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Priceactionstrategy

How to Stay One Step Ahead of the MarketHey Guys! As traders, we always want the sense of being one step ahead of the market. In other words, what's happening with current price should not be of consequence to your trading. It's just another bit of information that's added into your analysis of what will happen next. Now the polar opposite of this situation is chasing the market. Where a trader is reacting to what price is doing currently. After years of trading, one thing I can state with confidence, is that if you're chasing the market and reacting to current price, you won't make it in trading in the long-term. I mean, you may get lucky from time to time, but ultimately you're luck will run out. So the question becomes how does a trader stay one step ahead of the market? At the basic level, if a trader can stop focusing on price "direction", and instead begin focusing how price travels from point A to B, they have a shot at being one step ahead of the market. Let me explain. As you guys know, on the Eur/Jpy pair during the month of February 2022, I was consistently taking short trades as price pulled back to the 132.80 levels. Now this is even if price at the moment of entry was moving up. ( I wasn't focusing on price direction) Instead, I was focusing on "how" price moved from point A(on the chart) to point B.(on the chart) Initially, there was 1 minute strong long strength sparking the explosive move up however, there was even stronger 1h strong short strength confirmed on the lower time frames in the beginning of the 1st range. At this point I was already viewing this pair to be short biased,(I was one step ahead of the market) and even if price continued up, as long as there was no confirmation of further long strength I will continue entering short positions. I was able to confidently take multiple short entries because "how" price was moving from point A to point B was not indicative of a long market. Or like I always say, " The lower time frame's price action wasn't complimenting the higher time frames move up." Then finally, there was further 5 minute confirmation of strong short strength and price began its descent. However, if a trader at this point was basing their trades on "current price direction", they're likely to take long positions on this pullback for a possible next move up. A devasting outcome as you can see. So if you always find yourself on the wrong side of the market, firstly, stop putting value onto current price direction. It is just a result of previous price action. Begin asking yourself, "What is the context of the current price direction". Or even better, learn how to read price to know how price traveled from point A to point B and begin staying one step ahead market. For if you a can do this, perhaps you will have a shot at staying in this game for the long haul. I'm sure you guys have questions! Don't hesitate to ask! I'll gladly help! Have a great day guys! Ken
Education
by TradingForexPriceAction
6
GBPCAD: Key Weekly Structure Ahead 🇬🇧🇨🇦 Hey traders, GBPCAD is very close to 2 years' low. With a high probability, we will see a pullback from that structure. To catch it with a confirmation watch a falling parallel channel on 4H time frame. Let the price reach the underlined potential reversal zone first and then wait for a 4H candle close above its resistance. Then a bullish continuation will be expected to 1.6775 / 1.6915 In case of a bearish breakout of the underlined weekly structure, the market will drop lower most likely. ❤️Please, support this idea with like and comment!❤️
Long
by VasilyTrader
15
GBPNZD: Classic Trend-Following Setup Explained 🇬🇧🇳🇿 Hey traders, From the beginning of February, GBPNZD is trading in a bearish trend on a daily The pair recently broke a strong horizontal key level, now we see its retest. On a 4H time frame, the price formed a double top formation. 1.924 - 1.926 is its neckline. We need a 4H candle close below the neckline to confirm a coming bearish move. Initial target will be 1.906 If the price sets a new higher high on 4H the setup will be invalid. ❤️Please, support this idea with like and comment!❤️
Short
by VasilyTrader
11
Learn Trend Analysis | Impulse & Retracement Legs 📈 Hey traders, As you asked me, in this educational post we will discuss some price action basics. No matter whether you are a fundamental trader or a technical trader you should be able to execute trend analysis. You should always know where the market is going; if it is bullish or bearish. One of the simplest ways to execute trend analysis is to perceive a price chart as a sequence of impulses and retracements. ➖The impulse leg is a trend-following move. It is characterized by heightened movement dynamics and speed. Usually the completion point of the impulse: sets a new lower low in a bearish trend, sets a new higher high in a bullish trend. ➖A retracement leg is a correctional movement within the trend. Its’ initial point is the completion point of the impulse or retracement leg and its completion point might be an initial point of a new retracement leg or of a new impulse leg. Usually, a retracement leg is characterized by a slow zig-zag movement. Usually the completion point of the impulse leg: sets a lower high in a bearish trend, sets a higher low in a bullish trend. Perceiving the price chart as the set of impulses, one can easily and objectively identify a global, mid-term and short-term market trend, price action trend-following, reversal and correctional patterns. What do you want to learn in the next educational articles? ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
9
EURUSD: Classic Trend-Following Trading Setup 🇪🇺🇺🇸 Hey traders, As you know I am very bearish biased on EURUSD. I was patiently waiting for a retest of a recently broken key structure. Yesterday the price finally approached that. On hourly time frame, the pair formed a double top formation and then broke its neckline. Now I have my sell limit order on a retest. Bearish trend continuation is expected. Local goals: 1.0945 1.086 ❤️Please, support this idea with like and comment!❤️
Short
by VasilyTrader
5
EURGBP USING A SIMPLE PRICE ACTION TECHNIQUEby Constantino Principles of Professional Speculation" written by Victor Sperandeo (Trader Vic ), analyses one of the powerful topBottom reversal techniques. Trader Vic describes this technique, "In an uptrend, if prices penetrate the previous high, but fail to carry through and immediately drop below the previous high, the trend is apt to reverse. " The converse is true for a down trend. This pattern is also called "spring." The 2B setup looks like a micro "M" pattern and signals trend reversal when prices stop making higher-highs in an uptrend. The 2B pattern rule is when prices make a new high or new low; they pull back for a healthy retracement. After retracement, the price tries to re-test the new high or new low. When this test of new high or new low fails, and it does not maintain the prices above the new high or low, it signals a potential trend reversal. This setup is very powerful and signals the beginning of a correction. Trade: The market attempts to test a recent new high or low, but does not hold the prices above this range. Trades are entered to sell the low of the bar trying to breakout or buy the high of the bar trying to breakdown. Target: The target is usually the "swing low" prior to the new high for 2B Buy setup or "swing high" prior to the new low for 2B Sell setup. Stop: Protect your "long" trade entry by placing a "stop" below the recent low and protect the "short" trade entry by placing a "stop" above the recent high.
