Simple Tips On How To Read The Markets Behaviour (Most Traders Don't Do This)

traders what is going on welcome back now today's topic is really really important one of the things that i find a lot of traders are able to do is understand the basics of technical analysis that means identifying support and resistance levels marking key levels finding supply and demand levels are they all the same well i guess so then they're also able to identify pin bars wick rejections engulfing candles and decision candles are they all the same i guess so but one thing they don't know how to do is bring them all together now if technical analysis was as easy as it sounds by simply identifying your key levels and looking for wick rejections or engulfing candles then i'm sure the majority of traders will do a lot better and get better results one thing that i found that has exponentially and drastically and hugely trade uh changed my trading is being able to understand the market's behavior not just with structure but also in singular candles and i've seen a lot of success with a lot of my students because they're able to do this also what i'm going to do today is go over three examples on cad yen euro pound and new zealand dollar swiss franc with free market structures we're going to break them down and we're going to identify how to get in to the trades that we have i do hope you enjoy this and you know take notes as you're going along if you need to rewatch it please do and i might as well ask you now while i'm here if you're enjoying the content just take two seconds to hit that like button subscribe if you haven't and turn on those notifications let's head over and look at those examples so the first example we're going to take a look at is on cad jpy now i just want to stop for a second and look at the structure on this mark here now i've dropped in some key levels some major highs and major lows i've got the trend line in there so you can identify the structure of the market and i want you to see if you can dissect what is happening before i do think about what we're looking for now and the reason why we would be looking for what we're looking for because as i said you can come to the markets and it's very easy just to plot in a level here plotting a level here plotting a level here plotting a level here and you just say to yourself well if the market comes back here or here or here i'll just look for any uh wic rejection or engulfing calibers to take the trade but it's not that easy so let's go over the first example this is on the 4h time frame now you can use this on singular timeframe trading which i'm a bit big advocate of or you can use this for multiple time frame uh analysis so you can scale down to get tighter entries it's really down to you but for these three examples we're going to be focusing on just one time frame at a time so the first thing that we need to identify here is the structure of this market had recently broke above a structural high as you can see here now once price breaks above a structural high this is indicating strong bullish sentiment in the market now it doesn't mean that you're going to be able to get into this trade because at this moment in time the market was ranging while the market is ranging you're waiting for price to break out a retail structure you cannot anticipate the breakout now it does take some experience to identify why you would take a buy as opposed to a sell on a breakout but that's not the whole point of this video we're going to be focusing on market behavior so price is failing to break above we finally have to break out here now with a breakout to the upside what we're anticipating the market to do is continue in a bullish trend now our bullish trends forms higher highs and higher lows so at that stage once we start to identify the market create a key level we're anticipating the market to create the higher low that will eventually make the new higher high now we can clearly see that the market did not make the new higher high in actual fact it did create a double bottom pattern and attempted to push higher but as you can clearly see here it failed now i'm failing to make the new hire high we then enter another range the process of taking a trade when it when there's a range is we'll wait for the market to break out and retest structure again they can break up to the upside or to the downside because the current behavior of this market is illustrating to us that there's no bullish or no overall bullish or bearish sentiment in the market rather there's just a battle between balls and bears and we're just moving sideways in other words there's not enough buyers or there's not enough sellers so we're waiting for the breakout we have a breakup to the downside and once price breaks and leaves this level what we're waiting for the market to do is come back and look for a cell now the simple um behavior of the market now has highlighted to us that we can look for a cell because we were in an uptrend we created a higher low that failed and we have a range that we're waiting for the breakout and retest to look for a continuation so here's a trading opportunity just based on simple market behavior analysis then you link those two patterns and processes that you know you trade as part of your strategy which could be pin bars engulfing candles wick rejections uh you name it whatever you want to look for doji's in decisions whatever so the market continues down so now we're looking for sales only because that's the behavior of the market at this moment in time when the market is in a push phase we expect it to pull back and what do we expect the market to do well we expect the market to create a potential retest or structure once creating a low high level or we expect the mark to create a lower high and then a lower low now the lower low was formed but it wasn't major so what we're looking for here now is price to pull back to a key level where the lower lower high made the lower low look for the retest and look for selling opportunity always simply waiting for the market to break close below structure and look for a retest of the hit of the structure here you could take a trade here it's completely fine you don't want to be taking trades here you want to see a retest of structure or you want to see more evidence of which rejections or indecision candles to confirm that this level is strong so we have a trade here we have a potential trade here now we have a break below once we have a lower low on the market what are we expecting the market to do we're expecting the market to create a new lower high and then continue down to make a new lower low as you can clearly see with this example price failed to make a new lower low price fail to make new highs and what do we enter again we enter a range the behavior of this market is neither indicating to us that the balls are involved or the bears are involved and there's just a tug of war so at this stage we're just waiting patiently for the market to do the same thing as was waiting for up here we'll wait for the market to break above re-test continue higher or break below re-test continue lower we can see in this instance again the market broke out didn't create a re-test but on the way up it started to react from the level to the left the question is this can you take cells at this level based on the behavior of the market being cell bias making a new lower low a new level high failing to make a new lower low which is a depletion of bears in the market a breakout of structure and a consolidation indicating balls are stepping into the market and a strong momentum shift up with the sentiment of balls in the market should you be sending this level the answer is no even though it's come back to a key level you cannot sell it because the sentiment is bullish and the behavior is bullish so you must wait patiently for price to respect the level that is created or wait for a