Trade Stock Indices

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Indices Price Action Trading


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


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


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


The best use of this stock indexes price action strategy is achieved when the stock indexes 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 indexes price. The 1-2-3 stock indexes 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 indexes price action trading signal is long, if it moves below the trough the stock indexes 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 Trading - Indices Price Action Strategy Intraday Indices Trading Strategies


Series of breakouts

Indices Price Action Trading

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



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


As with any other Indices Trading strategy this stock indexes 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 indexes trading market is ranging, it is best to determine if the stock indexes trading market is trending or not before you start using this strategy.

 

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