Long
by TradeChartPatternsLikeThePros
1
AUDUSD: Potential Pullback Trade Explained 🇦🇺🇺🇸 AUDUSD is approaching a strong structure resistance. On that the price formed a double top formation. To catch a pullback you should wait for a bearish breakout of its neckline. You need an hourly candle close below 0.723 - 0.725 area. Then shorting on a retest your goals will be 0.7185 / 0.7145 If the price sets a new high, the setup will be invalid. ❤️Please, support this idea with like and comment!❤️
Short
by VasilyTrader
31
GBPNZD SHORTBy looking at the price action, its easy to see that the pair has been moving in a bullish direction for several days, since early November 2021 to be exact. Current price action shows an indication of potential market exhaust which could result in a bearish short term correction. Looking at the daily chart we see 3 potential confluences/reasons which is in line with our directional basis on the pair. A Double Top pattern formation, followed by a trendline breakout and key level breakout which signals a change in market structure from bullish to bearish. We will be looking to enter on the rest of this key level and expect price to spike up sharply before a continuing to the downside. Risk Reward of this particular trade currently stands at 8.76:1.
Short
by NDOBObanks
How to trade Bullish Momentum Here's a tutorial on how to trade bullish channel using price action. So when we see price ranging in a channel, we suppose to trade as per breakout or wait for retest entry. Here in BITCOIN when price broke down channel support we'll wait for retest and when we don't see retest and simply price reverse here we'll plan for bullish entry and call it as bullish channel. As soon as price breaks out the channel resistance with a strong candle we'll entry in trade by keeping the stop loss as recent swing low and channel high as our take profit.
BINANCE:BTCUSD.PEducation
by tredstock
2
Price Action Lesson: The Basics of How to Read Price Part 2Hey Guys! As you guys know the current NZD/USD daily bias is short. Or in other words, price is likely to reach 0.6591 before reaching 0.6731. So on my last post, I mentioned I took a short entry at 0.6722 with a stop loss at 0.6591 with its main target at 0.6591 for the time being. In this Price action lesson, I just wanted to briefly explain how I read price in order to take the short entry yesterday. Moreover, why I was able to take the short position "comfortably" even though price pulled back to 3 pips to the stop loss level. That's it! Have a great day guys! Ken Disclaimer: This is not Personal Financial Advice.
Education
by TradingForexPriceAction
1
Price Action Lesson: The Basics of How to Read PriceHey Guys! Just wanted to put up a quick Price Action Lesson on How to Read Price. I demonstrate this foundational element of reading price with a current eurjpy short trade I'm currently in. The Key point of the lesson is simply: Directional movement of price is irrelevant when it comes to reading price. What's important is "How Price Gets from Point A to Point B". So even if price moves up, if there is no signs of strength in the same direction, that move up will be unsustainable. Moreover, this foundational way of looking at price movement is what allows a trader to always be one step ahead of the market and thus not chase the market. Ok! I hope this helps guys! Have a great day! Ken Disclaimer: This is not Personal Financial Advice.
Education
by TradingForexPriceAction
1
1-Hour Order Block Madness On GBP/USD. 2 Order Blocks Hit TargetHappy Wednesday! Today we are looking at 2 order blocks that played out yesterday. OB 1) – Yes, I know it sounds like star wars haha! We can see that the order block zone ( Highlighted in yellow ) was an area of interest and used for liquidity as our entry perfectly sniped. I always like to place my pending order at the 50% halfway mark in the order block zone. Price came up and indeed pierced into this zone before pushing down again. The target was the previous support below which coincidentally gave way for our second OB. This gave us an RR of 1 / 4 OB 2) Highlighted in yellow – Gave us a RR of 1 /4 You can see how these order blocks were like ping pong. It bounced from the second one below into the first one, back down into the second one, sniping the second long entry and going back up to the second target. *NB, these do not always play out like this. It’s about finding price structure that has been broken correctly and trying to attain if the area of interest is at a place where the price needs to come back to push the price further in the opposite direction. Market makers take advantage of every retail trader like you and me all the time. When we learn how to follow the money, we can start to see these patterns form. They don’t work all the time, but when they do, it can be a great strategy to adopt and use ( only once you’ve backtested it to see what works best for you. Have a great day. See you in the next one.
by TheVortexTrader
1