Price Action Trading Didn't Work Till I Discovered These 3 Strategies...

okay the first trading strategy that I have for you is what I call the break-off structure so this strategy is for Traders right who find that they are usually you know entering their trades too earlier and then getting stopped out let me give you an illustration so you understand how this works so what we're looking for is in essence right let's say again on The Daily time frame I put here daily Market it's in a range and it breaks below support So what you're looking for is on the daily timeframe for you to approach this area of resistance previous support which could become resistance okay then on the forward time frame this is what you're looking for so let's say four hour time frame is let's say it's here okay you will see that the price is forming a series of higher highs and higher lows otherwise known as an uptrend right this is what you'll see on the forward time frame so what you're looking for is for the price to form a lower high and lower low so close back goes up and now at this point right this critical point is where we'll place a sell stop order because if the price get breaks below this low now we have a lower high and a lower low our stop loss can just go a distance Above This highs and our Target can be just uh before this extreme swing low over here is our Target so I'm going to walk you through some chart examples right so you can see how this is a trading strategy works okay so over here you can see that this is the chart of gold and here is you know what I was talking about you can see that the price right has broke below this area of support right which could not become resistance right highlight on this uh this chart over here so notice here the prices right below support right support which could not become resistance and the mistake that many Traders make is that whenever they see you know the market showing signs of you know reversal or you know having a lower close they quickly go short like for example this candle over here they quickly go short on this particular candle over here I think the market is about to reverse lower and then what happened is that the price you know usually would do another move up higher before it reverts right so how do you not get caught in such a move so this is where you can actually use the forward time frame the lower time frame to help you better time your entry so in this case let's go down to the forward time frame and see what's going on so on the forward time frame you can see that again this rate box is the area of resistance that I've highlighted previously and over here notice right that the price structure in this case the market is still in an uptrend in this time frame series of higher highs higher highs High highs and higher lows higher lows and higher lows so this tells you that hey you know the buyers are clearly still in control in this time frame so let's not you know short the market just let's not jump the gun just like how you don't marry the girl right for the first time you guys go on a date instead you will marry her probably a number of dates you know spending a lot of time together until you show signs of Interest they are convinced then you guys get married so same thing for trading right you want to see signs of reversal first right before you look to short this market and know to get on on board right this uh existing trend on The Daily time frame so let's see so in this case the market you can see at this point right it's still in an uptrend price two forming a series of higher highs and higher lows so be patient so I'm just going to run through see what happens to this market so over here you can see now that the market right is still have the uptrend still intact over here now this is interesting now we have something interesting the price has now broke below this swing low okay so let's see what happens next okay so at this point now okay we can see that right now the price has now formed a lower high okay this is now a lower high so from the looks of this shot right you can see that we have a lower high and if the price breaks below this lows right we now have a lower high and a lower low so this serves right as an entry trigger to go short and plus right Traders you know if you use trendline and stuff like that if you draw a trend line the trend line is also clearly you know broken at this point in time so you have multiple factors coming in telling us that hey no the selling pressure is stepping in and we can look to you know go shot this Market if the price breaks below this swing low so let's just do it right there so let me just say let's say I'm just going to use this line over here okay I'll just put the this one over here this black line if the price breaks below this low okay we will go short so in this case you can see over here right we would have gotten shot right on this particular trade over here so where do we set our stop loss so let's say we use this particular uh tool over here okay shot position is over here our stop loss can just go a distance Above This highs don't have to set it very high so let's say our stop loss is just a distance above this size so that we don't get stopped up prematurely okay so this is our entry point right and as for Target you can remember right we can set it just before this recent swing low over here I don't want to set it at the extreme low because the price might not get to there and then reverse for me so I think somewhere about here would be a reasonable Target somewhere just around here right so I'm just going to shift this target to around that level somewhere about here okay so in this case right this trade uh it's a potential risking a dollar to make you know 3. 