Hey traders, welcome back to Trader DNA. Once you've fully memorized and mastered these eight modeling trading signals, it's time to forget every single one of those dozens or even hundreds of price action patterns. Let them go. And while you're at it, set aside all those overly complex order block models, too. You won't need them anymore. These eight core signals are powerful, precise, and proven. They simplify your trading process, cut through the noise, and bring your focus exactly where it needs to be on what actually works in the real market. That's exactly why in this video, um, I'm going to break down eight price action signals you need to watch for so you can spot strong, healthy trends that are actually worth trading. Most of these techniques and you'll become an elite trader, one who can dominate the markets, no matter what indicators you prefer. So, let's jump straight in. the market breaks a previous swing high or low. Um, historically, a trend is defined by a series of higher highs and higher lows in a bullish trend or lower highs and lower lows in a bearish trend. That's the foundation of any market trend. But if you want to master market analysis, there's no way around this. You must understand how the market breaks previous sling highs or lows. This is what we call market structure. Why market structure matters? Market structure analysis is a critical part of successful trading. It gives traders deep insight into market sentiment and helps them make smarter decisions on entries, exits, risk management, and trade duration. Mastering market structure allows traders to navigate fastchanging financial markets with confidence. How market structure impacts trading decisions. Entry and exit points. Market structure helps traders pinpoint the best entry and exit levels. In an uptrend, traders look for buying opportunities near support levels or after a pullback. In a downtrend, they seek to sell near resistance or after a retracement. Risk management. Good risk management starts with understanding market structure. Traders often place stop-loss orders just below support in an uptrend and just above resistance in a downtrend, minimizing losses while maximizing profit potential. The ultimate tool for identifying market structure. To simplify this entire process, I use a custom set zigzag indicator which makes spotting market structure shifts super easy. You can see an example of this on the chart right now. And if you need this indicator, I've got you covered. You'll find it in the description below. Two, the distance between swing highs or lows. One of the biggest signs of a strong trend is the distance between swing highs and swing lows. If the latest swing high is significantly higher than the previous one, or if the latest swing low is much lower than the last, it's a clear indication that the market is dominated by strong buyers or sellers. Um, let's break it down. Strong uptrend. Take a look at this chart. See how the latest swing high is way above the previous one? That means buyers are in control and the market has serious bullish momentum. This isn't just a small push. It's a strong signal that the uptrend is likely to continue. So, what should traders do in this situation? Step one, identify the strong key support level. Step two, look for a confluence buy signal. a buy signal that aligns with this strong support level. If you find this setup, you're looking at a high probability trade with huge potential rewards and minimal risk. Now, check out this example. The price pulls back, touches the key support area, and then boom, a bullish engulfing pattern forms. This is a huge clue that buyers are ready to push the market even higher. So, what's the right move here? Open a buy position on the next candle's opening price. Set your stop loss just below the nearest swing low. And just like that, the market explodes upward, giving us massive profits. Bearish scenario, strong downtrend. Now, let's flip it around. Here's a textbook bearish setup. The latest swing low is way below the previous one, and price is dropping rapidly with almost no upward resistance. This tells us that sellers are completely in control. So what should traders do when they spot this kind of market movement? Step one, identify the strong key resistance level. Step two, look for a confluence sell signal. A sell signal appearing near this resistance level. Just like in a bullish setup, this kind of high probability trade um offers a huge potential reward with a small controlled risk. Here's a perfect example. The price pulls back, touches the key resistance area, and then a bearish engulfing pattern forms. That's a strong signal that the market is about to resume its downtrend. So, what's the next move? Open a sell position on the next candle's opening price. Set your stop loss just above the nearest swing high. And then boom, the price crashes down hard, handing us huge profits. This is why understanding swing highs, swing lows, and market structure is so important. When you combine this knowledge with smart entry and exit strategies, you're setting yourself up for high probability, highreward trades. Let's keep going because we're just getting started. Three, most candles are trend bars in