Price Action Trading: The Complete Guide
It’s 9:30 AM on a volatile trading day. Your chart shows a decisive break above a key resistance level, and the market is moving in your favor. You didn...
It’s 9:30 AM on a volatile trading day. Your chart shows a decisive break above a key resistance level, and the market is moving in your favor. You didn’t need an indicator to tell you to enter — you read the price action and acted. This is the power of price action trading: making decisions based solely on market movement, not complex formulas. Price action trading is a method of trading that involves making decisions based solely on the movement of price, without relying on technical indicators. It is the behavioral analysis of market participants as a crowd from evidence displayed in price action. According to Wikipedia, "price action is simply how prices change — the action of price. It is most noticeable in markets with high liquidity and price volatility." Key fact: Price action trading incorporates the behavioral analysis of market participants as a crowd from evidence displayed in price action, requiring no technical indicators. Key fact: Minimalist price action traders choose to rely completely on the behavioral interpretation of price action to build their trading strategy.