Indices Price Action Trading

Indices Price action trading is the use of only stock indices price charts to trade Indices, without the use of technical chart indicators. When trading with this stock indices price action indices trading strategy, candlestick stock indices charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 stock indices price action pattern indices trading strategy explained below.

Traders use this stock indices price action trading strategy because this analysis is very objective and allows the one to analyze the stock indices price moves based on what they see on the indices charts market movement analysis alone.

This stock indices price action strategy is used by many indices traders; even those that use technical indicators also integrate some form of stock indices price action in their indices trading strategy.

The best use of this stock indices price action strategy is achieved when the stock indices price action trading signals generated are combined with line studies so as to provide extra confirmation. These line studies include indices trend lines, Fibonacci retracement, support and resistance levels.

Indices Price Action Trading

Indices Price action strategy uses three stock indices chart points to determine the break out direction of stock indices price. The 1-2-3 stock indices price action trading strategy uses a peak and a trough, these chart points forms point 1 and point 2, if market moves above the peak the stock indices price action trading signal is long, if it moves below the trough the stock indices price action trading signal is to short. The break out of point 1 or point 2 forms the third chart point.

Indices Price Action Trading - Indices Price Action Strategy Intraday Indices Trading Strategies

Series of breakouts

Indices Price Action Trading - Indices Price Action Strategy Intraday Indices Trading Strategies

indices traders use stock indices price action to try and predict where a indices trend direction might go. The stock indices market is either trending or ranging.

A trending market moves in a specific direction while a ranging market moves sideways, normally after hitting a support or resistance level.

Observing the behavior of stock indices price action provides this information of whether the stock indices trading market is trending or ranging or reversing its direction.

As with any other Indices Trading strategy this stock indices price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern can give good signals in a trending market but will give whipsaws when the stock indices trading market is ranging, it is best to determine if the stock indices trading market is trending or not before you start using this strategy.