Recent

3/recentposts

Popular Posts

Theme images by Storman. Powered by Blogger.

Blog Archive

Sample Text

Pages

Unordered List

Recent in Sports

4/Sports/custom-widget

Home Ads

Home Ads

Tags

#1 Live Trading on Glenmark Pharmaceuticals Ltd #1 Live Trading on Godrej Industries Limited #3 Live Trading Session 1-2-3 Strategy 1-2-3-4 Reversal Trading Strategy 10 CHART PATTERNS FOR PRICE ACTION TRADING 10 Habits of successful traders 10 Performing Candlesticks 10 PRICE ACTION BAR PATTERNS YOU MUST KNOW 10 PRICE ACTION CANDLESTICK PATTERNS YOU MUST KNOW 10 Things You Can Learn From The World’s Best Traders 10 TYPES OF PRICE CHARTS FOR TRADING 123 forex trading strategy 123 Trading Strategy 200 SMA 3 Bar Net Line Strategy 6 Best Price Action Trading Strategies 7 RSI TRADING STRATEGIES 9 Advanced & Profitable Trading Strategy 9 Funny Facial Expressions AB = CD Price Action Strategy Abb India Limited Aditya Birla Nuvo Limited Aditya Birla Nuvo Ltd ADVANCED REVERSAL STRATEGY Alice Blue Opening Link Alphabets Amaraja Battries Ambuja Cement Anupam Rasayan India Limited IPO Asian Paint Ltd Aurobindo Pharma Limited Bajaj-Auto Bearish Crossover Bearish Engulfing Bearish Engulfing Candle Bearish Reversal (Red-Red) BEML Ltd Best Stock Market Strategy Bharat Finance Inclusion Blood Rain Pattern bollinger band Bollinger Band Price goes below Mid line Strategy Bollinger Band Price gone above mid line Bollinger Band Strategy Breakout Stock Trading Strategy Bullish Crossover Bullish Engulfing Bullish Gartley Pattern Strategy Bullish Three Bar Reversal Butterfly Spread Cadila Healthcare Limited Calendar Spread Camarilla Equition canara Bank Candlestick Charts Candlestick Patterns Candlestick Patterns Strategy Cesc Limited Chart Patterns Cipla Closing Above Previous High for 3 Days Closing Below Previous Low For 3 Days coal India Cup & Handle Pattern Daily Life of a Trader dark cloud cover Day Trading Breakout Day Trading Setups Day Trading Setups – 6 Classic Formations Day Trading Strategy DBLHC Descending Triangle Divergence Price Action Strategy DIVI'S Laboratories Ltd Doji Candlestick Patterns Dojis Double EMA Dr Reddy Dr. Reddy's Laboratories Limited Early Morning Range Breakouts – 4 Trading Strategies EMA Equity Market EXHAUSTION BAR Falling Wedges (26th Dec 2017) Federal Bank fibonacci Fibonacci Retracement Fibonacci Retrenchment Strategy Fibonacci swing trading strategy Flag Pattern Strategy Flash Pattern Forex Trading Strategies Fyers Account Gandhi Jayanti Gap Up Gartley Pattern Glenmark Pharmaceuticals Limited godrej Godrej Consumer Products Limited Godrej India Gppl Happy Birthday Happy Chhath Puja Happy Diwali Happy Diwali (2017) Happy Diwali (2018) Happy Dussehra Happy Ganesh Chaturthi Happy Holi Happy Independence Day 2017 Happy Janmashtami Happy Krishna Janmashtami 2017 Happy Muharram 2017 Happy Navratri To All Happy Teacher Day Harmonic Pattern HCL Technology HDFC HDFC Bank Head & Shoulders breakout Head & Shoulders Pattern (6th Oct 2017) Head and Shoulders Pattern Higher high of 3 days Hikkake Pattern Hindustan Petrolium Hindustan Unilever Hindustan Unilever Limited HOW TO DRAW TRENDLINES How To Trade Supply And Demand IndusInd Bank Indusind Bank Ltd Infosys INSIDE BAR Inside Bar - Outside Bar Inside Bar Trading Strategy by Stock Alphabets Inside Day Bar Intraday Intraday strategy Intraday strategy with Camarilla Equition intraday SureShot Intraday SureShot Official Post Intraday Trading Strategy Intraday/Day Trading Strategy inverted Head & Shoulders Irb Infrastructure Developers Limited Iron Condor Iron Fly Island Reversal Pattern Trading Strategy Jindal Steel & Power Limited Jk Lakshmi Cement Limited Jubilant Food Jubilant Foodworks Limited Kajaria Ceramics KEY REVERSAL BAR Kingfa Science and Technolgy (India) Ltd Kotak Mahindra Bank Limited Larson & Tarbo LIC LIC Housing Finance Limited Live Trading Lupin Limited M & M Finance Mahanagar gas Making Higher High for 3 Days Making Lower Lows for 3 Days Master Candle