How To Learn Price Action Trading

Price action trading is an approach to buying and selling shares that focuses principally on price movements in stocks and avoids other methods such as using indicators.

While this type of trading is not technically difficult, many beginners struggle with the technique. Following are some tips for price action trading for beginners:

• Learn the practical aspects of this type of trading
• Use the concept of demand and supply to inform trading decisions
• Learn how to analyze market trends and be able to identify price swings and trend lines
• Understand price patterns to identify when to enter and leave a trading position
• Use price information to create stop-losses for trades
• Take profit when a price is positive for a trade

Experienced traders say that price action trading need not be an inflexible approach, rather it is another way to understand the stock market and to view analysis about stock trades from a different perspective.