Price action strategies on TRADING

[gunhell16]

What is price action?
Price action is "you" making trading decisions based on price formations and price patterns you see materializing in the market in "real time.".
Market Structure and Key Levels: This involves identifying key levels of support and key levels of resistance because these levels present high-quality trade entry opportunities.
What are the key levels exactly?




Key resistance levels are areas above the price where the price has drastically reversed, which presents short-term trading opportunities when the price comes back to these levels.

Price Action Psychology Behind Resistance Levels When the price comes up to a recently formed resistance level, it is deemed expensive within that particular moment in time, meaning less buying occurs, triggering the reversal downward.



Now, going in the opposite direction,



Key support levels are areas below which the which the price has reversed drastically upwards, which present long-term trading opportunities when the price comes back to these levels.



Price Action Psychology Behind Support Levels When price comes down to a recently formed support level, it is deemed "cheap" within that particular moment in time, meaning value buyers will load up, triggering the reversal upwards.

Supply and Demand + Multiple Reversals of Price: An area above, where price reverses off multiple times, is known as a "supply zone,"  and an area below, where price reverses off multiple times, is known as a "demand zone.".





Price Action Psychology Behind Supply Zones The market is deeming this area of price as expensive, which results in buyers consistently deciding to close their long positions in this area and sellers choosing to hold this area strong and open new short positions.



In the opposite direction,





Price action psychology behind demand zones The market is deeming this area of price as cheap, which results in sellers consistently deciding to close their short positions in this area and buyers choosing to hold this area strong and open new long positions.
What is price action? https://www.investopedia.com/terms/p/price-action.asp
I'll stop here for awhile its a long tutorial, and I will continue on my free time again, hope this will give a knowledge somehow to everyone
have a good day....

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[bettercrypto]

Nice shot, op. I'm enjoying this short tutorial you're telling here through the illustrations you've shown here. Actually,  it's too technical; only those who have a deep understanding of trading can understand and relate to what you're saying.

It's a good thing you've done this; you're trying to convey what you can do so that others can learn from it. To be honest, I thought the price action was literally just the movement of the price of a coin, but based on what you're doing and saying, it looks like there's a lot of different kinds of price action that happen on a chart regardless of the coins we are trading. Thank you for your effort.

[EarnOnVictor]

Thank you for this, at least, if it doesn't help me, I am sure it will help a lot of people.

When I started trading, I was busy chasing indicators, robots and other trading software in the bid to unlock the secret of trading, not knowing that "what I was looking for is in my pocket." I discovered this many years later, and I have never regretted being a price action trader today. Price action is simple and could act as a pattern to know the trend of the market and also acts as support and resistance. I use this very well in both trading analyses and risk management to set my stop loss decisively. It has been so useful to the extent that a day will not go by without me using the price action, to show how important it is to my trading.

I can frankly say that price action can do everything traders need to spot the trend, place the stop loss and take profits. The patterns are simple and undeniable, though many people often underrate it since it is simple, not knowing that simple systems are the most powerful in some circumstances.

And for the record, I use Price Action, Support and Resistance and a Trend indicator to spot all of my trades in any market possible, and I must say that the results have been so lovely.

[senyorito123]

The graphical presentation of chart is really amazing and gives me a lot of time to analyze it gradually, somehow these variations really provides me more knowledge from my previous trades with airdrop tokens.
Those candle sticks and rapid market movements taught me to have courage for my personal analysis, however it's undeniable that our emotions is really our greatest enemy during unpredictable market fluctuations. Better stay smart enough to monitor the market, instead of relying on one time chart predictions.

[BitMaxz]

Nice shot, op. I'm enjoying this short tutorial you're telling here through the illustrations you've shown here. Actually,  it's too technical; only those who have a deep understanding of trading can understand and relate to what you're saying.

That's not too technical that is the basic thing you should do is find the support and resistance because that is the zone for short and long positions just don't do it in 1 minute time frame it won't work but for 15m above that's the good time frame for a day trader or long term trader the only problem with the long term it needs fundamental, unlike a day trader they mostly focus on technical analysis than fundamental.

This strategy works as always just add the Bitcoin as your indicator because most of the coins are affected when the price of Bitcoin increases or drops.

