Price Action Indicator
This is a kind of trading technique that utilizes the ability of the trader to analyze the share market and plan their stock trading methods based on the actual movement of price on a chart instead of analyzing any sort of lagging indicator involved.
Price action is a kind of trading technique that makes use of the proficiency of the trader to analyze the share market and design their stock trading methods based on the actual movement of price on a chart.
The most frequently used ones are the candlestick patterns that helps the trader visualize the price movement pattern and make representation.
A price action indicator is basically a method that generates a chart that provides traders with a buy and sell signal. The traders decide when to buy or sell stocks with a maximum profit.
Types of price action indicators
The candlestick pattern is the most common one. This pattern has many components to it and each component represents different aspects:
Inside and outside bars: These represent great breakout patterns
Down shaved bars: These represent the selling pressure
Up shaved bars: These represent the buying pressure
Pin bars: These represent great reversal patterns