Price action is often considered a crucial element in trading because it allows traders to make informed decisions based on direct observations of past price movements without relying on lagging indicators. Prioritizing price action means that traders focus on understanding and anticipating market trends and reversals through patterns and price movement signals. This method provides real-time insights and helps traders react quickly to market changes. While some traders might prioritize fundamentals or indicators, many argue that being adept at reading price action provides a more accurate and timely representation of market sentiment, making it a top priority for those looking to refine their trading edge. Nevertheless, the importance of price action can vary depending on a trader’s strategy, goals, and preference for using other analytical tools.
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