Price Action Simplified

What is Price Action in Stock Market Basically?

To master the main levels of price action and support and resistance in price action and become perfect in it”Candlestick Patterns That Matter A Lot A Simplified Approach”How to Read Price Action Without Indicators”Understanding the Psychology Behind Price Movements: A Trader’s Guide”Trend Trading Simplified Identifying Market Momentum in Detail”

We try to understand and learn a lot by observing the price action in the stock market. Let’s know what is price action in this article!

Price Action Simplified Better Strategies for Better Trades”

There are two players in the stock market, one is a buyer and the other is a seller. There is always a fight between these two. In this sometimes the buyer wins and the seller loses. If the seller wins, the buyer loses!

If you want to become a master in price action, then you should know these four things, only then you can achieve mastery in price action

1.Candlestick Pattern

2.Support Resistance

3.Chart Pattern

4.Trend

There are many candlestick patterns, but I am telling you about two important candlestick patterns, bullish candlestick pattern and bearish candlestick pattern!

Like (Hammer Candlestick Pattern) Hammer Candlestick Pattern, when a long lower wick and small body candle is formed, then we call it Hammer Candlestick Pattern!

2.Engulfing Candlestick Pattern, when a large bullish candle covers the previous bearish candle, then it is called Engulfing Candlestick Pattern!

☆Bearish Candlestick Pattern☆
▪︎Shooting Star Candlestick Pattern, when a long upper wick and small body candle is formed, then it is called Shooting Star Candlestick Pattern!

•Bearish Engulfing Candlestick Pattern When a large bearish candle covers a bullish candle, it is called a bearish engulfing candlestick pattern!

☆Support and Resistance☆
Support and Resistance are the important price levels of the market from where the price reverses again and again!

▪︎Support:- Support is the moment where the price goes down and starts coming back up!

Resistance:- It is the moment where the price goes up and starts coming back down!

I am telling some important chart patterns which will help in trading in price action!

☆Continuation Patterns☆
Flag:- This pattern helps to indicate the continuation of the trade!

Pennant:- It helps to indicate the breakout after a small consolidation!

☆Reversal Pattern☆
Head and Shoulders When the price reverses after making a top, it is called Head and Shoulders reversal pattern!

Double Top and Double Bottom This pattern indicates the price to reverse, it is called Double Top and Double Bottom candlestick pattern!

Trend
Uptrend:- When higher high and higher low are continuously formed in the market, it is called up trend!

Downtrend:- When lower high and lower low are continuously formed in the market, it is called down trend!

Sideways:- When the price in the market keeps moving between support and resistance, it is called sideways trend!

Volume:- If the volume is high during the break out, it means that the break out is getting stronger and if there is a break out with volume, then many times fake break out can also happen in the market, that is why it is said that look at and understand the volume well, only then take any further decision!

Determine entry and exit?

Entry:- Take entry only when you know that any candlestick pattern or chart pattern is sure. When you feel that our target is achieved, you should exit!

Stop Loss:– Use support and resistance in the market properly!

Take Profit:- Set the price according to your target!

☆Risk Management and Trading Management:- Always keep a risk reward ratio of 1:2 or 1:3 or 1:4!

Do not risk more than 2% or 3 percent of your account in a single trade because excessive greed can empty your account, so take your risk reward!

☆Avoid emotional trading!

Conclusion:- In this article we have explained about Price Action Trading! Price action trading is an effective method in which trading is done using only price movements and chart patterns. It requires control and patience to learn. If you understand and predict it well, you can become a successful trend chaser without any indicators and without any fear and hesitation! I am saying again, it requires time and patience!

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