Binary options trading is not at all like playing in a casino. Traders can use systems, strategies of various types, analysis, as well as analyze price behavior.
History of Price Action
It all started, of course, with the basics of technical analysis and the theory of the Dow Charles was one of the first to base his forecasts purely on market trends, not to mention the revolutionary idea for those times “price takes into account everything”. Therefore, if we take this as an axiom, all the information necessary for trading is hidden in the charts.
Analysis of price behavior without indicators is based on patterns (models) that we will consider in this article.
What is Price Action?
Price Action means “price action”. When trading on price action strategies, we analyze the price behavior and the impact on market changes.
Signals to open a trade and enter a position are accepted by the formation of a price model. Thus, the price forms price patterns.
This system is used in many investment companies that ignore technical indicators and are based only on the model.
Let’s consider the characteristics of trading on Price Action
Signals can be searched on any time frames. Starting from 5 minutes and up. The larger the interval we have chosen, the more accurate the signal will be.
Multi-currency – based on the price, we can analyze any financial instrument. The main thing is to correctly determine the trading session.
With speed trading, it is best to use trend strategies up to 4 hours. This will allow you to open more trades, with a high probability
Trading on Price Action
Based on graphic models (patterns), we look for models that were already present on the market. Accurate signals should be based on horizontal support and resistance lines.
Almost always, trades are opened with pending orders or at previously prescribed levels.
Determination of the trend by trend lines. Some traders use trend indicators like moving average, etc
Also, “CANDLESTICK ANALYSIS” is used in PA trading. Traders look for candlestick patterns on which they make decisions.
IT MUST BE REMEMBERED THAT PRICE ACTION TRADING IS TREND TRADING
What is the difference between trading on indicators and Price Action?
When we trade on Price Action, we wait in advance for the formation of a price pattern (pattern). Therefore, the probability of entering a trade at the right time is higher than trading on indicators.
Indicators follow the price, so they are always late, and slow to react to price changes.
You can’t make decisions only on the basics, so we want to advise you on two of the most popular books for learning price action trading
Price Action Books
Lance Begs Price Action Course
About the author:
Lance Begs is a trader who works in Forex and emini futures. His trading style is discretionary, he prefers to work on short-term charts using support and resistance levels.
He is a former military pilot, and he still has connections with the army and aviation. He likes to apply the lessons he learned in aviation in trading in the market, he also applies military psychology, studying the human factor, risk and available resources.
He has his own course, where he teaches to pay attention only to important aspects – management, risk and trading psychology.
Lance writes that the best book is a book that you make yourself. In this book there will be screenshots of charts, observations about the market and price behavior. This will develop the ability to read the market.
DOWNLOAD THE BOOK FOR FREE:
Lance Begs Price Action Course
PRICE ACTION TRAINING COURSE
This book has a minimum of text, but a lot of graphs, perhaps the material will seem complex and raise a lot of questions, but this is only at first. After practicing searching for Price Action patterns for a long time, you will learn how to read the chart without problems and make a profit by conducting trade after trade on any instrument and any timeframe.
DOWNLOAD THE BOOK FOR FREE:
PRICE ACTION TRAINING COURSE
Binary options trading can take place both on indicator strategies and without indicator strategies. The purpose of any analysis remains the same – to DETERMINE THE PRICE MOVEMENT.
Working with bars, charts, support and resistance lines gives better results. Since traders operate according to a well-established system.
The results also depend on psychology and personal discipline. If the trader follows the strategy and risk management exactly, he will get positive trading results.
Tagged with: Binary Options Academy
