Hi friends,
Warmly welcome to you all in my new post.
Today I like to share you about the price action as I always used this for my intraday trading and one of the best thing is it doesn't need you any technical indicator's knowledge. I almost from last 2 years used price action for my trading and almost makes 10x my holdings by using the price action in trades.
Price action simply means the changes in the price because of buyers and sellers and these changes will indicate you find the trend of the financial asset. Like any financial asset in any financial market if starts rising its price then that price does not immediately rise it will rise in the steps and it clearly you can see in the charts.
In the below chart you will be able to see that when the price rises of TRX/USDT pair it not immediately goes up but it goes in the steps as you see it makes the formation Higher Highs and Higher lows. If you see such formation then you will definitely earn profit in an asset in long term also and in short term. If I see such formation then I definitely enter in the higher lows and sell it on the top on Higher highs and In this now you think How we can identify the Higher High and for that, you need to see the below image and you will come to know that on every Higher high there is rejection candle and after that, it started to fall to higher lows.
As you see the uptrend using the price action you can also able to identify when the financial asset is in a downtrend. As you see in the below chart you can able to understand when the price is falling or downtrend is starting it will take steps like formation with using Lower Highs and lower lows. To make a profit in the downtrend asset than you should have to make short trades on that particular asset.
As you see uptrend and downtrend in a similar way financial assets are sometimes in the sideways pattern when support not going to down and resistance not allow to go up. In this situation also able to take profit from the asset when you see the asset comes to the support level you will have to wait for the buy trade once you see the bullish candle you have to take buy trade and make target nears to the resistance level.
Now you have questioned how I draw that support level and resistance level than I simply say you see the chart I just draw that line to get a clear understanding when on the particular price asset become attractive and buyers in the strong position than it helps to go up and that was our support as you see above image TRX is repeatedly able to hold some level or you can say the buyer is interested in that particular price because of that this price can't go below that line and helps to increase the price of the TRX.
A similar way resistance level is what on that particular price financial asset is falls to the down as seller books the profits on that particular level because of that price is falling.
But you have to understand that sometimes supports and resistance also breaks so before doing any trading you should keep in mind that there is risk is involves in the trading.
Happy Trading😊
I hope you all like it.
I used the price action with RSI and moving averages for my perfection and for the last 2 years I have always been in the profit with my strategies.
Warm Regards,
@mayureshpandit