62 as it shows over here so in this case uh clearly this is a cherry pick chart you can see that the market uh pretty much you know did uh Reach Out target eventually over here right as you can see the price did Reach Out target over here now one thing to point out is that you know I want to talk about trade management because you know not all trades you know the moment you go short the market will move in your favor there are oftentimes it's gonna mess with your feelings right you know move your bid in your favor move a lot against you then move in your favor again so how do you kind of like manage your trades right so one technique to share with you is is this right so let me just uh I'll just get rid of this first okay so one technique to share with you is that if you can actually look to drill your stop loss right based on the price structure so for example at this point okay when the price uh bricks let me just zoom in a little bit okay zoom in a little bit you can see as the price breaks below this lows over here okay you now have a new swing high that you can reference which is this so your stop loss can be just a distance above this swing height somewhere about here so as the price continuously make you know uh new swing High lower you can reference that to set your stop loss so you can see over here it's the price hit down lower over here okay at this point we have another swing High over here okay let me just okay give another swing High over here so this we can reference this swing High to set up stop loss somewhere about here then when the price breaks below this lows right and reverse and comes down lower we have another swing High here we can set up stop loss somewhere about here so we progressively you know uh Trail our stop loss based on the price structure of the market till it reaches our Target or it hits our trailing stop loss so that's the one technique that you can consider right when you know uh trading such a strategy or have such a trade management right to kind of like protect your profits by the same time give it some buffer to reach your target okay in this second example I want to share with you another variation of the break of structure strategy that you can consider right so this I would say it's a little bit more advanced but still it offers you a low risk entry right to enter the existing Trend so you can see over here right now this Market is in a downtrend and the price has come towards this previous you know support which could become resisted so I'm just going to highlight this on the chart okay so how do you find a low risk entry to enter this this trade right so again we go down to the four hour time frame over here and it looks something like this so this time around instead of looking for a break of structure we can actually you know see how the price reacts at this level why is this level significant two reasons number one this is the swing High over here number two you know that this swing high right coincides right with the higher time frame uh price structure higher time frame resistance as you've seen earlier that's how we actually draw it on this chart over here so what we're looking for is for the price to go up higher re-test and then get rejected and close back below it so it looks something like a you know a shooting star pattern for those of you who are familiar with candlestick patterns telling us that there is price rejection at this high so you can see it over here yes right we are shorting right into this uptrend over here but this uptrend right it's only an uptrend on this forward time frame because as you've seen earlier on The Daily time frame where I just you know go back up to the Daily time frame you can see that we are actually in the downtrend so we are timing our entry on the four hour time frame to get on board with the trend on The Daily time frame does it make sense if he does raise up your hand I can't see it but just raise up your hand okay so let's see what happens next on this uh four hour time frame so at this point right we are looking for the price to retest this highs and give us a bearish price rejection so in this case the market did rally up higher and you can see over here we have a bearish price rejection the price retest the highs over here rejected and closed lower on the next candle so at this point we can look to go shot on next candle open stop loss a distance above the high so let me just pull out that tool right to illustrate this over gate here you can go short again our stop loss don't have to be at this level it's very wide right so over here since on this time frame probably somewhere here is reasonable because if the price okay if you think about this if the price were to let it reverse and hit our stop loss over here probably this uptrend is going to continue we better get up the trade and cut a loss all right so in this case right uh that's where I will set my stop loss what about Target so in this case right since you're entering your trade relatively early compared to the break of structure example is set I shared with you earlier you can actually have two Targets the first Target could be just before this recent swing High and the second second target could be against this one over here just before this extreme swing High okay so in this case let's see what happens so let's say our first Target is over here okay potential you know for the first Target it's really you know risking a dollar to make a dollar and 73 cents as shown over here so in this case all right let's see the price uh quickly reaches our Target man right now your trading strategy rocks well it's not the best strategy right to be honest this is actually a Cherry Picked example just to illustrate the concept so go and test it out on your own and see how it works out for you so anyway in this case our first Target is mad because I Cherry Picked this chart there all right and in this case uh again let's see where they reaches the second Target and yep it did right so again remember right for your second target what I can do is again you can Trail the stop loss because not always right the market will just in this case right just kind of like collapse nicely in your favor like you know up up and down up down not so nicely sometimes you can go quite a bit against you then move in the river sometimes you may not even you know reach your second target it happens okay so what you can do in this case it's a game where you can trailer stop loss right using the price structure of the market over here you can see a series of you know lower highs lower highs that you can use to Trail your stop loss another lower high over here so you can you know for example let's say price is let's say at this point in time right where do you set your trailing stop loss you can just be referencing this swing High maybe a distance above this swing High somewhere about here right and see if it reaches your target or your trailing stop loss first so that's uh that's a technique that you can use alternatively there's a trail using the 50 period moving average if the price closes above it you exit the trade so different ways you can use to manage your trade so moving on right let me share with you the second trading strategy okie dokie so this strategy is for you if you're the type of Trader that you know man I know right now I need to trade with the Train the train is your friend but I don't know when to enter well if that sounds like you then this trading strategy or is for you because we'll share with you or how we can actually hop on what the trend right with you know relatively low risk so all in all it looks uh something like this okay so let me just show you so Market is in an uptrend like this you do not know where to buy tell you what wait for the price to retest this area of support let it break below support and then quickly reverse back above it and close you know back above support when that happens you can look to enter on the next candle open stops the distance below the low your target could be just before this reasons why don't we set above the highest well problem is you know sometimes the market might come into this highs and then reverse down lower from it so if you set it way above the high something the market may not reach and then reverse back you know hit your stop loss you don't want that so let's be conservative and you'll have your stop loss just before the recent swing right so let me share with you a few examples right to how this trading strategy works okay this is the chart of a Vermilion energy I just want to share with you that the strategies and techniques that I share with you can also be applied to the stock market so if you trade the crypto the stock market so I do apply this strategies and see how it works out for you right so don't take my word for it right so what you do make use of the concepts and strategies that I've shared and see how it works out for you so if you recall this strategy it's pretty straightforward we are looking for the market to be in an uptrend and then retest an area of value so you can see Market is in an uptrend and retest this area of support okay so in this case right let's see what happens next so the market break below support right many traders who think oh man right now this is a breakdown time to short this market right but I think you you know by now they know if the market is you know in an uptrend and breaks below the lows that's a good possibility it could you know reverse up higher so in this candle you can see that we have a green candle over here but at this point I wouldn't really be interested to long just yet because we can see that there is a relatively long upper Shadow or upper Wick as you can see over here this long upper Shadow upper way so I'd rather you know hold my horses first and see how the next day the price behaves so in this case right the next day boom right we have a pretty nice higher close over here so now we have a false break uh set up so this Fallsburg is a little bit different from our previous fault break this one requires a two candle right two candle reversal right one candle two candle but still right it's a false break because the price tried to break below this low only to close back up above support So in this case some of you might be thinking but right now I don't want to be buying you know at this at this uh highs over here is a pretty high so what you can do is one technique I can share with you is that if you are a cheapskate like me I'm always a chip right I don't like to you know buy at high prices you can place a buy limit order right you know a few cents below the previous day closing price so let's say you know the previous day the price closed at let's say 20 you can maybe set your order at 19. 80 right somewhere about here so this gives you a better entry price it would have improved your risk to reward on this trade okay so in this case let's see what happened next day Market Gap up higher so if the market gets up higher you wouldn't be filled on this trade so what you can do is you can still leave your buy limit order over there so until until you know if you reaches your target then of course you remove that buy limit order so let me share with you how this would would look like okay so this is a long position let's say we place a buy limit order at let's say 19.

70 cents about there okay okay and our stop loss again the distance below this lows because we don't get stopped up prematurely yeah and let's say our Target again it's just before this recent highs so I just set it somewhere here let's see at 24 about there 24 62 okay let's see what happens in this case Market show signs of reversal but we haven't got filled on this trip because we have a buy limit order over here playing Scandal we would have gotten filled right on the buy limit order right and right now the market seems to be against us but remember we have our stop loss in place so we let the market do what it needs to do remember we are trading in the direction of the train and if the market were to hit our stop loss it has to first you know break below this area of uh support right which is kind of like a barrier you know to hold up this higher prices so the market has to work hard right to reach your stop loss okay so uh let's see what happens so in this case the market you know did you know reverse down lower took out these lows over here now you understand why I always set my stop loss you know distance below the lows because if I said it just below here I would have gotten stopped up on this candle over here but since my stop loss is here I'm still safe for now in this trade right whether it's a win or loser right let's see and in this case the market then slowly you know consolidate and then finally starts to show signs of reversal reaching our eventual uh Target that we have it just before this recent swing height and another thing to edit is I remember I said that I want to share with you an advanced technique this uh applies to the stock market right it's a very useful technique that I use so one thing I want you to pay attention to let me just remove this first right pay attention to this reversal lay on the 27th of June okay so I'm just let me point out to you the exact candle I'm looking at this one over here this candle has a higher higher close on this day and for those of you who trade stocks you know that usually if the overall stock market is up for the day most stocks let's say the S P 500 has a higher close for the day more stocks will also be up for the day and if the S P 500 is lower for the day it close lower for the day most stocks will be down so on this day right let's see what the S P 500 is doing you can see over here on the 27th of June I'm just going to pull out the s p 500. okay which is uh known as the es you can see that on the 27th of June on this candle here right zoom in a little bit this is the candle this one over here the S P 500 had a lower close whereas earlier you saw Vermilion energy on that same very date it has a higher close so this is what I call power and Divergence that stock right Vermilion energy on that particular day is showing signs of strength because when the overall Market is down that stock is not