PRICE ACTION TYPES
1. EVER TRENDING PRICE ACTION
characterised by continous trending in one direction with less retracements.Pairs
with this habit of price action requires one to understand market structure and
liquidity to make a profit.. examples include Gold, it is forever bullish and has
small pullbacks which makes it difficult for a normal trader (not exeptional) to find
entries. The best trades to take under this kind of market are swing and day
trades
2. RANGING PRICE ACTION
usdcad has this type of price action, the market structure is not clear; meaning
you cant understand which direction price is going unless you understand
liquidity. It is difficult to chose order blocks in a range since most of them are
liquidity traps ,trading sweeps and stop hunts is much favourable. if by any
chance you find a good trade in a range ,scalp or day trade it.volatility 25 index
has a ranging price action ,
3. NORMAL MARKET PRICE ACTION
a clean orderflow,market structure and following mitigations indicates that the
market is normal, a trader can easily spot the trend from just looking at the
structure. You can trade either retracements or impulses depending on your
strategy. One vices for this market is ;it is full of manipulation so precision is
required for profit. You find out that there would be (for example) 3 order blocks
to choose from but you cant figure out exactly which order block to trade. In this
market you can also trade concepts like supply and demand