Transcript for:
Price Action Trading Basics

that's what I should do all right so a support this is a support level I'm gonna take my time I'm gonna take my time so a support level a support level is when you know normally people tell you oh buy off the support that's where you're supposed to buy at and you're supposed to get in for a buy put your stop loss under level of support and aim for the resistance in this case we can sell at support we can sell under the support whatever the case is we can sell at support you don't have to always buy at support and a resistance so we have the resistance I can't spell resistance that looks wrong but yeah so at a resistance it's pretty much the same thing just the opposite so here it you can you can now sell at a resistance no you can buy at a resistance now so you don't have to follow everything people are saying to you because now you can sell at a resistance you can buy at a resistance whatever the case is in most cases you'll be buying Above This level and then you'll be selling at this support too if that's the case yeah so we can also say instead of using support and resistance we can also say sellers we can say sellers control I mean you don't have to use this terminology but I'm just trying to show you and then we can say buyers buyers control and the reason I put this is because when we think of support and resistance this is how people view it this is how people are going to view it and that's that's perfectly fine so here we have sellers waiting at the zone so let's just say this is price I don't know 500 let's just say 5,000 this is priced 5,000 so we know sellers are in control of the market sellers are looking to push price down so let me just type everything out sellers are looking to sell price down at 15,000 right sellers are looking to push price down from 15,000 and let's just say our support level is let's just say this is a crazy support but 14,000 right so this is 14,000 so this is going to be the same thing just different so let's just take this and let's just change this buyers are looking to buy price I don't know why I just didn't typ that up at 14,000 right so buyers are looking to buy price back up at 14,000 and the reason I'm typing all this out is because this is the main this is the key part and it won't be support and resistance it will be the highs and lows so as I'm explaining this it's not support and resistance this mainly takes effect with a high and a low and I'll show you in a bit what that means so at these levels price is in control and both battle both parties are fighting so in this scenario both parties are fighting and they're looking to see where is the market going to push so price is going to fluctuate between this area and it's trying to figure out where it wants to go so that's why we trade the way we trade because this will happen so let's say price wants to sell it's going to do whatever it wants to do fluctuate in here and try to find who's in control so then price is going to break this Zone this is the indication part this is an indication telling us price is indicating us that it wants to go to the downside and the reason why I does this is let's take this and let's just move this over remember sellers are here so let's take this move this over sellers are in control of this area here but they're pushing to gain more more control it's like a battle it's like an army they're looking to take over as much territory as possible they looking to take over as much territory as possible so they're trying to take out the buyer territory and the buyers are going to put up a fight of course and a certain point oh snap I marked the wrong thing my apologies let's just take this and and let's just pull this over so the buyers are going to put up as much of much as a fight as they can until the sellers will kick full in control and look to push price down so now there's no buyers in the Market at this zone so this zone right here anything under it the buyers have no control over so that's why in some certain scenarios or in most scenarios we're not afraid of price buying back up and then going all the way back up because we know under this level sellers have a little bit more power than buyers do and once again we don't trade the indication because this is since price breaks out and there's no buyers here anymore we got to figure out what's the next level that buyers are going to kick in at because now since there's no Sellers and all sellers are in control there needs to be somebody buying it there needs to be a buyer in the market there can't just be only sellers because then everybody can make money off of this right so then price will find an area find a new Zone for price to find buyers at and that's the indication part so now we have a new level where price is saying okay buyers are in control again here and what are buyers going to do they're going to try to push price back up and that's perfectly fine with us because now this let this G gives us all our information that we need so now price is going to try to push as much as the sellers it can out that's the whole goal to get all the sellers out buyers want their territory back basically the buyers want their territory back and then they're going to try to push back Above This level if they can so their buyers can get back in control right but it's just too many of these sellers in the market right now so it's going to be more sellers trying to push price down back under this level which will cause price to continue back down back under this level we'll be looking to take trades back under here once sellers are in control and the reason this happens is because we have the indication so this indication is basically indicating you that sellers are have more