How to use Inside bar strategyInside bar strategy is one of my personal favourites, in this section I will detail how and why I trade Inside bars to deliver more profits during a trading week. Now In my personal opinion any non profitable trader should be chomping at the bit to learn this strategy as it has the potential to really aid your trading journey. So lets breakdown what finding an Inside bar means... So above me here is the recent rally from the pair GBP/JPY , I have highlighted a few of the inside bars but if you look close enough you will see more, So an Inside bar on the daily is telling us the day before we had a strong rally this can be called candle (1), so Candle 1 is a rally, Candle 2 is inside the range of candle 1, what this means is that on lower timeframes we have seen consolidation, Price hasnt broken the high of candle 1 or the low of candle 1, so when candle 3 breaks the high of candles 1 and 2, price rallies to our target. So the entry comes after the high of candle 1 and 2 broken, you use a stop loss under the low of candle 2, and you aim for 1:1 risk reward. When is the best time to trade these candles? In strong rallies you will see this set up form alot , the reason for this is because in strong rallies, we often see rally-consolidation-rally. Typically this strategy will win around 70% of its trades and is great for entering rallying or depreciating currencies, I hope you guys can put it to use like I have over the years! any questions please feel free too comment below (This is not trading analysis this is purely to demonstrate how inside bar works and how you can use it in your trading). Enjoy the weekend!
Strategy!
LET'S GET REAL: Stop Strategy Jumping!Hey Traders,
This one is going to be a little bit different, a little bit deeper and a little bit harder to listen to rather than usual technical analysis. I recommend you sit down and listen to this. Have a think whether it relates to you or whether you found yourself in this position, or even if you've gone through this position and share your experience on how you go through it. A lot of traders struggle with their strategy, jumping from aspects of trading and that's why so many educators out there make a lot of money off of them. It is time to stop.
In this video I outlay a challenge that I put to all the traders who may find themselves in this position to sit down and to thoroughly test their current or previous strategies and understand them on a deeper level. No more jumping around, no more looking outwards. Let's start looking inwards. Let's see the data that we have handed to us and what we can do to improve that data.
If you enjoyed this video, please leave a comment. Leave a like, if we do get enough likes and comments, I will make a Part 2 on how to go about this with a more depth avenue while using different resources.
As always, have a fantastic training week.
HOW-TO: Accumulation StrategyIn this idea I will make an in-depth tutorial on how to use the Accumulation Strategy and how to automate it.
█ PRESENTATION
The strategy is in the form of an invite-only script providing backtesting and alerts.
Here is a link to the script page:
Goals
• Steady profits. Smalls profits over time and no drawdown as long as you don't sell in loss.
• Peace of mind. It is meant to be a "set it up once and let it run for a while" automated strategy.
• No loss. Never sell in loss.
Drawbacks
• Small profits. No leverage, just spot trading.
• Lengthy trades. Trades can take up to several days or even weeks in worst case scenario. We will see how to avoid that.
Strategy
• Use volatility. Take advantage of small waves in the market.
• Buy the dips. Use a combination of technical indicators to buy bottoms or oversold prices.
• Accumulation. Buy small amounts several times as price moves to better position yourself.
• Take profit from total volume. Sell everything once price is in profit at the configured percentage value.
█ BACKTESTING
Backtesting is the process of creating a strategy.
Finding a good pair
• By Market Cap. Take a category you are comfortable with (DeFi, Metaverse, DAO, etc) then look at coins in the top 10 market cap.
• Volatility. The more volatile the coin is, the better.
• Ascending/Sideways trend. This is where the strategy will work the best. We will see just below how to filter off bear markets.
• Pick a timeframe. Usually from 5m to 30m, can be higher or lower. I look at the average bar, I like something around 0.5-1% bar height, the chart should not have too much noise, otherwise go higher timeframe. Though not too high, since we want to take advantage of the volatility.
Build your entries
You first have to create "entries" that will then end up being a buy signal, after passing through some optional filters.
