How To Identify Correct Market Trend Using Price Action

Price Action Trading

The very first thing that we wish to know is what’s a Swing High and Swing Low. That is almost certainly the very best a part of price action and bar counting even supposing the entire course of will get more uncomplicated with follow.

We outline a swing high as;
A 3 bar mixture
A bar preceded and succeeded via lower highs

I outline a swing low as;
A 3 bar mixture
A bar preceded and succeeded by using higher lows

Market LevelsThere are most effective 3 ways the market can go;
• Up
• Down
• Sideways

With the swing high/low definition now in thoughts we will begin to construct some layers on to the chart to establish these market phases and begin to do a easy depend of those swing highs and lows.

• The market goes up when value is making higher highs and higher lows
• The market goes down when value is making lower highs and lower lows
• The market goes sideways when worth is just not making higher highs and higher lows OR lower highs lower lows

This may increasingly sound like kid’s play and a commentary of the apparent however you are going to be stunned at how frequently folks will overlook these easy data. One of the vital greatest questions I get requested is, which method is the market going? Through doing a easy train you will discover which approach that worth goes and come to a decision for your trading plan and extra importantly timing of a trade.

What do I imply by means of timing? It can be that you’re on the lookout for a shorting chance as the general trend is down however value to your entry period of time continues to be going up (making HH’s & HL’s). There’s, at this stage, no level in seeking to quick a rising market except price action begin to level down (making LH’s & LL’s. Extra on this rapidly).

Price Action

We’re sharing a FREE book. The guide targets to offer an introductory thought on the elemental price action trading.

That you may obtain and browse the FREE guide on price action trading by way of clicking the button below. You want an account in Facebook to obtain this file.

You can also distribute this guide to your pals, however don’t fail to remember them to refer them to our website. Understand that even all StockManiacs.web freebies are copyrighted for 164 nations, so if somebody tries to switch or sell these freebies we can be compelled to take strict felony moves in opposition to them.

Do Not Take Your Next Trade Until You Read This Free Ebook..
Profit Making With ICHIMOKU CLOUDS

Read this free ebook to learn...

  • How I made over Rs. 10,00,000 profits in a couple of months.
  • The types of indicators that got me all that profits.
  • How to get my trades copied for you!

Author Bio

Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of on 2008. He follows Indian and world stock markets closely.

Leave a Reply