Weekly Trading Recaps: AUDJPY, XLMUSD, SUGAR, BTCUSD Jan 24 2021Hello everyone
Welcome back to another quick weekly trade recap video on the positions.
I am currently in the mountains (lol) so may not get to my usual weekly outlook stream due to internet. But hopefully still update analysis :)
AUDJPY - Second position got out for BE. Currently in the third position in.
XLMUSD - Took out for a 1% loss.
BTCUSD - Still Holding, currently @ 3% profit.
SUGAR - Still holding, currently @ 2.5% profit.
Any questions, comments, or feedback welcome to let me know below.
Thank you
Priceaction
How I trade Head and Shoulder Price Action Pattern/StructureHello everyone:
In this quick educational video, I will go over how I utilize Head and Shoulder Pattern/structure in the market.
Specifically, how I identify reversal price action from a Head and Shoulder Pattern.
It's important to understand that Head and Shoulder Is a reversal structure in the market.
When we identify these patterns, they are usually at the top or the bottom of the over price action,
and its signaling a bullish or a bearish trend may be exhausted, and a reversal trend may begin.
Typical H and S will have a bullish move up, followed by a continuation correction (Left Shoulder), and move up again.
At the peak (Head) , instead of a continuation to push up further, we then see a reversal bearish push down.
Then, we see price form that bearish continuation correction (Right Shoulder) now, looking to push the price back lower.
Just like any other price action structures/patterns that I have been talking about, these structures/patterns will appear in any time frames, any market.
So it's important to understand multi-time frame analysis and top down approach.
A 5 min H and S pattern may not be that strong reversal to give you 100 plus pips because the HTF is showing us different bias.
From my experiences, a H and S pattern works best when we spot on the LTF price action. When we have a clear bias on the HTF for a potential bearish reversal, we go down to the LTF to look for confirmation and entry.
Remember a H and S pattern will not always be “textbook” perfect like you will learn from various courses/lessons. The market itself is not perfect, so remember that when you analyze the market.
Last but not least, and inverse H and S is just a mirror of a typical H and S. It's just now you are spotting them at the bottom of the overall price action, and rather to reverse into a bullish trend.
As always, any questions, comments or feedback please let me know.
Thank you
Jojo
Setting up and utilize tradingview (layout, drawing panel)Hello everyone:
Welcome back to a quick video on tradingview setups. Many of you have asked me about how you should set up your charts, your settings, customizations, watchlist..etc. So I will make a quick explanation video on this.
Chart:
-Create a blank chart
-Save under different names for different purposes
-candlesticks
-timeframes
-screens
-syncing
Setting/customization:
-color
-appearances
Drawing Panels:
-favorite the ones you're gonna use the most.
Watchlist:
-create watchlist
-flagging
Alerts:
-set only the ones with high probability potential, do need to set like 30 alarms.
As always, any questions, comments or feedback please let me know.
Thank you
Volume Profile and Losing Trades (A Cool Trick Explained) 💪Hello guys,
trading it not just about taking winners. Losing trades are also part of the business and there is no point denying it. In my trading career, I took hundreds of losers (maybe even thousands) and I feel no shame in that.
Today, I would like to talk about a recent losing trade which I had on USD/JPY.
Let me first talk about the logic behind this trade – the reason why I took it.
The logic behind the trade
In the last week of 2020, there was a zone where heavy volumes got traded. It was at 103.53.
This was the Point Of Control (POC) of the whole week – this means the heaviest volumes throughout that week got traded there.
From this place, the price went sharply downwards which indicated that there were strong sellers present and that they entered most of their Short positions at that POC (103.53).
The idea behind my trade was to wait until the price reaches this Weekly POC again and enter a Short trade. I expected the sellers that entered their Shorts at the POC would defend this area and to push the price downwards from there again (this setup is called the “Volume Accumulation Setup“.
That didn’t happen tough…
How the trade went?
I went Short fro 103.53, but there was no selling reaction whatsoever and the price just shot past the level. I took a loss there.
After that it was time for me to shoot a Daily video for members of my trading course. In that video I talked about this losing trade and I said that if there was a pullback to the same level (103.53) it would be a nice place to open a Long position.
Why I said that?
Reversal Trade
There were two reasons why I wanted to take a Long from there.
