The Ultimate Price Action Tradi Atanas Matov
These books provide a very detailed analysis of how markets work. Al uses these action techniques to day trade the Emini, in his Forex trading, and with stocks and commodities. He trades the daily and 60 minute charts as well, often using options when holding positions overnight.
Every tick on every chart is important and sometimes even the smallest movements portend large swings. There are buyers and sellers above and below every bar, and the key to successful trading is knowing when one side is likely stronger.
The edge is always going to be small in trading because there are smart people who believe the exact opposite of you. However, by understanding action, traders can find many examples on every chart, whether it is an intraday or daily chart, where there is a mathematical advantage to buying or selling. Al enjoys sharing his knowledge and experience, and hopes that others might find it helpful.
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What is Price Action?
Price action is the movement of a security’s price plotted over time. action forms the basis for all technical analysis of a stock, commodity or other asset chart. Many short-term traders rely exclusively on The action and the formations and trends extrapolated from it to make trading decisions. Technical analysis as a practice is a derivative of action since it uses past prices in calculations that can then be used to inform trading decisions.
What Does Price Action Tell You?
action can be seen and interpreted using charts that plot prices over time. Traders use different chart compositions to improve their ability to spot and interpret trends, breakouts and reversals. Many traders use candlestick charts since they help better visualize price movements by displaying the open, high, low and close values in the context of up or down sessions.
Candlestick patterns such as the Harami cross, engulfing pattern and three white soldiers are all examples of visually interpreted action. There are many more candlestick formations that are generated off action to set up an expectation of what will come next. These same formations can apply to other types of charts, including point and figure charts, box charts, box plots and so on.
Price action is the movement of a security’s price plotted over time. action forms the basis for all technical analysis of a stock, commodity or other asset chart. Many short-term traders rely exclusively on action and the formations and trends extrapolated from it to make trading decisions.