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Hello steemians good evening. How was our day? Hope we are good. It is my pleasure to make my entry for this week's lesson on Price Action and Break-Even Technique.


![image(2).png](https://cdn.steemitimages.com/DQmafzE1xmRtApSs6ZCptMMw3HGz6JodMmU7F1eaSYCMFzH/image(2).png)


Question 1: Define in your own words what Price Action is?

![image(1).png](https://cdn.steemitimages.com/DQmUziS9khLw8otxEN3E3Jb9zPsZrpWkEzE6HZv9YC1xpcx/image(1).png)
[Image  source](https://tradingview.com)


This is the study or critical examination of the movement of price of a given digital asset on a daily basis or real time, which can be one day, a week, month or even in an hour, instead of using past price action or past history. This process involves taking a closer look at the behaviour of all those taking part in a market, the history of price, where it is going next either high, low or at elsewhere.

Going further, a trader get a full detail of the opening and closing price of a given asset in the market, whether the price is high or low for a particular duration. Therefore, by means of this price action, a trader will be able to interpret the actions of buyers and sellers and the other active participants and to make the best decision in trading.

This study or analysis will also help a trader see the motive behind his choice to trade in a given market as he will know the likely outcome of a trade if it is moving up or down. From this he will determine how to trade, understand the price levels - when to enter or exit the market, to stop the loss or target, so that he will be able to reduce losses and avoid some expected actions that usually happen in the market.

This vital analysis no doubt aid the trader to know what he can gain from the trade, if it is short or long term trade. By so doing, he will make the best of profit and not to panic if he experience any loss.
Worthy of note is that price action does not use any of the technical tools in its analysis, as it base its study on action or reaction of price on daily basis.

![5.jpg](https://cdn.steemitimages.com/DQmZKqLzqvko4B5sKhimn36JDaSNZuVvnrp6o9k8F712V26/5.jpg)

Question 2: Define and explain in detail what the "Balance point" is with at least one example of it. (use only your own graph)


![image(3).png](https://cdn.steemitimages.com/DQmWWZarAhQnnL2moge3hMJVJXXd74dXXjStQLcfAZv3vr1/image(3).png)

[Image source](https://metatrader.com)

Image of source
Balance point is the final candle that is connected in a force of given trend. For instance, in a high high and high low trend, the final candle connection at this point in a trend cycle.

Then to see it easily, we at each force, we sketch two horizontal lines, one on top of the candle and the other at the base of the candle. This will help us to establish our equilibrum point in order to in other to enter or exit the market or carry out trade action.


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Question 3: **Clearly describe the step by step to run a Price Action analysis with "Break-even?""

Step One
it is imperative that I select a period of time that will suit me, so that i will be able to monitor what happens to my trade, and if i am also hitting the target. I selected 1 hour 30 mins as I am also trading on daily basis. 1 hour will help me to view price direction and then with the 30 minutes, I will know if I getting profit or not.

Step two
As I have taking my time period, I will use the longest time to show the vital areas where price reacted from the graph and then indicate them with horizontal lines. That is the area price of my digital asset want to stop going down (support) and the area where it stop going up (resistance).

And to know from my graph if the price reaction is a minor one,, which may tend to break or is it a major one, which may lead to the price going to other direction. These points of note are very important as they aid me to see exactly where i can make profit.

Step three
As i establish the above steps, then i will be on the watch out to see how the market is going or the behaviour of the market. Thus, based on the cycle I am, I can spot the equilibrium points. From there I will know when to enter the market or trade.

With the absence of technical indicators, price action analysis will tell me what is happening to price presently. for instance, If i want to trade today, price action technique will give me the true picture of price that same day, instead of using yesterday's market condition to analyze today's situation. In fact, it is a very efficient strategy.


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Question 4: What are the entry and exit criteria using the breakeven price action technique?

The yardstick for entry and exit with the aid of break-even price action are:
Entry criteria
After the examination of the break-even point and reached a successful conclusion and also clearly identified balance point from our candles that make up this points, the next step is nothing but to enter a trade. This means that a careful study of the price action - how the market behaves will determine the entry point.

When we compare or contrast the time frames we have chosen, it will assist us to know exactly the condition of the market in terms of price and then be able to enter a trade. Thus, when we see a positive signal from our graph (daily and weekly), we enter the market.

Also studying the order of highs and lows strategy will aid in making entry decisions in the market. Like, if the price is trading on upward trend, that is on higher highs and higher lows or downward trend, which is on lower highs and low. From this arrangement,a trader will know that the best entry point is when the price is at the lower end of this trend.

Exit Criteria
The exit point can be spotted out when we track or follow the stop loss. We should be able to detect at what point the asset experienced higher gains. That is, when there is a selling pressure on top of a given price.

This stop loss can be further be found just few distance away or below the candle that make up the break-even point. Hence, if we assume a length of 2% from our entry point, then the exit point will be exactly at the distance of 2%



Question 5: What type of analysis is more effective, price action or the use of technical indicators?
Price Action is more better than technical indicators, with the following points:

Price action look at the actual price instead of moving average.
price action depends on price movements of an asset in a giving time frame to know the future of price of this asset.
From the price action indicators on a trading chart, traders can quickly act or make a trading decision (entry or exit) in the market in real time. Unlike technical indicators that uses various calculations including the past ones to tell future price trends or movements.
It deals with market participants.
Its indicators are open for everyone to see and use like the support and resistance points and others.
It requires less time to make research on the market situation.
A trader will see good entry and exit points that will lead to huge success of a given trade.
Traders can decide to use any of the price action strategy that suit them
Price action can be carried out on simulators.


Practice:
Make 1 entry in any pair of cryptocurrency using the Price Action Technique with the "Break-even Point" (Use a Demo account to be able to make entry in real time at any time frame of your choice).

Practical Session -Demo Account on Trading View

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[Image source](https://tradingview.com)

I used the pair of BTCUSD as my pair from trading view.
my username that allowed me to use the site is AmazingJah and then set up the trade.
I choose profit at 70 and take loss at 22. You can see the result of my demo account from the image above

![5.jpg](https://cdn.steemitimages.com/DQmZKqLzqvko4B5sKhimn36JDaSNZuVvnrp6o9k8F712V26/5.jpg)

**Conclusion**
Price action techniques is a very vital tool in trading assets. Its importance cannot be overemphasized. A trader can quickly and with less stress make a good trading decision. All that is needed is to study and learn the techniques, so that he can trade on daily basis and know when to exit the market to avoid much loss and heartaches that always come from unforeseen failures from the market.

Thanks to my professor @lenonmc21 and to the admin.

[Reference](https://dailypriceaction.com)
[Reference](https://ig.com)
[Reference](https://thebalance.com)

cc @lenonmc21

This is the link of my original post:
https://steemit.com/hive-108451/@goodspeed22/price-action-break-even-technique-crypto-academy-s4w4-homework-post-for-lenonmc21-by-goodspeed22

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