Price Action Trading like a Pro - I share my best tips after 14 years

in this video i'll show you the best price action trades that have happened over the last few weeks and i will show you exactly what to look for in a market and how to find those patterns because those trades and those signals happen over and over again and whether you trade forex whether you trade bitcoin indices stocks or commodities those are very very important patterns and you'll be able to find those trades and those signals over and over again so let's get into the charts so we are starting with the first and really fascinating trade study that happened here over the last few weeks and let me break this chart down step by step and we'll see why this is so fascinating and this happens over and over again so you can see the market is in a strong uptrend and we are clearly have been moving higher one thing that you don't want to see if you're long and the market is an uptrend you don't want to see really steep and long consolidations so if the market is suddenly turning around and making a very deep push against the overall trend direction that's a sign that there's probably a lot of profit taking going on a lot of traders who went long here probably had a good amount of profits and then as the market topped more people realized their profits and that is contributing to the sell-off then what happens afterwards is very interesting because now we can really nicely follow this buyer and seller dynamic and suddenly we see a lot of weakness in the market here you can see the market is returning here to the previous highs and not immediately breaking through it but eventually we do break through it but the breakout here is where it gets really interesting because the breakout that we're having is a very weak signal it's also kind of a fake out right so when we look at the low the highs here we can draw the level and then you can see here we have some resistance the first sell-off and then the second time and then the market try to break above this area try to make a trend continuation to confirm and further advance this uptrend right but what happens is that the market within the next candle shows a very strong rejection you can see the next candle is almost an engulfing candle very large body very wide wigs and that is a very strong selling indication then afterwards it's not a complete reversal yet because you can see this is the last swing low that the market is defending for now at least so we have our support here and this is now going to be the key what is the market going to do here we have a little bit of a hint what might come next because of everything that we're seeing here we have a very weak high and then here you can see that we have a lower high so from this point from the breakout which seems to then turn into a fade breakout we are now making lower highs let me get rid of this and extend the zone and you can see this is now an area that is seeming to hold as resistance and now this push here seems like a failed buying attempt right so a lot speaks for more selling to come but you don't want to be sure just yet because there's still a chance that this is not a complete reversal and this could still hold very well as support and we're going to see continuation however there is a very high chance we're going to roll over because of all the weakness that we are seeing and for that we have to create our trading plans and one thing that we could do is if you are a breakout trader you would just wait for the market to clear this area and then get into a breakout trade and just short it right away or you wait for the pullback you would like to see the market get below the level ideally also you would like to see a good push away from the level then a move back into this area so support turns into resistance and this is then where you look for shorting opportunities into the downtrend and those pullback traits they offer a much better reward to risk ratio because you are easily able to time your trades very specifically and very targetedly to this support area get a closer stop get a better entry price and therefore also a larger reward risk ratio so let's see what the market does and what we have here around this area so you can see breakout traders are probably going to jump in here at one point and you see a push further away which is good and it is not uncommon to see a re-test those areas are just so common for re-tests i've been trading breakouts and pullbacks for over 10 years and one of the big problems that i see is break even stops a lot of traders if you get in here on the breakout right you go in short then your stop loss is maybe initially here but then you move your stop loss to your break even spot so here is your break even target stop loss sorry and everybody will know about this because it's just so obvious that's how majority of retail traders structure their trades so it's very common to see push back into this area and if you are having problems using a break-even stop that could be an issue and that could be the reason because you are just moving your stop loss too soon at a very obvious area so let's see if we can get back in here get the stop run and then look for buy a selling opportunity and you can see we poked through the area and at this point we seem to be really turning support into resistance so at this point we can go to a lower time frame whatever you want to do we're on the daily you could go to one hour and look for patterns look for timing your entries for example what do we see on the one hour we have here our little consolidation in this form of whatever this is not super clear but we do have a trend line here to the downside which is going to help us a lot we could also probably draw a level in here there seems to be some agreement on the level 93 the round number is somewhere in here and now on the lower time frame we can very nicely time our trade because now we have this entry point we already know from the higher time frame the big picture perspective that we are short or in a short market rather and now it seems like we even have this head and shoulder pattern if you can see it let me just draw it and then change the color and let me find it here it is and we have the head and shoulder right left shoulder the head at the top and then the right shoulder and here this could be our neckline so a trading plan now on the lower timeframe would be getting short on the breakout here let's see if we get something like that seems like the right shoulder is still in progress we see a lot of selling coming in this is a good sign we also have a lot of selling here from the distance from the head to the right shoulder which is very good we want to see more strength on the bearish moves and not so much strength on the bullish side and now it's just a waiting game and at this point is probably here or one can later if this breakout is not convincing enough for you you could wait one hour one candle more but sometimes the market will just take off so if you are aggressive with your entry you have options your stop loss all the way above the head maybe a little bit too conservative or you can be a little bit more aggressive put it above the right shoulder not right at the right shoulder because it's very clear where the right shoulder is so you can have some protection here move your stop loss away and then for targets we have options do you go for a fix two to one three to one do you look left what are your target levels maybe we could even target all the way down here probably in here is some type of supply and demand area so probably what i would like to do is get out here well before the absolute low or just at least see how's the market reacting around this area and if we see that the market is bouncing if we get there still we have no idea if we're going to get here but we have to think about the trading plan in advance and we have to know what are we going to do in certain situations just it will help you a lot with your confidence and a lot of traders if they don't have a trading plan if they don't have an exit plan they're going to trade very emotional and very inconsistent so we do want to watch what happens here at this area and also here and if we see weakness and some bounce maybe we want to take profits or partial profits otherwise we could think about writing this trend for a long time because we get the direction from the higher time frame and if we see a trend change on the higher time frame those sometimes move for a very long time but first things first let's see where we go and if we do get a breakout so you can see we're struggling around the breakout area a little bit okay we seem to have a dirty retest and the market seems to be moving now all right let me zoom in you can see the first demand area supply is coming soon another push very deep but the good thing is previous support is still holding as resistance if this structure would be violated i would get a little concerned but for now it's all right and you can see we are seeing a push here so if you have your first target here that could have been your target you could for example think about closing 50 of your position maybe moving your stop loss to another area and whether you move your stop loss in such cases you could go for the highs or we could turn on maybe the pivot point so what i like to do is look at the weekly pivot point which is up here it's not helpful the daily pivot point is currently here the black area so what we could do is move our stop loss to here so i don't care if it's above break even or below break even i want to have a stop loss that makes sense in the charts and the pivot point does make a lot of char a lot of sense let me double check yeah here's the pivot and let's see what happens next you can see we have the lower bounds we break through the next area and then the market really fell over so there are many ways how you can structure the trade and i hope you learned something this is a pattern that is really really common and you can see now we have a little bit of a longer consolidation so if you have not taken full profits those are things that are often not ideal the longer such a consolidation takes the less likely it is that we're going to see a resume or a continuation of the downtrend the longer such a sideways consolidation lasts the more likely is either we gonna drift and keep going sideways or we reverse but long consolidations rarely lead to more downsides or more trend continuations and you can see we're breaking levels we're breaking into new highs and you can see that's not a good sign so really nice trade study and this is a pattern that actually happens quite a lot and it's really nice to trade this top down you can see the first one would have been a two to one reward to risk ratio the second one here a three to one which is decent next we have a very interesting long term channel example and what we have is when we zoom out clearly the market is in an uptrend here it seems like we bottomed out and the market has been rallying higher consolidation breakout consolidation and now the market has been in this channel right we have two trend lines they are both very nice we have three touch points on the top which is a confirmed trend line and we have three touch points on the bottom side the most important thing is that we never want to trade a channel in the center so you always have to wait for the market to get to one of the ends to make good trading decisions or to find good trading opportunities trading in the middle of a channel is not recommended because in the middle that's where you have all the barriers and you can see we find a lot of problem zones here if we just look so trading in the middle of a range is going to immediately cause a lot of problems for your trade so we're just going to wait and see which area the market is going to hit first the load side or the upside and you can see the market seems to be making a run at to the bottom side you can see we're not coming close to the channel yet or we're not reaching the trend line but now all right so this looks like a really strong breakout and it is really strong breakout however premature breakouts or unconfirmed breakouts are very advanced techniques so what i would recommend doing is if you want to go short like in the first example wait for a re-test c if previous support is actually going to turn into resistance and then look for a short here you're going to run often into a failed and fake breakouts with those types of situations and keep in mind we are still in an overall uptrend right so this market seems to be more bullish than bearish so if you want to go against the trend direction and we're going to go short you need extra confirmation so let's see what is the market going to do and do we get a complete trend reversal and change the direction for now you can see a little bit of a continuation and now we're seeing bullishness so we really want to see what is the market going to do here and you can see this is exactly what you don't want to see and this is exactly what's going to happen many many times the market gives you this beautiful breakout candle you've probably been waiting for a long time to get out of the channel everybody's been talking about the channel and then because