So far, all that I’ve concluded “trading Price Action” is:
Studying Japanese Candlesticks
Understanding and implementing Price Action Indicators
Identifying key price levels/areas
Identifying key support and resistance areas (although this, correct me if I’m wrong, ties in with the aforementioned)
Keeping track of key news events to prepare for potential surges in price action (i.e. getting ready to ride a massive wave that are interest rate events etc.)
Understanding correlation and how that ties in with seeing the “bigger picture”
Is there more to trading and understanding price action than what has already been mentioned?
If so - what else is there? - I’m curious as to what else there could be that is related to trading Price Action.
So you’ve provided a bullet list of the primary “black and white” definitions/highlights of price action analysis. The real question is how do you plan to implement a price action trading strategy with this knowledge?
The above encompasses 5% of price action analysis. The other 95% is subjective- e.g. the trader’s mind. This isn’t a science- it’s a subjective art layered with probabilities and grey areas.
To answer your question, I’ve been implementing all the things I’ve previously mentioned and I’m starting to be consistently profitable now. Since, the “95%” of the aforementioned is subjective, it’s probably up to the trader, relative to whatever market one finds oneself in, to incorporate those key points that I’ve risen.
In other words, I’d say, now it’s just a matter of doing, doing and more doing in order for the process to become second nature, correct?
When you start with price action, you will have to study the historical places for identifying any kind of clues to find out where the market would possibly move. You can do so by studying the price bars through which you’ll obtain the idea about the open and closing price of a market and the low and high price levels associated with it.
