Price Action Trading

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Do more of what works and less of what doesn’t.

Steve Clark

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What Is Price Action Trading?

It’s a trading methodology that helps you identify the current market condition so you can adopt the right trading strategy at the right time.

In a nut & shell there are five components of price action trading:

#1 Market Structure

Identify the current market structure, whether the market is in uptrend, downtrend or sideways.

Decide what to do…

Buy, Sell or stay out of the market.

#2 Area Of Value

Identify the area of value like support & resistance, moving average, trendline, demand zone & supply zone.

Decide where to buy /sell.

#3 Entry Trigger

With the help of candlestick patterns…

Decide when to buy/sell.

#4 Exit Trigger (If you’re wrong)

Use stoploss to get out of the trade at a level where your setup gets invalidated.

You can use ATR or Pivot Points Standard indicator to set the stop loss.

#4 Exit Trigger (If you’re right)

Congratulations!

If everything is right…

It’s time to book the profit. Capture a swing like high & low, support & resistance. Get out of the trade.

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