Price level action is actually a certain strategy for investing, where the chartist only looks at the movement associated with price level and nothing more. it is used by many retail experienced traders and often by institutional forex traders and hedge fund administrators in order to make predictions on the future path with the price of a security or economic market.

Just like I stated previously, it is about the activity of price. And, that is price action stock investing. It is most very easily witnessed in trading markets rich in liquidity and volatility, but really anything that is bought or sold in stock markets will generate price action.

Price action signal trading ignores the fundamental factors that influence a market’s movement, and instead it looks primarily at the market’s price history, that is to say its price movement across a period of time. This is a form of analysis. But. Instead of looking at a second-hand indicator, you look at price only.

No crazy indicator crap here. Instead, were looking at the most important thing. price. You know what makes us smarter traders? Dealing with first-hand data.

Price action analysis allows a trader to make sense of a market’s price movement and provides him or her with explanations that serve as way for the trader to build a mental scenario to describe the current market structure. Experienced price action traders usually use their mental aptitude as well the "marketers sense" for profits.

These type of traders use past movements and levels of the stock to predict the future movements. The price history can sometimes be broken down into sections: days, weeks, months.

You can use price action analysis to see if the stocks have tight stocks and go hard and fast in either direction. Every participant in a market will leave price action ‘clues’ on a market’s price chart as they trade their markets, these clues can then be interpreted and used to try and predict the next move in a market.

Price Action Trading - Keeping it Simple

Price action traders often use the phrase “Keep It Simple Stupid” in reference to the fact that trading is something many people over-complicate by clouding their charts with numerous technical indicators and generally over-analyzing a market.

This is different than most traders, because we're not waiting on news. Why worry about news and other events when the price will move based off those events anyway. It is too simple to not at least check out price action charting.

Price Action Trading Strategies (Patterns)

Price action patterns, also called price action ‘triggers’, ‘setups’ or ‘signals’, are really the most important aspect of price action trading, because it’s these patterns that provide a trader with strong clues as to what price might do next.

Will show you one diagram later.