power at these levels than it do for buyers sellers now have more control over the market in this area so that's why the market moves in the way that it moves because if somebody if somebody gains control the indication is telling them hey now we have enough power to push all the way down to here this the buyers are going to try to put up a last fight they're going to put up um a just any type of fight they can but it's just too many sellers now in control of this whole territory this whole ter territory now is the sellers this whole territory and everything under here is also in the sellers control so basically the buyers anybody trying to buy this is walking into a a oh they're walking into a a Landfield full of mines or like the the land mines that's what it's called they're walking into a ter Territory full of landmines and they don't know when price is going to push down so the correction can go as far as possible as far as the the Bulls can push up price until the sellers are like okay let's kill these guys and get them out of here and continue back down and that's what we trade at because people coming here trading here they don't know how far they can go into the base of the buyers they don't know where the next buyers are at it's like the buyers are hiding in a bush and then they'll sneak up pop out and there that's when we know okay whenever we get to that point we have to be on alert of watching out for the buyers SO trading the breakout will only lead you until not knowing where price is going to go and it can it can go as short as this so the breakout can happen and it can be as short as this and it can be as big as this but the whole point of this breakout the whole point of the indication is so that we know and we're prepared for when the buyers are going to take control of the markets and try to push back up that's the whole goal of everything to know where everybody is at on the on the playing field so if we know everybody's at on the playing field we we know exactly what strategy we're going to use to take it out I just love some water bro I just love some water anyways um yeah so our entry will come from this level being broken once again so once again this correction can be a retest it can also be a retest which will cause you to also look for the same thing on the smaller time frame so now on the smaller time frame if it was a retest what you'll be looking for is the same indication on a smaller time frame and then a correction and then another continuation breaking low and you'll just put your stop loss above the previous high so here you'll just be looking for bearishness on the smaller time frame which will be the same thing that we're looking out on this time frame just because you change the number of the time frame that you're on doesn't mean the charts change nothing changes the only thing that's changing is your lot size and I guess the price I guess so back under this level we're looking to take a position and let's say we take a position here our stop loss will be above this previous level because if price starts breaking highs and we're already looking for a position and we found we got into our position we don't want to see price break highs anymore if we're like okay this is where I take the sell that must mean sellers are inol control so once again if we go back to what a downtrend and uptrend is so a downtrend is going down breaking lows it's not when price is on a downtrend it's not trying to break highs it's trying to break lows so for price to break a high in a market of a downtrend that's only telling us hey price is bullish price is trying to become bullish and you don't you never want to be in a fight where it's like once again you never want to be in this fight you never want to be in a fight where buyers and sellers are in control and you're in the markets and you're trying to figure out which way it wants to go we're getting into the market where price is only in One Direction that's the whole goal so under here we know price is only going to be in One Direction until here oh excuse me and then we have another indication another correction and it's a ransom repeat because once again this is a trend so if it wants to go down if it wants to start a downtrend it will start a downtrend and if it wants to start an uptrend it will start an uptrend and that's just the basics of everything I'm explaining but the indication we do not trade that the correction we do not trade that anytime price makes a new low price can make a high now with this right so once again when price makes oh let's get back into it the resistance and support right so this is a higher high and let's say this is a higher low right once again these are also support and resistance you can say but I look at this as a where Sellers and buy buyers are in control so here we know that sellers will kick into the market around here and then here we know buyers can kick into the market around here so if we see price break up to the upside that's good for us because now price is telling us hey Above This level there's no buy there's no sellers to keep price down so buyers are in full control Above This level there will be a correction in the market and then price will continue back up trying to make a new high and we'll be looking to take entries back above an area where we know who's in control of the markets and the reason why price once again corrects itself is because there's gamblers in the market and this is definitely going to take a lot of people out because there's people just slamming trades in just put placing trades for no reason they don't know where price is going to go they just see a shooting up or shooting down so they feel free and they feel the need to just place any trade anywhere