Master Candle Strategy Master Plus Candlesticks Meditation Mind Tree Mindtree Mobile App & Website for share market Momentum Divergence Strategy Morning and Evening Stars Moving Average Strategy My 10 price action secrets Naked Options NBCC (India) Limited New Mobile Application Annoucement NHPC Nifty Trend (12th August 2017) Nifty Trend line (10th August 2017) NMDC NMDC Cup & Handle Pattern NR7 NTPC Nureca Limited IPO Option Strangle (Long Strangle) Options Strategy Newsletter OUTSIDE BAR Outside Bar-Inside Bar Combo Pattern Pattern Strategy PATTERNS Pidilite India PINOCCHIO BAR (PIN BAR) PINOCCHIO BAR TRADE SETUP (PIN BAR) Piramal Enterprises Limited planting trees PNB POPGUN BAR PATTERN Price action Price Action Candlestick Patterns Price Action Continuation Patterns Price Action PATTERN # 6: Pin Bars PRICE ACTION PATTERN #1: DBLHC Price Action PATTERN #4: BEOVB Price Action PATTERN #5: BUOVB Price Action Patterns Price Action Pivot Point Strategy Price Action Sandwich Trading Setup Price Action Strategy Price Action Strategy Guide Price Action Strategy lover Price Action Trading Class Price Action Trading Course Price action trading strategy Price came back channel from bottom Price came back channel from Top Price gone below mid line Price-action-trading-strategies #Chapter-01 Price-action-trading-strategies-#Chapter-02 price-action-trading-strategies-#Chapter-03 Price-action-trading-strategies-#chapter-04 Profitable Level Profitable Level (13th Dec 2017) Profitable Level (14th Dec 2017) Profitable Level (15th Dec 2017) Profitable Level (18th Dec 2017) Profitable Level (18th Sept 2017) Profitable Pattern Profitable Trader Profitable Traders Do Nothing 99% Of the Time PVR RailTel IPO Ratio Spread Raymond Limited Reliance Capital Reliance Infra Repco Home Finance REVERSAL BAR PATTERN Risk/Reward Ross Hook Pattern Trading Strategy RSI RSI Divergence Strategy SBI Shooting Six Candle Concepts SMA Sodha Spring at Support & Resistance State Bank of India Stock Alphabets Stock Market Stock Market & Finance Movies Stock Market Strategy StockAlphabets Stop Loss Order Straddle Strangle Strategy EMA Strategy Resource Strip/ Strap sun Pharma Sun Pharmaceuticals Industries Limited Supertrend Supertrend Strategy support & Resistance Support & Resistance (25th Sept 2017) Support & Resistance (26th Dec 2017) Support & Resistance Strategy (6th Dec 2017) Support and Resistance Swerve pattern Swing Trading Strategies Swing Trading Strategy Tata Chemical Tata Global Beverages Tata Motors TCS The Best Stocks to Buy Now or Whenever The India Cements Limited The Outside Bar Trading Strategy Three Bar Reversal Three Candle Formation THREE-BAR PULLBACK Titan Company Limited Top Indian Companies with Monopoly Top 10 Continuation Candlesticks TOP 10 PRICE ACTION TRADING BOOKS Top 10 Reversal Candlesticks Top Monopoly stocks in India Torrent Torrent Pharmaceuticals Traders Trick Entry Trading System trading breakout Trading Key Reversal Bar Trading Psychology Trading Strategy Trading Strategy For Posstional & Intraday Trading System Trading the trend Trend line (25th Sept 2017) Trend line Strategy Trend line Strategy (14th Dec 2017) Trend Trading Analysis Prediction Trend-line Strategy (30th Nov 2017) Trendline Trendline (19th Sept 2017) Trendline (6th Nov 2017) Trendline Line Strategy Trendline strategy Trendline Strategy (19th Dec 2017) Trendline Strategy (2nd Dec 2017) Trendline Strategy (6th Dec 2017) Triagle Pattern TV18 Broadcast Limited TWO-BAR REVERSAL Types of Trader TYPICAL PRICE Typical Price Action Strategy ubl UBL Breakout Ujjivan Ujjivan Financial Services United Breweries Limited United Phosphorus Ltd Vertical Spread Volume Candlesticks Volume Trading Intraday Strategy W Pattern Wedge Pattern Strategy Wedges Price Action Strategy(16th Dec 2017) wedges Strategy (19th Dec 2017) Wipro Limited Wockhardt Limited Wolf Wave Strategy World’s Best Traders www.StockAlphabets.com Yes Bank Zee Entertainment Enterprises Limited Zydus Wellness

Travel

3/Travel/custom-widget

Comments

3/recentcomments

Ads

An�ncio

Latest in Sports

Sports

Random Posts

4/randomposts

Facebook

[Latest News][6]

#1 Live Trading on Glenmark Pharmaceuticals Ltd
#1 Live Trading on Godrej Industries Limited
#3 Live Trading Session
1-2-3 Strategy
1-2-3-4 Reversal Trading Strategy
10 CHART PATTERNS FOR PRICE ACTION TRADING
10 Habits of successful traders
10 Performing Candlesticks
10 PRICE ACTION BAR PATTERNS YOU MUST KNOW
10 PRICE ACTION CANDLESTICK PATTERNS YOU MUST KNOW
10 Things You Can Learn From The World’s Best Traders
10 TYPES OF PRICE CHARTS FOR TRADING
123 forex trading strategy
123 Trading Strategy
200 SMA
3 Bar Net Line Strategy
6 Best Price Action Trading Strategies
7 RSI TRADING STRATEGIES
9 Advanced & Profitable Trading Strategy
9 Funny Facial Expressions
AB = CD Price Action Strategy
Abb India Limited
Aditya Birla Nuvo Limited
Aditya Birla Nuvo Ltd
ADVANCED REVERSAL STRATEGY
Alice Blue Opening Link
Alphabets
Amaraja Battries
Ambuja Cement
Anupam Rasayan India Limited IPO
Asian Paint Ltd
Aurobindo Pharma Limited
Bajaj-Auto
Bearish Crossover
Bearish Engulfing
Bearish Engulfing Candle
Bearish Reversal (Red-Red)
BEML Ltd
Best Stock Market Strategy
Bharat Finance Inclusion
Blood Rain Pattern
bollinger band
Bollinger Band Price goes below Mid line Strategy
Bollinger Band Price gone above mid line
Bollinger Band Strategy
Breakout Stock Trading Strategy
Bullish Crossover
Bullish Engulfing
Bullish Gartley Pattern Strategy
Bullish Three Bar Reversal
Butterfly Spread
Cadila Healthcare Limited
Calendar Spread
Camarilla Equition
canara Bank
Candlestick Charts
Candlestick Patterns
Candlestick Patterns Strategy
Cesc Limited
Chart Patterns
Cipla
Closing Above Previous High for 3 Days
Closing Below Previous Low For 3 Days
coal India
Cup & Handle Pattern
Daily Life of a Trader
dark cloud cover
Day Trading Breakout
Day Trading Setups
Day Trading Setups – 6 Classic Formations
Day Trading Strategy
DBLHC
Descending Triangle
Divergence Price Action Strategy
DIVI'S Laboratories Ltd
Doji Candlestick Patterns
Dojis
Double EMA
Dr Reddy
Dr. Reddy's Laboratories Limited
Early Morning Range Breakouts – 4 Trading Strategies
EMA
Equity Market
EXHAUSTION BAR
Falling Wedges (26th Dec 2017)
Federal Bank
fibonacci
Fibonacci Retracement
Fibonacci Retrenchment Strategy
Fibonacci swing trading strategy
Flag Pattern Strategy
Flash Pattern
Forex Trading Strategies
Fyers Account
Gandhi Jayanti
Gap Up
Gartley Pattern
Glenmark Pharmaceuticals Limited
godrej
Godrej Consumer Products Limited
Godrej India
Gppl
Happy Birthday
Happy Chhath Puja
Happy Diwali
Happy Diwali (2017)
Happy Diwali (2018)
Happy Dussehra
Happy Ganesh Chaturthi
Happy Holi
Happy Independence Day 2017
Happy Janmashtami
Happy Krishna Janmashtami 2017
Happy Muharram 2017
Happy Navratri To All
Happy Teacher Day
Harmonic Pattern
HCL Technology
HDFC
HDFC Bank
Head & Shoulders breakout
Head & Shoulders Pattern (6th Oct 2017)
Head and Shoulders Pattern
Higher high of 3 days
Hikkake Pattern
Hindustan Petrolium
Hindustan Unilever
Hindustan Unilever Limited
HOW TO DRAW TRENDLINES
How To Trade Supply And Demand
IndusInd Bank
Indusind Bank Ltd
Infosys
INSIDE BAR
Inside Bar - Outside Bar
Inside Bar Trading Strategy by Stock Alphabets
Inside Day Bar
Intraday
Intraday strategy
Intraday strategy with Camarilla Equition
intraday SureShot
Intraday SureShot Official Post
Intraday Trading Strategy
Intraday/Day Trading Strategy
inverted Head & Shoulders
Irb Infrastructure Developers Limited
Iron Condor
Iron Fly
Island Reversal Pattern Trading Strategy
Jindal Steel & Power Limited
Jk Lakshmi Cement Limited
Jubilant Food
Jubilant Foodworks Limited
Kajaria Ceramics
KEY REVERSAL BAR
Kingfa Science and Technolgy (India) Ltd
Kotak Mahindra Bank Limited
Larson & Tarbo
LIC
LIC Housing Finance Limited
Live Trading
Lupin Limited
M & M Finance
Mahanagar gas
Making Higher High for 3 Days
Making Lower Lows for 3 Days
Master Candle
Master Candle Strategy
