Hey traders, In this post, we will discuss 3 simple and profitable types of a triangle pattern. 1️⃣The first type of triangle is called a descending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bullish trend. Setting a new higher high the market retraces and sets a higher low, then bulls start pushing...
When trading price action, it's crucial that you understand the story of the currency pair you are trading.For what current price is doing is only valuable in the overall context of what a currency pair has been doing.Just like reading a book or watching a movie, watching it from the half-way point won't allow you to understand what's happening; for current...
Hey traders, In this post, I will share with you my strategy to apply a trailing stop. Please, note that I am applying a trailing stop only in trend-following trades and only when a trade is opened on a key level. I trade price action patterns, so the following technique will be appropriate primarily for price action traders. Moreover, my entries are strictly...
Hey traders, Inverted head and shoulders pattern is a classic reversal pattern. It signifies the weakness of buyers in a bearish trend and a bullish accumulation. ⭐️The pattern has a very peculiar price action structure: Trading in a bearish trend the price sets a lower low and retraces setting a lower high (left shoulder), then the market goes lower setting...
Resistance level is at price 118.71. Bull candlestick closed above 118.71 price level. Resistance level is now support. Next, wait for a rejection candlestick or pin bar candlestick to retest support level at 118.71. Enter a market execution order after the candlestick completely forms into a rejection candlestick or pin bar candlestick.
Hey 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...
Elliott Wave Theory , developed by Ralph Nelson Elliott, proposes that the seemingly chaotic behaviour of the different financial markets isn’t actually chaotic. In fact the markets moves in predictable, repetitive cycles or waves and can be measured and forecast using Fibonacci numbers. The very basics of Elliott Wave Theory ; The Elliott wave principle at its...
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...
Hey Guys! The world markets are on a wild ride at the moment. With urgent news being released by the day. Traders around the world are trying to guess the next fundamental news to be released and further guess how the markets will react. The world markets become a huge guessing game arena.... Now, that's fine if that's your cup of tea. The adrenaline rush or...
Hey Guys! I just wanted to post a quick tutorial on how to find legitimate Head and Shoulder patterns. In this lesson, I explain the 5 rules that a Head and Shoulders pattern must abide for it to be legitimate. Here's the rules: #1 Both necklines must be parallel. #2 The main neckline cannot be broken out of surpassed before the right shoulder's price level...
Hey Guys! Just wanted to post a quick lesson on "How to Draw Legitimate Trendlines". In this lesson, I explain the 3 rules that must be applied for a trendline to be legitimate. 1.) Trendline's attachment points must be on the wicks of a candle. Not the body of a candles. 2.) There must be at least 3 contact points on a trendline for it to become...
Hey Guys! I know price action trading can be somewhat a mysterious and confusing style of trading. So I just wanted to jot down the basic characteristics of price action trading to help clarify this ambiguous trading style. #1 Price action trading only uses price action to make trading decisions. No indicators, fundamental analysis, intermarket analysis, etc......
Hey Guys! As you guys know I aborted 2 short entries on the NZD/USD pair yesterday to minimize my losses. In this lesson, I'll explain how I knew to abort the short entries early by reading 1 minute price action and thus minimize the loss. Enjoy! Have a great day! Ken
After price closes above a resistance level, then resistance level becomes support. Next, watch for a price action signal in the form of a pin bar, rejection candlestick, or engulfing bar. Enter at the closing price of the candlestick. H1 H2 H3
Hey 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...
Hey 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...
Hey Guys! Here's a simple explanation of Price Action Trading! In its very essence, Price Action Trading is about letting price tell you where it's headed in the future. No indicators or fundamental analysis. Just price alone will do. But in order to know what price is telling you, you must first learn "how to read price". Think of this as a language. Just like...
Hey Guys! As you guys know, I'm currently waiting for a pullback to the 1.3313 levels for a long entry on the GBP/USD. In order to know whether or not I will get this pullback, I look to the lower time frames to see how much long strength or short strength there is. Now in this case, I want price to come down to my entry level, thus am looking for signs of...