Some of the noobs concluded that price action is all about trading candlesticks-Wrong!
Price action is not about candlesticks it’s about understanding market psychology thorough reading price action. Candlesticks are a mere representation of price action and not an overall system themselves.
Trading Candlestick Pattern is similar to Blindfolding
Candlestick patterns are not an absolute trading method neither using them gives an edge in the Market. How many Times have you failed trying to buy and sell at conventional candlesticks? Have you ever back tested the Candlestick Patterns? What is the probability ratio?
If you tried answering these questions you will find out that, Candlesticks are worse than Moving averages when compared with static evidence
Candlestick patterns have their fancy names and occur randomly at anyplace in your chart. Such an adverse random technique doesn’t give an edge. Some people trade it along with extra technical tools such as RSI so and so, if it is profitable then fine, but if not then time to reconsider some concepts
My Experience has it simple “Conventional Candlestick Patterns and rules don’t work “
Price action-Simple and efficient
Moving back to the original topic. “So If Price action is not about candlesticks then what is Price action? Simple Definition is whatever a price does or How the Price acts. Price action trading is an offspring of Behavioral finance. The Price action is Deep, Flexible, and Powerful Technique. Price Action is used by both discretionary and systematic traders. If Optional, can combined with Indicators
Actual Difference between Price Action and Candlesticks
A Picture is worth thousand words:
Candlestick Trader Entry:
Actual Result of Candlestick Trader
Ok Now let us consider how Price action trader would do,
Price Action Trader Entry
Actual Result of Price Action Trader
This is how both traders would do. Both of them have same tools and utilities but different results –it has nothing to do with money management or psychology, but with Analytical methods and application
One Reply to “Price Action is not about Fancy Candlesticks”
i want to learn price action trading from you.
Please reply me ASAP.