because people think everything is just going to keep going straight up they think everything is just going to go straight up straight up straight up profit profit that's all people think nobody thinks about the longer terms nobody ever thinks about uh where is it going what why is it doing such things everybody just wants to make money and call it a day so there's people trading this breakout they don't know how far price is going to go but with this indication this lets us know how far price is going to go and this lets us know what we can Target so once we get into a trade roughly around here we know it's a Target but we don't have to get out on our Target because once again this is going to try to start another Trend it's going to start another indication there'll be another correction in the market and then another continuation later on so that's just basic um ICC for anybody that just needs help explaining it I'm G see if you guys have any questions right quick in the Discord is that any questions how do you get confirmation to enter once again I just uh definitely definitely said that but I'mma definitely repe repeat it again the confirmation to enter the trade is when price is under that zone that it first broke out the reason why you can just like you can just flat out enter especially with a closed candle when you can just flat out enter let the candles close and price is closing under your Zone the reason why you can just enter is because this is a reaction level this is price under this level is telling you sellers are in control for for the reason the reason price is under that level is because sellers are trying to take back control of the markets anyways and sellers are in control of that market so we know in our heads that hey if I take the trade here and I'm taking a sell under this level then I should be at least 90 90% let's just say 90 let's just throw something out there but under this level we know sellers take control of the markets so I know under this level I'll be better off in a sell than I would be for a buy what time frame do I enter on I look at the 1 hour time frame but when it comes to entries you can you can pretty much enter off anything honestly I would just suggest you mark up your charts on a one hour and you can take your entries from the 30 minute to 15 minutes to 5 minute as long as everything matches up so if you're in a if you want to get into a sale if you see a sale on one hour don't have the five minutes still creating an uptrend or something you have to make sure everything aligns with each other what up bro are you on Discord yeah hi Discord discordians discordians discordians give me sunglasses yeah but I'm recording so give me a sec oh yep um that's crazy he said no let me show um what was I G to do I literally was G to do something oh yeah so let's just all right take a picture of this if you need to whatever you need to do take a picture of this if you need to or whatever you want to do but yeah I'mma delete in three two one so prime example right prime example right we have this consolidation going on or we can even use this and then go into the consolidation right so price here had a low the swing low this is our swing low so we know at this level price is getting bought up right and then we also have price having a swing high and I kind of Mark Minds you cank I personally don't Mark the longer Wicks and it I don't want to confuse anybody but I know this area is an area that price I normally look at body closes to be honest but the Wicks I definitely take notice of it but I look at the body closes because I feel like when a closed candle happens it's like all right that's a done deal we're stopping at this level we're stopping at this price and I'm closing I'm closing here as a candle so first is first right people are gonna trade out a session and they see this Breakout so boom there's a breakout here and it's out of session and people are trading this and they get they get liquidated that's just clear as day right so we have our highest point and then we have our lowest point price ends up breaking down to the downside causing the lowest point in the market or a new low so let's just say let's just mark this up boom and we can say new low so this is a new low lows that this is a new low in the market this specific low right here this is a new low right here right so then in this scenario we have price buy up a little bit and then end up selling and making another new low in the market so based off of this I I would say you would have been on a smaller time frame trading this but let's just say we didn't trade this at all it's perfectly fine if you didn't or did let's say we got a new low though so these are two things that's telling us hey Price is bearish Right so once we have this new low we have another correction so that was a new low it corrected itself a bit and then made a new low because remember sellers are now in control of this whole market so there's going to be more bearish things that happen than there's going to be um buying things right so as we start to see price is also maintaining the high levels like I was explaining to you guys earlier it's going to maintain these high levels because price is not focused since now sellers are in control of the markets since they took out all the buyers sitting here and pushing price up sellers are not looking to break highs they're only looking to break they're trying to make damage to the downside they're looking to break lows so there's another correction in the market and something like this you can definitely take a sell off of this and just saying oh price came into this area there was a new low there's a correction price came into this Zone and we can sell something like this but