Price action how does it work?

Discussion in 'Trading' started by Aline86, Jan 20, 2020.

  1. Erin

    Erin Guest

    If we consider the only thing that moves the market is orders then we need to know how we view those orders - here is a very basic model of how price developes in a bearish view
     
    #41     Jan 25, 2020
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  2. Erin

    Erin Guest

    If we take what we know from the above chart that price action is viewed as bearish we can establish a zone of where the buy orders failed - supply is made
     
    #42     Jan 25, 2020
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  3. Erin

    Erin Guest

    Ill put to this into context - this is only a snippet of the picture that is developing - essentially this is learning to say a couple words in price action but to fully understand what is occurring you need to formulate a sentence
     
    #43     Jan 25, 2020
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  4. Erin

    Erin Guest

    If you understand how to view buy and sell orders then the next step is to see how they develop in swings - swing highs and lows
     
    #44     Jan 25, 2020
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  5. Erin

    Erin Guest

    Now we see how that snippet of information plays into the bigger picture and we could go on and show the whole conversation with this chart in price action - the ideas are simple once you understand the theory - and I suspect this is why so many OTC students fail at this as they have never been taught how to properly read price action
     
    #45     Jan 25, 2020
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  6. Erin

    Erin Guest

    The same theory can be applied to all timeframes - this is a 10 min chart
     
    #46     Jan 25, 2020
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  7. price action = watch it with your own eyes. if it makes higher high = uptrend. if you see it makes lower low = downtrend.

    it's really that simple.
     
    #47     Jan 25, 2020
  8. lbhere

    lbhere

    #48     Jan 25, 2020
    Aline86 likes this.
  9. Aline86

    Aline86

    it is very helpful all those explanation, i realy appreciate thanks
     
    #49     Jan 31, 2020