What is "pure price action trading"......
Pure Price Action
Most of you have heard the term, "Pure Price Action" many times and probably believe it to be a great method of trading. First let me clarify that there is no argument here. We trade "Pure Price Action" everyday, however we take it many steps further. For you to truly understand price action you should understand that it is nothing more than a painted picture of many things. Trading psychology and Supply and Demand are the most important things within price action. If we ask ourselves why price moves in any given direction there is alway one answer..... because of the equilibrium of Supply and Demand. If the equilibrium is off, supply or demand will create balance once again which causes price action candles, bars or other chart types to display a trend. If the equilibrium is in balance then we will show sideways movement.
Every candle, bar etc. represents thousands of people making a decision on the value of a paticular instrument. Learning how to properly analyze this psycholgy is key. We then have the ability to use pre-defined trading strategies to capitalize on the markets.
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