Home Trading Strategies Price Action Trading Strategies You’re Not Supposed To Know

Price Action Trading Strategies You’re Not Supposed To Know

36
0
Price Action Trading Strategies You’re Not Supposed To Know

so here’s the thing right whenever you hear someone talk about price action trading you know it’s always you know just scratching the surface level right you know they talk stuff like you know support resistance hammer shooting stars and whatnot so those are really just the basic immature surface level stuff right because as you dive deeper into price action trading you realize that there’s a whole world right as a whole new aspect to it for example right how do you tell whether you know support level will break or not how do you identify no low-risk high-reward trading setups how do you know where other traders you know put your stop-loss so you don’t put the same place as them right and get stopped up together and much much more so this is why I say that no price action trading is really more than just support resistance and some basic candlestick patterns okay so in today’s video I want to share with you price action trading hex that you can use right away to get results fast sounds good right and here’s what I want you to do right now hit the subscribe button below right right here the thumbs up button as well and this way right whenever I publish a new video you’ll never miss an update ever again sounds good so do it right now okay and then let’s begin so the first price action trading heck that I want to share with you is this is that you don’t want to put your stop-loss right in a level where everyone else is putting right so wait where is everyone else putting their stop-loss so if you’ve studied you know textbooks you know causes and stuff like that they tell it to you know put your stop-loss just above resistance and just below support so something like this right let me walk you through an example so for example okay you can see over here traders right will see will see that this movie no it’s coming up right smack into this area of resistance so what do they do well they go shot right after all there is a bearish looking candle time to go shot right and then have their stop-loss you know above the highs or above this highs over here because that’s what the textbooks so I put your stop-loss just above resistance and then what happens you see the market retrace slightly lower hit those class stuff stops above here above here and then continue lower okay I can show you share with you more examples try to look back again this pattern right it keeps repeating itself so let’s see where else I can find okay so I think this is a pretty decent one okay here this area of support price comes into this level but not quite into this level day starts to rally over here right bullish engulfing pattern Oh market is going higher a time to buy buy buy okay so that’s what no traders do later they see the candlestick pattern is bullish it’s it’s near support but because they have the fear of missing a move they they don’t want to wait they just buy first and where do they put your stop loss Hey I think the textbook says put below support so let me find support I think this is a level of support maybe this one is over here as well so let me just put below here to be conservative and then what happens market swings down lower over here hits that stop-loss and then rally up higher so can you see the point I’m trying to bring right whenever you put your stop-loss all right the golden rule right is you know set it away from market structure in fact I have to to go to college the first guideline is this is that you want to set your stop loss right at a level where if the price reaches it will invalidate your trading setup okay so this means if that if you were to be trading plain on support okay so if this means if the price breaks the pot right it invalidates your support level you want to exit the trade the second criteria that I have is that whenever you set your stop loss right it has to be a distance away from market structure so for example right what is nice is it sometimes you know support is like this okay and traders they can just put it just below this area of support just below here after all if the price comes to this one you know support seems broken right and it’s not wrong to put there but as you’ve seen right if you just put it just below support it’s very easy for the market to trigger that those stop-loss and then reverse back in your favor so the second criteria I have to do is to give it a distance right away from it’s structure so a distance away distance like there’s a buffer I see your stop-loss would ideally be somewhere here now okay a distance away from market structure so you can see they in this instance right you won’t put it just below this low obviously or this low you know give it some distance right you know possibly putting it somewhere here so you can you can now we stand the the the the so-called stoppin alright should it come right and you know don’t get stopped up too early all right so this is the first price action trading heck that I have for you right don’t set your stop loss right and obvious levels is really asking the market do you know me asking for it okay the second price action trading heck did I want to share with you it’s it’s this okay let’s have a look at a Bitcoin daily time frame okay so the second price action trading header is that whenever you trade breakouts you want to trade it with a bill up so what is a bill up so so let me share with you how not to trade breakouts first so let’s say the market is uh it’s in a range like this okay and from here goes all the up higher break above this area of resistance alright you don’t want to buy be buying breakout at this point in time why is there a couple of reasons first reason first reason is that the market has moved quite a distance right within a short period of time and chances are it needs to breathe okay you need to take a breather so what this means is that the market could possibly pull back or even retrace all together but because it has you know expended you know a lot of energy within a short period of time if you don’t believe me you go to the track right now it’s spring 100-meter tell me right and 100 meter mark do you feel still like you know carrying it on or take a breather to pause shut this I see it you want to pause right and it’s the same in trading right when the market moves too