Unknown Indicator

Price Action indicator evaluates an asset for a given trading period using the following formula: ((close - open) + (close - high) + (close - low)) / 2. This indicator is consistent with the interpretation of Japanese candlestick patterns.
Price Action Indicator (or PAIN) was developed by Michael B. Geraty and published in 'Futures' magazine in August 1997.

Price Action Indicator In A Nutshell

A price action indicator will help you determine the price action of an equity, which may be that price tends to move a certain length to the upside before moving down, or that it moves more on one day than another. Price action is something to really sink your teeth into and understand for your investments.

Price action is a basis for many peoples trading and investing methodologies. Price action is simply how a price of an equity tends to move. There are different candles that can be used in charting, but all of which can help you find price action.

Closer Look at Price Action Indicator

An example of price action is in range bound trading, which clearly has a defined support level and resistance level. The price action indicator could help determine if price is going to continue to honor those levels. If you follow a particular equity for a certain length of time, you can begin to understand the price action during certain situations.

Some great tools to use with price action indicators would be oscillators, which cycle up and down with the movement of the stock or equity. Other tools to use could be Bollinger Bands or standard deviation levels, as all of these could give you an increased edges in your predictability of the market.

If you get stick or need instruction, first search the Internet because there are many websites and videos that can show you how to properly implement these tools. Take time to get to know them on a demo account, trying out new things. If you get stuck, reach out to an investing community and bounce ideas off of them as they can give you real time feedback. If in the end it still doesn’t work out, then at least you have the knowledge in the back of your head incase you need it later down the road.

Price action is important to understand as it can help you better identify trends and how a stock moves in relation to certain situations. Hone in on price actions to give yourself a better edge and at least get a better feel for your chose equity.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Momentum Thematic Idea Now

Momentum
Momentum Theme
Large corporations operating in software, education, financial and car manufacturing industries. The Momentum theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Momentum Theme or any other thematic opportunities.
View All  Next Launch
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities