welcome back to the trade sitey Channel and today I have 12 of the best price action trading strategies for you we're going to take a look at Price action chart analysis pattern trading and you're going to find complete strategies with an entry and an exit and a whole trade analysis I also just released a new free ebook which you can download right away you can go to the link in the video description or in the comments and then you can download the ebook which contains 22 new trading strategies there are dozens and dozens of screenshots waiting for you detailed explanations for the best trading strategies that you can apply to all the markets and all the time frames so let's start with something not super complicated the inverse Head and Shoulder and the inverse Head and Shoulder as a trend continuation pattern so when we look at this chart let's break this down step by step what do we see here first of all we need to acknowledge the long-term Trend It's always important that you understand what is the long-term Trend are we in a bullish environment are we in a bearish environment or are we in a neutral phase so now we can clearly see the market has been trending higher here so we can say we are in a long-term bullish Market which means that generally speaking we want to look for bullish continuations or if we see signs of the market fading so the market is losing momentum we can think about reversal trades but in this case we are finding here an inverse Head and Shoulder we have the left shoulder the head the right shoulder what is important about this pattern are two main things first of all we have this flat resistance level at the top that's really important because it shows us that the market keeps pounding into this level at the highs we don't see weakness at the highest that's important weakness at the highest would mean that we are seeing the highest Decline and move lower here the market keeps pounding into the same resistance level with strong force the second important thing is that the distance from the head to the right is showing us that the market is making higher lows whereas from the left shoulder to the head you can say we had a little bit more weakness here because the market started to make lower here we are back in full bullish mode and when you see that market shifting from lower lows to higher lows in the overall right trending environment that should give you a lot of confidence the entry trigger on a inverse on shoulders is classically the breakout so we want to see the market break out above the neckline with strong force you can see that the market previously was starting to crawl above the level that's not strong enough we want to see that the market is breaking with high momentum candles typically when you trade the inverse Head and Shoulder with a breakout approach you would place your stop loss somewhere around the right shoulder more aggressive Traders will have their stop- loss closer to the breakout neckline however retests are very common and then you are uh easily victim of running into a retest or liquidity run or a stop run however you want to call it and you can see the market didn't immediately take off we did had a retest the retest didn't went deep and then shut higher you will see this pattern quite often after the breakout the market is stalling a little bit the market needs to assess and digest here the breakout momentum if you don't see that the market is falling back uh strongly below the neckline this should give you a lot of confidence in your overall trade if you see the market is falling back inside of the pattern and trading sideways with a lot of bullish uh impulse that should make you worry but here in this case there was nothing to worry the market did retest but immediately pushed higher and then immediately exploded afterwards next is the double bottom and this is a classic reversal pattern so the long-term Trend that we are seeing here is down so we are in a bearish market environment and whereas previously the market sold off very very strongly you can see that here the last leg was an extremely bearish leg the market had problems the market did push into this double bottom and very similar to The Head and Shoulder here the market kept pushing into a high that's a bullish sign or it could be a bullish sign a trend continuation sign here this could also be a potential bearish sign because the market keeps pounding into the same level and at that point we don't know if the market is really going to roll over and it's going to reverse to the upside or to the downside so as long as the market is between the last swing High wen't the absolute bottom of the trend we are in a neutral Market phase we don't know yet we cannot predict what is going to happen so we are neither bullish nor bearish we in a neutral phase the signal comes when the market is breaking is swing high at that point in time this is what some Traders May fer to a change of character the change of character it's also a concept that is often used in Dow Theory or Elliot wave theory in a downtrend you will typically see that the market is making lower lows and lower highs when this changes and it does here the market is now making its first higher high breaking above a recent swing high this is often a sign that the trend is changing the market after pushing into the previous low here was pushing higher in one sequence there was no more bearishness in the in the market and the market is breaking out aggressive Traders will take here the breakout candle as an entry however what I've done in my trading over the recent years is I've shifted more towards a a retest approach so I personally would not take the breakout I would wait and see is the market moving back inside of the pattern and I want to see how is the market reacting to the retest so I want to see the market pull back into the pattern and then explode higher and that's what we saw here you can see if you are a breakout Trader you will be immediately sitting under a lot of pressure when the market pulls back on you but the market is exploding higher so we see the market push into it and explode higher so a retest entry in my case would be