fast too soon right it needs to take a breather as well so that’s the first reason second reason is more of a from a risk to reward standpoint right if you imagine this right let me just redraw this if you were to buy again right market rally from the lows all the way through highs you buy this breakout where is the logical place – put your stop-loss below support I just said don’t put below supporting me tell me below support okay let’s say you know a distance below support maybe somewhere here you can see that now from Murray story what standpoint your stop-loss or is this white over here you know stop-loss so this means that the market has to move this much just for you to earn one arm which is one time your initial risk amount maybe you’re risking stop-loss $500 the marker you have to move this much for you to make $500 so that’s not very favorable from a risk to reward standpoint so what is my suggestion right so this is why I said early if you recall whenever you treat breakouts you want to trade it with a bill up so what is a bill up a bill up is very simple concept is basically the market right now this time round let’s do it the opposite side right okay let’s just do the same direction a bill table is like this right where there is a tight consolidation over here so can you see the difference none with a bill up you can actually reference this low to set your stop loss you no longer have to reference this original area of support you can actually reference this low over here as your stop losses you know give it some buffer below the low so from Murray story world standpoint your stop loss is now tighter so the market doesn’t have to move too much in your favor for you to earn one arm so that’s the first so-called benefit the second thing is that this is a sign of strength whenever you see the market comes in to a key level like support resistance any hovers around here what this tells you is that at this price area there are buyers willing to buy in this higher prices okay because if you know that resistance R is an area where there is selling pressure so when whenever price comes resistance you kind of expect that you know the price to reverse from there but the fact that the price can still hover in front of resistance do hold up over here is telling you that you know there is buying pressure willing to support at this higher prices okay so whenever you wanna trade breakouts trade it with a build up so one fine example is here over here Bitcoin okay so prior to the breakdown at 6,000 I could you have seen this coming well you know if you read the price section of the market the clues were there there is no guarantee but the clues were there you can see that over here this is this area of support at 6,000 pretty nice descending triangle you can see this over here is the build-up that I mentioned earlier okay the nice tight build-up consolidation because now if the price were to break down where do you set your stop loss right you don’t have to set it at this high this high or this side because you’re knocking just reference from this swing logo I mean swing high okay and set your stop-loss now your stop-loss is much tighter alright make sense so after we tried bit Connie that it did explode down lower at this point in time right say for example it is loose over here you don’t want to be shorting at this point over here why is there because the market has moved too fast too soon right you have no logical place to put your stop-loss again if you use the original level as your stop-loss right the nearest one would be at this swing high over here which is very far away which is far away and from a risk to reward standpoint it’s not very attractive so just one final example before we move on to our next price action trading heck I think the dollar Canadian is one of the more very beautiful textbook example so if you if you really want you can even know screenshot this charts and Nora can refer them in future as well okay where is the dollar Canadian ones I’m trying to find it okay I don’t really see it right now I remember okay this one ready there here it is so you can see over here right are you seeing what I’m seeing b1 I’m just kidding right those are but Nana in pajamas or I mean I was in my younger days right are you seeing what I’m seeing b1 yes I am me too it’s Kiki time you know something something like that so anyway this is crazy so anyway that again over here on dollar Canadian you can see that over here this is the build-up that I was trying to share okay nice tight consolidation so again traders who buy the breakout of this heist or maybe even designs you can just reference this swing low to set your stop loss right it’s much tighter now right in terms of stop-loss and you know from a risk management perspective the tighter your stop-loss right the larger the position size you can put on right while still keeping your risk constant okay so this is a the second price action trading heck that I have for you moving on the third one the price action trading heck is this let me just get the chats out first is that it’s actually similar to what I just said I say that your when the market moves too fast too soon right it tends to to reverse right now pullback so using this concept right this means that if you want to trade reversal you want to see the too fast too soon move that occur because you know if the market moves too fast too soon right there’s a good chance that it could reverse or even do a pullback and then there’s opportunity for you to make a profit so whenever you trade reversal let’s say reversal of a support resistance right market comes straight into a level a strong level you wanna trade a reversal up high o comes up here you wanna trade a reversal down lower okay so what you’re looking for the key price action price action aspect is to look for a strong power move coming to level this is where the the Kendall’s the body of the candles are large strong and boom alright that is what you want to see you do want to see build up now because you’re not trading breakout you want to see strong power move coming to a level those are the of moves right there could I proceed the reversal no guarantee all about probabilities right but this are the stuff you know that has worked for me so again let me just plot out some levels so your eyes can see it clearly okay so you can see over here pretty nice strong power move into market structure this area of resistance right notice the