Price action trading is all about identifying the trend as early as possible and seizing opportunities

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Price action trading is all about identifying the trend as early as possible and seizing opportunities. Learn different types of forex trends and how to identify them to make the trend your friend. In 2008, the global financial markets had one of the worst years in decades. The S&P 500 declined by 40%, DAX by 41%, and Nikkei by more than 40%. This was during the global financial meltdown, which was caused by the deregulation of the financial industry.


This deregulation led to increased risk taking by the banks and the somalia business email list ultimate collapse of leading Wall Street firms like Lehman Brothers and Bear Stearns. After the crisis ended, the S&P, DAX, Nikkei, and the Dow Jones Industrial Average (DJIA) have climbed by 256%, 200%, 174%, and 235% respectively. Investors who invested in stocks before the crisis have more than doubled their investments. This is a good example of how the trend can be your friend in the market.


Price action trading is all about identifying trends as early as possible and seizing opportunities. Technical analysis plays an important role in this as traders believe that past trading patterns can determine future movements. Types of trends Understanding trend types is essential. In an upward trend, the security makes higher highs and higher lows. When a security is in an upward trend, the goal of the trader is to buy low and exit the trade when the security reaches its peak.