The 1st reason was that there was a very strong, volume-based trading level (Weekly POC) breached. This is quite unusual, because such a strong level as Weekly POC should trigger a reaction!
The 2nd reason was that the price just shot through the Weekly POC without ANY sort of reaction. This is important, because it indicates that the Buyers were so strong and aggressive, that the Sellers didn’t stand a chance.
You usually discover the strength too late (after you had taken a Stop Loss) – like in this case, but you can still emerge a winner from this, if you switch sides and join the winning party.
The best way to do it is to wait for a pullback to the same level you entered your previous trade. Don’t chase the market. Wait for it to come to you.
Then enter a new trade, but this time in the opposite direction.
In this case, the first trade was a Short which failed, and the second trade was a Long (from the same level) after a pullback, which was a winner.
I call this a “Reversal Trade“. Those work best if a very strong level based on a Volume Profile setup fails, and when there is no reaction to it whatsoever. Those are two main conditions to remember.
I hope you guys found this helpful. Let me know what you think in the comments below.
Happy trading!
-Dale
In depth look at continuation bull/bear flag structures/patterns
Hello everyone:
Welcome back to another quick educational video on price action structures/patterns.
Today let's go deeper into the continuation correctional structure. Specifically, the continuation bull/bear flag structure.
First it's important to understand that a bullish/bearish flag is a continuation correction.
They are representing a correctional phrase of the price action, before resuming the previous impulse phrase.
As price action traders, we must be able to identify what correction we are seeing.
This will allow you to get ahead and make your forecasting so you are prepare to any potential entries
Second, bullish/bearish flag correction will appear in any time frames, any markets, and in different sizes.
Typically a flag correction will have at least 2 swing highs and 2 swing lows and relatively even and proportion in angle or length.
They can be slightly slanted or very parallel to each other. Remember the market is not perfect, it wont always present us picture perfect, textbook structures.
Thirds, So its important to understand multi-time frame analysis, top down approach.
A LTF bullish/bearish flag may or may not have the potential to start taking off massively due to the higher time frame showing us a conflicting bias.
So its important to add as much confluence to your trade as possible.
As always, any questions, feedback or comments please let me know :)
See you all in my next weekly outlook stream.
Thank you
In depth look into double tops/bottoms price action structures
Merry Christmas everyone:
Hope everyone is well and healthy, and enjoy the holiday season as much as we can :)
Back here with another quick educational video on price action structures/patterns. I am going to go into detail on double tops/bottoms type of price action.
Many of you have asked me to elaborate more on what double tops/bottoms truly mean, and they sometimes get confused with a support/resistance. I will go into more detail on this topic to clarify the differences.
In addition, I will bring out some different examples in the market, and demonstrate how I see double tops/bottoms the way that works for my trading and its analysis.
How I confirmed what a true double tops/bottoms is, and how to look for potential entries once you see them form.
Understanding that multiple time frame analysis, nature of the market plays a big role to determine if the double tops/bottoms are “valid” and to give us more confidence to enter a position.
The higher the time frame, the more significant it is to that double tops/bottoms and the potential reversal move from it.
As always, any questions or feedback please let me know.
Merry Christmas and happy new year everyone :)
Thank you
Jojo
How to scale into the impulsive phrase of the market condition? Hello everyone:
I want to go over an important topic of scaling into the market. This is something more advanced in my opinion, and should be used cautiously when applicable.
First you will need to understand that it's important to fully accept the risk when you try to scale in a trade.
Essentially you are doubling down on a trade when you do so. What is your risk management when it comes to scaling in ?
Second thing to watch out for is managing your first initial position.
I would generally move my SL to at least BE or in 1:1 profit. This way even if the second trade that I scale in end up to be a lost, I am BE overall on the two trades.
Third point to remember is before you scale in the trade, is there enough R:R to justify it?
No random entries just because there is a continuation correction on the 5 min chart as an example.
Some price action must be present and give you enough confidence that the price is likely to continue from a structure, and then look to scale in the trade.
Any questions or comments please let me know :)
Thank you
Learn how to create a setup using 5 price action itemsToday we will learn how to create a full setup using 5 Price Action items. This process will be made on the 1H chart and is extremely useful for Swing setups. However, the logic can be applied in any timeframe. This can also be applied to any direction today; we will work with a short setup, but it is the same for a long setup.
1) Daily Resistance zone: If we are working on the 1H chart and the price is about to face a Daily Resistance zone, we should expect a reaction there; WHY? Because The higher the timeframe of a level, the stronger it is, and we should be ready for a reaction there. This should be the first filter to use: The price is about to face a higher degree zone.
2)Define the minor support and resistances of the current trend: If we are waiting for a reaction on the Daily Resistance zone, it is essential to understand the levels we have on the current trend. WHY? Because we will use them to define the next target and the Corrective structure's location to trade.
3)Wait for the breakout of a relevant trendline: In this case, we want to see the price breaking the Ascending trendline; WHY? Because that would be a signal that the Reversal movement on the Daily level is going as expected. The breakout of the Ascending trendline is a key element: Know the conditions are optimal to start thinking on a short setup.
4) Wait for a corrective Structure on the minor Support zone: Corrective Structures are ABC or ABCDE patterns. You should be able to draw edges on that sideways movement. You can define that is ready when you have something like the example you see on the chart.
5) Now, everything is aligned to develop a setup. Your bearish idea is supported with all the previous 4 items; only at that moment you can say I will create a short setup. Define your entry-level below the structure or below "B, set your stop above "C". Define your Target on the next minor support/resistance zone. Pay attention to the risk-reward ratio you have; only take setups with a R/R ratio higher than 1.5
Thanks for reading! We hope this Template can help you with your trading.
Take a closer look at price action analysis in trading Hi traders:
Hope all is doing well. I want to do another quick educational video on price action analysis.
Many have asked me to elaborate on this topic, and I thought video is the best way to do so.
So basic understanding of price action analysis is that after a strong impulse phrase in the market, we will get a period of consolidation (correction) before the price is likely to resume the direction.
This is what we can structures and patterns when the correction begin to form.
Understand that when we dont see a correctional structure after a strong impulse, this is usually a sign from the market telling us the price may reverse soon.
Its important to fully acknowledge what the market is presenting to us, and if we are seeing different clues from the market, then accept it, and change your analysis's view.
As always let me know if you have any questions or comments.
Thank you
How to utilize Multi-time frame analysis in your trading
Hello everyone:
In this educational video, I will discuss how I utilize multi-time analysis in my trading.
-What multi-time frame analysis does is to help us to get more clarity on what the overall market is doing from a top down approach.
-Analysis should always start on the higher time frames such as Monthly/Weekly/Daily.
-Then, drop down to the lower time frames such as 4H/1H,30/15/5 Min to confirm the HTF move and look for possible entries.
Price action and structures work inter-related with multi-time frame analysis.
-In a HTF impulsive phrase, there will be many LTF impulses and corrections to push the price up/down.
-In a HTF correctional phrase, there will also be LTF impulses and corrections, but within the larger HTF correction.
The key to multi-time frame analysis is to properly identify the next HTF impulsive phrase, and capitalize it by entering on the LTF price action. This allows you to maximize your R:R greatly.
In addition, combining multi-time frame analysis with price action will also give you clues on where the price is likely to go, hence calculating your targets and anticipating the movement from the market.
As always any questions or feedback please let me know :)
Thank you
How forecasting can benefit your trading journey
Hi everyone:
In this quick educational video, I will go over how I incorporate “forecasting” in my trading, and how that helps me to be a better trader overall emotionally and psychologically.
Couple things you “forecast” prior to the actual entry:
1. You should draw out the different possibilities on the price’s movement.
Different possible scenarios if possible. IF you are looking for short, then draw out the actual move from where the current price is, and take a screenshot of the possible move.
This allows you to remember your plan to execute the position once it appears.
2. You should also think about a back up plan, what if the price goes up now instead of down from your analysis ?
Are you still looking for short then? Or are you going to change your bias if price action then develops bullish price action instead?
You should prepare yourself if your bias is wrong, then what would you do next.
3. Utilize the R:R tool box, “forecast” the actual entry, SL, potential TP.
This will allow you to understand your R: R and where you would set your first, second targets.
Take screenshots if necessary to remember.
4. Forecast what you will do once price hits your TP.
Are you simply just going to exit the trades now, or will the further development of price action give you extra confidence that the trade can keep going, and you should hold on to the trade?
What do you want to see from the price action in order to change your thoughts?
This will eliminate emotions as to whether to hold onto a trade or take profit.
As you do more and more of these forecasts, the actual entry will be relatively easy.
You have already forecast the possible scenarios, entry, SL, TP, continuation..etc. So there won't be any fear of losing, or fear of missing out.
That will help you to keep your emotions at bay, and execute the trades accordingly.
Many beginner traders often lose money because they are not prepared for what the market will do. When something happens, then they react to the situation. Often enough it's too late, and they will make a decision based on emotion.
Forecasting allows you to eliminate those emotions, and let your plan run.
As always, let me know if you have any questions or comments.
Thank you
Determine Trend Reversal Using RSI Indicator With Price Action1. Price created lower low and RSI higher low (tight divergence - oversold).
2. Reversed on demand zone with candlestick pattern.
3. Broke down trend structure with retest as confirmation.
4. Price went above 200 EMA and used it as support.
How to Trade the Breakout of a Range 101In this post, we will learn how to trade the breakout of a clear range. Let's start learning.
a) First of all, we need a clear Range ( we can say that is clear when we have a support and a resistance level and the price in between for a considerable amount of time)
b) From a technical perspective, the expected movement after a range is broken is the extension of it in the broken direction (green arrow)
c) Also, we will see how that projected movement fits in the context of the chart. In this case, we will look for the next resistance zone.
d) The correct way of identifying a resistance zone is by looking for clear reversal movements in the past. Ignore small corrections. Look for reversal movement and define it with a horizontal line ( in this case, we used 2 yellow arcs to show the idea)
e) Now you can see two things. 1) The projected distance of the range is very similar to the distance towards the next resistance zone 2) You have good space to try to catch a wave
f) But how can I trade a situation like this? You need a CONFIRMATION. In this case, we always wait for corrective structures (remember that corrective structures can be Flat, Zig Zag, Triangles, or Irregulars)
g) Wait for a clear corrective structure on the Edge of the broken Range. IF that happens, you need to define its edges, and from now, it's straightforward. (You can also look for a corrective structure on a lower timeframe; for example, if you define the range on the 4HS chart, you can change your timeframe to the 1H chart.)
h) Open positions on the Breakout of the structure, Set stop loss below the structure, Set take profit on the next resistance zone, Define the risk you will take on the trade
i) Use this as an archetype on how to trade this type of structure.
Have a great day!
GOLD What can price action tell us in the market ?
Hello traders:
As of this time we are still waiting for the US election to have confirmed result.
I thought I share my outlook and bias of the market and explain briefly on price action.
If we look at GOLD from the HTF, we can see the price is in a uptrend move.
Within this bullish run since August 2018, price has been in an impulse phrase of the market condition.
We know that within a large, HTF impulse, we will get many small, LTF impulse/correction, impulse correction..etc to push the price up.
This is where multi-time frame analysis will give you a much clarity of the market.
Now looking at the latest price action on GOLD. Price is potential going to be in the LTF bullish impulse phrase, which may be the start of the next HTF bullish run.
The safest way to capitalize would be waiting for the election to confirm the result, and wait for continuation correction on the LTF to look for possible entries.
Thank you
SPX500 What will the result tell us this point forward ?
Hello everyone:
Long time no post since I was very patiently sitting through the US election, and did not want to get in any positions during the volatile market.
As we are getting closer to the result, its important to not have FOMO and jump into any trades blindly.
Typical newer traders want to jump in the trade thinking they market will be gone if they don't enter, and usually end up with a loss or losses due to their tight SL.
My honest suggestion is to be patient and wait for price action to give us more clarity on what the market will do.
In this example of SPY, I see 2 possible scenarios. Since the current price action and the structure can be both continuation or reversal, I will explain both.
The more probable one is the continuation bullish move, as the price forms this larger HTF structure to potentially break out. Then I would wait for a LTF correction to development and get in the buys.
or
Price begins to form reversal price action and structure, and we see LTF bearish reversal impulse, and then in this case wait for continuation correction to sell.
Very simple approach and no need to stress and guess what the market will do.
thank you
feel free to comment or ask me questions.
Divergence in BTCUSDPrice while approaches its resistance level, is forming a divergence with MACD. Price is creating higher highs and MACD is forming lower highs. That means BTCUSD is losing its momentum. On the other hand there are confluence of sell orders in that resistance level.
