How to Secret Price Action ?
Hello traders, you have seen
many pro traders succeed from analyzing "naked" charts without any
tools on the charts. That is, they trade according to price action
Successful traders in trading
with price action must have a clear understanding of the 4 stages of the market
so that they can enter the most optimal orders. Those are:
Accumulation phase
The accumulation phase occurs
when prices move in a narrow range, usually after a long downtrend. During this
phase, investors begin to accumulate positions, and the market experiences a
struggle between buyers and sellers.
About its characteristics, it
is easy to recognize on the chart, we often see
Prices do not have many large
fluctuations; instead, they fluctuate within a certain price range.
Trading volume is often low,
indicating uncertainty in the market.
Can form patterns such as
rectangles or triangles.
About Breakout
Upward Breakout On the
contrary, if the price breaks above the resistance level, it can be a signal
that the buyers are dominating. At that time, the market can move into the
progression phase.
Progression phase
We see that this is the phase
where the market begins to make a clear move in the direction of the price
increase, after going through the accumulation phase.
Characteristics of this phase
Prices usually move in an
upward direction with increased trading volume, indicating strong participation
of buyers.
New support levels will be
formed during the price increase.
There may be price patterns
such as a clear uptrend, followed by higher highs and lows.
Next is the Distribution Phase
The distribution phase occurs
after a strong uptrend, when prices move in a narrow range. This is when
sellers start to increase their pressure while buyers may have reached their
maximum buying level.
The characteristics of this
phase are usually
Prices fluctuate in a narrow
range, often forming patterns such as rectangles or triangles.
Trading volume may increase as
investors sell, but not enough to push prices higher.
After the distribution phase is
consolidated,
A Breakout will occur, there
are 2 breakout cases
Upward breakout: If prices
break above the resistance level of the distribution phase, the uptrend may
continue. This shows that there is still strong buying pressure in the market.
Downward breakout: If prices
break below the support level, it may be a sign that the uptrend has weakened,
and the market may move into a bearish phase.
When the market has moved a
long distance, it will start to fall into the
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