What Is Price Action? Big Profit With Price Action Knowledge.(In Hindi).

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• published: 18 Jan 2018
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What is 'Price Action' Price action is the movement of a security's price. Price action is encompassed in technical and chart pattern analysis, which attempt to find order in the sometimes seemingly random movement of price. Swings (high and low), tests of resistance and consolidation are some examples of price action. The candlestick and price bar are important tools for analyzing price action, since they help traders visualize of price movement. Candlestick patterns such as the Harami, engulfing pattern and cross are all examples of visually interpreted price action. BREAKING DOWN 'Price Action' No two people will analyze every bit of price action the same way, and that is why a lot of traders find the concept of price action so elusive. Quite literally, price action is everything that a security's price does, and just like every other facet of analysis, it is purely subjective. A bullish harami is a candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. The bullish harami is a downtrend or bearish candlestick (red) engulfing a small bullish candlestick (green), giving a sign of a reversal of the downward trend. Since the bullish harami indicates the bearish trend may be reversing, it may be a good time to enter into a long position. BREAKING DOWN 'Bullish Harami' Technical analysis is a type of investment analysis that focuses solely on price. Technical analysts believe that patterns can be found in the movement of price over time and that these patterns are fairly predictable. Pattern recognition and identification is at the heart of technical analysis, and one of the most common bullish candlestick chart patterns is the bullish harami. If an outline is drawn around the pattern, it resembles a pregnant woman, which is why the pattern is named after the word "harami," an old Japanese word meaning "pregnant." Traders using the bullish harami are looking for a confirmation of a reversal. Price Action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicator. ince it ignores the fundamental analysis factors and focuses more on recent and past price movement, the price action trading strategy is dependent on technical analysis tools. What tools are used for price action trading? Since price action trading relates to recent historical data and past price movements, all technical analysis tools like charts, trend lines, price bands, high and low swings, technical levels (of support, resistance and consolidation), etc. are taken into account as per the trader’s choice and strategy fit. The tools and patterns observed by the trader can be simple price bars, price bands, break-outs, trend-lines, or complex combinations involving candlesticks, volatility, channels, etc. Psychological and behavioral interpretations and subsequent actions, as decided by the trader, also make up an important aspect of price action trades. For e.g., no matter what happens, if a stock hovering at 580 crosses the personally-set psychological level of 600, then the trader may assume a further upward move to take a long position. Other traders may have an opposite view – once 600 is hit, he or she assumes a price reversal and hence takes a short position. No two traders will interpret a certain price action in the same way, as each will have his or her own interpretation, defined rules and different behavioral understanding of it. On the other hand, a technical analysis scenario (like 15 DMA crossing over 50 DMA) will yield similar behavior and action (long position) from multiple traders. In essence, price action trading is a systematic trading practice, aided by technical analysis tools and recent price history, where traders are free to take their own decisions within a given scenario to take trading positions, as per their subjective, behavioral and psychological state. my links are given below you tube subscription Wonder Life Click https://www.youtube.com/channel/UCpOeiPAdD1tIPpCEnq0RshA Facebook https://www.facebook.com/wonderlifeclick Twitter https://twitter.com/drcharliembbs google+ https://plus.google.com/b/112079746449140327678/112079746449140327678 Instagram https://instagram.com/drcharliembbs/ Blog http://wonderlifeclick.blogspot.in/ Pinterest https://in.pinterest.com/drcharliembbs/ LinkedIn https://www.linkedin.com/in/wonderlifeclick?trk=nav_responsive_tab_profile_pic Reddit https://www.reddit.com/user/smayurk