Therefore it probably can't break that level and goes down.
But that's not enough for us. we need to catch a strong down move. What if it didn't breaks that level, but create a trading range around that resistance level? We do NOT want that. So we need evidence that shows us the price had reverse its move and is forming a downtrend. That evidence is our TRIGGER.
The trigger could be break of a trend line, a candlestick pattern, or anything that shows we're entering a downtrend move. I used breakout of a trend line here.
And for take profit, I used an 20 EMA as a trailing stop loss.
Thanks for reading. Write your opinion in the comments.
#Lesson #5 Marubozu Price Action Candle -- Bearish / Sell Hello Trader's ♥
We Have Today Marubozu Price Action Candle -- Bearish / Sell
---------------------------------------------------------------------------
It's Come To Convert The Direction From Up To Down
After We See This Candle We Can Sell Direct ----
-- This Is Marubozu Candle >> It's Come With No Wick
After We See This Candle
We Can Know The Next Direction Is Down
But It's Want More Confirmation Like Break Out
Trend Line Or Break Out Support Area
--------------------------------------------
Best Frame : 4 Hour's - Daily - Weekly
Best Pairs : All Markets And All Pairs
And You Can Add Marubozu Candle Free Script To Your Chart Just Open Indicator Library And Choose Candles Price Action Patterns And Choose Marubozu Bearish ----
For Any Questions Ask Us On Comments And Wait For New Education Lessons
#Lesson #4 Hammer Price Action Candle -- Bullish / BuyHello Trader's ♥
We Have Today Hammer Price Action Candle -- Bullish / BUY
---------------------------------------------------------------------------
It's Come To Convert The Direction From Down To Up
After We See This Candle We Can BUY Direct ----
Best Frame :1 Hour - 4 Hour's - Daily - Weekly
Best Pairs : All Markets And All Pairs
Win Rate Arrive To 100% Some Times But Average Win Rate 70 - 85 %
And You Can Add Hammer Candle Free Script To Your Chart Just Open Indicator Library And Choose Candles Price Action Patterns And Choose Hammer Bullish ----
For Any Questions Ask Us On Comments And Wait For New Education Lessons
#Lesson #3 Engulfing Price Action Candle -- Bullish / Buy Hello Trader's ♥
We Have Today Engulfing Price Action Candle -- Bullish / BUY
---------------------------------------------------------------------------
It's Come After Down Wave And It's Make Cover For Last Candle
After We See This Candle We Can BUY Direct ----
Best Frame : 4 Hour's - Daily - Weekly
Best Pairs : All Markets And All Pairs
Win Rate Arrive To 100% Some Times But Average Win Rate 70 - 85 %
And You Can Add Free Script To Find Engulfing Candle Just Open Indicator Library And Choose Candles Price Action Patterns And Choose Engulfing Bullish ----
For Any Questions Ask Us On Comments And Wait For New Education Lessons
#Lesson #2 Engulfing Price Action Candle -- Bearish / Sell Hello Trader's ♥
We Have Today Engulfing Price Action Candle -- Bearish / Sell
---------------------------------------------------------------------------
It's Come After Up Wave And It's Make Cover For Last Candle
After We See This Candle We Can Sell Direct And Stop Lose Will Be Up Engulfing Candle Wick ---
Best Frame : 4 Hour's - Daily - Weekly
Best Pairs : All Markets And All Pairs
Win Rate Arrive To 100% Some Times But Average Win Rate 70 - 85 %
And You Can Add Free Script To Find Engulfing Candle Just Open Indicator Library And Choose Candles Price Action Patterns And Choose Engulfing Bearish ----
For Any Questions Ask Us On Comments And Wait For New Education Lessons
Book Review: Price Action Breakdown by Laurentiu DamirWhen I started trading I was extremely excited about the possibilities that lay before me… The dream of changing your work ethic from “working for your money” to “putting your money to work for you” was intoxicating. I took every class, read every book, followed every “guru” I thought would help me get that ‘edge’, that secret sauce, to make me a great trader. Once I discovered what actually worked, and actually *did* the work of putting that knowledge into practice, I found that trading, like so many other things, follows an 80/20 rule, where 80% of your results come from 20% of your actions. I asked myself what was really important in trading, and I distilled it down to 2 points: Psychology, and Price Action.