let's just say we didn't sell nothing like that due to the fact that it was out of session right and that's perfectly fine we can take sales under this level and now we can take sales or there's the next indication so let's say we can take sales under this level and we can look for sales being under here or we can Sals to be in under here there's another new indication and this is roughly at 9:30 open price corrects itself again out of session comes and then there's the another next session so we have price maintaining high levels here as well and the whole time we're just maintaining high levels and we're not breaking any highs we're only breaking lows so the only thing you should be thinking right now is price is bearish that's the only thing that should be in your mind is price is bearish so let me just figure out how to there we go no it won't let me okay there we go and let's just drag this over all right so now it wants to do it that's crazy all right so we have a new low and price is once again bearish there's another correction in the market price comes in and retests these highs that's perfectly fine that it did that price can do whatever it wants as long as it's not breaking highs and then once again we have price let's say here trading back in session and we can take sales once again under this level because we know price is bearish under this level and we can look for price to hit these lows even though those are small targets these are definitely signs of telling you price is getting bearish and bearish and bearish and then we do have a selloff this actually happened to be news which was I want to say this was CPI no no it was fomc it was fomc price sold under this level and you could have been targeting these lows that happened the last time we came over here so now we have a new low in the market price starts to downtrend and then we have more new lows and then we have this overall swing low right we have this overall swing low which would cause price to buy up we have a new low in the market so price can buy up try to liquidate anything in this site over here because there's probably people fooing this trade people want to get in this trade there yeah this because this is a new session 9:30 people are trying to fomo into this trade the trade is already over and then they're trying to get in this trade and then they get liquidated so now we have a new high and we have a new low so now let's say we already exit the trade from up here let's say we're no longer in these trades and we're looking for a new setup so now as we wait in between here we Mark our high level and then our low level and we just wait we wait to see which way is the indication going to be so first we have this first indication that price is trying to break down to the downside so we definitely pay attention to this as a new low so we know under here under the support level let's just mark this new low we know under this support level sellers are going to be in control of the markets and there's going to be only seller seller like a seller's mindset under this level so now when price is under this level we definitely know that we can take sales back under here because we have a new low under this level telling us price is bearish so we can say that we was targeting this level and then we have a new indication price corrects itself coming into the next session we can sell price from under this level and that's just simple um simple just ICC just all around under this level and then we make a new low so boom once again now we have our let's just go ahead and say we took that should I mark up what on like the trade setups should I just mark them up let's just do it let's just do it um no not that let's just so you can get an idea of what you can look for so let's say we took this trade and we was targeting this level and you'll be targeting this first you'll be targeting this first and whatever the stop loss is you can make it smaller because this is actually 50 points which is pretty solid I'm trying me personally I'm still trying to make my stop loss my stop loss is normally 50 points but I'm trying to because normally when I'm trading I don't even need 20 point a 20 point stop loss I'm pretty I'm pretty good with a 20 point stop loss so I'm trying to redefine my stop losses to be like 20 points 10 points as much as possible because when I'm entering most of the time I'm entering off a reaction area or all the time I'm entering off of a swing low swing high or reaction area so I see that price is just going to react based off of what happens before all right so we can definitely Target this level and then as we start to see price um you know develop into just overall the session because this was in session right here yeah yeah yeah this is in session as we s to see price develop we can continue to hold until we feel like okay price is looking to break up to the upside such as something like this where price kind of broke up to the side a little bit and you would have been like okay maybe I'm good at this level and that's just a trade that we can take or you can say something like this where you was taking a trade based off of this and then placing your stop loss wherever you want to place within here and target for here but remember our Target levels are not the levels that we' be like okay this is where I'm going to get out out we also see that price developed here a little bit more and then we started to see price kind of stop and get choppy roughly around at the end of session normally I close my trades at the end of session I'm not going to lie sometimes I'll be like yeah I don't want to hold this but in some scenarios if you feel like you want to hold for more you can definitely hope for more you seen that it did