On a personal note, in a recent study of all my winning trades, over 85% of them paid in full within 5 minutes. To further illustrate this point, let’s go to the charts. However, for the sake of not turning this into a thesis paper, we will focus on candlesticks. The price action secrets below image gives you the structure of a candlestick. To learn more about candlesticks, please visit this article that goes into detail about specific formations and techniques.

Have a trade management strategy beforehand

So if the market comes down lower retesting this previous resistance that could ask as support and gives me a bullish reversal pattern… You’re all about those pretty charts and graphs, and you think you can predict the market’s next move based solely on price action. One way to do this is by using a trailing stop-loss order, which adjusts the stop-loss level as the price moves in the trader’s favor. Ultimately, it’s important to consider various factors when evaluating a trend’s strength, including its trajectory, angle, duration, and any other relevant market indicators.

Stage #3: The Distribution Stage

They offer traders insight into evolving price action and foreshadow potential future movements. What do you do if a basic candlestick or chart pattern indicates a reversal or consolidation? What many rookies don’t know is that it is best to avoid such a move. Focus only on patterns formed in key areas, such as support resistance (SR), supply-demand (SD), overbought/oversold areas, etc.

Then Forex Factory would say, gold is slipping….then in a record 3 days it would go up 1000-pips and counting…..until I began wondering why the outcome would be opposite. I didn’t realise also, that my losses were coming from my RSI. The day I hid my RSI, and focusses on price is the day my account never crashed again. I completely agree with your explanation for consistent trader. I totally agree that the price action can predict where it is heading.

If you can overcome that you will be consistently a profitable trader of-course. Now you are turning to the trading system that attracts me alot. I have recently been following Price Action at Support and Resistance. It has opened a new world of opportunities in the trading arena for me.Your e-book on Price Action was an eye-opener for me too. I will be looking ahead with keen interest to learn your trading strategy. Then again, reading price action also needs a lot of knowledge & practice.

1. Anything that doesn’t conform to this rule means either a sideways market or a reversal toward the opposite direction.
2. Now I Realised Price is One of the Best KING in an all Kind of markets Thanks Rayner ..
3. I trade signals and news and is being up and down, I even have more losses than win trades.
4. With this in mind, let us look at some of the top secrets that will help you trade price action strategy well.
5. I use them just as an approximate estimate what the next action of traders will most likely be.
6. I have been trading for a couple of years but have only been following you for a few months.

They have the capability to test and verify their strategies against past market data before applying them in real-time conditions. News can significantly influence Price Action Trading strategies because it often leads to increased volatility and unpredictability in the markets. News events can directly and subtly influence Price Action Trading strategies.

Zooming in and out on your chart can often help to see the bigger picture better and enable you pick up important clues. In my own trading, I pay a lot of attention to the location. A good signal at a very important support/resistance or supply/demand area can often foreshadow a great trade. At any given time, the price can either rise, fall, or move sideways.

I just look at the naked chart and decided when to enter/exit on what the chart tells me. Very straightforward.Thank you Rayner for all the info you provide. Most indicators are lagging, some indicate bearish signal while at the same time others are indicating bullish signal.

Head and Shoulders Pattern Strategy

1. It’s a game of patience and precision, waiting for the market to reveal its hand through this modest yet potent pattern.
2. Trading doesn’t work this way and the price is a very dynamic concept.
3. Customers find the book easy to understand and informative.
4. After reading the lesson from other mentors, this is the best advice so far.
5. The reliance on a trader’s ability to correctly interpret price movements, which can be influenced by emotional biases, underscores the importance of experience and a well-defined trading plan.
6. This pattern forms after a sustained trend and is incredibly powerful for finding when a market has topped out.

I know I’ve covered a lot in this price action training so let’s do a super quick recap… One thing to share is that the four stages of the market appear on different timeframes. This market previously has been in an uptrend, advancing stage. If the market breaks out, you can look to get on board the start of this new trend. Usually, in an accumulation stage where the market goes into a range…

Moving Average Indicators

To keep it simple, we say buy at demand levels and sell at supply levels. Contrarian and mean-reversion traders do get profitable countertrend trades from time to time. And the reason is simple — price swings in the direction of the trend (impulse swings) are stronger and bigger, offering greater profit potentials. So, when trading a ranging market, you should be cautious about breakouts. This is especially true if the range is prolonged or narrowing. Similarly, if a falling three pattern is a part of a breakout below a support level, the price is more likely to continue dropping.

Technical indicators such as the RSI or stochastic oscillator become useful tools for traders using this strategy. They help validate conditions that are either overbought or oversold, providing clues about potential reversals inside the range. With its long tail and diminutive body, the pin bar is a harbinger of potential market reversals.

They have 20+ years of trading experience and share their insights here. Volume’s role is to confirm the narrative told by price action, adding depth to the trader’s analysis. By incorporating methodologies such as the Kelly Criterion or the Maximum Drawdown strategy, traders can fine-tune their position sizing to optimize their risk-reward ratio. These techniques ensure that even in the face of the market’s inherent uncertainties, traders can maintain control over their exposure and preserve their capital. We have backtested all 75 candlestick patterns, and you get access to our candlestick course.

The rate with which the price rises during a trend is also of great importance. In general terms, moderate trends have a longer life span and a sudden increase in price usually indicates a less sustainable trend. We can often observe this phenomenon during so-called (price) bubbles, wherein the price falls again just as quickly after an explosive rise. I would like to know more about Price Action trading, but I don’t have the resources to take an expensive class.

Traders who utilize price action analysis are able to base their decisions firmly on what they interpret directly from these fluctuations in market prices. The price action framework is built upon Support and Resistance Trading, the strategy that recognizes the battlegrounds where price movements often pivot. These are the zones where the collective decisions of the market’s participants converge, creating barriers that can halt or reverse a trend.