you have been waiting so long and you cannot be patient anymore you jump on the short and then two cabins later you wish you had waited as you should have and now it looks like a really strong buying signal those fake outs when the market gets out of the channel and then within just two candles back inside the channel that's a very very strong fake out signal so at this point i would resume my bias too long i really would like to go long at this point because we are in an uptrend we have seen the fake out and we are seeing huge buying into the market so what you could do at this point is go to the lower time frame again and look for anything that really can help us look for patterns look for any breakouts pullback scenarios look for levels and when we look for a level this one i think stands out right away it's below the 129 so previous support is here on the resistance and the market is currently trading into it also another interesting thing is here this push is very strong obviously and bullish right we're moving higher no surprise and no secret but if you see that the market has moved a lot that makes the likelihood of a pullback very likely or more likely because the longer the market is going on the higher the likelihood that we're going to see a pullback and that's why if you see that you are looking at a strong trend wave you never want to get in right away you would like to wait out the next pullback and then see where's the impulsive wave starting getting into the trend waves is the way to go if you want to be a trend following trader don't chase long trending waves there's a huge likelihood that we're going to see a pullback and you can see the market is pulling back now it had was ranging before but now we see the pullback and let's see where are we pulling back into and when what if we get more bullishness for now not much and now you can see we are probably here having this consolidation and the breakout so now let's think about trading plans trading plan one again breakout trading plan two breaking retest those are usually the options that you have in those situations especially if you have such a nice level like the blue zone here and you can see what we're doing we're pulling back further and further and that's why you need to have a trading plan you never want to get in just because your higher time frame looks a little bit more bullish than bearish you always want to make sure that you are clearing structures that you're clearing levels so now we are in a very very nice long sideways phase and we are almost breaking out but we really want to see that you are closing above this level this level is quite strong and it continues to be strong so we really want to see that we are closing above it the close is here really the key and if you have been using pending orders for breakouts let me know in the comments how this is working my guess is probably not so much not so well even though you might be able to get a better reward risk ratio sometimes pending breakouts are usually a losing strategy so let's see do we get it yes we do have the higher lows we have to break out you can see we keep making higher lows we are finally able to get above this level so at this point you could think about the breakout entry and you could go long or you could just wait for the pullback which would be my preferred way we could turn on maybe the weekly pivot you can see it's up down here not helpful the daily pivot is down here so we could just move our stop loss below the daily pivot which is a good level as a target and then looking left we have options for targets we could be very optimistic and target the upper trend line for example so we want to definitely have our target before the trend line is hit and not be too brave initially we could still try to trade if we see there's a lot of bullishness coming into the market we could evaluate and see are we getting in here and if we get here or when we get here do we see signs of weakness coming into the market or is the market still strong but first things first is the breakout succeeding but we now have a good trading plan ready right so let's see of course that's ideal and if you're a pullback trader that's also not bad because as a pullback trader this is probably exactly where you want to get in you can see some weakness and we are struggling so now we are in this box a post breakout box not super uncommon and we need this momentum if we get above this it's going to look really bullish if we don't get above this and we make a triple top i would maybe consider taking partial profits a triple top is not ideal it's quite a strong bearish signal but we are getting above the level which is now a big confidence boost we are retesting the level with a lot of bearish force you can see it's a struggle but let me speed it up and let's see okay this looks good all right and now it's going to be interesting because we're moving into the trend line a lot of traders will be aware of the trend line and the more and the more obvious something like that is like the level the trend line the channel the more people are probably gonna think the same and gonna think about if we see weakness i will take profits and then it's a chicken game who's going to chicken out first and then once you see that the first traders are taking profits and that leads to weakness more and more traders are going to take profits so sometimes this can lead to a very quick turnaround at those areas because they're just so obvious but for now the market is turning around we have this quadruple top which is not super good for a bull but it's not very bearish so at this point what you could do is move your stop loss from here to below this area and you could still lock in some nice amount of profits something like a 2.3 r which is really good but let's see if we can get more out of this and we are trading sideways and let's see hovering over and all right so now we're at our trendline channel level and at this point it's get really interesting what's going to happen here for now we have bullishness but you can see the next candle is it re-test yes or no let's see if you are in a long trade and you've not exited your trade fully um it's definitely a place where you could think about first of all being more aggressive with your trade management because at this point you have quite a lot to lose you have 4r to lose so we see that the market is for now able to stay above it and as long as we're above it it's good you could still keep moving in your stop loss move it from where we had it previously to maybe back below the range or back below here the trend line to lock in more profits and