What is Indices Price Action in Indices Trading?

Indices Trading stock indices price action is the analysis of stock indices price movements that are drawn on stock indices charts.

Indices Trading stock indices price action analysis uses line studies or stock indices price action patterns to try and determine the indices trend of the stock indices price chart.

Indices Trading stock indices price action trading signals can also be combined with indices trading systems that can be used to determine which direction of trading to take.

Pin Bar Indices Price Action Trading Strategy

A pin bar is a indices trend reversal stock indices signal on a indices price chart which shows an obvious change in the stock indices trading market sentiment during that period.

This pin bar stock indices price action setup has a long tail with the closing stock indices price near the open. The pin bar pattern looks like a pin thus the name Pin Bar - occurs after an extended move up or down.

This indices trend reversal is confirmed after market closes below the candlestick that precedes this stock indices price action pattern. Below the reversal setup is confirmed after the stock indices trading market indices prices closes below the blue candle that preceded this pin bar candlestick.

Indices Price Action 1 2 3 Method in Indices Trading

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

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

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

Indices Price Action 1-2-3 Breakout Indices Trading Strategy

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

Indices Price Action 1-2-3 Breakout Indices Trading Strategy Example

Combining Indices Price Action Trading Strategy with other Indicators

Good indices indicators to combine stock indices price action trading patterns with are:

• RSI

• Moving Average

Traders should use these two indices indicators to confirm if the direction of the stock indices price action breakout is in line with the indices trend direction shown by these two stock indices chart indicators. If the direction is also the same as the direction of these indices indicators then stock indices traders can open a trade in the direction of the indices signal. If not traders should not open a trade as there is more likely a chance that this stock indices signal may be a indices trading whipsaw.

Just like any other chart indicator in Indices Trading, stock indices price action trading strategy also has whipsaws and there is a requirement to use this strategy as a combination with other stock indices signals as opposed to just using this stock indices price action trading strategy alone.

RSI and Moving Averages Indices Price Action Trading Strategy