Master Plus Candlesticks
Meditation
Mind Tree
Mindtree
Mobile App & Website for share market
Momentum Divergence Strategy
Morning and Evening Stars
Moving Average Strategy
My 10 price action secrets
Naked Options
NBCC (India) Limited
New Mobile Application Annoucement
NHPC
Nifty Trend (12th August 2017)
Nifty Trend line (10th August 2017)
NMDC
NMDC Cup & Handle Pattern
NR7
NTPC
Nureca Limited IPO
Option Strangle (Long Strangle)
Options Strategy Newsletter
OUTSIDE BAR
Outside Bar-Inside Bar Combo Pattern
Pattern Strategy
PATTERNS
Pidilite India
PINOCCHIO BAR (PIN BAR)
PINOCCHIO BAR TRADE SETUP (PIN BAR)
Piramal Enterprises Limited
planting trees
PNB
POPGUN BAR PATTERN
Price action
Price Action Candlestick Patterns
Price Action Continuation Patterns
Price Action PATTERN # 6: Pin Bars
PRICE ACTION PATTERN #1: DBLHC
Price Action PATTERN #4: BEOVB
Price Action PATTERN #5: BUOVB
Price Action Patterns
Price Action Pivot Point Strategy
Price Action Sandwich Trading Setup
Price Action Strategy
Price Action Strategy Guide
Price Action Strategy lover
Price Action Trading Class
Price Action Trading Course
Price action trading strategy
Price came back channel from bottom
Price came back channel from Top
Price gone below mid line
Price-action-trading-strategies #Chapter-01
Price-action-trading-strategies-#Chapter-02
price-action-trading-strategies-#Chapter-03
Price-action-trading-strategies-#chapter-04
Profitable Level
Profitable Level (13th Dec 2017)
Profitable Level (14th Dec 2017)
Profitable Level (15th Dec 2017)
Profitable Level (18th Dec 2017)
Profitable Level (18th Sept 2017)
Profitable Pattern
Profitable Trader
Profitable Traders Do Nothing 99% Of the Time
PVR
RailTel IPO
Ratio Spread
Raymond Limited
Reliance Capital
Reliance Infra
Repco Home Finance
REVERSAL BAR PATTERN
Risk/Reward
Ross Hook Pattern Trading Strategy
RSI
RSI Divergence Strategy
SBI
Shooting
Six Candle Concepts
SMA
Sodha
Spring at Support & Resistance
State Bank of India
Stock Alphabets
Stock Market
Stock Market & Finance Movies
Stock Market Strategy
StockAlphabets
Stop Loss Order
Straddle
Strangle
Strategy EMA
Strategy Resource
Strip/ Strap
sun Pharma
Sun Pharmaceuticals Industries Limited
Supertrend
Supertrend Strategy
support & Resistance
Support & Resistance (25th Sept 2017)
Support & Resistance (26th Dec 2017)
Support & Resistance Strategy (6th Dec 2017)
Support and Resistance
Swerve pattern
Swing Trading Strategies
Swing Trading Strategy
Tata Chemical
Tata Global Beverages
Tata Motors
TCS
The Best Stocks to Buy Now or Whenever
The India Cements Limited
The Outside Bar Trading Strategy
Three Bar Reversal
Three Candle Formation
THREE-BAR PULLBACK
Titan Company Limited
Top Indian Companies with Monopoly
Top 10 Continuation Candlesticks
TOP 10 PRICE ACTION TRADING BOOKS
Top 10 Reversal Candlesticks
Top Monopoly stocks in India
Torrent
Torrent Pharmaceuticals
Traders Trick Entry Trading System
trading breakout
Trading Key Reversal Bar
Trading Psychology
Trading Strategy
Trading Strategy For Posstional & Intraday
Trading System
Trading the trend
Trend line (25th Sept 2017)
Trend line Strategy
Trend line Strategy (14th Dec 2017)
Trend Trading Analysis Prediction
Trend-line Strategy (30th Nov 2017)
Trendline
Trendline (19th Sept 2017)
Trendline (6th Nov 2017)
Trendline Line Strategy
Trendline strategy
Trendline Strategy (19th Dec 2017)
Trendline Strategy (2nd Dec 2017)
Trendline Strategy (6th Dec 2017)
Triagle Pattern
TV18 Broadcast Limited
TWO-BAR REVERSAL
Types of Trader
TYPICAL PRICE
Typical Price Action Strategy
ubl
UBL Breakout
Ujjivan
Ujjivan Financial Services
United Breweries Limited
United Phosphorus Ltd
Vertical Spread
Volume Candlesticks
Volume Trading Intraday Strategy
W Pattern
Wedge Pattern Strategy
Wedges Price Action Strategy(16th Dec 2017)
wedges Strategy (19th Dec 2017)
Wipro Limited
Wockhardt Limited
Wolf Wave Strategy
World’s Best Traders
www.StockAlphabets.com
Yes Bank
Zee Entertainment Enterprises Limited
Zydus Wellness

