Basic Price Action methods

[gunhell16]

Good day to my altcoinstalkers here, let me bring here the topic I made on the other platform. I know that some of you here, especially those who have been in the field of the crypto industry for a long time already know these things, but it is even more necessary for the newbies who enter the crypto trading business to know this.

This is a good input for them if they want to have basic knowledge about trading in the crypto space. Good day again everyone.

What is price action?
Price action is "you" making trading decisions based on price formations and price patterns you see materializing in the market in "real time.".
Market Structure and Key Levels: This involves identifying key levels of support and key levels of resistance because these levels present high-quality trade entry opportunities.
What are the key levels exactly?




Key resistance levels are areas above the price where the price has drastically reversed, which presents short-term trading opportunities when the price comes back to these levels.

Price Action Psychology Behind Resistance Levels When the price comes up to a recently formed resistance level, it is deemed expensive within that particular moment in time, meaning less buying occurs, triggering the reversal downward.



Now, going in the opposite direction,



Key support levels are areas below which the which the price has reversed drastically upwards, which present long-term trading opportunities when the price comes back to these levels.



Price Action Psychology Behind Support Levels When price comes down to a recently formed support level, it is deemed "cheap" within that particular moment in time, meaning value buyers will load up, triggering the reversal upwards.

Supply and Demand + Multiple Reversals of Price: An area above, where price reverses off multiple times, is known as a "supply zone," and an area below, where price reverses off multiple times, is known as a "demand zone.".





Price Action Psychology Behind Supply Zones The market is deeming this area of price as expensive, which results in buyers consistently deciding to close their long positions in this area and sellers choosing to hold this area strong and open new short positions.



In the opposite direction,





Price action psychology behind demand zones The market is deeming this area of price as cheap, which results in sellers consistently deciding to close their short positions in this area and buyers choosing to hold this area strong and open new long positions.
What is price action? https://www.investopedia.com/terms/p/price-action.asp
I'll stop here for awhile its a long tutorial, and I will continue on my free time again, hope this will give a knowledge somehow to everyone
have a good day....

Reference: https://bitcointalk.org/index.php?topic=5493168.0

[Faisal2202]

This is great and very refreshing because I am not new to the crypto sphere, but have a good sense of what are resistances and support levels, but till now I never read the definition of both, the way you have written. It's unique and very understandable. Plus the supply and demand zones are already defined and they are also very easy to understand.

Did you make these pictures by yourself, as a source link would be advised, And you explained well but did not mention how we as a newbie can make resistance and support levels, I suggest you should also make a tutorial on it as well. I first make them by perception but now I use 4EMA tool as it is more reliable I think what tool you use.

[SamReomo]

This is a great topic, the key support levels are very important points for some traders because they allow traders to open positions which could give them profits most of the times.

There are a group of traders who look for other technical indicators to make their trading decisions, and out of those RSI is one of the most important ones.

The traders who understand the price actions psychology can gain good profits by applying their knowledge at right time.

[Captain Corporate]

We really do need these type of educational stuff, its really not that difficult to just help people out and when you think about it, we are seeing something much better here and that has to be the most important part of the situation. I know that it takes time, but I do not know how long this must have taken, yet I believe that these type of topics should be promoted and kept at the top for much longer, it allows people to see what they should. With these educational posts growing more and more, we could teach people how to pick something that is actually worthy, and not arguments that are useless.

[Mr. Magkaisa]

         -   It looks like what Op shared are different methods of how to read price action when we do actual trades on any exchanges. This is a great job you did, and it's fun and patient to provide such knowledge to the community here on this platform.

I am reviewing the illustrations that you have shown in this section, and he is very informative. To be honest, he is not difficult to understand because what you are saying here is very direct, and the rest of the opposites that you are saying are somewhat here. I know that these ideas are very true, and I realize that he is indeed right.

[hugeblack]

+4 Merits


Although the topic talks about price action, it is an indirect explanation of support and resistance points, which are considered the first indicators of technical analysis, but using them in a separate formulation without resorting to other indicators such as RSI and Fibonacci analysis will ultimately lead to a bad trading result, just as ignoring Pivots Points (previous days Open, High, and Low) will cause Price Action to be uncontrolled or accurate.







In the end, you will have a wider range to determine the support and resistance points, and then with the additional indicators, it will be easy to know the market direction.