• Entry settings
• Go Long/Go Short
The indicator allows to trade both sides of the market. In these examples, I will only go long-only for simplicity.
• Max active deals
This is the maximum consecutive buy signals allowed for the strategy. Example with 10: the strategy will buy up to 10 times until take profit is hit.
• Minimum bar delay between deals
Puts a minimum delay between each entry signal, in bars.
• Minimum price difference in % between deals
Sets a minimum price percentage between each entry signal. Leave at 0 to disable.
• STOCH & RSI entries
Creates entries when the RSI or STOCH crosses below a configurable value. The length and resolution of the oscillators are configurable.
• Other entries
Signals using some of my other custom indicators are BUILT-IN:
• Top & Bottoms
• Higher lows, Lower lows
• RSI Divergences
Entries are combined using a OR logical gate. I usually go with RSI and STOCH entries on higher timeframe using the resolution input, then add Top & Bottoms or Higher lows if I feel like it needs more entries.
Once you have chosen a combination of entries, let's move on to the filters.
• Trend Filter
You can pick a trendline from a list, usually a simple EMA 200 will do the trick. Using slope change or price cross, it will filter off entries if the market wave is bearish, thus avoiding taking risky trades.
• MTF Trend Filter
The same thing, but higher timeframe. It is used to filter with the market wave, meaning the more global trend. It is a good habit to combine the 2 trend lines to drastically reduce the risk. The Adaptive Tilson T3 is one of my favorites, combined with the CROSSOVER condition.
• RSI filter
Useful with entries other than RSI to filter overbought entries. Use a higher timeframe to filter more aggressively.
I would advice to use all 3 filters if you can. It will prevent getting into lengthy trades as we will see below.
Adjusting
• Backtest parameters
First you should go to the backtest parameters tab. Here is what is used in this example:
• Initial capital: 1000 €
• Order size: 100 € (the max deals is 10 here, total deals should not exceed initial capital)
• Pyramiding: 10 (the number of max deals)
• Commission: 0.075 % (Binance spot trading)
• Take Profit
Configure the take profit, in price %. I usually go with something from 1 to 4 %. In some cases, activating the trailing TP can be interesting.
• Backtest results
In addition to the strategy tester, the indicator has a backtest panel containing useful information. Here are some of it:
• Net Profit (% and fixed)
Useful to see how volatile a pair is compared to others.
• Avg # Bars in a deal
Average number of bars a trade can take to be completed. < 100 - great, > 100 - can be improved, > 200 - bad
• Avg # Days in a deal
Same information but in days.
• Max # days in a deal
Maximum number of days a trade took to be completed. < 30 - great, > 30 - can be improved, > 60 - bad
Example of settings that can be improved:
The Avg # bars and Max # Days in a deal are flashing red and orange. It means it can be improved.
By adding the 3 filters, increasing the stoch entries timeframe and reducing the take profit to 3%, we are getting a much more secure strategy:
All the settings are in green, we know that over 421 days, the maximum days a trade took is 13.78, and a trade takes 1 day in average.
█ AUTOMATION
When you subscribe on my website, you unlock access to the indicators but also an automation system for Binance.
The system is using the indicator alerts to automatically place orders on Binance using their SPOT Trading API. You can find a tutorial here .
Create a bot
The first step is to create a bot for your strategy.
Make sure you have enough capital in your account for the strategy.
Set the order size/quantity with the same value as in the indicator backtest parameters.
Create the alert
I recommend to create one chart layout per strategy.
Once you are done setting up the indicator, set the alert messages. You will find the text fields at the bottom of the indicator input settings.
You will typically need to fill "Long Entry" with the buy message, and "Long Take Profit" with the sell message.
Once you have done that, save your chart.
Click add alert on the indicator.
Select the condition "Alert() function calls only".
Tick "Webhook URL" and set the URL. It can be the one from my bot system or if you use another bot system with webhooks it will work too.
Give your alert a name and click create.
Make sure the alert is created in the alert tab.
The alert will save the indicator, settings and timeframe at the moment you create it. If you decide to change an indicator setting, you must remake the alert.
Fees
If you trade on Binance, I recommend to enable BNB Spot trading fees, and always have a few BNB on your account to pay for the fees.
That way, you can use a sell 100% quantity order without needing to take fees into account, unless you are using the strategy to trade BNB. In this case, use something like sell 99% in your sell message.
Supervise
Once your strategy is running, you can supervise it in the strategy tester in real time, in the alert logs and in the bot logs.
═════════════════════════════════════════════════════════════════════════
█ SCRIPT ACCESS
Indicator and automation tools access can be purchased on my website. The link is in my signature below.
█ SAMPLE USE CASES
I will update this HOW-TO idea whenever I backtest a new pair, sharing the configuration and a link to a shared chart that you can copy and edit yourself.
Example on MANA/USDT:
Link to the chart: www.tradingview.com
Thanks for reading. More to come below.
How To : Chart Formations Critical Second Top & Bottom Entry Hi Traders and Investors
This video is a follow up from my previous posting dealing with shifts of momentum.
This time we are looking to add an additional synergy - the second touch in a chart formation - which can be found in Double Tops, Double Bottoms and head shoulder formations. Correctly using the second touch on the chart formations has allowed me to avoid many mistakes in my evaluating my trades and I hope that it will help you in evaluating your trades.
When you look at the Double Top and Double Bottom chart formations, you will notice that high frequency trading and algorithms trading will often create the formation of a second top to the same level as the first top or slightly higher by taking stops pilling at the first top . At this point, you want to wait for the synergies to come into play and use your tools to look for a shift in momentum on the 2nd top touch see video.
Waiting for the shift in momentum to occurs after the second touch, is a critical piece of of information that will prevent you from taking trades that are likely to be stopped out on the first test.
Hope it helps have a great week end
Marc
Big snapper scalping indicatorThe big snapper indicator gives buy and sell recommendations based on the current trend in the market measured by 3 different moving average (fast, medium, slow). I therefore encourage you to try it out if you are still struggling to build a strategy. Entry and exist rule is explained in the video.
NB. This video is made for educational purposes only and not an investment advice
Moving Average Cross Over StrategyWe start by creating a visual for when all moving averages are in order and across the 200 moving average . In this example, I have used a vertical line in the colour of our bias direction, Long(Green) , when this condition has been met. We now have an increased confidence by filtering out trade setups that do not meet our bias giving a higher probability and focus.
Levels of previous resistance give us a price that we can enter the market by turning into a new level of support . In this example I have highlighted this with a red arrow located on the left hand side.
Now we have a trading bias and a methodology to set price restrictions to enter the market, we can now trade only long positions and trade setups . In this example I have highlighted long opportunities that have been triggered with arrows in green located on the right hand side. Entry points can be executed on either the daily , 4hour or 1hour charts depending on risk and trading style preference. Please note - Lower time frames may generate more signals which presents more risk.
MY FIB SPEED RESISTANCE FAN TRADING STRAT : )
Hi! I'm xtekky and this is my tutorial on how to use the Fibonacci speed retracement tool- I used Apple (AAPL) as an example to display the tutorial.
Steps:
(1) Open the fib retracement section on the left bar and select the " Fib Speed Retracement Fan"
(2) According to your trading style, select the timeframe I indicated in the chart - to begin with - you can then choose the timeframe you are most comfortable with.
(2) Define the begin of an uptrend (after last retracement or reversal) and place your first point
(3) Define the end of the uptrend (after last retracement or reversal) and place your second point - if there isn't any recent retracements / reversals, you can take previous ones or the highest
recent value
(4) Define the most relevant percentage (38.2% on this chart) but it may as well be another level - note that fib levels 38.2% and 61.8% are often the most relevant ones
(5) Let the stock / crypto test the level once or twice to make sure it holds, you can of course jump in directly if you are confident.
(6) Take Longs and Shorts in the "Channel"
Advanced:
(7) Use momentum reversals (Squeeze Momentum from @LazyBear is the best indicator for me) to define more precisely when to jump in - note that the price doesn't always trade in the channel, there are some false breakouts and/or the price sometimes reverses a bit further.
(8) Use volume support / resistance zones
(9) Include Imbalances in the prices (If the Crypto/Stock you trade has a high volatility/manipulation rate)
If you want more complex tutorial, you can see a more detailed vid on the Ytb profile linked to this Tradingview account
Disclaimers:
!! This is not an investment advice and you shouldn't use this technique alone !!
!! Never invest/trade with more money than you can afford to loose !!
------------------------------------------------------------------------------------------------------------------------------------------------------------
That's pretty much it! don't forget to ask or DM if you have any questions!
If you want to follow me on this long journey ahead of us, you can support me by subbing and liking the post !
-Credits to xtekky-
Simple BUT Not EasyReading charts and understanding the "Language" of the market is very simple but at times due to high involvement of our emotions we make it very hard.
Any market or chart that you see will be in a phase all you have to do is identify it on a higher time frame.
Lower Lows & Lowers Highs is a definition of a down trend.
Higher Highs & Higher Lows is a definition of a up trend.
If you can see the above both happening then market is ranging.
If you are having a short bias on a particular instrument always look for a shorting opportunities in a lower time frame after confirming the phase of the market in a higher time frame.
Always wait for a confirmed trend don't try and jump in too early.
Let market decide the direction, don't force your self.
Risk Management is very important, Plan your trade with a proper risk that you can manage.
Trading is a marathon, if you try to sprint you will fall down and injure yourself.
Slow & steady wins the game :)
Thanks
⭐ HOPE AND FAITH💥 Am I the only who at some point while trading hoped for price to move in my direction or bias or rather open a position with mere hope and faith ❓... Certainly not. At one point or the other you must have done this and possibly still struggling with it.
💥Truth is, the market will always do whatever it wants regardless of your strong hold, hope or faith in your bias.
What then do I do ❓
1. Take trades that you've planned. Do not just wake up, get into the market and start executing trades without proper analysis. Take trades with predetermined entry, stop-loss and take profit level.
2. Be quick to admit that you're wrong when the market chooses to go against your bias. Stop adjusting your stop-loss when in a losing position. It will enable you cut the losses early.
3. Avoid trading based on emotions. It is easier said than done. But with practice you will get better at it. Be logical and see things as they are.
🔥 I HOPE this helps.
Sage Trader's Nugget
HOW-TO: A Step-By-Step Guide to Using The Profit Maxima StrategyThis strategy is suitable for position traders who hold their positions for months.
The goal is to determine the best entry and exit levels in order to achieve maximum profit with minimum risk.
Due to the bullish nature of the crypto market, trading in the “short” direction is avoided.
Step 1: Choose the best chart
Use the "Chart Quality" table to choose the appropriate chart.
The "Historical Bars" field displays the total number of candles in the chart.
The more historical price data is available, the more accurate the results will be; so choose the chart of an exchange that has the most historical bars.
The "Predictability" field indicates how reliable the results are.
The "Recommended Chart" field shows the suggested chart for some common symbols.
Step 2: Place your orders manually
Set your entry and exit orders at three different levels; for this, use the "Entry & Profit Limits" table.
As you can see, the Entry and Target levels are matched in pair.
Step 3: Be patient
As mentioned, this is a long-term strategy. In the long term, there are fluctuations, price corrections and so on.
So remember that patience is the key.
A brief explanation on the importance of risk managementEvery human activity has its ups and downs. You may face good days and bad days and it’s a norm in any other human kind activities.
Read history! Did all dynasties get consistently stronger?
In politics, did popularity rates of political figures get better day by day?
Sure not!
Even in natural events, you see uneven decreases and increases. Not only the annual rainfall rates are not always the same, but the rate of increases and decreases varies from year to year.
So strategies and setups won’t always work because they simply are man-made things to predict a human-based activity! They may fail, expire or disused someday, because this is the neutrality of nature and creatures including humans and their markets. For the last instance, even stars grow and fall.
I know there are some traders who claim their strategy will never expire. They may be liars, but they are not necessarily liars! Those who believe their strategy will never expire will admit that their strategy had bad days too. I like to say their strategy has expired and reactivated again and since they consider longer cycles (monthly, yearly or even bigger) they believe their setup has never expired. If we want to be more precise their strategy has expired but just for shorter periods (may be just for hours!).
Let me explain a little more technical, every setup is compatible with specific conditions of the market and they will fail in other markets’ conditions and traders are not foreteller but predictors, so they sometimes may get conditions have changed and sometimes they predict it wrong or get the change so late! So they sometimes make profit and sometimes don’t. For example RSI overbought and oversold strategy do not make profit in trending market on the side of the trend! I mean if markets are bullish, overbought is a norm not a sign of reversal (most peak of reversals happens in overbought or oversold but not every oversold is a sign of reversal in a trending market) and in a super bullish trending market you almost can’t find any RSI oversold. So you should use another setup! ( some traders using kind of strategy which has different setups for different conditions of market, they actually guess when their strategy is going to expire)
I divide the professional traders by methods that they choose to avoid using an unsuitable for market conditions into four general categories.
1- Ignorers: Since they got a conservative risk management strategy and they could easily ignore expiration phenomena and trade without worrying about expiration.
2- Rule makers: They have different setups for different conditions. They specify some rules to distinguish market conditions and adapt new setups to their trades. Rules could be created by using both indicators or indicator-free (price action) chars.
3- Sentimental Market traders (in case of expiration): Some traders do not use specific rules! They simply just sense market conditions has changed. They differ from rule makers because they don’t use a specific rules every time. They may use some rules unconsciously but those rules may differ time to time.
4- Equity curve analyzers. They simply analyze equity curve! They make specific rules to start using or stop using a strategy! For example they will stop using it if it is a loss-maker one for 2 weeks (this one won’t work in most strategies) or they simply try to use price action rules to analyze EC of a setup! “Mark Douglas (1990) is saying that if traders were to chart their equity, these charts would look very much like the typical bar charts and charts like these also can have the same predictive value as in the markets” “Procedia Economics and Finance 32 ( 2015 ) 50 – 55” these kind of traders may use indicators like SMA or WMA to predict profitability of a setup in future and they are also eager to use price action rules.
I believe no method is superior to another, the way an experienced trader use the method is important! But having a method to avoid large losses is necessary. And all traders consciously or unconsciously use one of them. Most price action traders are ignorers. Their strategy may expire but for short period of time. For example mine is expired right now but I’ll continue using it cause I know it’s temporarily and I don’t know when exactly it will reactive again. I also use a self-made auto-trading expert which use different indicator based setup and since the period of expirations of that setups are long, I use EC analyzing methods to detect expirations .
No matter which method you use, you can’t be an always winner trader! Ignorers may loss and they will name it exceptions. Rule makers’ rules may detect and signal expiration too soon or too late! The 3rd and 4th kind of traders may make mistakes too. There is no single trader in the world with 100% win rate in long-term!
That's why you need to limit our risks, I like optimism in life (I prefer pessimism in back-tests) but you should not be deluded, you should think what happen if you lost some consecutive trades?
If you risk more than you can handle consecutive losses emotionally, You will empty your trading account, no matter how good a teacher you had or how much you have practiced or how great trading past you have or how experienced you are or even how much you believe your emotions are in control of you
(you actually can’t control in real big loses trading), YOU NEED TO LIMIT YOUR RISK by managing it in a way that your trading is profitable enough and simultaneously do not be destructive at certain times
"Profit a little less but more consistent."
There are also too many other important rules for money and risk management and you should take them into consideration too.
Best Regards, Alisignals
Grinding your way to Day Trading profitsHey all!