[Kelvinid]

The charts show that in every pump, there is a dump next. Therefore, don't buy any coins during the hype but rather wait to calm down. Buy low, not buy high. Chart analysis is very important in trading and this is what I told in my thread https://bitcointalk.org/index.php?topic=5492766.0, this is a stressful job that some people can dear to do all the time.

Trading is tricky and we need to analyze the market trend before making the next move as this is not just hoping for luck but it is an application of our analysis. The more we spend on the market, the better but yes, if we are doing this always, that is certainly not healthy anymore. In fact, it is not just the chart we looked at but so many factors to check.

[sheenshane]

In the opposite direction,

Thank you for the wonderful technical analysis chart explanation.
It seems like this kind of analysis gives me a headache, a lot of drawings and candle sticks so that's why I stopped trading for a while.

But the one I quoted above makes sense to me when there's a bullrun of course for sure there's a correction of the price that will follow.
Trading is very risky because there's no way how to predict the price accurately, it seems all predictions and speculation will always be there.

In fact, it is not just the chart we looked at but so many factors to check.

Exactly, FA and TA should be the best combination to consider.

[joeperry]

Great presentation and explanation, I've been stopped trading for a quite time now and this is a good refresher to some basics in trading. This strategy is a good foundation especially if you are going to add other indicators such as MACD or RSI to further backup those price action. I hope you could share more and make a series of this kind of tutorials, as this is not only good for beginners but also good refreshers to other traders (just like me) who stopped trading and forgot some of this.

[Lakai01]

But the one I quoted above makes sense to me when there's a bullrun of course for sure there's a correction of the price that will follow.
Trading is very risky because there's no way how to predict the price accurately, it seems all predictions and speculation will always be there.

In trading, it makes no difference whether a market (e.g. Bitcoin) is in a bull phase or a bear phase. You generally trade in such short time frames (e.g. in minutes) that a general downward trend has hardly any influence on the trading result.

Where I agree with you, of course, is with long-term trades over several months, although this is more of an investment strategy and has less to do with trading.


@OP
Thanks for the thread, this is great information for newcomers or anyone who wants to refresh their trading knowledge.

[hd49728]

Another topic on Bitcoin support and resistance for dummies. It is helpful for newbies and it is good for traders who don't use Leverage and Futures for their trading orders.

With Spot trading, using Support and Resistance to make your entry and exit is very good strategy for trading and get profit. With Bitcoin, your risk is smaller with Spot trading, because if you make a bad trading position, you can hold it and wait for chance to take profit later.

[Bravut]

Great one OP, you just refresh my memory on this basics support and Resistance.  This actually is what other strategies are built upon with different names,lol.

This will be of great help for newbies who want to start trading.

[Mpamaegbu]

I don't like missing out on these "ceiling"and "floor" types of setup. They're high probability trades. Such trades even when they revert and hit SL, the trader won't get hurt except they're over exposed and aren't maintaining money management.

When I started trading, I was busy chasing indicators, robots and other trading software in the bid to unlock the secret of trading, not knowing that "what I was looking for is in my pocket." I discovered this many years later, and I have never regretted being a price action trader today. Price action is simple and could act as a pattern to know the trend of the market and also acts as support and resistance.

We all did it and that formed a part of our trading experience. Maybe there are a few traders that didn't. Yes, hunting all those indis in search of a holy grail dragged us back a few years from being profitable because most of those indis are lagging indis. I've come to use most often leading indis of S&R, trendlines and Pivot Points in confluence with Price Action and candle patterns. To be honest, as simple and easy as PA looks, it's far better than all those confusing lines we draw on our charts just to make it look like we're sophisticated traders. The best way to trade successfully is to keep is simple.

[Natsuu]

The graphical presentation of chart is really amazing and gives me a lot of time to analyze it gradually, somehow these variations really provides me more knowledge from my previous trades with airdrop tokens.
Those candle sticks and rapid market movements taught me to have courage for my personal analysis, however it's undeniable that our emotions is really our greatest enemy during unpredictable market fluctuations. Better stay smart enough to monitor the market, instead of relying on one time chart predictions.