then let me just speed it up and you can see we are retesting or penetrating the level moving higher eventually but now it's taking a lot of time all right so really really nice and you can see this is obviously just a very speed up and fast forward version but you get the idea we go from the higher time frame to the lower time frame we look for the signal on the higher time frame that gives us an idea do we want to be bulls do we want to be bears and then on the lower time frame we time it into that direction where we would then be able to get a very tight stop loss in a very precise stop for an optimal reward risk ratio off to the next one this is a very popular high probability pressure breakout pattern and there are so many things that are coming together here first of all when we zoom out obviously we are in a uptrend the market has been moving higher for a long time and now we have a resistance level here and we have here our trend line to the bottom the trend line is sloping up which is really interesting because the trend line is sloping up means that the high the lows are coming up the lows and the low this low and this low and every low is higher than the previous one which tells us that there are more buyers than sellers because every time the price declines and moves lower you see that buyers are coming in and buying this up sooner and sooner so this gives us an idea that there are a lot more buyers than bears and we have so far not a lot of signs of profit taking so this is a very clear and straightforward pattern if you see something like that the only thing that you need to do is the hardest thing in trading which is weight and we really want to wait for the market to clear the highs we want to see the market get above the highest here and we have this precise level here that we can use there's no question those are the two highs that the market has put in and we need to get above them we never want to trade inside a pattern and you can see here we have a very strong breakout all the pressure that has been building is released now and at this point those patterns they do have sometimes a pullback but those pressure patterns they often don't have them so the likelihood of seeing a pullback is not as high as just seeing a straight continuation so those things are trickier to trade i would not even be interested in going to the lower time frame i would even think about trading this right on this time frame and just getting in long on this one you will probably be able to you probably forced to turn this into a swing trade since we're on the higher time frame so you're probably going to end up holding this for a long time let's just zoom out and see do we have any interesting levels yes we have one high here that i'm going to draw in then we have one height that is here probably very strong supply then we have a high cluster here and then here the ultimate height so as a swing trader on the higher time frame look for important key turning points and those are all very key turning points right this level here caused this huge rally to turn around this is the origin for this downtrend here we had a lot of struggle and then started the downtrend as well and this is an ultimate talk so it's important to have those on your charts and then really carefully observe the price at each level so it's hard to say where is going to be our ultimate target we're just going to take it from one level to the next ideally you would like to see the market get into this at least because that's a 2 to 2.5 you can see the first level here is only a 0.7 reward risk ratio because the breakout is very strong this is a small target so ideally we at least have a move into this level here for a good enough reward to risk ratio so i would not bother so much about this level here and which really focused on getting to the next one so you can see no pullback yet and all of this pressure that has been building here you can see where did we move into the pattern maybe here 24th november and 21 and then the breakout is happening in the 11th of march so four months here of sideways range so much pressure a lot of position building going on and then you can see we're breaking through levels and just ripping higher we can see break and retest second level cleared and then you can see we are seeing the reversal so once you get to those big levels it's very important to manage your trade close more closely what i would recommend if you are still in the trade here go to a lower time frame and really tightly try to lock in your your stop loss to avoid giving back too much profits and you can see the market is turning around very strongly because there's just so much going on a lot of traders are sitting on a lot of profits and then the profit taking can sometimes be very significant we're retesting this level again and off we go to the big ultimate level much faster than i anticipated but we made it there and looking for those tight consolidations that stretch for weeks that are very well defined that have this component of higher lows with a trend line they can be really interesting trading scenarios so this is a recent gold trade that i was in at some point and it started when i was seeing that the price was coming closer to this 168 support level you can see when we zoom out it's a huge level and it's really really important so whenever i see the market coming into those levels i keep a very close eye on them and observe the price action very so very carefully so for now what we also can see is that the market has been in a downtrend and the longer a downtrend has been going on what is happening the traders have more and more profits and what happens if you have a lot of profits you gonna think carefully about exiting your trade and you are very worried about probably giving back profits so a small sign of weakness is often enough to scare out a lot of those short traders and then lead to a reversal especially if there is a level like that this is just a prime target here it doesn't get more obvious and a lot of traders are going to use this level for that take profit so we can be quite sure especially in a long downtrend to see some reaction here so let's see what the market is doing and we have here our bullish candle and this is not just a bullish candle but it's an engulfing cattle so at this point i would be really interested to buy but i'm not gonna buy just here without any other context i want to get to the lower time frame to really time my trade perfectly and what we see here is we have a few levels we have this one here we have this level here the overshooting here is okay this looks like a news driven spike