[Amida-style: Mastering the Market with Volume Profile] Lesson 1: Price Action — What You Need to Know About What Lies Behind the Price before You Start Trading

1. What is Price Action?

Hello everyone!

If there were a way to read the movements behind a chart without using indicators, would you want to learn it?

Today, I will discuss the essence of “price action” that many traders overlook.

Price action is the technique of reading a “clean” chart without relying on indicators.

Many people tend to focus on candlestick patterns, but I view charts not as a collection of characters or words,as a single continuous story.

This story speaks of the battle between buyers and sellers and the flow of money.

I believe it is very important to pay attention to the price movement itself and the forces behind it.

2. Why does price move?

Many think that price moves because there are more buyers than sellers, but that is not necessarily true.

Price moves because of traders’ proactive actions (aggression). When buyers want to place orders immediately, they use market orders.

This is a strong intention to execute a trade now at any price.

Sellers do the same, placing market orders when they want to sell right away.

This causes prices to rise or fall.

For example, suppose a major news event impacts the market.

Large institutional players like hedge funds will place enormous market orders to seize the opportunity.

Their strong desire to trade now is a major driving factor behind rapid price movements.

In this way, the actions of large traders who act immediately create price fluctuations.

3. Who is moving the price?

The question “Who is moving the price?” may feel a bit abstract, but it is very important in trading.

In fact, about 80% of turnover in the forex market is held by ten major financial institutions.

They are the ones who control and move the market prices—the true players.

The same can be said for the cryptocurrency market as well.

For example, 4.11% of Bitcoin addresses own 96.53% of the circulating Bitcoin.

This shows that a very small portion of participants has overwhelming influence on the market. As individual traders, we cannot manipulate the market within this large current.

However, this is not bad news. While we cannot control the market, we can benefit by understanding the movements of the big players and following their actions. Their moves appear in price and volume data.

4. How do we track them?

So, how do we “read” the movements of these big players? It is by watching price and volume movements.

These data hint at what institutions are doing regarding past actions, current trends, and future decisions.

Understanding their moves and adjusting our own trading strategies accordingly is the key for individual traders to succeed in the market.

Conclusion

For me, price action is not just a chart-reading technique.

It is a way to understand the essence of the market and the movements of the “real players” who drive it.

If you understand this deeply, you will approach trading with a firmer foundation and greater confidence.

Thank you for watching! If you have questions or comments about this price action content, please share them in the comments.

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