We hope your trading day has been successful in either learning or earning!
This quick daily primer video explains a little the way we trade, bascially being reactive to the charts!
Too tired to type more right now, but hope this video helps you learn something new!
Testing My Forex Trading Strategy My technique that i used to determine whether to buy or sell a currency pair at any given time.
that technique is based on three Fondamental Points :
CCI (convergence /divergence)
Tops / Bottoms
Trendline
Fibo retracement.
For thiis pair , we expacet an strong bearish to dwon level for next weeks approx (3-4 months)
So Lets see the result by testing this time with EUR NZD
For more information how to learn this method ,you can inbox me at any time
9/5 Strategy TutorialAfter the broken trend channel, we are looking for an opportunity to trade at 0.50 and 0.618 fibonacci levels. You can search for withdrawals for safer transactions. Stop loss above 0.382 Fibonacci level, take profit levels 1.618 Fibonacci level. Kırılan trend kanalının ardından 0,50 ve 0,618 fibonacci seviyelerinde işlem yapma fırsatı arıyoruz. Daha güvenli işlemler için geri çekme arayabilirsiniz. 0.382 Fibonacci seviyesinin üzerinde zarar durdur, 1.618 Fibonacci seviyesinin kar al seviyeleri.
A Brief Overview of My Market Approach Brief explanations
I form my narrative based on ICT concepts, I form my entries based on the free Phantom Trading content. My appraoch is based on my understanding of these concepts, which may not be objectively correct according to their teachmgs, but it's what works for me
Premise: M1 flow - Typically I look to trade M1 flow in line with M15 flow, but not always
HTF AOI: W to M5 - Since I trade on the M1, I consider anything M5 or higher to be a higher time frame
Markets: DXY, EURUSD, USDCHF - I choose EU and UF due to their correlations with the dollar index. EURUSD has the best inverse correlation, USDCHF has the best direct correlation of all the majors
Minimum Risk to Reward Ratio (RRR) 3.2 - This gives me around 3R and should about cover commissions.
LTF Confirmation entry method
Liquidation - price liquidates a level on the M1 (bonus for HTF liquidation)
Mitigation - price mitigates a HTF level, in the form of a return to supply/demand or a raid of liquidity
CHoCH - price changes character by breaking above supply in a downtrend or breaking below demand in an uptrend
SD/DS Flip (supply to demand, demand to supply) - in an uptrend, price reacts to a level of demand, fails to create a higher high, and breaks structure to the downside (DS Flip) ; in a downtrend, price reacts to a level of supply fails to create a lower low, and breaks market structure to the upside (SD Flip)
FVG (Fair value gap) - added confluence if there is unmitigated imbalance associated with the entry level
My favorite setups are just my favorite presentations of the setup, there are a number of other factors that can shape the setup. The important thing for me is that I pay attention to the narrative the pattern is telling me, instead of simply trading the pattern. Understanding the narrative behind the patterns adds edge to my discretion and often helps me stay out of less probable trades/trading areas.
I will be posting a video to youtube that includes an oral summary of what is presented here, I will post an update to the idea when the video is released (this coming Sunday, 2 Jan 2022).
My current hourly strategy.This is the strategy I've been using lately to trade FTM and ONE on the hourly chart.
1. Price is below 200 EMA.
2. ATR down trend.
3. Bollinger Band squeezed.
4. Price crossed below EMA ribbon.
5. WaveTrend Reversed down.
Over the past 50 trades, this strategy has won 33 times and lost 17 times.
I usually use 1:1.5 RRR but for this particular trade and others with the same congruence and strength I would go up to 1:2.
You may even consider taking 50% at 1:1.5 and 50% at 1:2.
Easy to get data from cnbc.com, it is freeIt is a note for developer
Sometime, we need stock data to write strategy checking logic by python. Data from cnbc.com is good and it is free. How to get it?
