PRICE ACTION TRADING PDF: 6 THINGS TO LOOK FOR BEFORE YOU PLACE A TRADE

More Information About Book:

Name of BookPrice Action Trading PDF
Name of AuthorRyner teo
Language of BookEnglish
Size of Book 1 MB
Total pages in Ebook20
Category of BookTrading
Source Archive

Price action trading is a methodology that relies on historical prices (open, high, low, and close) to make informed trading decisions. Unlike indicators or algorithms, price action reveals what the market is actually doing, rather than what we think it should do.

Here are some key takeaways from Rayner Teo’s guide:

  1. Support and Resistance:
    • Support is a horizontal area where buyers are expected to push the price higher.
    • Resistance is a horizontal area where sellers are expected to push the price lower.
    • These levels can swap roles, with Support becoming Resistance and vice versa.
    • Drawing these levels involves zooming out your charts, identifying obvious levels, and adjusting them for the most “touches.”
  2. Candlestick Patterns:
    • Price action traders pay attention to candlestick patterns.
    • These patterns provide insights into market behavior and help time trading entries accurately.
    • A cheat sheet can help you understand various candlestick patterns without memorizing each one.
  3. The M.A.E Trading Formula:
    • This simple Price Action Trading system can be learned by anyone.
    • It allows traders to trade with cleaner charts and pinpoint entries and exits more precisely.

You can download the Price Action Trading PDF through the link given below.

Read Also: Supply and Demand Trading: how to master the Trading Zones pdf free

Price Action Trading: 6 Essential Aspects to Examine Before Executing a Trade

It’s widely acknowledged:

Price action trading fine-tunes your entry and exit strategies, liberating you from the constraints of indicators, news, or subjective opinions.
Fantastic, right?

However, the challenge lies in the overwhelming sea of information available—candlestick patterns, chart formations, trend lines, support and resistance levels, etc.—making it daunting to synthesize a clear strategy.

So, where does one begin?
Which elements are crucial?
How can one derive meaning from the vast array of data?

Fortunately, there’s a silver lining.
In price action trading, adopting a minimalist approach often yields the best results.

Through extensive years of trading and experimentation, it has been discovered that only six key factors are essential in price action trading, allowing one to disregard the overwhelming majority of extraneous information.

Curious to learn more?
Let’s dive into the first critical aspect:

#1: Market Structure

Understanding market structure is paramount for any price action trader.
Without this foundational knowledge, charts remain cryptic, leaving traders uncertain about when to engage or disengage from the market.

Conversely, with a solid grasp of market structure, a plethora of trading opportunities becomes visible, paving the way for informed decision-making.

Price Action Trading: 6 Key Factors to Evaluate Before Trading

Continuing our exploration…

Market structure is essentially segmented into four distinct phases:

  1. Accumulation Stage
  2. Advancing Stage
  3. Distribution Stage
  4. Declining Stage

Let’s delve into each phase:

Accumulation Stage

Characterized as a range-bound market following a downtrend, the accumulation stage represents a critical turning point. Here’s a closer look:

During this phase, two main drivers are contributing to market accumulation:

  • Bullish Traders: As prices decline, bullish traders perceive the lower prices as “too low,” leading them to initiate purchases. This buying activity injects buying pressure into the market.”

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