3 Price Action Secrets Every Trader Should Know!

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What is Price Action Secrets?

Price Action Secrets are movements of price over time. price action trading is for all technical analysis. Many intraday day forex trader rely on price action trading. Technical analysis is a part of price action trading system.

Key Notes

Price action is the movements of candlesticks on chart when it is plotted over time.

In Price action technical analysis tools like fibo, moving average are calculated from the price action and projected into future to inform traders.

  • Price Action Secrets: Support and Resistance

Support and resistance is the key point of market level. most of the forex traders rely on the supply and demand levels.

If an uptrend is repeatedly forced to reverse with the same resistance, this means that the relationship between buyers and sellers is suddenly turned upside-down. Not only do all the buyers fold at once, but the sellers immediately dominate the market activity when the new downtrend begins.

When market reach support and resistance level, The market conditions will be changed between the buyers and sellers changes.

When the price level reaches a resistance level during an uptrend market, more sellers will enter the market for their sell trade.

If market price level reach the same resistance level or demand zone again. Few sellers will wait there. this process is known as order absorption.

In the image below shows such an example.

The GBP/USD price return sooner and sooner to the same resistance level. it means sellers are interested in selling at the resistance level.

Price Action Signals
  • Price Action Secrets: Improve your trading instantly

Even if you see the best price action signal, you can still greatly increase your odds by only trading at important and significant price levels. Most amateur traders make the mistake of taking price action signals regardless of where they occur and then wondering why their profit rate is so low.

To increase the chance of a successful trading opportunity is not to take trade blindly in such support and resistance areas.

For example, if a Grantley, double top, or any other candlesticks confirmation like, Doji, pin bar, bearish engulfing candle formed, then this can increase the chance of improved your trading results.

Forex trading results
  • Price Action Secrets: Stop looking for textbook patterns

Most of the beginners traders do mistakes often looking there textbook patterns and they apply their textbook knowledge to the charts.

Trading doesn’t work this way and price is a very dynamic concept. Price and patterns change all the time and if everyone tries to trade in the same way with the same patterns, the big players will use it to their advantage.

This is perhaps one of the most misunderstood price action secrets. Stop looking for shortcuts and don’t wait for textbook patterns. learn to think and trade like a pro.

Price Action Secrets

About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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