I hope that everyone had a wonderful Christmas and a great start to the New Year! While I was away I was reading up extensively on Price Action, in particularly Al Brooks books on price action they finally came in! I am nowhere near done reading them, they are huge books, and not the easiest ones on the shelf to read…. Sometimes I have to re-read a page to grasp what was said, and I may read all three of these books over again just to let it sink in. They are hard to read, but they are the best source of what price action is to me.
You can use technical or fundamental analysis to help you make trading decisions, but one great method that is sometimes overlooked is price action. What is price action?
Price action trading and binary options are inseparable. To become a successful binary options trader, you have to use price action analysis. At the same time, binary options are the most profitable way of trading price action predictions. In this article, you will learn: Why you need to understand price action for binary options How does price action trading work?
Price action is a way of theorizing which way price is headed based off of what it is already doing. Prce acton binary options fundamental analysis relies on interpreting events surrounding the market, and technical analysis relies on indicators that are a step removed from price.
Price action takes you straight to the source. Using Price Action Trading Binary Options When you use price action to plan a trade, you look for patterns in the price that have predictable outcomes.
One great thing about price action is that the same patterns that occur in one market may also occur regularly in another market. These patterns have often shown to repeat themselves as well. When you can recognize these patterns forming by watching price action, you can trade accordingly. One common price action pattern a lot of traders work with is the insidebar.
This is a breakout pattern, without a specific direction. If either of your triggers are touched during the payment window, you win your trade. These are entry rules only, and you will need to also learn to develop the equivalent of exit rules.
43# Price Action Binary Options Strategy
These decisions should be very specific and should not be random. While price action can be very reliable, it works better under some market conditions than others, and some formations may be more intuitive to you than others.
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