Today, I start a new series about Price Action. It includes knowledge, practice, and psychology lessons in trading.
This is going to be a long and in-depth series. I will use a $5,000 account to share the trading process. Hope it will be of great help to you.
Now let’s go to the article!
What is Price Action trading? Why is it so popular?
Price Action (PA) is the movement of an asset’s price over time. Trading with PA is simply understood that all your entry decisions will be based on the price chart (ie the candlestick).
For professional traders, no indicator is more reliable than the price movements. “The market is always right”. They focus 100% on the price candlesticks to listen to the stories the market wants to tell.
The pinnacle of PA is lean, as simple as possible, not “fancy”, not complicated.
Price Action learning and trading plan
Step 1: Risk management
This must be the first post in this series. Because in general, no matter how good the trading method is, the trader himself does not know how to manage capital and risk. In the end, he still won’t make any profit.
Step 2: Identify Key levels (Support/resistance)
I will share about Key Levels, reliable candlestick patterns; trend, reversal, and sideways trading.
Step 3: Price Action combined with EMA21
I will quote a passage from Price Action by Bov Volman, one of the best-selling books about this method. And I will combine it with the EMA21 trend indicator.
Step 4: Trading on multiple timeframes and markets
Once you’ve mastered it, we’ll specialize in a variety of assets such as Coin, Gold, Stock….
This will be a good and useful series. I will have both videos and specific images so you can understand the details.
See you again in step 1.
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