Basic Understanding of Price Action Method in Crypto Trading - by @faran-nabeel
Hello Friends, How are you? I hope all my fellows and all of the members of steem alliance community will be fine and all of you enjoy my Crypto classes in this community. I am also fine and happy by the blessing of my dear God. Here, i am back to this wonderful community for contribute my crypto topics and showing my commitment with my new lessons. I hope all my previous lessons and my old crypto lessons will be helpful for all of you. Now here i come with another good and very interesting topic. Today we will be disscus about Price Action method.
In a bid to understand and gain from the crypto and financial markets, traders have studied and developed several helpful techniques for approaching these markets. Fundamental, sentimental and technical analyses are always employed when approaching these markets. All together, these analyses have been developed so much to include tools like on-chain metrics, technical indicators, etc. which provide information that make the trading process more bearable. Interpreting trading signals can also involve the use of something very basic such as Price Action.
Understanding to Price Action in Crypto Trading
An asset's price does not just come up arbitrarily. In reality, the price behavior of an asset is displayed on visible charts where the price is plotted against a chosen timeframe. The study of these charts brings about the concept of technical analysis in general. These charts provide historical and current data on price and volume of assets that help technical analysts make proper trading decisions.
Price Action is a very basic type of technical analysis. It simply involves the studying charts and making proper trading decisions with very little use of technical indicators. As the name implies, traders who use this strategy depend so much on the price charts when making trading decisions.
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The price action technique has proven to be very effective due to the fact that the charts are basically a graphical representation of the market psychology. What this means is that when certain conditions are met, a particular outcome is expected to take place and this can be identified and exploited on the charts. For example, the psychology of traders have prompted the adoption of chart patterns like pennants, flags and wedges which when identified influence the decision of traders.
Conclusion
There are different ways of approaching the market as a technical analysts. Price action is a very effective method because it reduces noise whilst still delivering enough data to the trader. This method does not make crypto trading any less risky and so should be used with caution. Personally, I prefer to back it up with technical indicators.
Cc, @stephenkendal | rme | steemcurator01 Best Regards to, Faran Nabeel
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Thank you so much dear friend 💕
Dear @faran-nabeel ,
We appreciate your active participation and contributions to our community. To ensure a positive environment for all members, we have implemented a set of guidelines to maintain respectful and constructive discussions while upholding community guidelines.
Please this your post cannot be considered quality as it lacks appropriate images.
Make use of live chart for this kind of posts please
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Okay noted brother, Next time i will be more careful with this. Thanks for your guidance.