misconception of the Price Action/ Price action Trading/ Chart pattern

 The price action is very important part of the Technical analysis. it helps to predict the market behavior as well as in which direction prices could move in the market. The traders heard very often that successful traders may have mastery to predict the stock price movements by monitoring the price action. although, the price action is not very handy to novice traders because of misunderstanding the price action. 

The traders if apply perfectly that will give absolute results to even inexperience traders. 

Here i have given some price action pattern examples, typically like this pattern shows that prices are going to move in the certain direction. but in reality our assumption may go wrong. why? yes, i am going to explain how to read the price action and when it will work perfectly. 

first, we will take Double top price action patterns, in the Technical analysis view, Double top is a short selling opportunity however, it is somewhat true though, but all time which might failure when tend to short selling, during the strong momentum the security prices might seem to downward pressure or Resistance zone will make barrier to further upward movement. 

in this scenario, well experienced traders will notice where it is form the Double top, whether it forms near the top, mid range, or Bottom level. perhaps, it may forms near the mid range or bottom this types of chart pattern will definitely be a good selling opportunity. this is why, the stock did try to move upward but the selling pressure pull down the price. hence, if stock trading near the top while Financial institution and investors will consider that is a consolidation mode, so, again this stock could go up. so, this double top formation is not mentioned the price drop down. 

when the stock is in strong momentum if occur any correction the traders should follow existing trend unless trend against trade will burn our hands. the traders should notice on the stock, and that's sector trend and also when those opt to be  current trend that kind of trades only end up in success. 

Bearish price formation

Double Top, Triple top, Round top and Bearish candle stick patterns will work out in the bottom level or mid range. usually, these kind of price action unpredictable when price in higher level, sudden price changes might lead to huge loss or stop loss hit. 

Bullish price formation

what we applied in the bearish pattern the strategy should also apply in the Bullish formation even if it candle stick patterns. which trading strategy will reduce the traders risk amplify the trading success. 

Double Bottom, Triple Bottom, and support zone whatever it is. just focus on the price action, that will show up entry and Exit point. 

Do not make shorts at higher level instead of make short when it form bearish price action at the mid range or bottom level. 

Do not buy the securities at bottom or mid range even if price action express buying signal. 

Buy the securities at higher level or consolidation of the top level when price action shows positive signals. 

sell the securities in a down trend when bearish signal blink. 

The stock, sector and overall market trend when move the certain direction thus the trader should take advantage. the overall market position and individual sector performance should be counted before take positions. 

The trading is not only a skill, it is a mind game who can understand this market function they will only be a successful traders always.