Top 5 Crypto Fintechzoom Price Action Analysis
In this article, I will discuss Advanced Price Action Analysis Crypto Fintechzoom Trading. This is a continuation of our previous article, so please read it before proceeding to this one. In that article, we discussed the basic concept of Price Action Analysis in Trading. As part of this article, I will discuss the following pointers in detail.
- What are high and low?
- What is the swing high and swing low?
- Criteria for drawing swing high and swing low
- Types of swing high
- Strength and Weakness of Trend through Analysis Swing.
Let’s begin
Understanding Market Structure Using Crypto Fintechzoom
Learning a new alphabet is comparable to this: once you get the letters, you can read the words, and once you know the words, you can read the narrative. You can find out what market activity leads to the establishment of a short-term high or low in the first letter to the master. Once you grasp this fundamental idea, the significance of every market structure will start to become clear.
We refer to the market’s movement as an up-and-down wave as a market swing. A robust bull trend typically has an upswing that is longer than the downswing. For the bear market, the opposite is true. As a result, we can see the market structure and determine whether the market will rise or fall by analyzing market swings.
Swing high and swing low.
Criteria for drawing swing high and swing low
SWING HIGH OR SWING LOW CONSIST OF MINIMUM 5 BAR. The middle bar must be higher and lower than the two proceeding bars and the two following bars.
Restriction for drawing swing high and swing low Crypto Fintechzoom
- If the bar high is parallel to the middle or high(LOW) bar, it does not count as one of the five bars in the swing HIGH (LOW) because it does not have a lower high(HIGHER LOW) than the middle bar.
- TWO ADJACENT swings high or swing low may share bars
- A swing high
- B both swing high and swing low. This happens because two proceeding bars and two following bars are inside bars, which fulfills the requirement that the middle bar must be the highest or lowest point of the bar sequence.
- C both up and downswing by sharing bar
- D requires six bars to form a swing high, as the fifth bar equals the middle bar.
Why important?
The market determines these points, thus they are not arbitrary. They stand for supply and demand dynamics as well as fleeting shifts. The market was unable to rise above the swing high by the bulls. This indicates that no one was prepared to make an offer at a price greater than the swing high at that particular moment. As the swing high approached, traders saw little value.
In a nutshell, there are two key skills in reading price action:
- Evaluate how likely a swing pivot will hold up as support/resistance
- Understand the implication of a swing pivot not holding up as support/resistance
Swing types
There are two types of swing
- High and low
- Swing high and swing low
Let me explain to you
Swing low(SL)
The market attempted a downward move. It then came to an end, and the bullish trend continued. The market made a new trend high and broke through all resistance, or the swing high. Stated differently, the market abjectly failed to decline. Swing low is the lowest point it pushed to.
Tip: A valid pivot makes sense only within the trending price action. To find a valid low, you need to know the start point of the trend and the last extreme trend high. Then what about point B? Point B is called a LOW, not a swing low
Swing low
Every significant market experiences brief retreats and one-time swings. the moment at which a deeper downturn that continues for multiple swings forms a LOW. This stronger retreat eventually came to an end, and the trend continued. Once the price breaks above the previous extreme price high for the continuation of the bullish trend, a low turns into a swing low. Allow me to clarify.
All the concepts discussed above are applicable for a swing high and high
HOW TO KNOW WHEN LOW BECOMES SWING LOW
When the price cleared, the above swing to a high level. The market must form a price bar completely above the price level to clear a price level. This means if a bar low is higher than a price level, the market has cleared above the price level.
EXPLORING MARKET SWINGS via Detailed Candlestick Reports
We now know how to determine swing high and swing low.
Let’s use a swing analysis to examine trends, strengths, and flaws.
- Momentum
- Thrust and pullback
- Volume
The rate at which price moves with respect to time
In order to evaluate the current pace and acceleration of price movement with its historical speed and acceleration, we are watching price activity. When the slope (angle) of price movement is noted on a chart, momentum can be seen.
Chart price action follows the same idea. Shifts in the price action’s slope, or angle, indicate changes in momentum.
When analyzing momentum, one should compare the momentum of the present price movement with that of previous price actions rather than attempting to measure momentum in absolute terms.
We can compare through.
- Candle
- Swing
Momentum through candle
Compare the current candle’s momentum with the previous candle’s momentum.
BAR COUNTING
- calculating the number of bars in a half cycle and contrasting it with an earlier half cycle
- evaluating each swing (move’s relative power)
- How long should one stay down or how long should one stay up?
Momentum through swing
- In the same direction, compare the momentum of the current price swing to that of the preceding price swing.
- The momentum of the current price swing should be compared to the momentum of the preceding price swing that went the other way.
- Is the price currently rising or falling? What is meant by that?
In the same direction, compare the momentum of the current price swing to that of the preceding price swing.
Now, let’s remove the downswing and study what it shows. Is the price faster or slower than before?
Examine the UP-swings (a), (c), (e), and (g)’s slopes. Observe how each of these legs has slowed down in speed, suggesting a drop in bullish momentum. It appears that the bullish side is weakening.
Clearly shows upward momentum decreasing.
Now, putting the same chart with only downward momentum
Compare the upswings (B), (D), (F), and (H) in terms of slope. Observe how each leg’s pace is rising, signifying a build-up of bearish momentum. The bearish price fluctuations are getting stronger.
A rise in negative momentum is shown by COMPARING THE SWING. Price movements that are bearish are becoming more pronounced. It is more likely that the price will continue to move in the direction of strength rather than weakness.
The momentum of the current price swing should be compared to the momentum of the preceding price swing that went the other way.
In other words, contrasting the present bullish swing with the bearish swing from earlier or the current bearish swing with the bullish swing from earlier. Keep in mind that (a) has a much steeper slope than (b). Comparing the most recent upswing (b) to the preceding downswing (a), weakening has been evident. The strength is still pointing downward.
The bullish upswing (d) is moving faster than the previous downswing (c). However, the strength is currently leaning toward the positive side. Strength is now unquestionably on the bullish side, as seen by the small angle of downward momentum relative to the sharp rise of upward momentum.
The price movement is expected in the direction of strength and against the direction of weakness.
Is the price currently rising or falling? What is meant by that?
The deceleration in this example is evidence of bullish momentum gradually weakening as bearish pressure overcomes any bullish pressure.
In the next article, I will discuss Thrust Pullback and Measuring Move Analysis in Trading. In this article, I will try to explain the advanced price action analysis in trading. I hope you enjoy this article and understand the concept of advanced price action analysis.
Please join my and YouTube Channel as well as my Facebook Group to learn more and clear your doubts.
