What is Price Trading?
Price action is a trading technique that allows traders to read the market and make subjective trading decisions based on the recent and actual price movements. Price action is the base for all technical analysis of stock. Professional intraday traders exclusively rely on this technique to make quick decisions for trading.
Technical analysis is a future part of price action which means technical analysis formations and chart patterns are formed from price action only. Technical analysis tools, like moving averages, are calculated from price action and projected into the future to inform trades.
In price action trading,traders don't need tools like indicators, oscillators and searching for patterns etc.as all the tools are built on data source of open, high, low and close. All the successful intraday Swing Traders and Trend Traders tend to work more closely with price action.
Benefits of Price Trading?
- • No charts data needed
- • No indicators, no oscillators, no other tools needed
- • No confusing chart patterns
- • Can make a quick decision for trade
- • Will work for a life time
- • Beginners can trade easily
- • No specific stock selection needed
- • Easy to understand no confusion
- • Changes the way of trading