What Is Price Action Trading Strategy?

TeknikalRaman

Finance & Business

POSTED BY: Ranjeet Kumar PUBLISHED: Jun 22, 22

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Price Action Trading is based on the notion that for day traders, the price and its fluctuations are the only reliable sources of information.

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To make trading decisions, many day traders employ a variety of technical analysis techniques

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such as Bollinger Bands, Japanese Candlestick patterns, and so on.

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Price action traders, on the other hand, pay close attention to price changes at the time they want to trade the stock.

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If a trader notices an increase in the price of a stock, for example, his initial assumption is that people are purchasing it.

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He then examines the level of aggressiveness with which investors are purchasing the stock

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as well as bids, trading volume, velocity, offers, and other factors.

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This enables him to see trending and reversing waves, as well as make trading judgments.