Saturday 30 June 2018

Let's Look at Different Types of Trader

- No comments

Daily Life of a Trader

- No comments







Sunday 17 June 2018

Price-action-trading-strategies-#chapter-04

- No comments

Chapter 4: How to Protect Against the Head Fakes

Protection
I could not leave you hanging with the feeling trading is impossible.
There are many ways you can protect yourself against head fakes. For starters, always have a stop in place to protect yourself against loss.
Next up, do not go hog wild with your capital in one position. Make sure you leave yourself enough cushion, so you do not get antsy with every bar that prints.
Again, let time play to your favor. I know there is an urge in this business to act quickly. However, there is some merit in seeing how a stock will trade after hitting a key support or resistance level for a few minutes.
If you think back to the examples we just reviewed, the security bounced back the other way within minutes of trapping traders.

Chapter 5: Price Action Traders

Price action traders are the Zen traders in the active trading world.
These people believe the human brain is more powerful than any machine.
Please do not mistake their Zen state for not having a system. The price action trader can interpret the charts and price action to make their next move.

Benefits of Price Trading

Benefit
For starters, there isn't as much information to process, so you can focus on the chart action.
Secondly, you have no one else to blame for getting caught in a trap. Don't bother emailing the guru with the proprietary trade signal that had you on the wrong side of the market.
The biggest benefit is that price action traders are processing data as it happens. There is no lag in their process for interpreting trade data.

Challenges

Challenges
Price action traders will need to resist the urge to add additional indicators to your system. You will have to stay away from the latest holy grail indicator that will solve all your problems when you are going through a downturn.
The real challenge is it's extremely difficult to trade purely on price. It's not something you can just pickup and start doing right away.
You need to think about the patterns listed in this article and additional setups you will uncover on your own as stages in your trading career.
First learn to master one or two setups at a time. Learn how they move and when the setup is likely to fail.
This my friend takes time; however, get pass this hurdle and you have achieved trading mastery.

Price-action-trading-strategies-#Chapter-03

- No comments
Chapter 3: False Setups
Trading comes down to who can realize profits from their edge in the market. While it is easy to scroll through charts and see all the winners, the market is one big cat and mouse game.
Between the quants and smart money, the false setups are everywhere.
As a price action trader, you cannot rely on other off-chart indicators to provide you clues that a formation is false. However, since you live in the "now" and are reacting to directly what is in front of you, you must have strict rules to know when to get out.
For me, in lieu of a technical indicator, you can use time as a gauge.
Time
Just to be clear, the chart formation is always your first signal, but if the charts are unclear, time is always the deciding factor.
I did a study of all my winning trades and over 85% of them paid in full within 5 minutes.
If you have been trading for a while, go back and take a look at how long it takes for your average winner to play out.
Let's review a few head fakes to get a feel for what we are up against in terms of false setups.

Head Fake 2
Head Fake 3
I just showed you two examples of head fakes in both equities and futures markets.
In each example, the break of support likely felt like a sure move, only to have your trade validation ripped out from under you in a matter of minutes.

Chapter 4: How to Protect Against the Head Fakes

Protection
I could not leave you hanging with the feeling trading is impossible.
There are many ways you can protect yourself against head fakes. For starters, always have a stop in place to protect yourself against loss.
Next up, do not go hog wild with your capital in one position. Make sure you leave yourself enough cushion, so you do not get antsy with every bar that prints.
Again, let time play to your favor. I know there is an urge in this business to act quickly. However, there is some merit in seeing how a stock will trade after hitting a key support or resistance level for a few minutes.
If you think back to the examples we just reviewed, the security bounced back the other way within minutes of trapping traders.

Price-action-trading-strategies-#Chapter-02

- No comments

Chapter 2: Price Action Trading Strategies

#1 - Outside Bar at Support or Resistance

For those unfamiliar with an outside bar, an example of a bullish outside bar is when the low of the current day exceeds the previous day's low, but the stock rallies and closes above the previous day's high.  The bearish example of this would be the same setup, just the opposite price action.
outside down day
outside down day
Therefore, it's not just about finding an outside candlestick and placing a trade.  As you can see in the above chart of Cambrex (CBM), it's best to find an outside day after a major break of a trend.  In the CBM example, there was an uptrend for almost 3 hours on a 5-minute chart prior to the start of the break down.
After the break, CBM experienced an outside down day, which then led to a nice sell off into the early afternoon.

A spring is when a stock tests the low of a range, only to quickly come back into the trading zone and kickoff a new trend.  I like to use volume when confirming a spring; however, the focus of this article is to explore price action strategies, so we will zone in on the candlesticks.
The one common misinterpretation of springs is traders wait for the last swing low to be breached.  Just to be clear, a spring can occur if the stock comes within 1% to 2% of the swing low.
Trading setups rarely fit your exact requirement, so there is no point in obsessing a few cents.  To illustrate this point, please have a look at the below example of a spring setup.
Spring Example
Spring Example
Notice how the previous low was never breached, but you could tell from the price action the stock reversed nicely off the low and a long trade was in play

#3 - Inside Bars after a Breakout

Inside bars are when you have many candlesticks clumped together as the price action starts to coil at resistance or support.  The candlesticks will fit inside of the high and low of a recent swing point as the dominant traders suppress the stock to accumulate more shares.
To illustrate a series of inside bars after a breakout, please take a look at the following chart.
Inside Bars
Inside Bars
This chart of Neonode is truly unique, because the stock had a breakout after the fourth attempt at busting the high.  Then there were two inside bars that refused to give back any of the breakout gains.  NEON then went on to rally almost 20% in one trading day.
Please note inside bars can also occur prior to a breakout, which strengthens the odds the stock will eventually breakthrough resistance.

#4 - Long Wick Candles

Long Wick 1
Long Wick 1
Long Wick 2
Long Wick 2
Are you able to see the consistent price action in these charts?  If not, were you able to read the title of the setup or the caption in both images?
Just having a little fun here, don't get sensitive.
The long wick candlestick is one of my favorite day trading setups.  The setup consists of a major gap up or down in the morning, followed by a significant push, which then retreats.  This price action produces a long wick and for us seasoned traders, we know that this price action is likely to be tested again.
Reason being, a ton of traders entered these positions late, which leaves them all holding the bag.  The counter pressure will be weak comparatively, so what can't go down must go up again.  This leads to a push back to the high on a retest.
That may have been a little tough to follow, so let's illustrate this point through the charts.
Long Wick 3
Long Wick 3
Notice after the long wick, CDEP had many inside bars before breaking the low of the wick.  After this break, the stock proceeded lower throughout the day.

