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.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Momentum Idea
Momentum
Invested over 70 shares
Chemicals Idea
Chemicals
Invested over 40 shares
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

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Global Correlations
Find global opportunities by holding instruments from different markets
Equity Valuation
Check real value of public entities based on technical and fundamental data
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios