Price Action Analysis is a vital key trading discipline, interpreting a simple price chart based on the price changes in the market. The chart could either be the Asian Candlestick bar or a Western Bar format that should have no lagging technical indicators included on it. Probably, with a few exceptions of drawing trend lines that reflects support & resistance levels thereafter.
The simplest form of a price chart describe herein has no technical indicators on it. The consistency of a mere Candlestick Bar formation to reflect price action by itself would be considered a practical method of reading through price movement without having to develop a bias market opinion at first glance. This could be done either with the Candlesticks or the Western bar chart method of analysis.
MegaTrade101 - Process of 'Price Action Analysis'
The 'Candlestick' Bar version as a charting system has been considered to be one of the best in its class, in so far as market price interpretation is concerned compared with the traditional western bar sometimes referred to as 'Bamboo'. Popular as it maybe, Candlestick bars & chart patterns are easily identifed but an in-depth knowledge of its true application should be well understood.
ReplyDeleteMoreover, to be able to improvise a structured strategy that will 'Challenge the Status Quo' from traditional trading analysis, unconventional methods in market analysis approach works simply based from actual market experience. At times, certain market conditions provide unconfirmed signals from price action & behavior even before it occurs. This is where trader / strategist develop a true sense of their trading abilities; best described sometimes as intution. Others may call it ' instinctive analysis'.
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