Category: Price Action

What Happens to Options When a Stock Splits

What happens to options when a stock splits? After a company sees a significant increase in its stock price, some will consider a stock split to keep the per-share price at a range where more buyers will have the ability to buy shares.  Some trading platforms still provide access to nearly any company with fractional…

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Choppy Market

When you’re a trader, you’ll quickly have to deal with a “Choppy Market.”  A choppy market is one without any clear direction and guess what? Eighty percent of the time, a market is choppy.  These flat chart patterns can be seen in nearly all asset classes (stocks, futures, and even cryptos). By their nature, choppy markets…

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Price Channel

Think of a price channel like a river. Similar to banks that contain water, a channel contains the price. We have ebbs and flows in price, just like the water weaving through a channel. To identify it on a chart, just look for the parallel lines that bind the stock’s price. Depending on which way the…

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Price Action Trading Books

Luckily, there are a few price action trading books on the market that are rare gems. Sadly, hundreds of books are out there on trading and most of them not worth the paper they’re printed on. At best, trading books should provide the user with specific trading strategies that are simple to implement. At worst,…

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Price Action Trading

Price action trading is a method that garners a great deal of respect in the trading community. There may be thousands of types of trading techniques. However it’s quite common for most veteran traders to give a tip of the hat towards a fellow price action trader. That being said, we can break down traders…

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