What is the price action strategy and how to use it in your trading?


What is the price action strategy and how to use it in your trading? Find out in the complete guide that Arduino Schenato has edited for IG Italia.

Forex Time series analysis Electronic trading Stop loss EUR / USD EUR
Arduino Schenato | Private Trader , Italy
What is price action?
Price Action VS Trading with indicators: what’s the difference?
How does price action work?
The Price Action applied to forex
Price Action at work: some examples
Over the years I have always carried out my studies towards market price action both as a trader and as a trainer. I was the first trader to disclose this type of vision and approach to the market.

By price action or price action is meant the price behavior of any security, index, commodity or currency exchange in a specific period of time. This method is applicable to any financial instrument as long as it is liquid.

The price action concerns the formation of some graphic “patterns” in certain market conditions that can predict the action of the future price. In fact, some graphic formations are often found and can be used as an excellent and simple trading system.

The “price action naked” method that I have been using for many years allows you to see exactly what is going on in that specific market that we are analyzing, obviously experience and study of price dynamics is needed but only the price is the “RE of the market” for those who use this approach to short term trading. It offers the right view of what is happening in the market between supply and demand, between buyers and sellers giving us a fairly clear picture of who in that particular market is having the better or has had the best.

What is price action?
Price Action, a definition that is often confusing and that, in general, can include various operating modes, so let’s see what price action means and what studies and observes those who use this approach to trading.

The naked price action is a trading method that studies the price dynamics that are created in certain key market areas through the study of the structure of high time frames with the final confirmation of one of my most important price action signals. The time frame that I use is mainly the daily, but there must always be a contextualization of the weekly chart. Anyone who talks about price action strategy on charts below the 4-hour time frame will hardly be operating with the naked price action because the fact of having no other information other than the price is implicit. So the high time frame is convenient in many aspects and in this case because it automatically absorbs many factors such as very short speculations and news / fake news that can make the market move erratically in the very short term. Therefore, by using high time frames you can rely exclusively on the chart in front of us and its price action, a clear guide for the “naked trader” like me. In fact, the price action that I use is never on time frames that are too tight precisely because it is important to contextualize the market environment that I have in front of me, possible trends and key areas of interest to sell or buy. The price action is just that. Therefore, by using high time frames you can rely exclusively on the chart in front of us and its price action, a clear guide for the “naked trader” like me. In fact, the price action that I use is never on time frames that are too tight precisely because it is important to contextualize the market environment that I have in front of me, possible trends and key areas of interest to sell or buy. The price action is just that. Therefore, by using high time frames you can rely exclusively on the chart in front of us and its price action, a clear guide for the “naked trader” like me. In fact, the price action that I use is never on time frames that are too tight precisely because it is important to contextualize the market environment that I have in front of me, possible trends and key areas of interest to sell or buy. The price action is just that.

It is therefore necessary to operate from 4 hours onwards. Usually I operate on daily (the 4 hours is used only to support the time frame daily) precisely because the operation is in all respects “swing trading” or “reversal trading”. From Big Boys on Wall Street to retail traders with a few thousand dollars in the account, from companies that use ForEx for commercial purposes to large funds, central banks and large business banks to mini accounts of traders who are starting to trade ! The price reflects where everyone’s money went. Working on a daily / weekly time frame removes the intraday “noises” that can give false signals to the trader, in this way you have a precise vision of the trading day just passed, hence my style also called “End Of Day Trading” . We will have few but clearly visible market entry set ups, nothing more. We will need nothing more than a reliable broker like IG with a professional and integrated graphics platform to be able to use it. All other things like news, reports, news programs, forecasts don’t interest us to operate. It may be interesting to follow Bloomberg TV

What are the foundations of the Price Action Trader?
Trading is a wonderful activity in many aspects, one of these is the variety of methods, techniques and settings that can be given in dealing with financial markets in a serious and professional way. In my career as an independent trader I understood that the character of a person matters in an important way in the choice of an operational trading business plan, since this activity often has psychological and emotional nuances that can have a strong impact on the monthly, quarterly and annual trader.

Over time I created a method that offered me peace of mind, serenity and security to operate with full knowledge of the know-how knowing how to manage moments of “costs” (see stop loss). A trader is like a person who must master his weapon, must acquire strong patience, know when not to shoot and keep himself “emotionally clean” in moments of high stress. Mastering the weapon is essential. Creating self-discipline and not being tempted to “over trading” and “over leverage” are peculiarities that must be an integral part of one’s trading method, the strategies and the business plan in order to create a heritage slowly, brick after brick, without the hurry to earn everything immediately. The market was there, there is and will be there again tomorrow. The price action trader who operates in a serious way,

Below is a fundamental point that can help you face the most beautiful business in the world and which is also the basis of my work in the financial markets.

Leave a Comment

Your email address will not be published. Required fields are marked *

Open chat
1
Hello Trader!!
How We Can Help You?