the direction of the trend. One of the simplest yet most powerful ways to confirm a strong trend is by identifying trend bars. candlesticks with a large body that makes up more than 50% of the entire candlestick range. If a trend bar closes above its opening price, it's a bullish trend bar. If a trend bar closes below its opening price, it's a bearish trend bar. So, when analyzing candlesticks, don't just rely on classic candlestick patterns. That's old school thinking. A much easier and more effective approach is to focus on trend bars. If you see a series of bullish trend bars, that's a strong sign of an uptrend. If you see a series of bearish trend bars, that's a clear indication of a downtrend. Now, the big question is, how do you trade trend bars effectively? Check out this chart. Let's count the trend bars together. Bullish trend bars, 1 2 3 4 5 six. Bearish trend bars, only two. What does this tell us? It's crystal clear buyers are dominating the market and they are pushing prices higher. This means we're in a strong bullish trend. So what should we do? Only look for buy entries. Now let's go a step further. Suppose the price suddenly breaks lower. Should you enter a sell trade? Absolutely not. Here's why. The market structure is still bullish and selling here is high risk. Even if you make a profit, it's likely to be small. But if the price breaks higher like this, boom, that's your signal. You should immediately enter a buy position on the next candle's opening price. Set your stop loss below the nearest swing low. Let the trend do the heavy lifting. This is a high probability trade. Low risk, massive reward, and look what happens next. Prices skyrocket. This is the power of trend bar trading. It puts you in sync with the market, allowing you to ride strong trends with confidence and maximize your profits. Four, strong bars with little to no wicks. A game changer. This is a major signal of urgency in the market. Let's break it down. In a strong uptrend, if a candlestick opens and immediately pushes higher without significant pullbacks, or if it does pull back, the retracement is very minimal. This tells us something big. Buyers are in full control. They are aggressively pushing prices up, showing a strong willingness to buy as soon as the previous bar closes. Now, here's the key takeaway. If you see a strong bullish bar with little to no wicks on either side, you should immediately consider an entry buy. But don't just jump in. Wait for a slight collection and then enter when the price shows clear signs of resuming the bullish trend. Spotting the perfect buy setup. Look at this chart. What do you see? A strong bullish bar with tiny wicks both at the top and bottom. This signals that buyers are aggressively pushing the price higher. Now, how do we confirm that this bullish bar is a reliable trend continuation signal? Two critical conditions must be met. Condition number one, the next candle must continue moving up. Condition two, if a correction happens, the price must not break below the low of the strong bullish bar. Let's analyze the chart further. After this strong bullish bar appears, we see a minor pullback. But notice something crucial. The price never drops below the low of the bullish bar. Then the market rebounds sharply, pushing even higher. This is a high probability buy signal. At this point, traders should immediately enter a buy position on the next candle's open. Now, where do we place our stop loss? It's simple. Um, place the stop loss just below the strong bullish bars low. Why? Because this bar is the starting point of the short-term or medium-term bullish trend. If price breaks below it, the structure is invalid. Boom, the market skyrockets. After entering the trade, price explodes upward, giving massive profits to traders who understand how to read strong bullish bars. But here's where it gets even better. Another strong bullish bar forms with little to no wicks. What does this mean? Buyers are still in control. The trend is still strong. We repeat the process. Um, wait for a correction again. Price should not drop below the strong bullish bars low. And right here the market forms a bullish pin bar. Another strong buy signal. Enter a buy position on the next candle's open. Stop loss. Same strategy below the previous strong bullish bar. And once again, boom. The market surges upward delivering another huge profit opportunity. This is why understanding strong bullish or bearish bars with little to no wicks is a gamecher. It gives you an edge, allowing you to ride strong trends with confidence and maximize days. Let's move on because the market never stops creating opportunities. Um, perfecting the sell setup. I'll walk you through a sell entry example. Making sure you grasp every detail with absolute clarity. Take a look at the chart. What stands out? A strong bearish bar with tiny wicks both on the top and bottom. And this tells us that sellers are dominating the market. Now, here's the key insight. Um, traders are rushing to sell immediately after the previous bar closed. This signals a strong marketing tension to drive prices lower and continue the bearish trend. So, what's our next move? Simple. We follow the same structured approach as