Ultimate Price Action Trading Guide

This flashcard set covers key concepts and terminology related to price action trading, helping to clarify definitions and enhance understanding.

Price Action

Trading decisions based on repeated price patterns indicating market direction.

Candlestick Pattern

Formation of one or more candlesticks which shows market behavior.

Support Level

Price level where a downtrend can be expected to pause due to buying interest.

Resistance Level

Price level where an uptrend can be expected to pause due to selling interest.

Bullish

Market condition indicating rising prices.

Bearish

Market condition indicating falling prices.

Risk:Reward Ratio

Ratio used to compare the potential profit of a trade to the potential loss.

Trendline

Line drawn on a chart to indicate the direction of market prices.

Multi-Timeframe Analysis

Trading strategy that involves looking at different timeframes to find better entry points.

Mass Psychology

Collective behavior of traders that affects market movements.

Economic News Release

Scheduled announcements that can significantly impact market prices.