boldness of the candle the string of the move okay this there is no build-up over here it’s just a strong power move so whenever you get such moves right all that’s left to do is to wait for a price you check in right a reversal candlestick pattern do you know take the tree towards the opposite direction so in this case uh a little bit more messy over here but we are they I believe you have this what I call a shooting star pattern over here within this MSE range or you can even go down to the lower timeframe to read the price section and time your entry but a key thing I wanna share with you is that notice this strong power move coming to market structure this usually right are the type of moves right then you want to trade a reversal not the breakout okay another example is this one over here D D what the other one towards the downside strong power move towards the downside many of this bullish engulfing market did rally pullback finally breaking out over here alright so this is what I mean by a clean move into market structure just one final example I like to share you know more example so you guys you know really absorb the concept it’s the five-year Treasury note futures so again you can see over here strong clean power move into market structure in this case it’s a resistance followed by a I think it’s a piercing pattern market then reverse down lower so notice alright strong Bo power move into market structure when you see such moves right these are usually a moves that you want to trade the reversal not the breakout okay moving on right the next price action trading team right we are number four now okay how many price action trading team am I going to cover right I’ll when you you know figure that out at the end of this video okay the next price action trading tip I have for you it’s a basically this so whenever you look at a chart you wanna ask yourself right where is the area of value so what do I mean by area of value so whenever you go to the supermarket you buy apples or you know buy apples when it’s you know three for two dollars you don’t buy apples when it’s you know 10 for Nohara dollars or one Apple for five dollars no you’re gonna buy value and is the same for trading you want treat from an area of failure so how do you define value there are numerous ways you can define value you know support resistance trendline channel moving average basically right areas on your check where the market mean reverts to okay it sounds a complex but I’ll explain and you realize that it’s not that difficult of a concept to grasp so in this case palladium a couple of ways you can you know identify the the mean reversion alright or the area of value but for simplicity sake right the 50 M is a pretty good guideline note this right this market the market at this point in time in this condition it tends to you know mean river towards the 50 ma 50 ma 50 ma it did exceed over here before you know going back up higher 50 ma 50 ma 50 ma so this means right from a price action trading perspective you don’t want to be buying when the market is at this highs over here is it where is that this highs over here why is that I get back to a risk to reward point if you buy at this highs ok this highs again just your your logical stop-loss has to go below this moving average and it can be pretty white I mean if you don’t mind sure you can buy name you know just have a wider stop-loss I mean it’s your preference right but for me I prefer for the price to be an area of fairly near towards the moving average this means I could have a title stop-loss okay so in this case a price just broke down there wasn’t any entry trigger to go along but if I wanted to trade from an area of value it would be near this area of value near the 50 ma okay so this is what I mean by area of value another one to share with you can see over here dollar yen oh nice I already draw the trendline so again as I’ve said right the moving average is just one way to define the area of values sometimes when the train it’s choppy moving average won’t really cut it out right so this is where no trendline might help so in this case we have this a trend line that I’ve drawn over here test that once twice almost Christ four and right now at this area of value once again right buying at this trend near this upward trend line again if you were to go along your stop-loss so I could just be you know a buffer a distance away from this market structure somewhere here and hey you know price would hit up here possibly even you know breaking out above the highest maybe never know so again from a risk to reward standpoint right buying close to the area of value it’s usually one of the better times right to be entering your trade do I have another example I think yep I do right so we have covered moving average we’ve covered trendline so now we just look at no plain old vanilla support resistance so this one over here I’m gonna draw the obvious s our level okay just quickly draw it without any are tweaking right so you can see that over here where it’s the area of value on the chart so clearly this one trend line doesn’t be doesn’t seem to be working too well neither is moving average but if you use your no plain or vanilla support resistance right this would be a good area of value to be trading from if the price comes down is rejected that would be I know a possible signal to go long comes up here gets rejected right possible signal to go shot at this area of resistance so this is your area of value that I’ve shared with you all right and this is the fourth price action trading heck and finally okay that’s a clue right finally right another price action trading heck then I want to share with you is a term what I call the first pullback so you know often right back let me just take you back earlier to the the break-up aspect the break up topic we mentioned earlier where I say that you know you don’t want to be buying breakouts right without a buildup right like here to here just breakout you don’t need me buying without a below and then some of you might be thinking but Rainer but Rainer I don’t want to miss the move alright I still catch a piece of the move right how can I do it right what if the market doesn’t you know retrace back towards our this area of support what if the market doesn’t retrace back to previous resistance turn support you know am I gonna miss the move well not quite because this is where you know you can look for the first pullback so the first