Price action trading is the art of reading the market based purely on historical price movements rather than relying heavily on lagging technical indicators. Among Indian traders, Sunil Gurjar, the founder of Chartmojo, has gained significant recognition for simplifying these concepts.
: Price moves sideways within a defined range, showing equilibrium between buyers and sellers. 2. Support and Resistance (S&R)
Trading financial instruments involves significant risk. The information provided here is for educational purposes only and does not constitute financial advice. Always do your own research or consult a licensed financial advisor.
This guide breaks down the core concepts of Sunil Gurjar's price action philosophy and explains how to build a sustainable trading framework. Who is Sunil Gurjar?
Maintaining a positive risk-to-reward ratio (e.g., 1:2 or 1:3). 3. Keep a Trading Journal Price action trading is the art of reading
: Stripping away messy indicators like MACD or RSI.
The book is structured to lead readers from basic concepts to actionable strategies through a simple, non-technical narrative. Key Technical Tools
To trade like an institutional professional, adopt a structured top-down analysis workflow rather than relying on isolated chart patterns.
Before clicking the buy or sell button, establish your exit parameters. Always do your own research or consult a
: Detailed explanations of patterns such as Hammer, Shooting Star, Marubozu, and Engulfing. Chart Patterns
: Supplement your learning with definitive textbooks like Price Action Trading Secrets by Rayner Teo or Bob Volman's works on price action scalping. If you want to fast-track your chart analysis, let me know: What timeframe do you currently trade on? Do you prefer swing trading or intraday trading ?
Price Action Trading is a method of analyzing and trading financial markets based on the movement of prices, rather than relying on lagging technical indicators (like RSI, MACD, or Moving Averages).
: Advanced or professional traders may find the material too basic, as it focuses on establishing a strong foundation rather than complex algorithmic strategies. Where to Find It establish your exit parameters.
A common mistake beginners make is buying a breakout the exact moment it crosses a resistance line. This often results in getting caught in a "bull trap" or false breakout. Advanced price action dictates waiting for the price to break out, reverse slightly to the old resistance level (which should now act as new support), and show a bullish rejection candle before entering. This significantly reduces risk. 3. Confluence Zones
Spotting reliable formations like Head and Shoulders, Double Bottoms, and Triangles to anticipate major market breakouts or breakdowns.
: Covers essential psychology and techniques like position sizing and trailing stop losses. Amazon.com
Instead of searching for unofficial PDFs, utilize the official channels where Sunil Gurjar shares up-to-date knowledge: