Price Action
Mastering Price Action: Real Support and Resistance
Price Action is the art of reading price charts without relying on complex mathematical indicators. It's about understanding the market psychology behind every candle.
What are Support and Resistance?
Many traders believe these are just lines drawn on a chart. In reality, they are supply and demand zones.
- Support: Where price finds a "floor" and buyers outnumber sellers.
- Resistance: Where price finds a "ceiling" and sellers outnumber buyers.
How to Identify Strong Zones?
- Multiple Touches: The more times price respects a zone, the higher its significance.
- Clear Rejection: Long candle wicks indicate price rejection in that specific area.
- Round Numbers: Key psychological levels like 1.1000 or 1.2000 naturally attract institutional orders.
Conclusion
Mastering pure price action requires practice and observation. Keep your charts clean and focus on institutional order flow.