only in an uptrend it also closed higher for the day right when the S P 500 is down for the day so this is another factor I look at when I trade stocks right to really you know put the odds in your favor when you're trading stocks so this is what I call power and Divergence another technique that you can use right for those of you who trade stocks out there so if I go back to the Vermillion energy on the 27th of June you see how it was performing right how the price action on the day was actually this green candle that you see over here yep so let's move on okay so as you can see over here this Market is pretty much in a uptrend okay so for those of you who can see this is a trending Market you might be thinking but really you know where do we enter the trade man on the pullback the breakout you know so chill right so we wait for the price to come towards an area of support So in this case you can see this is quite an obvious one right previous yeah resistance which became support right previous resistance became support and about to retest this area of support again so what we're looking for is for the price to break below this lows right to see whether is there any selling pressure looking below it or there's no one you know left to sell and the price you know quickly reverse backup higher so in this case let's see what happens over here bomb right you can see over here the price took out this lows over here right and instead of heading down lower they couldn't find any more selling pressure instead what happens is that the market market quickly reversed back up higher telling you that you know hey for now temporarily they are buyers stepping in right and about to push the price higher so what you can do is again enter on the next candle open so in this case the market open here on the next candle open and you can look to get along okay let me just pull out that the cool looking risk to reward ratio tool again so you go along let's say next candle opens here okay stop loss again don't have to put it over here just the distance below this low is fine somewhere about here and the reason why we set our stop loss right a distance below the low is because we don't want the market I'm not sure about you right we don't want the market right do you know let me show you what I mean to just you know reverse down lower hit our stop loss and then reverse up higher that is a very painful feeling and I think for some of you might even more be more painful you know than breaking up with your girlfriend right so we don't want it to happen so we set our stopwatch the distance below the low as for Target again right target this is the swing high that you can see over here I like to set it usually a distance below the high so somewhere about here is fine so in this case all right uh what happens at the market yep it went in our favor because again this is a Cherry Picked chart right but this is to kind of like help me help you right understand the concepts easily you when you trade this strategy yourself when you test it you'll find that you will have losers and hey no surprise down there so don't be shocked so just want to manage your expectations and let you know that you know the charts that I picked they are Cherry Picked for a reason to help you better understand the concepts but when you test it on a demo account first I hope okay right do know that there will be winners and losers for now let's move on to the second example where I share with you uh an additional uh technique right using the false break strategy okay now the third strategy that I have for you is what I call the first pullback trading strategy or this is for you Traders if you know you're the type of traders that uh you always buy breakout right the problem is you know you see the candle the breakout you know big and huge you buy the market reverse and you get stopped out so why is that happening right well probably it's because you're chasing breakout so this strategy is to help you avoid chasing breakouts and avoid unnecessary losses so this is what I call the first pullback trading strategy and it looks like this Market in the range it breaks out and then let it pulls back right forming something like a bull flag pattern and if you overlay with the 20 period moving average you'll see the 20ma starts you know support the price okay so you're waiting for the low of this uh build up to touch the 20ma over here so once it has done it then the price starts going up higher you can place a buy stop order Above This highs and if it breaks out you go long and then you Trail your stop loss to write the trend up higher so let me share with you a couple of examples so you can see how this looks like okay so this is the chart of the dollar against the Indian rupee so you can see that we had the breakup over here on this candle recently from it at least on this time frame and candle that I'm referring to uh I just zoom out a little bit so you can see where the breakout point is you can see the breakout point is at this highs and it pretty much you know broke out on this candle over here so it is by many Traders you know they will you know man we know this is bullish it's time to belong you know buy it right break out bullish but problem is that you can see that there's really no I mean there are places that you can set your stop loss right let's say you can reference this low and reset it somewhere about here but as you can see it's going to be pretty wide stop loss okay so is there a better way to go about it yep that's what I call the first pullback uh strategy which I shared with you so in this case let's see what happens you can see the market starts to reverse so at this point traders who buy the pullback probably sweating out on me have already gotten stopped out especially those who have you know a title stop loss yeah so let's see what happens so again you can see it starts to consolidate over here okay so remember at this point right we also like to use the 20 period moving average to Overlay it okay so at this point you can see the price has already re-tested the 20ma so this tells you that hey the market has a kind of like uh digest the recent breakup move and it has stored enough potential energy right to you know stage the next uh wave higher to break out higher so at this point what I'll do is again what you can do is you can actually place a buy stop order Above This highs for Traders who prefer for the candle to break and close above the highs that is fine as well so in this case let me just draw this line in fact let me just use that uh yeah I'll draw this line over here all right so this over here will DeMark it let's say let's