At the heart and soul of it, the stock market is all about buying and selling, demand and supply. Sometimes we buy a stock and sometimes we sell one. But just buying and selling based only on our instincts will not do any good for our trading account. Chances are we end up in losses and in the worst-case scenario, we blow up our trading account. That is why almost all traders try to find an edge in the market to remain profitable.
Depending on the type of trader you are you can choose between technical analysis, fundamental analysis, quantitative analysis, and finally price action analysis. Technical Analysis (TA) primarily involves using different categories of indicators to predict the future price movements, Fundamental Analysis (FA) on the other hand relies on the fundamentals of the stock or the company primarily focussing on the financials, earnings, etc to make a trade decision. Similarly, Quantitative Analysis (QA) utilizes the use of statistical tools to analyze the market data. If we talk about technical analysis in particular which is followed by the majority of traders, the interesting thing that can be identified is that the indicators used for the analysis are derived from some of the fundamental inputs of the market namely the price and volume.
Think about it for a while about which is better fruit from our home farm or one with heavy pesticide usage. The former may not be very good-looking and won’t last stay fresh for many days but it’s healthy while the latter may look appealing to the eyes and stay fresh longer but it’s not even remotely good for our health. Similar is the case with indicators which are a result of so many intermediate processing of the basic price and volume so that the pure behavior is lost and at the end of the day you make your conclusions without listening to what the market has to say.
I am not concluding that TA is not good or that all indicators are retarded. Instead what we have with us is a gold mine by the name of the price, which if studied properly can help us identify what the market is doing. this study of the Price and its behavior is known as Price action. Unlike indicators, fundamentals, or algorithms, price action tells you what the market is doing, not what you think it should do. Price action focuses mainly on the recent and current prices, the overall market trend, and the price structure.
Now, this isn’t the Holy Grail or the mantra for ultimate success. Trading is mostly about your psychology and implementation, and not a single strategy. The goal for most traders is to maximize trading profits through a style that is compatible with their personalities. Without that compatibility, I believe that it is virtually impossible to trade profitably for the long term. But, if you devote a good amount of time to learning price action trading. you’ll trade with cleaner charts without hell lots of indicators, and you will be able to pinpoint your trade entries & exits with better precision.
This course will cover the following topics:
- Market Structure
- Market Trends and their strength
- Understanding Candlesticks
- Basics of Supports & Resistances
- Supports & Resistances Secrets
- Analyzing Market Volumes
- How to Trade Breakouts?
- Identifying False Breakouts
- How to Trade Pullbacks?
- How to Trade Reversals?
- Inside Bar Trading
- Pin Bar Trading
- How to Trade Market Gaps?
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