📊 Understanding Price Action: Key Moves and Best Entries 📈
🌟 What is Price Action?
Price action is a technical analysis technique that relies solely on price movement over time. By observing charts, traders can identify patterns and make informed trading decisions.
📈 Main Types of Price Action Movements:
Uptrend:
Description: Prices form rising highs and lows.
Best Entry: Buy on pullbacks near support lines.
Downtrend:
Description: Prices form falling highs and lows.
Best Entry: Sell on pullbacks near resistance lines.
Consolidation (Sideways/Range):
Description: Prices move sideways within a range.
Best Entry: Buy on support and sell on resistance.
Reversal Patterns:
Head and Shoulders, Double Bottom, etc.
Best Entry: Enter in the opposite direction of the previous move after the pattern is confirmed.
Continuation Patterns:
Triangles, Flags, etc.
Best Entry: Enter in the direction of the trend after the breakout is confirmed.
🔗 Best Entries on Trading Charts:
Support and Resistance: Identify key points where prices are likely to reverse or consolidate.
Pullbacks: Wait for corrections within a trend to enter with less risk.
Breakouts: Enter the market after the breakouts of important levels are confirmed.
Candle Patterns: Use Japanese candlestick patterns to confirm reversals or continuations.