new level high so this moment in time we avoid the cells here very patiently waiting for the market to talk to us because we're still looking for this continuation of this bullish sentiment because that's the behavior at this moment in time once we see price breaking above this structure what are we looking for well we're looking for a tradable opportunity we're looking for price to pull back re-test structure and look for a trade in this instance we have a trade here that we could take you could take as an instant execution a break of these structural highs or whatever else it is regardless of the results that's a perfectly good buy now if price starts to break below the higher low this is now indicating to us a better sentiment because the balls were involved if the market was going to continue up we would have made a new higher high but in actual fact we failed and made a new low so we're looking for the market to pull back re-test this structure and look for evidence to see this market continue back down part of a potential new downtrend now if the market fails to make a new low that's now showing to us that there's a depletion in bearish sentiment and again patiently we are just waiting for the market to break above structural highs come back to retail structure and look for buying opportunities now if you don't want to take a buy after the retest and you want to wait for the major high to be broken then that's an even better plan because now you start to build evidence of price making higher highs and higher lows strong bullish sentiment in the market and you wait patient for the market to pull back to a key level to retest that level and now we know we can look for buyers very convincingly we have a very strong bullish candle here strong wick indicating embarrass sentiment and then we can go for our trade in this instance it's down to what you go for one two one two three i really don't care use your strategy and uh your risk management plan to make a decision how you take this trade but there you go now the trade won did rox pick out another winning trade he absolutely did but did you catch the point we read the behavior of the market all the way down until we decided we wanted to take a trade there were many other opportunities we could have taken trades and if we did we would have won let's say one two one two lost one one three one four there you go do the match yourself that's example number one here's euro pound example number two just very quick analysis here the market is pushing to the downside we can see that it's breaking key levels in the market where it's failing to break for a long period of time we're looking for the market to now create sell by structure the way we need to view structures we need to see price create a lower high once price creates a lower high then we anticipate the market to eventually make a new lower low now we can see the market started to trend down creating new low low and lower high structures here but unfortunately the overall structure did not create a new lower low that being said we now need to identify price staying below this level for continued sales and then look for patterns to support that that will either be clean double tops lower highs break of previous structures re-tests and continuations the question i want you to think about now is did that ever happen we're not changing our bias because we're still cell bias we're looking for our patterns and our processes or we're looking for price to break the loads re-test and continue down if that never happened you're not supposed to trade but there's a sign here now if this structure this lower high is violated and price is not creating patterns that we can trade or breaking lows or creating breakup retests and then starts to break close above structure that is now indicating to us what the bears must be depleting and the balls must be stepping into the market that being said once we have a clear break of structure we can identify the market as creating a structural low higher low higher low and a new high now we are looking for buys only we're always waiting for price to break out structure retest look for evidence and confirmation to take a trade we have a strong bullish candle here to the upside we can jump into the markets the reason why we can take this trade is because we have all the confluences on our side sell by structure failing to create patterns or breaking retests price breaking through the major low high level indicating continued bullish sentiment a re-test with bullish behavior then we can enter the trade very simple process yes another winning trade but if you understand the behavior it makes so much sense as to why we're buying this let's look at our third example new zealand dollar swiss franc a very simple example here the market was trending up for the first time in a very long time price violated the brick wall once price violates the brick wall we're anticipating price to make a lower high and then eventually we're looking for the market to create a lower low as you can see here the market came back creating a double top of this pattern and then eventually creating the lower low once the market makes a lower low what do we anticipate the market to pull back and then eventually make a new lower low the market did that now the sentiment of this market is not clearly trending down but there's a lot to support why cell bias would be the best option at this moment in time if we don't look at a cell bias then what we look at it as is the market is now ranging the minute we have a tap at the top or two taps at the top and two taps at the bottom we can say we're ranging now we never got the second tap here because price obliterated this structural low this behavior is up for the back of this brick wall being broken for the first time so what we can look for here is a re-test of this structure for a potential continuation down did that ever happen no bulls came back in broke back into structure now we're back in the range so we're neither looking for sales or buyers we're just waiting patiently for the market to break the highs and look for a re-test or break the lows and look for a re-test what happened well the market eventually violated the structural height creating a strong break close above a really nice pullback and a re-test of this structure and based on the behavior of this structure here on new zealand swiss franc we can safely say that buyers will be our best option because we have our plans we have our processes we also have the confluences that we need to enter this trade and the behavior to support that so we enter the trade as you probably can see here bob is your uncle so take a look back at those three examples go through this again understand how we're breaking down the behavior of the market first supporting that with evidence and then finding the confluence so i hope you enjoyed that video family and uh yeah all i can say to you is just keep striving to do your best i personally would say put in a good amount of hours go over 100 trades back test a few charts see if you can read the market's behavior and really understand it once you can do that and you can add your patterns your processes your evidence and your confirmation to your ability or with your ability to read market structure i'm telling you it's going to be a game changer you're not going to win them all but you don't need to win them all 30 40 50 right and you are laughing all the way to the bank just manage your risk and just trust the process anyway until next time family continue to trust the process

Channel: RockzFX Academy

Views: 99,647

Keywords: trading gold, price action trading, price action trading strategies, price action forex, forex trading for beginners, forex trading, forex trading strategies, rockzfx, rockfx, rocksfx, maket, market behaviour, simple tips

Id: 4ltIiiMJbJQ

Length: 15min 47sec (947 seconds)

Published: Tue Feb 23 2021