What is price action

Hello,

What is price action and why is it so hard for me to understand it?I got my hands on Chris Capres course but i cant understand anything after the first 2 videos.What is a good course that you can find on the internet wich shows you how to use indicators and simplify things a little?
Thank you

Well - you kind of are on the website where it does’t get any more simple than that. Also www.youtube.com/thetradeitsimple

Also Steve Nison candlestick course

My interpretation of price action is this:

  1. Learn when to get in to a trade by looking at the overall candlestick action (preferably on the daily): (1) is it flat (consolidating)? watch and wait (2) is it jumping all over the place and failing to make consistent higher highs / lower lows (or vice versa)? do not even consider opening a trade (3) do you see a nice trend with higher highs / lower lows (or vice versa)? okay good, now look at your candlesticks.

  2. Learn the candlestick signals: do you have good signals? Okay, good, now look at your swing levels so you can buy on weakness or sell on strength (good entry position)

  3. Learn the art of support and resistance: since these areas typically provide more resistance to price action, it can be tricky to trade around them (for example, would you sell when you have a strong support level right below you? I would not, I would wait for price to break through that support and come up and retest it establishing resistance and then watch for STRONG sell signals)

  4. Don’t use indicators, learn to read the charts and be a trader who is confident because you understand what you are looking at.

  5. Be responsible. Always use a stop loss. Always use positive money management (risk less than you aim to profit in all trades), I aim to get at least three times my risk. Depending on how far I am from the next S/R level, I may aim for a lot more.

I hope that I don’t come off as patronizing, these are just the essentials that come to mind for me when I am thinking of entering a trade. But I think that it’s as simple as that ^^^

I have learned what I know from theforexguy. Great site, lots of free information…

Price action is working on levels of Support and Resistance. Basic price action principle is that after deep drawdown there will be retracement. For example after 4 consequent candles there is 65% probability that price will retrace.

http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action.html

This forum is a great place to start learning price action. It’s old and a lot of the original posters on the thread have stopped posting, but reading through the guide on the first page taught me a lot.

Price action is basically a methodology - where a number of strategies can exist.

You look are price movement alone to come up with your trade signals. You’re reading the price movement and making decisions just off that.

It’s a very powerful way to trade

My own definition of price action would be trading off price movement alone, restricting the use of indicators to [B]predictive[/B], rather than lagging indicators, and interpreting price movement according to current fundamentals and what I call sentimentals.

Any course that teaches price action should be very straightforward, and easy to understand. Sure it requires study, but it’s not rocket science. I suspect the reason a lot of courses on price action are difficult, is that the author wants to pad out their offering to justify the price. Personally, I’d rather give someone the simple, easily grasped facts. The breakthrough moments in trading - as in life itself - are based on the seemingly complex being made simple.

Erron

It’s another way of saying “trading without indicators”.

As mentioned above, it’s largely about support and resistance.

This is a complete guess, but one common reason people find it hard to understand is that they have their heads full of indicators and beliefs about indicators.

I don’t know, but if you find something that matches that description, it probably won’t be about “price action” anyway.

For learning about price action, I strongly recommend books by Joe Ross, Bob Volman, Lance Beggs and Al Brooks’ course (a highly recommended online/video price action course, available from his website at brookstradingcourse.com: not to be confused with his three or four well-known books on price action, which many people find rather difficult going! The course is a whole different ball-game, and far more easily approachable and understandable).

I’m being a little bit pedantic, in this post, perhaps, because there are also people who trade both price action and indicator-based set-ups as well, but even so the “price action” component of what they’re trading is intrinsically, and by definition, non-indicator-based.

I had a couple of people ask me about books on Price action recently, but I’m not aware of any that are specifically related to the subject that I could recommend.

I’d like to add that Chris Lori teaches [B]advanced [/B]price action concepts through his Pro Traders Club, but it’s a monthly subscription.

I’m also just completing a course on Price action myself, should be ready in the next month or two.

But there’s a lot of good info in this thread already, for those just needing a basic intro to the subject.

Erron

Price action is simply looking at what buyers and sellers are doing which is translated into candlesticks

Wich of the 2 courses is better Chris Kapre Price action of Steve Nison Candle Sticks reignited?

Neither. Candlestick analysis is not price action. Proprietors of price action understand the same price action forms all time frames and candlesticks are a lagging indicator just like the rest of them. Think about it, the 1 hour candlestick repaints itself every tick for one hour.

Then wich course do you recomend?

Oh I’m so gonna cop out on this. The school of hard knocks bro. Thats how I learnt. Lots will say demo trade take this course read this book. I say open a mini account and just start trading 0.01 lots, a just do it attitude. Nothing beats street smarts bro.

price action describes the movement of price of a security. it is a form of technical analysis focusing on the past prices of a security. swings, consolidation, test of resistance are some of the examples of price actions. candlesticks and price bars helping traders to visualize the price movements are important tools to analyse price action. price action mainly depicts how the price changes and help traders to analyse the direction of price movement.it looks at the security’s price history ignoring the fundamental factors of a security

Price action is the best way to trade on forex. We can understand market movements, reversals about 90%. There are many youtube channels, websites on the internet of price action. I have learnt many things on these youtube channels. Try thoese things.
Forexnoobs
Urbanforex
NailFlur
and PATS trading

If you haven’t read the school here at babypips, I would start there. It is really helpful to understand all the basics. After that I would watch Al Brooks or/and read Lance Beggs.

Been trading PA since 2008.

To keep the definition simple, it’s trading based on price behaviors you’ve observed in the past; you see it again? trade on it. That’s all.

These behaviors can be defined within parameters. For example, a certain range achieved within a certain amount of time, at a particular time of day, hitting SR, giving you a trade to enter on - because you’ve observed this work a certain number of times in the past. Hope that helps!