The term “price action” has become quite a word in the trading world lately, and they ask me at least once a week what exactly it means. In fact, trading with price actions is all that and more! After all, do you think hedge fund managers who manage money or other big traders who manage money take MACD, RSI, Stochastic, CCI or any other indicator based on delayed prices? I can assure you that the answer is closer to zero than one, as most of these market traders are the smartest in the business and certainly know how to negotiate price action.
In its simplest way, the trading of price action is nothing more than making trading decisions based on prices, which are printed on a board. It’s often called “bare trading” because not all of the clutter and mix-ups to add indicators is necessary and your charts are clean and easy to see. After all, most indicators are derived from previous or past prices, so these indicators give you data based on past or dated prices. Why would anyone think that this was a smart way to market markets? When you learn to read a chart in print, then you will begin to understand that there are certain rules or properties that actually meet prices. No, they are not written in stone like the laws of physics, but these rules and properties are often complied with enough to give you an advantage in entering and leaving your professions, and that is all that is needed to make money in trading.
Negotiating with prices is not easy, but learning is not so difficult either. It will be weird at first, especially if you spend a lot of time getting into trades with indicators. Understand that if you spend time and actually learn to read a chart, you will have an advantage of 90% of all retailers and will probably place you at 10% of the traders who survive and earn as traders in the market. Understand that trading in price action works in any market that can be charted, stocks, futures, bonds, Forex, precious metals, and so on. evolve. While there are markets and chart software, this strategy will give traders a significant trading advantage.
There is a lot of information on many websites that offer a price action strategy, so make sure you find a teacher who teaches pure price action and not any changes to the actual price action course. Know and understand that price action trading can improve and change your trade!