probably around here when the market is making even a new higher high so we don't only have the first higher high but we have a second one and that's where I would take my entry you might say it's a a little bit late it is definitely later but you have way more Confluence on your side and keep in mind you trading a reversal here you're trading a downtrend that is just about to roll over there's no need to rush into a trend if a new trend emerges you're still very early on here even if you get in with the retest entry so if you're running into problems with your breakout trading or as a reversal Trader you might want to rethink your approach and you might want to look at your trades again and see if retest occur frequently and then you could adjust your approach let's take a look at the flag pattern it's a very popular Trend continuation pattern so the first thing we see is that the market is in a bullish Trend the market exploded higher here and then it entered this sideways period the market did move against the bullishness right the market first pushed higher and then it start to fade out so the flag trend line is a prolonged sideways period and it is moving even against the trend but is what is important is how is the market moving against the bullishness the market is not moving with a lot of force so the angle of this flag is not very steep you don't want to see steep Flags you want to see flags that play out very moderately almost sideways so the less steep it is the more sideways it is on a flag the better it is because it shows you that this balance of the bullish trend is still kind of or could be in favor of the the bullish side if the Bears would take over you would see a much stronger decline here in the price action so this is a good sign when the flag is relatively uh flat then the classic entry is on a breakout the breakout out of a flag should penetrate here the trend line some Traders might even consider waiting for the market to break into a fresh high so you would look at where is the last touch point of the trend line which is here in this case and you would wait even longer until the market breaks out and makes a fresh higher High here and then you can see the market does a retest here you can see this is where you would have the previous High you would have gotten in a little bit later or if you wait for the retest even even later still but you are trading a trend continuations as a trend following Trader or a trend continuation Trader it's important to understand and realize that you don't have to rush into your trades you are anticipating a next Trend leg and Trends typically keep going for quite a while so you you don't need to rush in a lot of trend following Traders if you have been struggling ask yourself if you are impatient with your trades if you want to rush in very very quickly if you are a trend Trader who rushes in at the first sign of a potential continuation you're often running into fake outs and you are often a little bit too early often you will see that the first signal on a trend line Contin or a trend continuation is not the optimal one the second or the third entry is often a much much better choice it does do require more waiting which is something that a lot of Traders struggle with but it could potentially improve your trading significantly and the results as well let's take a look at the flat top triangle another very popular Trend continuation pattern so overall the long-term trend is bullish so we know we're looking for bullish opportunities if the market is still looking overall bullish and here's the the triangle resistance the key part of the triangle is how the lows are forming whereas here we can see the market has a flat resistance that's where the name is coming from Flat Top triangle so we have the flat resistance top that's a good sign because the market keeps pushing into the level but the important thing is how is the market pushing into the level whereas previously when the market reached the high point of the resistance it sold off quite aggressively you can see afterwards the market comes back to the level sooner and sooner which means that there's less and less selling and more and more buying in the market so this is already showing us and giving us hints that there might be a lot of buying interest left and the selling interest is slowly pushed out of the market so that can foreshadow bullishness that is just waiting for the sellers to leave and then at one point when the sellers are completely gone and all the selling interest have has been absorbed and there's only buyers left you will see often those explosive breakouts as I said in the beginning you want to wait for explosive momentum breakouts the strong stronger the breakout typically the better it is for your overall uh setup quality typically the stop loss is placed underneath the resistance of the triangle some Traders if you're more conservative you will even look for the last swing point to protect your stop loss even further and then you can see we have the break retest the market struggled a little bit but there was really no danger and no total threat for the overall pattern and the market then exploded higher cup handles have become maybe some of my most favorite patterns over the last few years and you can trade them as a reversal pattern but typically they are traded as a continuation and very often you will also find cup and handle patterns in stocks and on stock Traders um are really liking them you can add volume as well to your cup and handle and what the cup and handle tells you is first of all you want to look at your long-term Trend here we are clearly in a long-term bullish Trend then the market is taking a pause what you will see is that or what happens is that after a strong bullish Trend there will be a period of digestion so the market is is digesting the uptrend we will have people who have profited on the last bullish run and they are likely to take profits and there are people who maybe missed this opportunity and they're looking for buying opportunities as the market is pausing and declining so you will see that you have initial wave of selling here profit taking and