How Does Price Action Trading Work? 👨‍🏫 if you have any specific questions, ask me at 👉 http://bit.ly/2IblW9d 👨‍🏫 Download FREE PDF for my Price Action Strategies 👉 http://bit.ly/mypriceaction The premise of price action is simple: everything you need to know about an asset’s price is already included in it. From what happened in the past, you can conclude what happens next. It is unnecessary to ask why an asset’s price should rise or fall; it is enough to know that it will rise or fall. Price action ignores the factors driving the market and solely focuses on where they are driving it. 👨‍🏫Price Action Happens Now To understand this difference, think of a person that walks into a Starbucks. You might not know why this person walks in there, the person’s history, and everything affecting them today, but if you want to bet on the person’s reason, it would probably be best to assume that they want to get coffee. Of course, they might just have to use the bathroom or want to talk to a friend, but if you bet that every person who goes into a Starbucks wants to get coffee, you would win a lot of your bets. This is the price action approach, simply by knowing what is happening now, you can predict what will happen next. The entire thought process is simple and ignores the irrelevant. When you what a person does over the next 30 minutes; it is enough to know that they just walked in a Starbucks. Most likely, they will get coffee. 👨‍🏫 Fundamental Flaw Fundamental investors, on the other hand, would try to find out everything about a person, their daily habits, and their taste. Then, they would try to predict where they will be. This approach is fine if you are unconcerned about time, you can predict that the coffee lover will get coffee at some point. But if they are asleep right now, or sick, or on vacation, you might have to wait quite a while for this prediction to come true. Price action traders wait for the person to go to Starbucks and then predict that they will get coffee, a much more accurate way of predicting prices. Adapted to financial markets, price action traders solely focus on price movements to predict what will happen next. #NMBO442

How Does Price Action Trading Work?

if you have any specific questions, ask me at
http://bit.ly/2IblW9d
Download FREE PDF for my Price Action Strategies
http://bit.ly/mypriceaction

The premise of price action is simple: everything you need to know about an asset’s price is already included in it. From what happened in the past, you can conclude what happens next. It is unnecessary to ask why an asset’s price should rise or fall; it is enough to know that it will rise or fall. Price action ignores the factors driving the market and solely focuses on where they are driving it.

Price Action Happens Now

To understand this difference, think of a person that walks into a Starbucks. You might not know why this person walks in there, the person’s history, and everything affecting them today, but if you want to bet on the person’s reason, it would probably be best to assume that they want to get coffee.

Of course, they might just have to use the bathroom or want to talk to a friend, but if you bet that every person who goes into a Starbucks wants to get coffee, you would win a lot of your bets. This is the price action approach, simply by knowing what is happening now, you can predict what will happen next.

The entire thought process is simple and ignores the irrelevant. When you what a person does over the next 30 minutes; it is enough to know that they just walked in a Starbucks. Most likely, they will get coffee.

Fundamental Flaw

Fundamental investors, on the other hand, would try to find out everything about a person, their daily habits, and their taste. Then, they would try to predict where they will be. This approach is fine if you are unconcerned about time, you can predict that the coffee lover will get coffee at some point.

But if they are asleep right now, or sick, or on vacation, you might have to wait quite a while for this prediction to come true. Price action traders wait for the person to go to Starbucks and then predict that they will get coffee, a much more accurate way of predicting prices.

Adapted to financial markets, price action traders solely focus on price movements to predict what will happen next.

#NMBO442

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