Hello everyone. This is the another amazing lecture by the professor lenonmc21. This is my homework task.

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Price action as its name refer, mean the action or movement of the price of any asset in the market. It mean that movement of coin's price doesn't matter what the direction is. The price can be move in upward direction or downward direction. All sort of technical indicator which we perform to predict the market are based on the price action. We see the movement of the price and predict the market performance according to that.

The market price keep changing. The fluctuation in the price caused the change in the direction of price movement. On the chart, the candles are used to show the movement of price/price action. The green candles represent the bullish trend and red candles represent the bearish trend.

In this strategy, the traders depend completely on the price. The ups and down in the price define as the price action. The traders see the current state of the market uby the price action strategy and take the trading decisions.

No trend is for permanent. Every trend change into other after a period. If it is the downtrend, it will be changed into the uptrend after a time. And if it is the uptrend, it will be changed into the downtrend after a time period. The Balance point occur at the end of the trend. This is the point where the trend reverse. This point is find close to the support and resistance level in the market.

After the balance point, the trend reverse/change. If it is the bullish trend, you will see a green candle at the last. And if it was the bearish trend, then you will see a red candle on the balance point.

Below is an example where we see that the market was in uptrend. Then we saw a balance point and trend got reverse. There we saw the last candle in green color as the trend was bullish.

The balance point help us to analyze the market. The traders can predict the market behavior by using the balance point or break even point. Here i will mention how you can predict the market from the break point without using any sort of the technical indicator.

1- Go to the www.tradingview.com website and choose the currency pair of your own choice.

2- Choose the timeframe of your trading strategy. You can change the timeframe according to your trading strategy and planning. When you click on the icon which i marked on the screen short, you will see a drop down list from where you can set the time according to your own need.

3- After that, we will draw the support and resistance lines. The resistance lines will be drawn on the highest price point in the chart and the other line will be drawn on the lowest price point in the chart.

4- You can identify the equilibrium point on the chart.

5- Once you drawn the lines, you can now determine what is the market trend by analyzing the market. Then by getting the entry or exit spot, you can make the trading decisions.

Q.4. What are the entry and exit criteria using the breakeven price action technique?

We try to enter into the market when the price is low. The low asset's price is best entry spot. To get the good entry spot in the market using the break even price action technique, we need to get the equilibrium point. After analyzing the break even point in the market, we will mark the last candle which will be the red as the market is in the bearish trend. Then we will wait for a clear break out occur in the market. We we identify a clear break out, we will make an entry.

When the price cross the resistance level and continue to move upward, it spot as a good entry point. This buy signal give advantages to the traders as they can now enter into the market at low price.

Always set a stop lose and take profit before exiting from the market. The ratio of the stop lose and take profit should be 2:1. In the uptrend, the TP should be below to the break even point. The stop lose will be above to the break even point. But in the downtrend, it is opposite. The SP is placed below the break even point in downtrend while placing the TP above to the break point. Stop loss is a bit small to the TP ratio.

The below is the screen short where i have pointed the buy and exit spot. The best entry point is when the breakeven point and the trend reversal candle found on the chart.

The technical indicators are more useful and analyze the market in more appropriate and excellent way. There are the number of the technical indicators which analyze the market in different way. You can choose the technical indicator according to your own trading strategy.

The price action is also good to analyze the market but here it solely based on the current price action. It depend upon the current movement of the price in the market and analyze the market according to that.

The Technical indicators helps you to predict the market future, you can predict the future trend, price, price movement and many more using the technical indicators easily and fastly. You can analyze the market from the technical indicators in short time. The technical indicators give you a plenty of information about the market

PRACTICE ONLY (Only Use of own images)

In the above screen short, i did a demo trade of ETH/ Tether pair. My TP was below to the breakeven point and SP was above to the break even point. I spotted the breakeven point and placed sell order when the price hit the TP point. I have bought the some shares of the coin at 41797.65$ and set the stop lose 42264.98$. The take profit rate i set is 50910.50$.

Conclusion

Price action technique help us to analyze the market. The price movement is consider here to analyze the market. The entry and exit points are spotted when a trend end. At the trend reversal point, we determine the break even point and then get the entry or exit spot. But this is not secure to take the important market decision by analyzing the market using the solely price action technique.

I personally think that the price action is not more better than the technical indicator tools to analyze the market. The technical indicator give you much more information which is more secure and appropriate to take the trading decisions.

Regard
@lenonmc21