before. Wait for a price pullback. The pullback must not break above the high of the strong bearish bar. Now check this out. After the strong bearish bar forms, price attempts to rise but fails to break above its high. This confirms that sellers are still in control. This is our valid sell signal at this moment. Traders should immediately enter a sell position on the next candle's open. Now when do we set our stop loss? Right here above the high of the strong bearish bar. Why? Because that's the key level where sellers took control. If price breaks above it, the bearish structure is invalid. Bone, the market drops huge profits and just like that, the market plunges downward, delivering massive profits to traders who understand how to read strong bearish bars. This strategy is incredibly powerful. It allows you to enter trades with high probability setups, minimal risk, and maximum reward potential. By mastering strong bullish and bearish bars with little to no wicks, you gain a huge urge in the market. Gaps between candle bodies, a powerful market signal. All right, traders, let's talk about one of the most critical price action signals you need to master. Gaps between candle bodies. Sometimes you'll notice that a new candle opens above the previous one's close in an uptrend or below the previous close in a downtrend. Eve gaps are not random. They are highly significant. They signal market urgency, strong momentum, and institutional activity. And today, I'll break it down so you can use this to your advantage. Spotting a bullish gap. Look at this chart. When you see a gap like this, your first move is to wait for the gap candle to fully form. If the price continues to push higher and prints a bullish candle, that confirms strong buying pressure. And what do you do? Simple. Enter a buy trade immediately. But hold on. What if the price reverses and prints a bearish candle that engulfs the previous one? That's a completely different scenario. In this case, you're looking at a strong bearish engulfing pattern signaling a potential market reversal. If that happens, you should be looking for a sell entry instead. Now, in this particular case, the price keeps moving up, forming a strong bullish candle that confirms the market's intention to continue the uptrend. So, what's next? You enter a buy trade at the open of the next candle. Um, now, where should you place your stop-loss? There are two solid options, and each has its own advantage. One, conservative stop-loss. Place it at the nearest swing low. This gives your trade more room to breathe, reducing the risk of getting stopped out too early. But remember, wider stop equals smaller riskreward ratio. Two, aggressive stop-loss. Place it just below the gap candle. Why? Because if the price drops below that level, it invalidates the bullish setup, signaling a potential reversal. The advantage, a higher riskreward ratio, perfect for traders looking for efficiency. All right, right here. See this? A clear bearish gap has formed. And just like before, when you spot a gap like this, the first step is waiting for the next candle to form. And here's the game plan. If the candle that follows the gap moves downward and forms a bearish candle, that's your signal to enter a sell trade immediately. But if the price reverses and the candle pushes up past the previous one, then that signals a strong bullish engulfing, meaning a buy opportunity instead. In this case, what happened? The price dropped and formed a strong bearish candle. A clear sign that the market is committed to continuing its bearish trend. So, the right move, enter a sell position on the next candle's open and place your stop loss just above the previous candle before the gap. And boom, the price plummets rapidly, locking in massive profits for traders who caught this setup. But we're not done yet. I'm going to show you one more example because mastering gaps between candle bodies is an absolute gamecher and I want you to fully understand this powerful pattern. Spotting another bearish gap. Let's break it down. All right, let's shift even further to the left on the chart. Right here, you can clearly see another bearish gap forming. Now, just like before, when you spot a gap like this, the first thing you need to do is wait. Wait for the next candle to form. This step is crucial. Here's the strategy. If the candle that follows the gap moves down and forms a strong bearish candle, that's your go-to signal for an immediate sell entry, the market is showing clear momentum to the downside. But if the price reverses and the candle moves upward, breaking past the previous candle, then we have a strong bullish engulfing pattern signaling a buy opportunity instead. Now, in this case, what actually happened? The price dropped hard, forming a strong bearish candle, a clear confirmation that the market is set to continue its downtrend. So, the smart move, enter a sell trade as soon as the next candle opens and place your stop loss right above the last candle before the gap. And just like that, boom, the price tumbles quickly, delivering huge profits for traders who caught this setup. Simple, effective, and incredibly powerful. Once you master gaps between candle bodies, you'll be able to spot