Price action - trading strategy
without indicators on a clean chart
Considering embarking on a journey toward becoming an adept trader? Then, the initial step toward that endeavor should entail selecting a viable and lucrative strategy. In my case, the strategy that proved efficacious was the methodology of price action. Engaging in trading through the lens of price action manifests as an uncomplicated yet profoundly efficient approach.
Price action entails the ability to conduct trades based on a pristine chart, devoid of reliance on indicators. Devoting your time to scrutinizing price fluctuations facilitates a deeper comprehension of market dynamics, enabling more precise identification of entry points, as well as optimal placements for stop losses and profit-taking.
But what exactly constitutes price action?
This methodology has garnered considerable attention in recent times. It revolves around scrutinizing price shifts vis-à-vis significant support and resistance thresholds, complemented by analysis of candlestick patterns. Notably, what sets this approach apart is its divergence from conventional reliance on technical indicators. Indeed, price movements are a consequence of the interplay between buyers (referred to as "bulls") and sellers (often dubbed "bears"). When prices ascend, it signifies a predominance of bulls in the market.
Ergo, the market remains in a perpetual tug-of-war between bullish and bearish forces. Delving into price action necessitates discerning which faction currently dictates market dynamics - bulls or bears. Should your analysis indicate bullish supremacy, purchasing becomes opportune. Conversely, in instances where bears hold sway, selling is advisable.
But how do we ascertain which faction holds sway at present? This entails leveraging two integral facets of price action:
Pivotal Support and Resistance Levels
These demarcate zones where buying or selling pressure is likely to culminate. Upon reaching these junctures, price action suggests an impending halt or reversal, thus affording opportunities for entering or exiting positions.
It all appears remarkably straightforward, doesn't it? Support and resistance levels rank among the most prevalent tools within the trader's arsenal of technical analysis.