1st Topic would be -
What is Price Action & why it is important?
We all trade price every day. Knowingly or unknowingly but we all are associated with price. You buy a stock at 100 & I sell at 100, we traded price. So price is nothing but an agreement between 2 parties to trade something mutually
Price action is important to find the right balance between buying pressure & selling pressure which actually moves the price.
Our next topic would be -
Understand structure, trends & market cycles
What is the first thing you look when you see a new chart? Thinking???
Let me help. The first & foremost thing you should look for in any chart is “Structure” or “Trend”. It’s easy….right?
Structure is nothing but the analysis of recent peaks & troughs (in other words pivots).
Structure is to spot the following 4 things on any given chart –
As Price Action trader you need to literally understand these concepts really well so that you can time your entries accordingly.
Next section will be on Mark up phase.
•Bulls feel that it’s time for profit booking or offloading the stock OR
•Bears start getting active to take control & price resist to move up
Next phase-Mark Down
Hope you liked these fundamentals to understand how price moves.
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@chief_vk over to you