#5 - Measure Length of Previous Swings

Measure Previous Swings
Have you ever heard the phrase history has a habit of repeating itself?  Well, trading is no different.

As a trader, you can let your emotions and more specifically hope take over your sense of logic.  You will look at a price chart and see riches right before your eyes.
Well, that my friend is not reality.  Did you know in stocks there are often dominant players that consistently trade specific securities?
These traders live and breathe their favorite stock.  Given the right level of capitalization, these select traders can also control the price movement of these securities.
What you can do to better understand the price action is to measure previous price swings.
As you perform your analysis, you will notice common percentage moves will appear right on the chart. For example, you may notice that the last 5 moves of a stock were all 5% to 6%.
If you are swing trading, you may see a range of 18% to 20%.  Bottom line, you shouldn't expect stocks to all of a sudden double or triple the size of their previous swings.
I fully understand the market is limitless; however, it's better to play the odds with the greatest chance versus swinging for the fences.  Over the long haul, slow and steady always wins the race.
To further illustrate this point, let's go to the charts.
Measure the Swings
Measure the Swings
Notice how FTR over a 10-month period experienced many swings.  However, each swing was on average 60 to 80 cents.  While this is a daily view of FTR, you will see the same relationship of price on any time frame.
As a trader, do you think it would make sense to expect $2, $3, or $4 dollars of profit on a swing trade?  At some point, the stock will make that sort of run, but there will be a more 60 to 80 cent moves before that occur.
Just on this one chart, I can count 6 or 7 swings of 60 to 80 cents.  If you can trade each of these swings successfully, you in essence get the same effect of landing that home run trade without all the risk and headache.

#6 - Little to No Price Retracement

No Price Retracement
Not to get too caught up on Fibonacci, because I know for some traders this may cross into the hokey pokey analysis zone.  However, at its simplest form, less retracement is proof positive the primary trend is strong and likely to continue.
little retracement
little retracement

The key takeaway is you want the retracement to be less than 38.2%.  If so, when the stock attempts to test the previous swing high or low, there is a greater chance the breakout will hold and continue in the direction of the primary trend.

Price-action-trading-strategies #Chapter-01

- No comments

Chapter 1: What Makes up Price Action

Before we dive into the strategies, I want to first ground you on the four pillars of price action.
  1. Candelsticks
  2. Bullish Trend
  3. Bearish Trend
  4. Flat Market
If you can recognize and understand these four concepts and how they are related to one another, you are on your way.

Pillar 1 - Candlesticks

I have listed candlesticks here, because this is the most popular form of charting in today's trading world. Historically, point and figure charts, line graphs and bar graphs were the rave of their day.
Not to make things too open ended at the start, but you can use the charting method of your choice. There is no hard line here.
However, for the sake of not turning this into a thesis paper, we will focus on candlesticks. The below image gives you the structure of a candlestick. To learn more about candlesticks, please visit this article that goes into detail about specific formations and techniques.

Candlestick Structure
Candlestick Structure
The key point to remember with candlesticks is each candle is relaying information and each cluster or grouping of candles is also conveying a message. You have to begin to think of the market in layers.

Pillar 2 - Bullish Trend

This is a simple item to identify on the chart and as a retail investor you are likely most familiar with this formation.
A bullish trend develops when there is a grouping of candlesticks that extend up and to the right.
Think of a squiggly line on a 45 degree angle.
Bullish Trend
Make sense?

Pillar 3 - Bearish Trend

Bearish trends are not fun for most retail traders. Shorting (selling a stock you do not own) is likely something you are not familiar with or have any interests in doing. This formation is the opposite of the bullish trend.
This is where a security will trend at a 315 degree angle.
Bearish Trend

Pillar 4 - Flat Market

Flat Trend
Get ready for this statement, because it is big. The market in general terms is flat about 80% of the time for day traders.
Rarely will securities trend all day in one direction. You will set your morning range within the first hour, then the rest of the day is just a series of head fakes.

If you can re-imagine the charts in these more abstract terms, it is easy to quickly size up a security's next move.

6 Best Price Action Trading Strategies

- No comments

Overview of Price Action Charts

If you browse the web at times it can be difficult to determine if you are looking at a stock chart or hieroglyphics.  When you see a chart with many indicators and trend lines, it is likely a trader trying to overcompensate for a lack of certainty.
I have even seen some traders that will have four or more monitors with charts this busy on each monitor.   When you see this sort of setup, you hope at some point the trader 
will release themselves from this burden of proof.What if we lived in a world where we just traded the price action?  A world where traders pick simplicity over the complex world of technical indicators and automated trading strategies.
When you remove all the clutter from the trades, all that is remaining is price.To see a chart minus all the indicators, take a look at the following image.
At first glance, it can almost be as intimidating as a chart full of indicators.  Like anything in life, we build dependencies and handicaps from on pain of real-life experiences.  If you have been trading with your favorite indicator for years, going down to a bare chart can be somewhat traumatic.
In this article, we will explore the 6 best price action trading strategies and what it means to be a price action trader.

