A new look at price action
Many great traders swear by price action. Yet seldom can come up with a precise definition, not the least an idea of what really entails. Suffice to say that for them everything evolves around price. Investopedia’s defintion doesn’t help either …”No two people will analyze every bit of price action the same way, and that is why a lot of traders find the concept of price action so elusive. Quite literally, price action is everything that a security’s price does, and just like every other facet of analysis, it is purely subjective.” But makes it clear that trying to pinpoint the concept could be a moot point.
In trying to find a way to define this myself, I came across the below animation that will surely get the message across. And perhaps, the next 4 minutes may be the most critical time for your continued success in the stock market. Please bear with me and spare me those 4 crucial minutes. If you are patient enough to watch this animation to its end you may find yourself closer to what great traders have known for a long time. And if you have a certain “yikes” in your stomach at the conclusion of this video, it is because you have held stocks for too long. Beyond the point of a reasonable return.
