Price Action Trading For Binary Options in IQ Option or Olymp Trade or Binomo - #binarypriceaction

 As the words suggest Price[space]Action, the term has to be broken down to understand the definition practically. In simple words, Definition of Price: is the value of a stock or currency or asset at the moment. Just like today's gold, silver, or USD value with respect to any other currency. Definition of Action: is the movement of this price to a higher or lower value depending on supply or demand (in terms of stock) or increase or decrease in the economy (in terms of currency). The term 'price action' also includes a factor of time which basically is not visible by name but has to be considered to predict the direction of the price. That's why price action is the movement of an asset's price to a higher or lower direction within a given time period. The time period could be 1 Sec to 1 Year. While you read these lines, the price in a live chart under a 1-sec time frame would have moved up and down 20 or 30 times. Yes, this is how fast price moves when you see it

Answer: Firstly, relating the retracements concept with the help of real-life definition is key to understanding retracements. Definition of Retracements with real-life know definition:    In real life Price Action,  Retracements should be compared with Newton's third law of motion that is "For every action, there is an equal and opposite reaction".     Similarly, retracements in Forex or stocks trading are the same where buyers from the  buyer's  area take action and sellers from the  seller's  area react and vice versa. The thing we should note here is whether the reaction is equally opposite or not.   Now if sellers in those areas are weak then their reaction is not equal and the major trend continues. I.e.  Buyers again react to sellers' actions. This continues until the reaction of one side (Buyers or Sellers) becomes equal and then starts dominating. This is what we also know as Momentum Shift.   Momentum and Trend are the most influencing factors in tr