people who think that the market is now high enough to start selling and you will see that there are coming then or there is coming a period of buying into the market where there the sellers are not dominant anymore the sellers are leaving there are not new sellers coming in and people who missed opportunity are loading up now on new Longs so you will see this gradual rise in the price all the way back to the resistance uh of the cup and handle and the key part to the cup and handle is the handle part the market comes back to the resistance sells off but doesn't leave the area you really want to see that the market is really sticking here to the resistance area the less shallow and the or the more shallow the less strong the the reaction here on the handle is the better it is you really want to see that the market is sticking to this handle resistance and then you will see very often on a cup handle that's that's classic and typical you will see a very strong breakout momentum candle uh you will see that time and time again because here the market is drying up the the sellers are leaving and it doesn't take a lot often to catapult the price here above the level and that's the that's the perfect sign that you're waiting for and you will often see that there's a huge explosion from a cup and handle the the long digestion period really absorbs then all of the selling interest and then once only buyers are left it doesn't take a lot to make the market explode liquidity run or some Traders May refer to this as a stop run is there is a strong momentum reversal what we see is that the market is coming here from an uptrend we having here a triple top so very similar to the double bottom there are double bottoms there triple bottoms there are also triple tops and triple bottoms uh you have this double triple top here and the market is entering the sideways period a lot of Traders are now wanting to short this Market on a breakout and what we can do is we can put ourselves in the shoes of breakout Traders as a reversal Trader I would caution you to to wait for the First Signal the first breakout is where a lot of amateurs and impatient Traders will jump onto those trades and where will they have their stops the stops will be here above the breakout area right that's how everybody is taught to do it but you will often see stop runs the initial breakout often fails and turns into a fake out and that's why so many Traders are struggling with um with reversal trading and here you have the stop run and what you then want to do if you see a stop run you want to wait for the market to show you strong signs of selling and this comes in here the market hits the stop Zone you can see we are suddenly seeing stronger bearish candles here and then we break the previous low this is the area of the previous closes and the market closes now below those areas and this is now a successful stop run and at that point we're not entering very close to the top we're waiting for the first uh breakout to fail and we want to see momentum return to the market and that's often where you then see the true new trend emerge so a lot of reversal Traders will struggle with reversal trading because they want to be in being too early they're not patient enough and they will run into those uh issues and those scenarios which can easily be avoided fake out is another way of trading reversals so what we have here is a downtrend and very similar to the double bottom or triple bottom is that we have a breakout attempt that is immediately rejected and the key to the fake out is that you want to see a strong rejection of the of the breakout you want to see a success you want to see a a breakout that is closing below the previous lows and below the closes previously and then the next candle should be an immediate explosion into the other direction as we learned in the double bottom you want to wait for the market to also take out highs so we wait for the market structure shift change of character whatever you want to call it Dow Theory wave theory all talk about this and then you wait for the market to push into new highs to confirm the actual shift and then the market goes a little bit sideways we retest it and then shoot higher so depending on how you want to trade this there are you have options as always you have the breakout you have the retest entry and you can apply that uh to all time frames as well let's talk about the triple tab one of my favorite patterns that I really like to trade as a reversal pattern so this is a Divergent pattern what you will see is that in an uptrend the market makes higher Highs but each high is weaker than the one before whereas from here to here the market was rallying very very strongly from here to here you can see it's already much much weaker and not as long and as strong as the previous Trend wave then from here to here even more weakness the weakness between the highs here is shown also in the corrective phase the market sold off and it took the market quite a while to make a new high that's not typical what you will see during a strong trending market so this is showing us a lot of weakness here in the highs and it shows us that the uptrend that we're seeing here is losing momentum then you want to see where's the last swing low here you can see the market has a swing low the market breaks it and retests the area so you could approach this with a break and breakout and retest approach as I explained in a previous video the triple tab just shows you that the the momentum is is losing and going out of the market and then you have a few options when it comes to entries depending on your preferences breakouts ENT or retests you might want to wait for a stop run they don't occur always but they are very great if you can spot them and then the market rolls over so trading a reversal is tricky as I as I've said uh previously as well because the market often takes a while to completely roll over and change direction so you want to stay away from the first noise Zone the noise time after the after the market is topping out and then on the break and retest that's typically where you see that the market is completely uh falling apart