Lecture Notes: Chart Annotation and Price Action Logging
Introduction
- Purpose of video: Teach chart annotation and logging price action to Caleb and others following along.
- Encouragement to use personal charts for practice rather than relying solely on shared charts.
- Importance of routine and daily practice in building understanding of price action.
Tools for Chart Annotation
- Suggested tools include PowerPoint or digital notation tools for capturing daily screenshots.
- Use screenshots to annotate observations for individual trading sessions.
Understanding Price Action
- Discussed how to anticipate price movements based on past live streams and real-time price action.
- Emphasis on learning to anticipate and recognize patterns in price action through practice.
Key Concepts
Volume Imbalance
- Defined as a discrepancy between the body of sequential candlesticks.
- Important to identify imbalance areas on the chart.
Bearish Order Block
- Identified by a significant down movement in the chart, can indicate resistance areas.
Chart Analysis Example
- Analyzed NASDAQ daily chart and highlighted key areas such as volume imbalances and order blocks.
- Discussed the importance of looking at historical data (e.g., August 13, 2024 live stream) to predict future price movements.
- Mentioned specific levels and price actions (e.g., SIBI, sell-side imbalance, buy-side inefficiency).
Session Routine
- Daily practice of analyzing and annotating charts is key to understanding price dynamics.
- Recommended watching live streams and annotating key observations.
Balanced Price Range
- Defined as a range where price moves up and down, offering efficient delivery.
- Noted the significance of balanced price ranges as resistance or support areas.
In-Depth Example
- Detailed example of analyzing price action from a live stream, identifying significant price levels and movements.
- Emphasized the importance of recognizing accumulation and distribution in price action.
Event Horizon
- Explained as a midpoint between significant gaps (e.g., new day opening gap and new week opening gap).
- Suggested using this concept to anticipate price draws.
Trading Strategies
- Discussion on first presentation theory and inversion fair value gaps.
- Highlighted the significance of time and price alignment in trading decisions.
Conclusion
- Importance of consistently annotating charts to build a personal understanding of price action.
- Encouragement to explore and document personal observations.
- Final remarks on using these techniques in everyday trading practice.
These notes summarize key concepts and strategies discussed in the lecture, providing a reference for students learning chart annotation and price action analysis.