Price action trading relies solely on price movements rather than technical indicators. Traders focus on current price levels rather than long-term profitability. Technical indicators should be used sparingly in trading decisions
Support levels indicate strong buying demand, preventing price declines. Resistance levels show strong selling pressure, hindering price increases. Support and resistance levels are typically set below current price
Technical Analysis Explained by Martin J. Pring is a comprehensive guide to market behavior interpretation. Author is a leading technical analysis expert and founder of investment advisory firm. Book demystifies complex market analysis techniques for both beginners and experienced traders
Chart patterns are recurring patterns in price action used in technical analysis. Patterns indicate market consolidation and can be used across various financial instruments. Patterns fall into three categories: continuation, reversal, and bilateral
Support levels indicate where prices won't fall due to demand concentration. Resistance levels show where prices won't rise due to supply concentration. Technical analysis uses these levels to identify optimal buying and selling points
Fibonacci levels are derived from the golden ratio and measure mathematical proportionality. Common levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Fibonacci analysis helps identify support and resistance points in markets