simple support and resistanceIf the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support. As the price moves past a level of support or resistance, it is thought that supply and demand has shifted, causing the breached level to reverse its role.
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from monthly to m15 using smart money and retail baseWhat Is Price Action?
Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity or other asset charts.
Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. Technical analysis as a practice is a derivative of price action since it uses past prices in calculations that can then be used to inform trading decisions.
KEY TAKEAWAYS
Price action generally refers to the changes of a security's price over time.
Different looks can be applied to a chart to make trends in price action more obvious for traders. This is especially true when analyzing data covering different time periods.
Technical analysis formations and chart patterns are derived from price action.
Technical analysis tools like moving averages are also calculated from price action and projected into the future to inform trades.
Though many use price action to forecast future prices, prior price action does not guarantee future results.
from monthly to m15 using smart money and retail baseThe world of trading has changed drastically over the past few decades, with individual retail traders becoming more involved in predicting price movements and understanding market dynamics.
While two and three decades ago, central banks and financial institutions could manipulate the markets without any individual trader knowing they were doing so, today, they do precisely the same. However, with advanced trading platforms and tools, retail traders can now use some special tricks to join these big players and use block orders as a trading strategy.