Weekly Price Action Trade Ideas – 8th to 13th Dec 2019 (2024)

FAQs

Which indicator is best for price action? ›

Doji Candles

Price action trading significantly utilizes Doji candlesticks as indicators of market uncertainty. These patterns typically emerge when there is a pause in trend momentum or during consolidation phases.

Price Action Trading FAQ

Price action trading can work; however the trader must understand that it requires a high degree of patience to successfully trade the markets using price action. There are very specific setups that a price trader will look for on the charts, and these could take some time to develop.

Price action traders can follow the sequence of highs and lows strategy to map out emerging trends in their market. For example, if a price is trading at higher highs and higher lows, this indicates that it's on an upward trend. If it's trading at lower highs and lows, it's trending downwards.

Using Volume to Confirm Price Action Signals

For example, if an uptrend is accompanied by increasing volume, it suggests a strong and healthy trend. Conversely, if an uptrend is accompanied by decreasing volume, it may indicate a weakening trend.

What I Use and Why. From experience, I can tell you that two of the best time frames to trade are the daily and 4-hour. This isn't to say that you can't be profitable trading a different time frame, but these two are what made me profitable as they work the best with the price action strategies I use.

The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.

SMC vs Price Action

Price action focuses on analysing past and present price movements to identify patterns or trends without considering external factors. It relies heavily on candlestick patterns, chart formations, and support and resistance levels, making it a strategy based on the technical aspects of trading.

A step-by-step guide on how to trade on price action? Identify the existing trend in the market. Identify trading price action opportunities based on the trend's strength. If there is a strong uptrend, place long orders and if there is a strong downtrend, place short orders.

Traders use pin bar tails to predict price movements, deciding whether to buy or sell. A formula {(C – O) + (C – H) + (C – L)} / 2 helps create patterns based on intraday momentum and buying/selling pressures.

Price charts reflect the beliefs and actions of all participants (human or computer) trading a market during a specified period of time and these beliefs are portrayed on a market's price chart in the form of “price action” (P.A.).

What is SMC trading strategy? ›

Smart money concepts trading involves looking at order blocks, which is a more refined version of supply and demand, breaker blocks, mitigation blocks, flip zones, fair value gaps and liquidity grabs. These terms replace support and resistance, reversals and volume.

The VWAP is displayed as a line, similar to a moving average. On the chart, it's the purple line that goes through prices. Remember the VWAP is an average, which means it lags. Typically, when VWAP slopes up, it indicates prices might be trending up, and when it slopes down, prices might be trending down.

In simple terms, price action trading is a technique that allows a trader to read the market and make subjective trading decisions based on recent and actual price movements, rather than relying solely on technical indicators.

There are Buy signals when it has momentum breakouts above the bands for moves to the upside and Sell signals when it has momentum breakouts below the bands for moves to the downside. The bands simply suggest that all markets... This is the Stochastic/LSMA Buy and Sell indicator.

Moving average convergence divergence (MACD)

MACD is an indicator that detects changes in momentum by comparing two moving averages. It can help traders identify possible buy and sell opportunities around support and resistance levels.

1. Moving Average Indicator (MA) The moving average indicator is one of the most popular technical indicators and it's used to identify a price trend in the market. For example, if the short-term MA crosses over the long-term MA, this is an indication that there might be an upward trend coming up in the future.