Trading price action signals is basically trading the movement of price on the stock. It's utilized by various sorts of professional traders, trying to anticipate the next movements in price level.

It truly is observed in almost all stocks and shares, with the exception of the small guys. All those are a lot more unpredictable and more difficult to see using their ticks.

So, this type of trading ignores the news, Instead it trades price 'ACTION' This is a form of analysis. But. Instead of looking at a second-hand indicator, you look at price only.

In other words, trading price action is a ‘pure’ form of technical analysis since it includes no second-hand, price-derived indicators. Price action traders are solely concerned with the first-hand data a market generates about itself; it’s price movement over time.

This allows us to try and make a prediction on where the price will go next. Although, predicting too much is a bad thing. Profitable trading for swing trades focus on their gut feeling and understanding of how price action works.
The focus is usually on price that has happened recently as opposed to going months and years back. These price levels can include the bottom or top of the triangle.

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.

In all honesty, I think there are different names for price action traders. I just call them, chartist.
Like I said before, this approach is very simple. It keeps out econnomic events and earings releases, and sticks with the script. Why worry about news and other events when the price will move based off those events anyway. Therefore, the implication is that it’s much simpler to just analyze a market and trade from its price action, rather than trying to decipher and sort the many different variables affecting a market each day.

Price Action Trading Strategies (Patterns)

After looking at a chart for awhile, you will notice certain bars that indicate a signal.

I will show you how these look sometime.