The term " price action " has become a buzzword in the world of operations recently, and at least once a week , I wonder just what the term means . To be honest , trade with the action of price is really all that and more! After all, how many managers of hedge funds and other large operators who manage the money do you really make business based on MACD , RSI, Stochastics, CCI or decisions any other indicator that is based on nothing more than delaying price? I can assure you that the answer is closer to zero than to one, since most of these traders are the smartest in the business and know how to negotiate price action , no doubt.
In its simplest form, price action strategy the price action trading is just trading decisions based solely on price they are printed on a map. Often called " naked trading " because all the clutter and confusion to add indicators is no longer necessary and the graphics are clear and easy to see . After all most of the indicators are in fact derived from the old price or less developed , so that the indicators are actually price action strategy getting data based on past prices or meetings. Why would anyone think it was actually a smart way to trade the markets ? When learning to read based on his own graphic printing , then you begin to understand that there are certain rules or properties that prices actually follow . No, they are not carved in stone , like the laws of physics, but these rules are valid and properties often enough to give you an advantage in and out of the business, and that's what it takes to make money when the trade : A board!
Trade with the price action is not easy, price action strategy but it is not so difficult to learn well. It will feel strange at first , especially if long came online using indicators . Understand that if you spend the time and is learning to read a map, you have an advantage over 90 % of all retailers, and is likely to put you in the 10 % of traders actually survived and gains as traders market. Understand that price action trading works in a market that can be drawn , such as stocks, futures , bonds, currencies , precious metals, etc. trading with price action is not something that will work in the short term , then slowly lose its effectiveness as markets evolve . Although there are markets and graphics software , this strategy will give traders a distinct commercial advantage.
There is plenty of information out there on many websites that offer a strategy for action on prices, so be sure to find an instructor who teaches pure price action and not a variation that is not a real share price level. You just need to know and understand that the negotiation of the price action can and will change its operations for the better! price action strategy
