What is PRICE ACTION Trading ?
Kanishk: Multi-Timeframe Strategy
A multi-timeframe approach is essential for price action trading, involving analysis across 4-hour, 1-hour, 15-minute, and 5-minute charts. The 4-hour chart is used for marking major levels, the 1-hour chart for identifying trends and patterns, and the 15-minute chart for building a trading 'story' or plan. Finally, the 5-minute chart is where entries are executed. This structured progression ensures that trades are based on both broader market context and precise entry signals.
Kanishk on 'Buy on Dip' Strategy
The 'buy on dip' strategy involves waiting for a price to pull back to a support level or a significant low after a period of consolidation or a minor downtrend. Once the price shows signs of bouncing back, traders can enter a long position, ideally after a small pullback or confirmation candle, with a stop loss placed below the entry point. This approach aims to capture upward momentum after a temporary price decrease, maximizing potential gains with controlled risk.