put it in uh green right as our kind of like entry point right it's a bit light just change color to just getting darker green okay so okay so in this case let's see Market date eventually in this case still consolidating storing potential energy right to see whether if he can break Above This highs over here okay yep it did right so on this candle you can see that the market right broke Above This green line over here which I'll buy stock model so we would have gotten locked so in this case what happened next you can see the market continue continues up higher so in this case right unlike our earlier two strategies I don't really have like a fixed Target over here because you can see the price at this point it's kind of like trading in no man's land so usually when the market is in no man's land meaning there's no when you look left there's no price structure there's no resistance nearby you can actually Trail a stop loss to ride the trend up higher so in this case you can drill for example in this case there's a 20 period moving average that you can use to trailer stop loss so if the price breaks below the 20ma you exceed the trade so in this case you can see uh somewhere about here I think you would have exited the trade right I think below I believe this I believe this particular candle is where the price breaks below the 20ma and then you would have exited the trade so of course 20ma is just a one technique that you can use you can use the moving average you can use the price structure earlier techniques that we discussed about different ways that you can use to write the trade up higher now moving on another example and by the way if you're enjoying this video so far smash the Thumbs Up Button if not then hit subscribe yeah so again another example over here is to share with you this first pullback strategies you can see over here the price broke Above This highs over here I'll just change this to Black tree you can see the price breaks Above This high so at this point we're looking for a first pullback strategy so in this case I want to share with you another variation of this strategy that you can consider right and this time around we're actually taking into account the false break strategy I shared with you earlier so at this point you can see over here price meet the the a breakout and we're looking for our first pullback so in this case it has a pullback over here and what you can do is actually go down to a lower time frame in this case let's say the four hour time frame and notice right now you have something similar over here now can you can you see where I'm coming from can you guess right what I'm going to say next if you look at this time frame on a forward time frame Market is in an uptrend the daily is also in an uptrend and also the forward time frame it has come towards this area of support yeah does it you know ring any Bell area of support uptrend yeah so what we're looking for in this case is a potential false break setup okay so this means that we can actually enter right the first pullback even earlier right than usual because you know previously we are looking to enter on the break of the highest but in this case it's giving us an opportunity to actually enter at an earlier price a better price so this gives us a more favorable risk to reward on the trade so let's see what happens so in this case you can see over here this candle we had a false break over here this candle here all right so at this point you can actually enter on the next candle open so at this point what I'll do is again I'll just use that tool this one over here until next candle open stop loss can just go a distance below this low as you know by now why we do that somewhere about here so stop loss and our Target our first Target can be just before this recent swing high so in this case right and yes this is a cherry pick chart in case you're wondering we didn't want two candles we would have you know reached our Target but at this point I wouldn't want to take everything off the table at this highs why is that because as you've seen earlier on The Daily time frame we are actually in we could actually be at the start right of this new uptrend right so you can see this Market has been in the range for like damn long time like you know for a year or so so by taking profits right just at this highest right you know to me what if the market continues up higher right wouldn't I be you know living a lot on the table so when I encounter scenarios like this I like to take a portion of my position off right at the first Target which in this case on the forward time frame you can see over here this first Target right and the second half of the position I like to throw my stop loss right to see how far it can run up higher so in this case I'm just going to just run through a little bit right I can see that there are potential uh huge potential right for the market to really you know run up higher and imagine if that's the start of a new uptrend not on the four hour time frame but at the start of a new uptrend on The Daily time frame can you imagine right immense profit potential over here yeah so I like to usually you know Trail my stop loss right for the second half of the position okay now let's do a quick recap right to what you've just learned today number one we learned about the break of structure trading strategy and this is very useful right when you're trying to time the market right and you don't want to get too early in your trade so we can go down to a lower time frame to look for a breakup structure to help us time our entry to trade in the direction of the long-term Trend number two we talk about the false break trading strategy which is very simple strategy we are trading in the direction of the trend we're looking for the price to retrace to an area of value and give us a false break set up and of course for those of you who trade stocks you can reference right the S P 500 as the the parent right and see what it is doing and look for what they call the power and Divergence to help us increase the probability of our trades and finally we talk about the first pullback trading strategy where the price breaks out of the range it makes the first pullback and give Fast a trading opportunity to hop on board right the start of this new trend and if you want to learn more about price action trading strategies and whatnot you can grab a copy of this book called price action trading Secrets it's a about 140 page full color trading book right where you'll discover professional price action trading strategies and techniques try to help you become a consistently profitable Trader so this book is a 19.