Home > Chart Talk > Day Trading lesson: perspective on price action

Day Trading lesson: perspective on price action

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Stock trading to many new traders can seem like there is no rhyme or reason to price fluctuations during the day. Online stock traders do not have the same information of order flow that a NYSE specialist or a NASDAQ market maker has. “Screen” traders need to interpret action in a different way.

To do this properly with some consistency you need to give price action structure. No matter what style of trading you employ, scalping, charting, momentum, you need to be able to identify an opportunity that fits your method.  That opportunity will be based on how you view the market. 

Here is my point, no matter your style, your stock can only do one of three things. Test a previous high or low, consolidate or trend. All price action is a function of one of these scenarios. Make your trading have a structure and price fluctuations will never feel random!

http://keystonetradinggroup.com/index.htm

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Categories: Chart Talk
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