Popular Price Action Trading Accounts for Beginners 2024

Whether you are just starting out on your trading adventure or are something of a guru, below is an opportunity for you to uncover the basics price action trading.

This comprehensive guide on all things about price action trading explores the ins and outs of this technique, separating fact from fiction. Read on to find out all you need to know.

Step 1: Open a Price Action Trading Account

Our Criteria For Choosing Price Action Trading Platforms

All of them are all licensed and regulated by several financial regulators in the world so you can be sure that your personal information and money are always safe. They also have powerful trading platforms that can provide you with a lot of charting tools and indicators.

Plus500 – Large number of quality technical indicators

Founded in 2008, Plus500 has, over the years, become one of the top providers for CFDs globally. It offers leverage trading on a wide range of financial trading instruments, 2,000+ at present, under the main asset classes. Plus500 UK LTD is authorized and regulated by FCA in the UK, ASIC in Australia, and CySEC in Cyprus.

Traders here can trade CFDs markets such as crypto, shares, indices, ETFs, commodities, options, and forex.

One of the features that make it a great price action trading service is its trading platforms. It has a proprietary WebTrader platform as well as a mobile app for Android, iOS, and Windows devices. These offer excellent functionality with great navigation features and a user-friendly design. On the downside, it doesn't support the MT4 trading platform and its proprietary WebTrader platform isn't customizable.

Among the key features, it offers to traders is the ability to configure real-time alerts. These alerts will inform you of price movements on your select instruments. You can also get a notification when an asset reaches a set buy or sell price and when the percentage of sellers or buyers reaches a certain level, denoting trader sentiment.

The charting tool is great, and it has 100+ technical indicators as well as editing tools. You also have the option of saving charts for future use.

Fees:

• Trading fees – Varying but highly competitive spreads

Our Rating

• User-friendly platform
• Real-time alerts for price movement
• A wide range of trading instruments

• Trading platform is not customizable

Visit Plus500

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Features to Look for When Choosing a Price Action Trading Platform

Step 2: Learn How the Price Action Trading Market Works

What is Price Action Trading?

Price action refers to the movements of a trading asset’s price over a period of time. It is the fundamental building block for the technical analysis of all tradable securities. In fact, technical analysis is a price action derivative, since it bases calculations on past prices.

Based on the above, we can define price action trading as a form of trading where decisions are based on asset price movements.

Typical trading usually revolves around three main aspects to inform traders’ decisions and moves. These are price action, indicators and a combination of the two. There are additional strategies too such as statistical, order flow or seasonality, but the aforementioned are the major categories.

Price action traders basically ignore indicators and focus their strategies on price as the only true information source. However, it is noteworthy that some price action traders use price as the main source of information and indicators as a secondary source.

How does Price Action Trading Work?

Financial markets usually generate data concerning market price movements over different periods of time. You will find such data on price charts. Basically, these price charts show the actions and feelings of all market participants who are trading during the given period. On the market price chart, these feelings and actions take the form of price action.

As such, even though there are many catalysts contributing to price movements, it is not necessary to analyze all of these so as to trade successfully. This is because a market’s price action ultimately reflects all the world news and economic data that causes price movement.

With these signals, you have all the necessary tools at your disposal to develop your trading strategy. The price action trading concept involves making decisions on the basis of what is referred to as “naked” or stripped down chart. Such a chart does not have lagging indicators, with the exception of maybe a few moving averages. These help to identify trends and dynamic resistance and support areas.

Essentially, the approach is hinged on the premise that prices move in trends, and momentum will keep a trend going in one direction until a major force in a different direction halts it. A price action trader is not really concerned about the ‘why’ of price movements. Rather, when the price of a stock increases, they conclude that the demand is high. Depending on how aggressively people are buying, they then assess whether the trend will continue.

To do this, they make use of real-time and historical price info. This info includes aspects such as volume, offers, bids, magnitude and velocity. Using this data, the trader will then seek a viable entry point to trade. Such a point will offer a balance between profit potential and risk control.

In order to improve their capacity to spot trends and interpret them, traders make use of various chart compositions. These charts plot asset prices over a period of time and make it possible to visualize, not merely trends, but breakouts as well as reversals too. On the basis of the formations they generate, they are able to set expectations for what is likely to happen next.

Some price action traders also go a step further and calculate technical indicators. The idea behind this is to make sense of seemingly random price movements.

Traders who follow this approach believe that history always repeats itself and that there is nothing new in any market. Thus, prices will always revolve around specific points. Based on this belief, they make predictions on how the market will behave during a certain period.

They keep looking for repeating patterns asking where price usually goes next once it reaches a certain point. Having the correct answer to this is the key to accuracy in using this trading technique.

Assets for Price Action Trading

Step 3: Learn Price Action Trading Tips

Step 4: Place a Trade Order

Assuming that you have chosen to create an account and have already deposited some funds, you can start trading by following the steps below.

For price action trading, one of the popular markets that you can try is the crypto market. Search ‘Bitcoin’ on the search field and the platform will show you its dedicated page for Bitcoin.

The Bitcoin page also has charts, stats and news articles about Bitcoin. If you’re new to cryptocurrency price action trading, it is highly recommended that you take some time to check out the crypto educational resources and research studies available.

Once you’re ready to place an order, click on the ‘Trade’ button.

On the order form, you will need to fill out the amount of BTC you want to buy. Your purchased BTC will then go to your crypto wallet within a few seconds.

Conclusion

Unlike a host of other trading approaches which anticipate moves, price action reads the market. It eliminates all the noise and focuses on the most essential element, which is the price. While that makes it highly effective, it is no guarantee of success.

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