Stock Price Action 1-2-3 Stock Price Action Trading Strategy

Stock Price action stock trading is the use of only stocks price charts to trade Stock, without the use of technical chart technical indicators. When trading with this stocks price action strategy, candlestick stocks charts are used.

Stocks Price Action Trading System in Stocks Trading

The best use of this stocks price action strategy is achieved when the stocks price action signals generated are combined with other indicators so as to provide extra confirmation. This is then used a stocks trading system.

The stock trading system includes stocks price action trading together with stock indicators trading so as to create a stock trading system or a stock trading strategy based on these two methods of stocks trading analysis.

Stock Price Action 1-2-3 Breakout Strategy

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

Stock Price Action 1-2-3 Stock Price Action Strategy - Stock Price Action Trading System in Stock Trading

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

Combining Stocks Price Action Strategy With other Indicators

Good stock indicators to combine stocks price action trading with are:

• RSI

• Moving Average Technical Indicator

Stocks traders should use these two stock indicators to confirm if the direction of breakout stocks price action signal is in line with the stock trend direction shown by these two stock chart indicators.

If the direction is also the same as those of these indicators then stocks traders can open a trade in direction of the stocks price action signal.

If not stocks traders should not open a trade as there is more likely a chance that this stocks price action signal may be a stock trading whipsaw.

Just like any other chart indicator in Stock Trading, stocks price action also has whipsaws and there is a requirement to use this stocks price action strategy with other indicators as a combination with other signals from these indicators as opposed to just using this stocks price action strategy alone.

Stock Price Action Stock Trading Strategy - Stock Price Action Trading System in Stock Trading