Contents

Chapter 1 - What Makes up Price Action?Chapter 2 - Price Action Trading StrategiesChapter 3 - False Signals
Chapter 4 - How to Protect Against Head Fakes

Sunday 10 June 2018

Stop Loss Order And The Only 2 Best Places To Place It

- No comments

Trading Without A Stop Loss Order
Trading Without A Stop Loss Order Is Like Jumping Out Of A Plane With No Parachute On
What is a stop loss order? Where is the best place to place a stop loss order? In this post, I will:
  • give you the two best places to place your stop loss order so that you won’t get stopped out prematurely.
  • definition of stop loss order
  • why place a stop loss? The importance of stop loss orders
Have you ever placed an order and then price goes to your stop loss order, takes you out of your trade then goes in the direction you anticipated in the first place?
I know the feeling…it’s frustrating!
Chances are that you’ve placed your stop loss too close to the market price which didn’t given enough room or breathing space to the price movement.
Every trader knows these two things:
  1. in a downtrend market, price moves up and then goes down. These are called upswings in a downtrend.
  2. in an uptrend market, price moves up then goes down. These are called downswings in an uptrend.
Understanding these two facts mentioned above can make a huge difference to your trading especially when it comes to placing stop loss order on your trades because if you place a stop loss order too close, you will get stopped out prematurely and then the trade goes in the direction that you thought it would go in the first place.

What Is A Stop Loss? Definition Of A Stop Loss Order

A stop loss order is simply a pending order that is placed to get you out of a trade at a certain price IF that trade is turning into a loss.
  • In the forex market, for a buy order, the stop loss order will be pending sell order that will  close your trade if the price falls below your entry price.
  • for a sell order, your stop loss order will be a pending buy order that will close your trade if the market reaches a certain price level above your entry price.
A stop loss order is simply a trading risk management strategy.

How To Place A Stop Loss Order

For forex traders that are just now learning about forex trading, here’s how to place a stop loss order:
  • So if you place a buy order, then you have to place a stop loss order under the entry price of your buy order. If price moves down and your stop loss is hit, you will have a losing trade. That stop loss protects your trading account from losing a lot of money.
  • similarly, if you place a sell order, your stop loss is place above the entry price of your sell order. If price moves up and hits your stop loss, you rill have a losing trade.

Why Place A Stop Loss Order? The Importance Of A Stop Loss Order

Trading without a stop loss order is like jumping out of a plane with no parachute on. When it comes to placing stop loss, you want to be able to place it in a location that is:
  • far away from the market price as possible (without increasing your risk)
  • so that this allows the market to breathe without your stop loss getting stopped out

2 Best Places To Place A Stop Loss Order

The best two places to place your stop loss orders are resistance levels and support levels.
To break this down further, they would be the:
  1. recent swing high
  2. recent swing low
For a buy order, you place your stop loss order just behind the recent swing low.
For a sell order you place your stop loss order just behind the recent swing high.
If you don’t know what a recent swing low or recent swing high looks like, then keep reading…

Definition of Recent Swing High Price Pattern

  • The most recent swing high is a resistance level
  • It is a level where you will see price will go up but than fall back down from there because it couldn’t continue to go up anymore.
  • The fact that price fell down from that level means that it is a safe spot to place your stop loss order just behind it if you take a short trade.
Stop Loss Order On Most Recent Swing High

Definition of A Recent Swing Low Price Pattern

Stop Loss Order On Most Recent Swing Low
  • the most recent swing low is a support level
  • The most recent swing low will be a price level where you will see price will go down but then rise up from there as it cannot go down anymore.
  • The fact that the price rose up from that level means that it is a safe spot to place your stop loss order just behind it if you take a long trade.

Stories of Traders Losing Their Trading Accounts With No Stop Loss 

There are stories of traders busting their trading account because they did not utilize stop loss, here are few examples:
  1. How One Man Lost $500,000 Trading CFDs
  2. Account got wiped out during news break
  3. Beginner trading without a stop loss horror story
I’m sure there are many more similar stories like these given above.  If you wan’t to trade without a stop loss, its really up to you.
For my case, trading with a stop loss is about keeping my peace of mind. I can go to sleep knowing that if market goes against my trade, I will only lose what I planned to lose in a trade anyway.

Saturday 9 June 2018

Traders Trick Entry Trading System

- No comments

Traders Trick Entry Trading System

The Traders Trick Entry Trading System is  trading system not many forex traders will be familiar with but it is a really powerful trading system regardless.
In this post, you will learn:
  • the different Traders Trick Entry setups
  • when to use the traders trick entry
  • what the traders trick entry can do for you.
  • how to trade the traders trick entry.
It is important for you to know and understand these things here below before you read about the traders trick entry trading strategy. Otherwise you wound’t have a clue:
  • 1-2-3 pattern formations
  • ross hooks
  • ledges
  • consolidations
If you have a fair idea of what they are, then you will understand what is written in here.

What Is The Traders Trick Entry?

