Finance & Business
POSTED BY: Ranjeet Kumar PUBLISHED: Jun 22, 22
Price Action Trading is based on the notion that for day traders, the price and its fluctuations are the only reliable sources of information.
To make trading decisions, many day traders employ a variety of technical analysis techniques
such as Bollinger Bands, Japanese Candlestick patterns, and so on.
Price action traders, on the other hand, pay close attention to price changes at the time they want to trade the stock.
If a trader notices an increase in the price of a stock, for example, his initial assumption is that people are purchasing it.
He then examines the level of aggressiveness with which investors are purchasing the stock
as well as bids, trading volume, velocity, offers, and other factors.
This enables him to see trending and reversing waves, as well as make trading judgments.