It's classic support and resistance. The more price respected it in the past, the greater is it's significance in the future where price may refer back to. However, reading price does not equate profitability in trading. you may know where price is in you prediction but if you don't know how to manage your position, then it's just a knowledge not trading. maybe OP can consider adding how to mange position, like where is the level to get an entry, best place to place a stop loss and price target.

Just a bonus. Price is fractal. What happens in the low time frame also happens at the higher time frame.

[Aanuoluwatofunmi]

What is price action?
Price action is "you" making trading decisions based on price formations and price patterns you see materializing in the market in "real time.".
Market Structure and Key Levels: This involves identifying key levels of support and key levels of resistance because these levels present high-quality trade entry opportunities.
What are the key levels exactly?

Nice explanation, thanks- for bringing this up, may will indeed find one or two things as take home in making decisions on their trading using price action, we cannot stop learning except we want to get retarded in growing, we should take note of some of these key important indicators because they are part of what constitutes some of the mistakes we often make while engaging on trade and loose, newbies should also take this a very important and learn from the little contribution on it, it could go far from helping them achieved a desire expectation with trading anytime they are into it.

[Lakai01]

[...]
Just a bonus. Price is fractal. What happens in the low time frame also happens at the higher time frame.

I think you should clarify here what you mean by that. Reading your sentence, you might think that it doesn't matter whether you are trading on a lower timeframe or a higher timeframe. However, this is absolutely not the case and beginners in particular should stay away from lower timeframes.

To clarify: A lower timeframe is typically a time frame of 1 minute to 15 minutes. Accordingly, the price changes very quickly and you actually have to sit in front of the chart constantly in order not to miss the entry or exit. However, this also means that your capital is used up much faster if you have a loss series, for example, and you are out of the market faster than you would like. Beginners should therefore never start with such timeframes and concentrate on higher timeframes like 1 day.

[kentrolla]

The charts show that in every pump, there is a dump next. Therefore, don't buy any coins during the hype but rather wait to calm down. Buy low, not buy high. Chart analysis is very important in trading and this is what I told in my thread https://bitcointalk.org/index.php?topic=5492766.0, this is a stressful job that some people can dear to do all the time.

Trading is tricky and we need to analyze the market trend before making the next move as this is not just hoping for luck but it is an application of our analysis. The more we spend on the market, the better but yes, if we are doing this always, that is certainly not healthy anymore. In fact, it is not just the chart we looked at but so many factors to check.

That's the whole point as people who don't understand how the market works just fall in the trap like sheep because they end up buying when the price has peaked and after every pump there would be a dump and not necessarily a huge dump but even a minor dip may dent your portfolio. We just need to look at the price chart and analyze how it has reacted in the past by looking at historic data but we fail doing that and as a result when the actual dump happens and when it's time to buy we have out funds struck at higher price.

[promise444c5]

The Supply and Demand is a very important  aspect 
TBH immediately  I stumbled  the topic I was actually  expecting  the Demand and supply  because  its  very important  to determine  and predict  sell  and buy pattern of the influencers and Whales and this is the  major reason I don't  trust most of this indicators because in every  market there's  a need to consider FA

DS is mind blowing

[Ben Barubal]

The Supply and Demand is a very important  aspect 
TBH immediately  I stumbled  the topic I was actually  expecting  the Demand and supply  because  its  very important  to determine  and predict  sell  and buy pattern of the influencers and Whales and this is the  major reason I don't  trust most of this indicators because in every  market there's  a need to consider FA

DS is mind blowing

     You are right there; it is very important, my friend. Also, as someone who is currently studying trading these indicators, when you study each one, if I look at them literally, there are actually too many of them. And I also discovered that when we conduct an actual trade in an exchange, when you use a lot of indicators, it will cause your mind as a trader to get confused because, of course, you have a lot of ingredients that are put into the analysis you are doing.

     In short, these indicators are just tools that you are comfortable using; that's all we use. Even if it's just one or two indicators, we can get a profit from the trading activity we're going to do. The other is that the choice really depends on us; let's not make the TA complicated if we can just keep it simple and get the same profit, right? So OP did the right things for this matter anyway in my opinion.