and trade these opportunities with confidence. Sideways corrections after a trend line break. What's really happening? All right, let's break this down. You see a trend line breakout, but wait, there's no strong follow-through. Instead of price shooting off in one direction, it moves sideways. What does this mean? Let's dive in. When price action stalls after a breakout, it's often because neither bulls nor bears are fleeing control. Instead of forming a clear trend, the market oscillates within a horizontal range, creating a sideways movement. Now, let's focus on an upward trend line breakout. Here's the key insight. Even though sellers managed to push the price below the trend line, the overall bullish momentum is still strong enough to prevent a deeper decline. As a result, the market consolidates sideways instead of continuing downward. So, what's the big takeaway? If price eventually breaks through the resistance level of this sideways range, that's your confirmation of a strong bullish trend resuming, and that's when traders should be ready to act. Let me show you exactly how this plays out on the chart. All right, let's break this down. You see a trend line breakout, but wait, there's no strong follow-through. Instead of price shooting off in one direction, it means sideways. What does this mean? Let's dive in. When price action stalls after a breakout, it's often because neither bulls nor bears are fully in control. Instead of forming a clear trend, the market oscillates within a horizontal range, creating a sideways movement. Now, let's focus on an upward trend line breakout. Here's the key insight. Even though sellers managed to push the price below the trend line, the overall bullish momentum is still strong enough to prevent a deeper decline. As a result, the market consolidates sideways instead of continuing downward. So, what's the big takeaway? If price eventually breaks through the resistance level of this sideways range, that's your confirmation of a strong bullish trend resuming, and that's when traders should be ready to act. Let me show you exactly how this plays out on the chart. Another powerful buy entry setup. Now, check this out. We have a classic breakout scenario. The price has successfully broken above the downward trend line. But here's the twist. It doesn't immediately shoot up. Instead, it moves sideways. And this is a big clue. Why? Because this sideways movement tells us that a massive force is preventing the price from dropping back down. This is often the work of major institutional players, big banks, hedge funds, and professional traders who are holding the market up because they expect prices to go higher. So, what's the game plan? Simple. Wait for the price to break above the resistance level of this sideways pattern. That breakout signals the bullish trend is back in full force. The moment that happens, you enter a buy position, placing your stop loss just below the support area of this sideways structure for smart risk management. And guess what happens next? Boom. The price takes off, climbing higher and higher, locking in huge profits. This is why understanding sideways corrections after a trend line break is so powerful. Uh spotting a high probability sell setup. Take a look at this chart. The price breaks above the downward trend line, but here's the key. It doesn't keep going up. Instead, it stalls and moves sideways. And that right there is a major warning sign. It tells us that the bearish momentum is still strong. The buyers simply don't have enough power to push the price higher, meaning the sellers are still in control. So, what's the game plan? Patience. wait for the market to break below the support area of this sideways pattern. And when that moment finally comes, boom, the price smashes through support, confirming a strong bearish trend. Even better, the breakout candle is powerful with short wicks on both ends, meaning there's strong downward momentum with no hesitation. That's your entry signal. open a sell position as soon as the next candle starts forming um with your stop loss placed just above the resistance of this sideways range. And what happens next? The market drops fast and deep, locking in massive profits. Simple, effective, and backed by solid technical and psychological reasoning. This is how you trade with confidence in maximize your profitability. High probability pullback entries. Here's how to spot them. Let's break this down. A strong pullback setup means the price retraces temporarily but follows a high probability candlestick pattern like a pin bar or an engulfing candle. And here's the key. If the trend is strong enough to override this pullback, the breakout that follows is a high confidence trade entry. Now, let's look at this chart. It's crystal clear. The market is in a strong bullish trend. You can see two powerful bullish candles followed by a strong bullish pin bar. This is a textbook sign that buyers are fully in control. Then something interesting happens. A bearish pin bar appears leading into a pullback. But here's what's crucial. The price doesn't drop significantly. Instead, the pullback is weak, confirming that the bullish trend is still dominant. The bears tried to push the price