so i don't care so much about the violation it's still a good enough level so i'm going to extend this forward here just consult the pivot you can see the weekly pivot i turned it on weekly traditional pivot point is here so really great confluence and we are already we are above the pivot kind of but we are below this area so what i would try to do is maybe look for a break and re-test at this areas so let's see we're on the lower time frame we're struggling with the level and this is great i don't want to see the immediate breakout i would rather see that the market is paying attention to this level one more time just it validates the level one more time here this big zone and it tells me that you are looking at a valid zone you have to run the zone correctly and if we get a breakout above this this is a way more meaningful signal because in the past the market was not able to get above this but if we get above this something significant has changed behind the scenes more buyers less sellers let's see what we have maybe early signs of a lower bounce right we can see the market is building pressure not able to move lower a lot that's a good bullish signal not enough yet we're seeing momentum is this a breakout candle yes it is so you aggressive traders could think about getting into the breakout pullback traders will as always have to wait stop loss well this low is really offering itself so you could put your stop loss below that and then target wise where do you go you could for targets you could look for support resistance you could turn on the supply and demand indicator if you want to get that there's a link in the description it's an affiliate product so here's a big supply level you could think about your target here but you could also think about previous support resistance probably there's something in here as well so we have options for target first target could be here you could also use a fibonacci right so we have fibonacci point a point b but we can see we don't have a fibonacci retracement we don't even get to the 76 which is the 23. so fibonaccis are not helpful because the the breaker the pullback is too shallow so what we get do we get a breakout do we get a pullback and you can see we're struggling all right this looks like a pullback not not but not fully confirmed for now we just see a lot of strength we want to see some bullishness if you are a pullback trader you want to see at least some signs of bullishness and i will show you what i mean this is a good sign of bullishness you see that you have a green candle and a push away maybe a little bit more bullishness would be good of course i remember this trade because i was in it so i know what happened and you can see now we are seeing that the level seems to be holding we seem that previous resistance is turning into support so this is a very good sign if you're a pullback trader and a pullback trader could get in now how would it look maybe an entry here your stubblers in this case could go below this area because we have the breakout area a lot of confluence let's activate our weekly pivot and you can see it is down here so we could choose to put our stop loss below the pivot as well and then we have our same target options first target 3.0 rewatch risk ratio the supply area here at 4.5 so let's see and then we take it step by step and follow the market so you can see we're coming very close and that's why you don't want to have your stop loss right at the pivot because it's just such an obvious stop-loss tool and you can see we are testing it and this is really the perfect example here let me just fast forward to see what happens and you can see we spike multiple times through the pivot so at this point you are probably taken out by the stop loss and by the spikes however the trade has not fully been invalidated and you can see that all of the spikes tried to break through the pivot but were rejected so if you're taking out of course sometimes you will not find a re-entry but at this point you can see we are seeing a lot of bullish momentum and you can see we are able to close above the previous uh highs so we had a close here and a close here in the past right and we have for the first time able to get above this area so sometimes you will have to try two three times and that's why it's important to get good enough reward to risk ratio if your reward risk ratio is too small then if you get in two or three times you're not going to make money long term so what you really want to do is is to find good reward risk ratio opportunities and make sure that your trade idea is still valid the trade idea here at this point right now is still valid because we have so many things we have the higher time frame we have the pivot is holding we have the breakout you probably can also draw some type of trend line in here and then we have our pattern so you can see afterwards the market really nicely unfolded and kept moving higher and let's just first forward and you can see the first level was reached your first target have been hit and now the market is moving back and forth you can see back at the second whoops let me pause back at the second level for a third time struggling a little bit but you can see the market is still making higher lows so here we are still making higher lows which is a good sign we are getting above the pivot point which is a good sign all of those things are still bullish and you can see the second level is struggling as well and very nice study so the most important takeaway about this i think is looking for re-entry opportunities and the most important thing about re-entry opportunities is asking is your first trade idea still valid our first trade idea was a long entry after we had seen the reversal and the the stoppage at the big time at the big higher time frame level and then you can see it is still valid we have here the failed attempt to get below the pivot then we have to break out above the highs with super strong momentum so our trade idea is still valid sometimes your trade idea will not be valid anymore and then you cannot get in but at this point you can see we could have still ridden this trend for a second time

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Views: 649,254

Keywords: Forex, Trading, Daytrading, Forex Trading, FX Trading, Swing Trading, Forex Market, Technical Analysis, Investing, Stock Market, Indicator Trading, Forex Indicator, Price Action Trading, FX Trader, Trading Tips, How To Trade, How To Trade Forex, Forex Trading For Beginners, Trading Strategies, Price Action Trading Strategies

Id: rlWFrKPE-J8

Length: 32min 39sec (1959 seconds)

Published: Tue Aug 16 2022