Mastering price action trading in online trading

Chartism, technical analysis and indicators are past due. Today´s traders must be one step ahead. The mainstream of knowledge in trading is still around the same algorithms and old school of the 80’ and 90’. The demands of the market today are currently beyond the reach of traders in years past. This publication will get your trading to the next level so open yourself up to a new way of thinking.

The journey to becoming a successful trader is not an easy one, but with patience and perseverance, it can be done. As you take this journey with me, remember that temperance and wisdom are essential components – they will help you make wise decisions in the market. With the right attitude and strategy, you can become both a successful and strategic trader. Price action may not be a magical formula but with practice you will start to feel like doing magic. It will turn amazing how it works in your daily trading. Of course, the most important thing is to remain patient throughout your journey as a trader. Practice makes perfect- and take relief in the fact that all your efforts will eventually come to fulfillment. As George Savile once said: "Who is a master of patience, is master of everything else.

  The assets that we will use within this content are contracts for difference (CFDs) in currencies, index and commodities. However, the core of each topic is the price. The currency market is the most important when it comes to transactions. The spot, swaps and forwards market accumulate more than 5 trillion a day. This amount of active money makes the supply and demand of the price dynamic and highly profitable with a good strategy. You can apply the price reading system in every instrument and also futures. The only requirement is that the asset must have a trading volume which is massive enough to have generated a market history.

90% of traders lose because are in the wrong side of the markets.

10% of winning traders works with that 90% of wrong traders.

Trading is psychological and that must be used at your advantage.

Price action generates over 80% of winning trades each day.

This trading system is better used for scalpers and high volume products.

Price action works better with volume markets and day trading. Crypto currency is not an option for price action. Prices manipulation is very common with crypto's and other instruments and price can´t be used. Stick to fx, indices and commodities.

Supply and demand will necessarily met on a single level. Identifying the equilibrium price is possible thanks to intraday indicators (pivot point daily shifted, I talk about this indicator later in this book in full detail) or simply by observing where the market is concentrated more and for longer during the day. The more times supply and demand manage to consolidate at a certain price, the more matching power the market will have. Intraday market opportunities are generated when the price is as far as possible from the equilibrium price. Speculation is born in that special moment where the market is not in equilibrium. The concept of consolidation is when buyers and sellers are not taking any decision but one side of the market is under control.

  If no one takes action at certain price activities then means consolidation is taking place. The market above its equilibrium price could be interpreted as both buyer or as overbought days, thus creating opportunity for buyers at first and then sellers. On the contrary, the market below the equilibrium price could be interpreted as seller or as oversold. It is not coincidence that when the market is about to open the price is into equilibrium. The price map of a given asset is the analysis of the direction of incoming orders over time. The basis of the price action is being able to understand the supply and demand of a given price at a given time. A price is the stimulus of markets and therefore shapes the charts NOT the opposite. History repeats itself and the history in prices activity acts in the same way.