 100% if a breakout is real or false while it is happening.
@@Capitaltrading thank you, this might be the cause of my overthinking, trying to predict the breakout.
Volume might help a bit