Price Action Trading System?

What is a Price Action Trading System?

 Price Action Trading systemPrice Action trading is a method that is commonly used by many traders. Most professional traders use a very logical system that is not complicated, whereas most amateur traders are hung up looking for the “Holy Grail” system and indicators that will bring them all their riches overnight.

Price Action is a system that is a logical system and has clear rules in place. Instead of using indicators that cannot adapt to different types of markets, price action involves the trader making trades based of key signals forming in the market.

Traders have been using price action in different markets for literally hundreds of years to trade with. The same just cannot be said for other flash in the pan methods. Price action trading is a logical trading method that has been around for a long time and will continue to be around for a long time to come.

How Can You Use Price Action to Consistently Profit?

Price Action traders are using the information gained from the price action chart to make their trading decisions. Price action traders have key signals they are looking to present in the market for them to make a trade.

Price action traders are using information they can see in the price such as:

  • Is there a price extreme?
  • Is price at or near a low or an high?
  • Does the options have high implied volatility?

As most of the big trading firms knows that the price of the stock is not predictable. You have 50% chance that the stock is higher than yesterday. Therefore we trade stock options.

Afbeeldingsresultaat voor price action trading
Options in with high implied volatility are rich in premium. Most of the time the price action occur when stock drops. The IV of the option rises. Most of the time it does not stay for long. You can buy the option back to take risk of the table. You can make profit in a few days. We teach a very different method than others do, please check our posts.

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