There are 2 steps to do:
Step 1: install library python
pip install cnbcfinance
Step 2: Get history or get quote realtime
# Get history data
from cnbcfinance import get_history_df
data = get_history_df('AAPL', '30m')
# Get quote
from cnbcfinance import get_history_df
data = get_quota('AAPL')
TAKE THAT NEXT TRADEHi Friends,
This post is for Educational Purpose only!!
Time Frames : 5 mins, 10 mins, 15 mins
Instruments : All Forex and Crypto Pairs
Market Session : All Sessions
Strategy Considered : Price Action Shift (PAS)
TAKE THAT NEXT TRADE
From my personal research i have seen that for a trending market, break of structure or shift in price action often leads to a big price movement moments later. Before i go into a trade, i normally ask myself a couple of questions;
1. How much is my balance?
2. How much do i want to risk?
3. Does the setup have a high winning probability?
4. Am i following my checklist? if yes, have i checked at least 4/6 of the items on the list?
5. What are my exit plans if i should take the trade?
If i am able to respond to Q3-Q5, then i will not miss that trades.
PAS Strategy Explained - Citing CADCHF (15m)
Price did not break first swing low, attempted to break the second one but failed. It eventually broke the third swing low then headed back to retest the order block that pushed price to that break. It makes sense to go in right at this point since 6/6 of my checklist have been ticked + Q3,Q4,& Q5 response is yes.
PAS Strategy give investors/ traders the opportunity to expose their capitals to low risks but highly profitable trade (in this case RRR of 1:8).
Take some time off to look at my checklist and the confluences which i have listed on the chart.
DO NOT FORGET TO LIKE, COMMENT AND FOLLOW ME.
PRICE ACTION TRADING | RISING WEDGE PATTERN 🔰
Hey traders,
Rising wedge pattern is one of the most accurate price action patterns.
Being relatively simple to recognize, it is applied in various trading strategies.
⭐️The pattern itself signifies the exhaustion of bulls.
Even though the asset keeps growing in value, the price action legs contract forming a narrowing channel.
Being stuck between two contracting trend lines, one serving as support and one serving as resistance, the price forms a wedge pattern.
🔔The trigger that we are looking for to sell the market is a bearish breakout of the support of the wedge (candle close below).
To not be caught by a false breakout, it is highly recommendable to wait for a bearish violation of the last higher low level as well.
Only then the wedge breakout is confirmed.
⚡️Trading the market aggressively, one opens a short position on spot just after the candle closes.
⚡️The conservative trader will wait for a retest of the broken support of the wedge though for a safer entry.
✔️Safest stop will lie strictly above the highest wick within the wedge.
✔️Initial target will be based on the closest key structure support.
Learn to recognize this pattern and be disciplined to wait for its confirmed breakout. Only then a high trading performance will be achieved.
What price action pattern do you want to learn in the next post?
❤️Please, support this idea with like and comment!❤️
Simple Price Action Strategy – Easy Money! $$$$$Here is one of my favourite setups that is easy to learn and trade. I’ve heard it called many things over the years and know that many successful traders watch for this pattern to play out as it has a high win rate. Whatever you want to call it, it’s worth studying and adding to your playbook.
What’s actually happening in this pattern?
-A low is formed. Long entries have stops below the low providing a pocket of liquidity.
-As price returns to the area these stops are hunted and the liquidity is taken. Early breakout traders will short and become trapped. A base has now been formed.
-Price returns to the base and retests it as support.
-Price bounces back to swing high.
How do we trade it?
-The first thing we want to look for is a swing low (1) followed by a swing high (2). We can then mark out a potential range.
-Next, we want price to return to the swing low and either trade briefly below the range (a deviation) or just quickly wick below (sweeping the lows), and then price should return to the range. This area is shown as 3.
-Bids can now be placed at the range low. The setup is invalidated if price trades lower than 3, so stops should be somewhere under the low at 3.
-Targets should be set at the swing high (2).
-This also works for shorts – just flip everything upside down.
You can see this pattern on all timeframes and it presents a lot of opportunities once you know what to look for.
Happy Trading.