In trading, there are numerous techniques, skills, and strategies.
Basically, traders choose their main techniques to analyze the market and make decisions about entry and exit points regarding the time to execute.
Some traders utilize price levels, patterns, and indicators, while others may use price action itself to predict price movements. Traders who focus solely on price action do not need any specialized tools for this type of trading.
Price action traders examine trending waves and pullback waves to determine entry and exit points. It is essential for these traders to develop their own trading strategies to mitigate potential risks and maximize profits.
Generally, price action traders aim to identify the points of swing highs and swing lows and the entire span of a cycle. Bull cycles are characterized by higher high swing highs and higher low swing lows, while bear cycles exhibit the opposite. All these swing points fall within the range between the support zone and the resistance zone.
This post was also published on Medium on April 4, 2025, by the same author.