pull back but under this level we had another entry level we can enter here too as well and we can definitely do the same thing that we did before but now we're g to just progress into the Buys so price makes a new low but like I said whenever price is on the downtrend if we see price starting to try to break to the upside we can definitely look at that as something being like okay price is going to be become bullish at C certain point or a certain level so here we do have price with a high price comes into this area it doesn't break now this is something we couldn't trade at this point in time but I'mma definitely show you um I'mma definitely show you that the fact that price is buying up to swing highs and swing lows so this is our swing high at the current time and then we see price break up to the upside and this is very important because this is the same Zone that I was using so we have our lowest point and then we had our highest point and here we seen that price did buy up but it didn't correct into the area that we wanted to it ended up buying up some more which is definitely cool because we we're good anyways off the sales so then we have price make a new high this is definitely important especially the fact that we're on a one hour this is definitely important so we know that price is trying to push out Above This level this is very important so this means that Above This level we can possibly look for buys we can possibly look for something to push higher than this right so we can definitely say a new high level above here so we can say new highs and let's just put this here and we can say new high and we can delete this because this doesn't really matter anymore and we have our highest point and then we have our lowest point this actually do matter this is the highest point and they're not lowest point within here we start to see price consolidate and we start to notice that as we start to see price make this High break some lows failed to make a high failed to make some lows and it was just kind of all over the place and this was in a time span of two days so this is Friday and this is Monday and price wasn't moving and then price at this resistance level and end up selling coming down to this level and then price ended up buying back up and we're just sitting in this range we're not choosing the trade yet until price breaks out and makes an indication so we did have this first High which could have been our indication but just to be on the safe side we definitely waited for a price which gave us a new indication so this is our high level that we had before and this is our new indication price corrects into the because because when price makes a new high it will make a new low and what I mean by new low is just it will make a correction so price does have a new high and back Above This level where we had this first high or even back Above This level where we had our swing high in the first place we can look to buy price so we can buy price within here or we can buy price within here but mostly everybody's entries would have came from here because this was New York session right here and buying price back above here putting our stop loss roughly below these levels making sure doesn't break any lows because remember as price is uptrending you don't want to see price break any support levels or any lows so buying price here and we're targeting this level here first but remember a Target level is only where you make decisions now I don't know how everybody else trades but I trade in a sense of like I'm always looking for the the trade to continue longer I always want my trades to continue longer I never want to like kind of get out of my trade honestly even though I get out at the end of session sometimes I definitely look to see if price wants to continue longer because I want to hold a trade for you know 300 points 400 points or whatever the case is so in the scenario price blows right through our Target level which is causing us to see another indication so this indication happens there's a small correction in the market and then price continues to push up so now that we see that price is Contin to push up it has a new high corrects itself and then continues to push up now these in these scenarios price is a little bit more choppy so for for us to try to find another trade was going to be a little bit hard due to the fact that price is not really giving us any full correct structure everything's really choppy consolidating so we don't have to trade this we don't have to trade every single time we see something on the charts we don't have to do that we can wait for trade setups because most of the time we can get trade setups like this well we don't have to stress out about things or trying to find a position based off of this but anyways price ended up continuing to make new highs and and then we had a new high in the market price made a new high and then it made a new low so in between here we have our highest point and then our lowest point so in between here we don't know which way price is going to go now because we did have this new high price corrected and it's trying to make a new high but then we see a break to the downside so this is this could possibly be a start of a downtrend due to the fact that we broke this this low here so what we'll be looking for now is price to make this indication there'll be a correction and we'll be looking for price to continue on and then this is our levels that we'll be looking at and we'll look for price to continue on if it continues under here we definitely know price is bearish and then we'll be looking for a correction and then a continuation later on and that is ICC that's it yo my voice my voice is gone that's it that's it face closed