Price action options, Price Action Introduction
Put simply, price action is how price changes, i. This price history includes swing highs and swing lows in a market, as well as support and resistance levels. The following diagrams show examples of some simple price action trading strategies that you can use to trade the market.
It took some time to grasp it properly but it works like a charm. Swing Trading Swing means fluctuations. Swing traders use technical analysis to look for stocks with short-term price momentum.
Short-term generally refers to a holding period of 1 day to several weeks. I over complicated the basic concept and it took me couple of days to figure it out.
A Swing High is a candlestick with at least two price action options highs on both the left and right of itself. A Swing Low is a candlestick with at least two higher lows on both the left and right of itself. This image solves it all.
But I wanted an price action indicator on meta trader which works exactly like the above image. Risk:Reward ratio is Here is my modification to it. Instead of buying call options sell the put options and instead of buying put options sell the call options.
Replacing the call options with put options gives us advantage over time decay. I personally use higher reward and lower risk manually. Also you can go for long options too.
In the daily chart, follow the same and buy At-the-money call options for bullish nature and vice versa. Investment in crypto will take you couples of night to gallop all the videos up there.
I made one Zerodha account just to make money using this Price Action Trading strategy. It ran pretty well.
Overview of Price Action Charts If you browse the web at times, it can be difficult to determine if you are looking at a stock chart or hieroglyphics. For example, I have talked with traders whose screens look something like the picture below. Too Many Indicators I have even seen some traders that will have four or more monitors with charts this busy on each monitor. When you see this sort of setup, you hope at some point the trader will release themselves from this burden of proof. What if we lived in a world where we just traded the price action?