down, but they simply didn't have enough strength. And then the price shoots back up, breaking above the high of that bearish pin bar. This is our confirmation. The uptrend is resuming. So, what's the right move here? Enter a buy position at the start of the next candle with a stop loss placed just below the most recent swing low. And boom, the price surges higher, delivering massive profit. I hope this example makes it crystal clear. But to make sure you truly master this concept, let's now break down a sell signal example. All right, let's break this down step by step. Looking at this chart, we can see something crystal clear. The market is in a strong trend. You can spot a dominant bearish candle followed by a powerful bearish engulfing pattern. This setup alone is a strong indication that sellers are in full control. Then the market throws a curveball. A strong bullish engulfing pattern appears, signaling that buyers are trying to reverse the trend. And at first, it looks like they might pull it off. A bullish candle forms right after, seemingly confirming the reversal. But here's the twist. The price fails to push higher. This is a huge red flag for the bulls and a clear sign that the bearish trend is still dominant. the buyers couldn't sustain momentum and instead the price starts dropping lower, breaking below the low of that bullish engulfing pattern. And that right there, that's our signal. This breakdown confirms that the downtrend is back in full force. So, what's the play? Enter a sell position on the next candle's open with a stop-loss placed just above the nearest swing high. And then boom, the price drops aggressively, delivering massive profits. By now, you should have a solid understanding of how this works. But we're not stopping here. Let's jump straight into the next powerful pattern, the ultimate breakout signal. This is what you need to see. Now, let's talk about one of the most powerful signals in trading, the breakout bar with a strong body and minimal wick. Here's the deal. When price approaches a major support or resistance level, it often often struggles for a while, but once the market builds enough momentum, a strong breakout candle smashes through, leaving no doubt that the trend is set to continue. The key, a largebodied candle with little to no wick. This is a sign of pure market strength, whether it's bullish or bearish. Now, let's look at a real example. A few days ago, if you had already mastered this technique, you would have caught an insanely profitable move because the bullish trend continued all the way up until today. Right when I'm recording this video, check this out. The market was clearly in a bullish trend, but then it pulled back forming a resistance area. And right here, this breakout bar appears. Huge body, tiny wick, breaking straight through resistance. So, what's the play? The moment you see a bullish breakout bar with a strong body and small wick, you should immediately enter a buy position on the next candle's open. And of course, set your stop loss at the nearest swing low to manage risk properly. And the result, boom, the price exploded upward, fast and strong, exactly as expected. This is a high probability setup, and if you apply it correctly, it can lead to some incredible trading opportunities. Let's keep going. Um, all right traders, let's break down an incredibly powerful sell signal that you need to master. Right here, we can clearly see that the market is in a strong bearish trend. Then we get a pullback right here and here. But what we really want to focus on is this support area. And check this out. Boom. A breakout bar forms with a large body and a tiny wick breaking straight through that support level. Now, when you see this exact setup, a bearish breakout bar with a strong body and almost no wick, you should immediately enter a sell position on the next candle's open. And of course, set your stop loss at the nearest swing high to protect your trade. Now, is this signal alone enough? Yes, absolutely. This is already a high probability sell setup. But wait, let me show you why this signal is even more special. Look right here. This strong bearish engulfing candle formed after the price rejected resistance at this level. So what does that mean? It means this bearish breakout bar with with its big body and small wick isn't just any sell signal. It's a super high probability sell signal. And what happened next? The price dropped fast and deep. No hesitation, no second guessing. Just a clean, powerful bearish moves. This is exactly the kind of setup you need to master as you want to trade successfully. Master these eight price action signals and take your trading to the next level. Now you've got a solid grasp of the eight key price action signals that help you spot strong trends and identify high probability trade entries with confidence. But we're not stopping here. To truly master these strategies, I highly recommend watching this video, the mother of all price actions. Why? Because when you combine everything you've just learned with the advanced concepts in that video, you'll gain a complete understanding of how to read market movements with precision. Let's keep learning and crushing the markets together.