pullback is simply the first literally the first pullback out of a range so in this case are you look something like a flag pad and a bull flag okay then it breaks above this heist and he loop to get long again the beauty of this is that when you wait for the first pullback you can reference this swing low as your stop-loss again can you see that you know the concepts are just basically building one concept on top of another right now if you did not wait for that a pullback there is no logical place to put your stop-loss sure you can put below support but as I’ve mentioned already stop-loss is white but if you wait for a pullback like a bull flag pattern and bear flag pattern you can reference this swing low now alright to set your stop loss and then it gives you write a title stop-loss and in written a better risk to reward so this is what I mean by the first pullback and on top of it you can be sure that you’re not the only trader who missed the move there under traders right who missed the move as well so often when a market breaks out right when it does the first pull back to me that is usually the best time to be trading pullback right traders who miss the move foot they’re all you know pollen together and get them bought the trade and push the next wave right further so an example but I know you like example so obviously right this all cherry pick chess to illustrate my point only idiot will pick a chat it goes against their point right I’ve got a no comment or trader all right now your chance all cherry-pick like their money idiot right okay so TV CEO or what is TVC oh okay so again just to illustrate my point again so what am to look for is a long term range or when the market is in range and then you finally break down that first pullback pay attention Twitter because debt is usually right the highest probability pullback trade and you can now you can possibly get so again this one over here you can see that this is an area of support market is in this area of support or ad is actually in this range right here down from highest or lows ranging back to what the signs back towards this area of support then market broke down first pullback right what did we not see right pay attention to the first pullback because this is where you know could still be a strong move down lower another another uh lick of the move right in case you missed the first one so this over here is what I call the first pullback couple of ways you can do it either treat in the break of this swing low or even the break of this this trendline then you can manage to connect over here okay so the entry is not really important I will say the concept right of the first pullback it’s a it’s really what matters so let me just share with you another example alright dollar are in are okay this is a key passage Sumon later I can see that this dollar against the Indian rupee it’s largely in a range as well right between around a sixty nine level somewhere here okay so so if you didn’t rate this break up with a bill up this bill up over here we we talk about a bill up concept right this one if you miss this one don’t worry right what you do want to be doing is buying at this you know it is highs over here why because price is now so far away from market structure stop-loss is why and chances are as I’ve said right too fast too soon market tends to reverse all pullback so wait for the first pullback and that pretty much occurred at this over here all right you have this pullback somewhat this uh normally a not really a textbook move like pattern but you know that it’s a pullback as you’ll notice the range of the candle is getting smaller and smaller so how you could have traded right you did a break of the trendline or the break of the swing high and now you can just reference this swing low to set your stop loss so from a from a risk to reward perspective right your stop-loss you know it’s now tighter okay so yes right so yes right that’s what uh it’s been a lot we’ve covered today so let’s do a quick recap take a quick recap first one set your stop loss right away from market structure there dessert first tip that I have for you because you know if you just set it below the loose or both the highs very easy to get triggered second one you want to be doing is trade breakouts with a build-up ok the tight consolidation this offers you a better risk to reward and nearer place to set your stop loss I’m a tree if you don’t rate reversals right look for a clean power move into a level which is actually the opposite of point number two over here for thing right identify your area of value maybe using moving every trend line trend channel I don’t know whatever you know suits you and finally the first pullback is the best pullback right especially if you you miss breakout traits don’t worry can always wait for the first pullback alright so with that said right some of you now might be thinking hey right now you know where can I learn more about ya learn more about your works okay so let me just go can I do okay so let me just get you a link then you can go to so we can you know learn more about my trading strategies techniques and stuff like that so for those of you who are interested in that pot okay this is where you can go to okay over here my website you can see that trading with Rainer calm I just put a link here just scroll down to the bottom right I got a couple of trading guides depending what you wanna let price action trading train following right so just download the relevant ones that’ll both if you want to if you know you you you want to learn everything all right just download it it’s free so the ultimate guide the price action trading focus on you know market structure support resistance entries and exits so if that is for you then download this guide if you’re a little more about trend following right writing trends in the market long term trends shot them trends medium-term trends then the ultimate trend following guy is for you so click this blue button right and I’ll send this guy to your inbox for free okay so that’s it I’ve come towards the end of todays video price action trading hacks hope it helps do me a favor hit that thumbs up button subscribe to my youtube channel ok and if any questions feedback just let me know in the comments section below then I’ll be glad to help so with that said I wish you good luck and good trading I’ll talk to you soon you

LEAVE A REPLY

Please enter your comment!
Please enter your name here