Lecture Notes on Price Action

Introduction

• Price Action: One of the most important parts of technical analysis
• Advising to subscribe to the channel

Market Psychology

• Two main players in the market: Buyers and Sellers
• Market movement example: tug of war
• How price action works without any indicators
• Key components of price action

Dow Theory

• The market always moves in a trend
• 3 phases of a trend: Accumulation, Public Participation, Distribution
• Market response after each phase: price goes up or down

4 Main Skills of Price Action

1. Understanding the Trend
2. Studying Support and Resistance
3. Identifying Candlestick Patterns
4. Recognizing Chart Patterns

Candlestick Patterns

• Structure and meaning of Green and Red Candles
• Single and Double Candle Patterns
• Hammer Patterns: Indicator of trend reversal

Chart Patterns

• Various patterns that form in the market
• Example of Double Top and Neckline
• Identifying support and resistance from trend lines

Market View

• Analysis of the global market: Using Google and Moneycontrol websites
• Importance of PCR (Put Call Ratio)
• Observing futures and index volume

Trading Strategies

• Determining global market condition: Red and Green Index
• Starting trading view with PCR
• Live market analysis of price action

Important Points

• Do not trade against the trend
• Select the right instrument
• Pay attention to risk to reward ratio

Conclusion

• Start with paper trading and increase experience over time
• Advise subscribing to the channel and sharing the video