  • Traders trick entry is a system that understands how insiders (or market movers) play the market and so what it does is to beat the insiders at their own game. In order for market movers to play the market, they have to sabotage themselves and you will learn about how they do that further down below this post.
  • In addition to that, this system creates a level playing field on  which you can trade.
  • the traders trick entry system is a breakout trading system that requires that you know the 123 forex trading system as well as the ross hook trading system because trades are taken based on these two patterns.
The chart below show the setup for the traders trick entry (note the 123 pattern and the ross hook).
Traders Trick Entry

So How Does The Traders Trick Entry Work?

  • positions are entered ahead of the actual breakout of the point #2 of the 123 pattern or ahead of the point for the hook.
  • the results will be significant profits.
  • if the breakout is false, you will have at least covered your costs and would have taken some profits.

The Traders Trick Entry Setup Based On The 123 Chart Pattern

The chart below shows the 123 pattern and the traders trick entry setup:

Traders Trick Entry Based On The 123 Chart Pattern
Right, so you need to know what are correcting bars. Well, here’s what correcting bars are:
Traders Trick Entry with 123 pattern and correcting bars

Conditions For Taking Traders Trick Entry Trades On 123 Chart Pattern

Just because you see that 123 pattern form and after #2 point, you see correcting bars form and the breakout of their highs happen doesn’t mean its a valid Traders trick entry setup.
Why’s that?
Well, there are 3 conditions that must be fullfilled before you can take trades.
#1 Condition:
Traders Trick Entry and 123 pattern conditions of entry 1
Traders Trick Entry and 123 pattern conditions of entry 13
Traders Trick Entry and 123 pattern condition 1 of entry 3
Traders Trick Entry and 123 pattern conditions of entry 1-4

#2: Condition
Here’s the 2nd condition the must be satisfied before taking a traders trick entry on the 123 pattern:
Traders Trick Entry and 123 pattern condition 2 of entry 1-1
Why is that you should not trade traders trick entry based on the 123 pattern in consolidations?
Because 123 pattern formations in consolidations are meaningless because you will see they will have them in both directions.
#3 Condition
Here’s the 3rd condition that must be satisfied…
Traders Trick Entry and 123 pattern condition 2 of entry 1-3
Traders Trick Entry and 123 pattern condition 2 of entry 1-4
Traders Trick Entry and 123 pattern condition 2 of entry 1-5
Traders Trick Entry and 123 pattern condition 2 of entry 1-6
Traders Trick Entry and 123 pattern condition 2 of entry 1-7
Traders Trick Entry and 123 pattern condition 2 of entry 1-8
Traders Trick Entry and 123 pattern condition 2 of entry 1-9
Now, this next section will take you teach you about how to take the traders trick entry on  the Ross Hook Pattern.

The Traders Trick Entry Trade Setup Based On The Ross Hook Pattern

Similar to the traders trick entry on the 1-2-3 pattern, you want to buy the breakout of the highs of the subsequent bars that from after the Rh point:
Traders Trick Entry and Ross Hook Pattern
What are correcting bars in a Ross Hook Pattern Setup then? Well, here’s the definition:
Traders Trick Entry and Ross Hook Pattern Correcting Bars
But before you take a traders trick entry trade on the Ross Hook Pattern, you need to make sure that these 3 conditions are satisfied…

#1: Condition
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 1-1
So what does “sufficient room” mean? Well, this chart below will make this more clear:
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 1-2
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 1-3
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 1-4
#2: Condition
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 2-1
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 2-3
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 2-4
#3 Condition
Here is the third condition for taking a traders trick entry on the Ross Hook pattern…
Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-1

Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-2Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-3Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-4Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-5Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-6Traders Trick Entry and Ross Hook Pattern Trade Entry Condition 3-7

How To Trade The Traders Trick Entry

Trader Trick Entry System Trading Rules 1
Trader Trick Entry Rules 2
Trader Trick Entry Trading system Rule 3
Trader Trick Entry Rules 4

Summary of Traders Trick Entry System

How Insiders Engineer Price Moves
Traders Trick Entry and Insider Shadowing his moves
When insiders know that there are large groups of orders are bunched together at particular points, they will engineer price moves aimed at taking out those points.
So what points are we talking about in here?
  • point #2 of the 123 pattern
  • and the ross hook (Rh) point.
Generally, you should expect a lot of orders to be bunched together at these two point and the insiders know that.
How will they engineer price moves then? Well, by sabotaging themselves, so that nobody will be shadowing their moves.
Traders Trick Entry And How Market Mover Stops His Own Momentum
For example, instead of engineering price moves to the upside, they will sabotage themselves by driving prices down but their ultimate aim is to engineer price to move up!
If  they want to move price down, they  will sabotage themselves by driving prices up instead of driving it down but their ultimate aim would be to engineer price to go down.
Traders Trick Entry Enhanced With Fibonacci Traders buying or selling at fibonacci levels
Trader Trick Entry Enhanced by Fibonacci Traders
Trader Trick Entry Enhanced by Gann Traders
Trader Trick Entry Forex With Gann Trading
Trader Trick Entry Using Momentum Of Other Traders
Traders Trick Entry Breakout of 123 and ross hook pattern
Possibility of trend to form in a 123 pattern is less than ross hook pattern on the traders trick entry
Disadvantage of the third bar in traders trick entry
3rd bar of the traders trick entry system
So there you have it. If you have enjoyed reading about the traders trick entry tra