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Price Action Trends: Higher-Highs and Higher-Lows, the Rhythm of Life
Trends are an important aspect of market analysis, largely because it’s one of the aspects of chart analysis that can be helpful with forward-looking strategy. Support and resistance are also important as they can help with risk management; but a lot of other analysis is simply idea generation that can produce noise, thereby making the trader’s aim of finding amenable trading opportunities as that much more of a challenge. Price action strips the indicators from the chart and, instead, lets the market mold the message. If something ‘good’ is getting priced-in, then traders will often reward that market with a ... (full story)