Technical Analysis: Introduction to Price Action Reading

 Price Action :

Price action is any price movement made by the security(stock, commodity, currency, bonds, etc. ) under consideration, the movement can be as small as a single pip. This movement of price is recorded graphically and used to analyze and predict the possible future price movement of the security. 

The market is already flooded with books, blogs, and vlogs about price action analysis then why another blog?

Because I found the need to do so. When I was in the starting phase of my stock market journey I was willing to learn from all the possible sources and I did so. Learning fundamental analysis was straightforward as the topic is more theoretical, reading a few books and blogs gave me enough knowledge that I could apply. But when it came to the technical analysis I found myself drowning in the ocean of directionless knowledge. A single blog or video could not finish the topic in one shot. During that time, the content creators I followed were not consistent with making a series of content to finish the topic and clear all basics. So I tried reading books, but it is really hard to write down the technical analysis in words that could be understood by an outsider. So, now that I am on a journey to teach equity investing to people from non-financial backgrounds, I consider it my duty to write a series of such articles.

Reading Price Action:

When I use the word 'READING' instead of 'ANALYSING' I mean it. The price action is the language of financial markets and they will keep talking in the same language if we want to understand what they are talking about we have to learn their language. 

Learning any language is a step-by-step method where we first learn symbols with their pronunciation and meaning if any, then we head towards words, sentences, paragraphs, and in the end the book. This is a tried and tested method of learning any language and we will use the same method to learn the language of markets. 

I hope this method of learning price action will prove beneficial to the readers. So, they don't find themselves drowning as I did during my initial days. All the best for the most interesting part of the stock market waiting for you in the next few articles and Don't forget to READ TO LEARN INVESTING.