Price action, now what is price action? How do you trade price action? Now the most important thing in technical analysis is to understand price action.
Now we have started this series in which you are learning a lot. So today my effort will be to explain price action to you in such a way that the concept becomes completely clear in your mind today. You get that clarity and I will tell you about what you get. And if you have not subscribed to this channel then you can miss a lot of videos in the future.
So do not miss them and let’s start today’s video. So what is price action? Basically we try to understand a lot by looking at the price, but what do we have to understand? I will tell you. See, there are two players in the market. One buyer and the other seller. Now there is always a fight between them. Have you seen the game of tug of war? They pull the rope, then some people are here and some people are there. Now it is certain that both try their best, but only one side wins. Either we will see this side, either buyers will win, sellers will win, and for some time, both will keep pulling and pulling. So you will understand the price action from this tug of war. But what will happen eventually? One side will pull the other side. Now you have to understand their psychology. What is going to happen in the market? You are analyzing it by looking at the price.
See, when we trade on price action, there are no indicators in price action. We don’t apply RSI, we don’t apply MACD, we don’t apply super trend because it is said that price action is the leading indicator. All indicators are following the price. We understood the price, we understood the price, it is also moving according to the price. So a lot of things are understood from the price. Have you read about the Dow theory? There are many concepts in Dow theory, but the most important thing that we are going to discuss today is that you will get to know the psychology of their buyers and sellers from their price, and you will get to know who is strong and whoever is strong will move the market. If the buyer is strong then he will take the stock or the market up and if the seller is strong then he will take it down. Now to learn this you should know basically four things. Now what are those four things? You tell me. You know, I know, you know, but I will tell you sequentially. You should know these four things and in this you will understand the concept of Dow theory. Number one, we have to understand the trend. Now what is the most important concept of Dow theory? I have talked about Dow theory. So Charles Dow was publishing some papers in 1900. They did a market analysis and then it was made coherent and some six concepts came out of it, in which the most important thing is the trend, in the Dow theory the market moves if you look at the market then first of all accumulation starts from here. Accumulation makes the market go up. After that public participation starts from here, what will happen after that? There will be distribution and it is possible that the price may go down, panic may happen and then accumulation comes in the market. So what is this accumulation, public participation and distribution? It basically wants to tell you that the market moves like this and these are the trends of the market. Now there are many things like primary trend, secondary trend, noise, but why do we understand all this? Let us understand in simple language. So we understand in simple language that the market moves in the trend. When we trained you on the trend, which we made the first video of technical analysis, if you have not seen, if you have not seen the video on trend trading, then there is a button above, you can go and watch. So now we have to understand that the market is in trend and I told you that the trend is our friend. Do not trade against the trend. This is your profit. So this is point number one that we have to understand the trend and we understand the trend if you have not seen it then you can go to the I button link and see it. What is the third thing that you have to understand? Now here you must have heard that history repeats itself. In technical analysis it is said that the history that has happened, happens again and keeps happening. History repeats itself. Now this can happen. In this you have to understand the third thing.