Notice, I put Psychology first.
After reading about, backtesting, sim trading, and live trading so many techniques by so may experts I have distilled (culled?) the instruments in my trading toolbox to a select few. Like that scene in Gran Torino when Clint Eastwood is teaching his young asian friend how to “be a man” and learn to fix things, he gives him Duct Tape, WD-40, a pair of pliers, and said “This will help you fix half of your problems.”
www.youtube.com
Similarly, I now only have 2 books that I read or listen to a LEAST once per quarter. This advice in them takes care of 90% of my trading needs. This also helps me stick to the basics. Repetition is the mother of skill and we need to constantly be reminded of (and practice) those basics.
Today I wanted to share with you one of those two books: Price Action Breakdown, by Laurentiu Damir.
This book is going to put you to work. Trading, like any other skill, is something you learn by DOING. You can’t learn carpentry by simply reading a book. You can’t learn painting by only reading a book… you have to take a chisel to wood or a brush to canvas to put that theory into PRACTICE. Likewise, Laurentiu puts you to work trading, lesson by lesson, concept by concept.
He simply and demonstrably shows the aspiring trader that all the information we need to decide to buy or sell is right there on the chart. No indicator, oscillator, or other doo-dads are needed. As he puts it,
"The best indicator you can have is your brain analyzing the raw price movements.”
He breaks down the specific patterns that we as traders need to look at to “see the opportunity” on the screen, notably value areas, excess price, control prices, and rejection areas. There is no mention of chart patterns (head and shoulders, triple bottom, cup and handle, ascending triangle, blah, blah, blah…) or candlestick patterns (bearish engulfing, dojo, shooting star, hammer…) - It’s all about price action. When you look at a chart and see who is buying what and where, you can make an educated decision on where to buy and sell right alongside the institutional market makers who are moving price.
Quote: "Throughout this book, whenever I will discuss about buyer and seller behavior, I am talking about the long term traders. They are the ones who move the markets, it makes all the sense in the world to study their behavior, observe how price moves as a result of their actions, and formulate concepts, rules and strategies to follow what they do, to be in the same boat as them. We have to discover their footsteps and follow them."
I’m a Kindle guy, and my trading partner bought the hardcopy on my recommendation. The hardcopy is a unique piece of work in terms of its layout, font choice, and stark coloring. I don’t know if it was intentional, but the fact that it is so physically *different* from other books almost makes you give what you are reading that extra bit of attention. My friend, too, owes much of his success to the techniques in this book so I never hesitate to recommend it.
I hope if you decide to get this book that you will put all the necessary WORK in that is required to put concepts into practice… to imbed it into your nervous system so you can “see the money” on the chart just like Neo could see The Matrix and easily defeat what was previously an undefeatable opponent.
youtu.be
In a later article I will talk about backtesting - something that every trader needs to do to build up his skill, to test a trading methodology (such as price action!), and to help keep you “in the zone” (teaser for my next book review!) so as you develop and hone your trading skills, that you will keep that skill and sharpen your trading saw day by day and enjoy the benefits of being a professional financial trader.
I would say 'good luck', but luck has nothing to do with developing the skill of trading just as it wasn't 'luck' that made Michael Jordan the best basketball player or Tiger Woods the golfer in the world. It was perseverance, grit, and repetition.
Happy trading!
smile.amazon.com
EURNZD Trade Recap, Analysis, Management
Hi everyone:
In this quick educational video, I will go over my 2 trades in EURNZD short. What was my analysis, management and thoughts on this bearish run.
I will always start my analysis from the HTF, looking at what the price action is telling me will give me a better edge to enter higher probability setups. I want the HTF to be clear on the bias that I have on the direction.
Then, using multi-time frame analysis, looking at what the LTF is telling you. Is it showing you the same price action like the HTF bias ?
Wait for the market to give you the confirmation, i.e. continuation corrections, reversal price action structure, LTF impulses...etc that will give you the confidence to enter a trade.
Manage the trade accordingly, move the SL to BE in profits depending on the strategies and style.
Don't get emotional about the result of the trade, rather if you follow your plan, and you made the decision based on what the market and price action is telling you .
Then, repeat consistently for every month, year. :)
Thank you