Hello subject, the Price Action trading system is a price action trading system, and all theoretical basis comes from price action logic. The Price Action trading system is not a fixed method, it is logic and the essence of the market. Let’s take a closer look at the Price Action trading system.

Let’s first understand the origin and basis of the Price Action trading system: traders who use the Price Action trading system, when conducting transaction analysis, believe that all technical analysis indicators are based on the market price movement that has been formed. Rehearsals, rather than behavioral data predicted in advance.

In the school of Price Action trading system, traders believe that all good or bad information has already been consumed by people or institutions who have the ability to know in advance, and is reflected in the K lines that have been formed. The K-line that has been formed is the result, not the cause. The cause is unpredictable and unimportant.

Image and text are from Zhihu user @凯西拉格

However, those who make profits from the Price Action trading system have a mature price action (Price Action) judgment system behind them. , it is not a fixed method, it is logic, the essence of the market, and the game of human nature and emotional power behind price movements.

So the Price Action trading system, in the trading field, relies on the K-line itself as the analysis theory and the price line (Price Action) as the analysis basis to make trading decisions. A trading method that does not rely on any trading indicators.

When people are in a state of stress, the predictability of human decision-making and behavior is greatly improved, and they generally behave more desperately and with a greater sense of urgency. This is precisely the research essence of the price behavior behind naked K trading - supply and demand imbalance.

The imbalance between supply and demand does not necessarily mean that one side has more and the other has less, but an imbalance of desperation and urgency.

Just imagine, on the beach, the behavior, location, and walking route of tourists are basically unpredictable. But when a red alert suddenly sounds at sea, whether it's a tsunami or an incoming shark... their walking route becomes easy to predict. This is the theoretical basis of naked K trading price behavior analysis.

Those who can make profits from naked K trading are basically based on two points.

① Anti-weakness

② Anti-trap traders

In market trading, traders on the floor clearly know your entry position and stop loss position. Weak opponent orders (hold-up orders) are the fuel for price push, and their stop-loss orders or liquidation orders will become a strong force for the reverse movement of prices in a short period of time. Naked K traders take advantage of this to counter weak trades.

Find out the weakness, identify the trapped traders, enter the market against the weakness, let your orders become part of the order flow that triggers the trap, and let the trapped traders become the fuel for price push (long exit orders, It is the fuel for shorts, and the exit order for shorts is the fuel for longs), so that there is a high probability of profiting from it. This is the theoretical basis of the Price Action trading system.

The seemingly simple Price Action trading system contains little-known price action logic. There is still a long way to go to fully understand the Price Action trading system and master its application in actual trading. Gotta go. When you truly understand price action, master it through training, and then look at foreign exchange, A-shares, futures, or even digital currencies... any trading chart K-line, you will slowly find that you have a completely different experience than before. angle and field of view.

Retail investors are often reverse indicators of trend movements. This is why many people think that stocks fall when they buy them and rise when they sell them. I hope everyone can walk on the path closest to the nature of the market. Avoid your own orders becoming fuel. The Price Action trading system is probably the first choice.