Price Action Course

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Price action trading uses tools like CHARTS PATTERNS, CANDLESTICK PATTERNS, TRENDLINES, PRICES

BANDS, MARKET SWING STRUCTURE, SUPPORT AND RESISTANCE LEVELS, CONSOLIDATIONS, FIBONACCI
RETRACEMENT LEVELS, PIVOTS.

TRADING WITH AN EDGE

 Trading with the trend


 Trading with price action using reliable chart patterns and candlestick patterns.
 Trading using support and resistance levels.
 Making your winners larger than your losing trades
 Trading only in larger timeframes
 Waiting patiently for the right trade setups and not chasing trades.
 Sell at a retest of support level, exit at resistance level
 Buy at a retest of resistance level, exit at support.
 Don’t buy near or at a resistance level (which is a revesal point)
 Don’t sell at or near support zone (which is a reversal point)
 Don’t buy or sell against the trend. Understand when the trend is over.

TRENDS

 HOW THE ARE FORMED?


 HOW MANY TYPES?
 WHAT TYPE OF STRUCTURE TREND HAVE?
 WHAT SIGNALS TO LOOK TO TELL THAT A NEW TREND MAY BE STARTING AND PREVIOUS ONE
ENDING?

UPTREND: Will make higher highs and higher lows until a higher low is intercepted, then that signal the
end of the uptrend and the beginning of a downtrend.

DOWNDTREND: Will make lower highs and lower lows until a lower low is intercepted and that signal an
end of the downtrend and the beginning of an uptrend.

Because the market is not perfect when these trends are happening, you should develop the skill to
judge when a trend is intact or reversing. And its pretty much price intersecting highs and lows.

REVERSAL AND CONTINUATION

Major areas price reversal happens:

 Support levels
 Resistance levels
 Fibonacci levels
CONTINUATION: the trend slows down and maybe consolidates for a little while and may fall down a
little and continue.

How to spot trend continuity and execute trades at the right time? The secret is in identification of
specific chart patterns as well as very specific candlestick patterns

UNDERSTANDING MARKET SWING

Price move in swings HH,HL AND LL,LH.

WHY ITS IMPORTANT TO UNDERSTAND MARKET PRICE SWINGS. IF YOU WANT TO really be good price
action trader, you have to understand this concept.

 You will execute trade at the wrong spot. If its in a downtrend, you will sell when the market is
just doing an up swing.

In an uptrend. Look to buy on the downswing and a downtrend, look to sell on an upswing. And the best
way is by using price action (reversal candlesticks).

HOW TO TRADE SUPPORT AND RESISTANCE LEVELS

The key to successful price action trading lies in finding effective support and resistance levels on your
charts.

3 types of support and resistance level:

 Normal horizontal
 Broken support becoming resistance and broken resistance becoming support
 Dynamic support and resistance levels.

HOW TO FIND HORIZONTAL SUPPORT AND RESISTANCE LEVELS.

When price heads back to support and resistnce level, you should expect that it will get rejected from
that level. The use of reversal candlestick trading on support and resistance levels becomes very handy
in theses cases.

SIGNIFICANT SUPPORT AND RESISSTANCE LEVELS

Not all support and resistance levels are created equal. If you realy want to take trade that have high
potential for success, you should focus on identifying significant support and resistance levels.

Significant support and resistance levels are those levels that are formed in the higher timeframe like the
monthly, weekly, and daily charts. When prices react to this levels, the usually tend to move for a long
time.

Technique to trade setups that happen in larger timeframe: switch to smaller timeframes like the 4hr,
1hr, 30min, 15min and even the 5min and wait far a reversal candlestick signal for my trade entries. This
is so that I can get in at much better price level as well as reducing my stop loss distsnce.
SUPPORT TURNED RESISTANCE LEVEL AND RESISTANCE TURNED SUPPORT LEVEL

When resistance turn support look for bearish reversal candlestick to go short. As a matter of fact R are
the upswings in a downtrend.

For support turn resistance, look for a bullish revesal candlestick around to signal a buy.

HOW TO TRADE PRICE CHANNELS

3 TYOES OF CHANNELS: Uptrend channel, downtrend channel, sideways channel.

In an up or down channel, you would requie 2 points to draw trendlines and wait for price to touch
them later on before you take a trade . for sideways channel, you can actually start trading the set up at
point 2 which can be both resistance or support level. Look for reversal candle stick to buy or sell when
you see such setups happening.

GENERAL RULES FOR TRADING CHANNELS

 IF YOU BUY OR SELL ON THE OTHER SIDE OF THE CHANNEL, WAIT FOR PRICE TO REACH THE
OTHER END OF THE CHANNEL TO TAKE PROFIT.
 Place your stop loss on just outside the channel or just above the high of the candlestick(for a
sell order) or just below the low of the candlestick (for a buy order) that touch the channel and
shows signs of rejection. This candlestick can be a reversl candlestick.
 You may also decide to take half the profits off s price is in the middle of the channel for a
profitable trade.

9 PROFITABLE CHART PATTERNS EVERY TRADER NEEDS TO KNOW

 Triangle chart patterns: symmetrical, ascending and descending


 Head and shoulders and inverse head and shoulders
 Double bottom and double top
 Triple bottom and triple top

SYMMETRICAL TRIANGLE: It’s a continuation pattern, therefore it can be both bullish or bearish pattern.
In an uptrend, it breakout to up and uptrend continues. while in downtrend, it breakout to down and
downtrend continues.

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