Indices Price Action Trading
Indices Price action trading is the use of only stock indices trading price charts to trade Indices, without the use of technical chart technical indicators. When trading with this stock indices trading price action indices trading strategy, candlestick stock indices charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 stock indices price action pattern indices strategy explained below.
Traders use this stock indices trading price action trading strategy because this analysis is very objective & allows the one to analyze the stock indices trading price moves based on what they see on indices charts market movement analysis alone.
This stock indices trading price action strategy is used by many traders: even those that use technical indicators also integrate some form of stock indices trading price action in their indices trading strategy.
The best use of this stock indices trading price action strategy is achieved when the stock indices trading price action trading signals generated are combined with line studies so as to provide extra confirmation. These line studies include indices trend lines, Fibonacci retracement, support & resistance areas.
Stock Indices Price Action Trading
Indices Price action strategy uses three stock chart points to determine the break out direction of stock indices trading price. The 1-2-3 stock indices trading price action trading strategy uses a peak and a trough, these chart points forms point 1 and point 2, if market moves above the peak the stock indices trading price action trading signal is long, if it moves below the trough the stock indices trading price action trading signal is to short. The break out of point 1 or point 2 forms the third chart point.
Indices Price Action Trading - Indices Price Action Strategy Intraday Indices Trading Strategies
Series of breakouts on Indices Trading Chart
Indices Price Action Trading - Indices Price Action Strategy Intraday Indices Trading Strategies
Indices traders use stock indices trading price action to try & predict where a indices trend direction might go. The stock indices market is either trending or ranging.
A trending market moves in a specific direction while a ranging market moves sideways, normally after getting to a support or resistance zone.
Observing the behavior of stock indices trading price action provides this data of whether the stock indices trading market is trending or ranging or reversing its direction.
As with any other Indices Trading strategy this stock indices trading price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern can give good signals in a trending market but will give whipsaws when the stock indices trading market is ranging, it is best to determine if the stock indices trading market is trending or not before you start using this strategy.
