Price Action Analysis
The Price Action analysis and price action Trading or PAT brief is that the trader receives all his decisions about the interest only on the basis of the price chart (without any indicator, expert advisor and etc.).
This means that no delay indicator, such as the Moving average, is used to determine the dynamic levels of support and resistance. (Support and resistance levels are divided into two types of static and dynamic.) At static levels, to determine the support and resistance of horizontal lines, use Which is thus constant over time, but at the dynamic levels, the values of support and resistance to time vary, such as moving average, one of their applications being used as support and resistance levels.)
In all financial markets, price information is plotted based on time periods. Thus, a variety of price charts can be accessed based on a one-to-one-month frame rate.
The price chart reflects the expectations of market players such as banks, investment firms, micro and even computerized transactions (trader robots) in a given time period (one minute, hour, etc), and these traders’ expectations In the form of charts and the movement of prices to the market embodies.
Read more: If you are serious about making money in forex market, choose the best forex broker for trading.
In fact, it can be said that Price Action is nothing but visualization and objectivity of the expectation of the players in that market.
The announcement of periodic economic information, such as the announcement of indicators, political changes, and the occurrence of natural disasters such as flood, war, earthquakes, etc., although catalyzing speeding up the price, but you do not need to analyze them in order to be a successful trader. Of course, the reason is very clear, because such incidents will ultimately affect the price action analysis.
Because the price chart reflects all the variables that affect the price movement in the given time period, the use of delay indicators such as Stochastic, MACD, RSI, etc. will only be a loss of time.
Price Action analysis will give you all the signals you need to have a successful and profitable system. These signals are issued by Trend Price Exchanges, and give Trader a picture of the movement of prices (what has happened so far) and contribute to predicting future price with high accuracy.