[00:03] views on YouTube and the reason so many Traders found that video valuable is because I poured a ton of time and effort to ensure that by the end of that video Traders knew everything they needed to know about technical analysis
[00:17] in this video I'm doing the same exact thing for Price action so throughout the next 50 minutes you are going to learn everything from the complete basics of price action to a full price action trading system that I've utilize to pull
[00:30] profits out of the market for over 8 years so if you are a beginner or struggling Trader that's currently having trouble with any part of price action trading or that currently doesn't have a price action trading system and
[00:42] trading plan then this video is made for you so if you're ready to learn everything you need to know about price action over the next 50 minutes sit back relax and I'll be right back after the intro and a swim
[00:56] intro and a swim [Music] started with what is price action trading price action trading is a technique that allows traders to trade not based on indicators but instead
[01:13] based on previous and current price movements and the way we make money by trading based on price action is by taking a look at different price action taking a look at different price action factors factors such as Trend reversals
[01:26] major levels of structure breakouts Candlestick patterns chart patterns and so much more but all of these factors are utilized and combined in order to help us make more informed and more accurate trading decisions so now I'm
[01:40] going to be diving into each of these price action factors and explaining them to you in detail so that you can not only spot them in your own trading but utilize them to make more accurate trading decisions and a little later in
[01:52] the video I'm also going to be showing you an entire rules-based price action trading strategy so let's go ahead and get started with lesson number [Music] one I have a very simple set of rules
[02:07] that helps me to identify trending markets visualizing a trending Market is very easy an uptrend is higher highs and higher lows a downtrend is lower lows and lower Highs but for those of you who are beginner and struggling Traders I
[02:19] understand that it can be daunting to look at a chart and try to determine what the trend is so with that being the case let me explain my exact rules for identifying Trend right now the first step in ident ifying a trending Market
[02:31] is understanding major swing highs and lows because these are what we're going to use to determine if price is in fact continuing in Trend or starting to reverse so when identifying Trend I always pick a starting point it's going
[02:44] to be right here in this case and this starting point has a push higher to a new swing High how do I know this is a new swing High well because a pullback happened right after it now for a pullback I have very specific rules I
[02:58] want to see two opposite color candles for a pullback to exist so if we're in red candles they don't have to be consecutive but they do have to be larger red candles I don't want to see two little dogey red candles that
[03:12] two candles would count as a pullback for me after that pullback occurs I want to see price break into new Highs at this point I can identify two different things and that is Major swing highs and
[03:25] lows so at first we have our pushup from here to our new swing High we then have a pullback right here's the lowest point of that pullback and we have a break and of that pullback and we have a break and close above our previous swing High when
[03:38] this happens I just take a horizontal line and I put it at the lowest point of our previous pullback before the breaking close into new structure highs so we need to see this one two three move meaning a move up a pullback and
[03:52] then a breaking close above the swing high that was previously created at the point that we have this pullback and we have a breaking close above the swing High we can point out our major swing low the reason this is important in
[04:06] identifying trend is that this Market is considered to be in an uptrend unless a considered to be in an uptrend unless a candle closes below this previous swing low which again is the lowest point in the previous pullback so I continue
[04:21] doing this by putting a horizontal line at our swing High which is our major swing High which is where our pullback started and during this pullback as long as we stay above this previous swing low and we don't have a candle that closes
[04:35] come down here that's completely fine I just don't want to see a close below this area as long as that close below doesn't happen I'm still considering this Market to be in an uptrend and this process just continues as we go higher
[04:49] this move here we go from the low of our pullback we break and close above that right here so now I'm looking at this as our major swing High because we start our pullback from here and I'm looking at this as our major swing low what this
[05:04] means is that during this pullback as long as price does not come down and close below the lowest low of the previous pullback we're still considered to be in an uptrend so even if we have consolidation here and we have price
[05:16] doing crazy stuff between this swing high and this swing low I'm still considering this Market in an uptrend unless we break and close below the previous major swing low let's continue the process to make sure you have a good
[05:29] handle on it as we push higher and we close above this swing High where do I move my major swing low I can't move this until our previous high is broken but at this point when that previous high is broken I'm looking at my major
[05:44] high is broken I'm looking at my major swing low as being the lowest low of the pullback before the breaking close above the previous swing high so at this point what is this telling me this is telling me that as long as we don't close below
[05:58] our previous pull pull back before the breaking close Above This high that we are still in an uptrend and this is super important for you to understand because we're going to be utilizing this as we move forward in every other aspect
[06:11] that you are paying attention as we continue this process after we have this pullback starting I would be moving my major swing high up to here what do I want to see I want to see at least two not dogee red candles and we have these
[06:27] actually be moving moving that line up to my new major swing high and when this swing High breaks after this pullback that does not in fact closed below my previous pullback so we're still in what still in an uptrend here then we break
[06:42] and close above this swing high if we had a higher pullback a higher swing low here I would be moving this line up but as you can see we have an equal swing low here so this line stays exactly where it is but we do have a new swing
[06:57] High major swing High once we start this pullback and considering where Price is Right now what do you think we should be doing High yet because we don't have two red candles in the pullback that's the only
[07:11] time we can consider a new swing high but we have gotten what we've gotten a close above our previous swing high with this candle so with that being the case I can actually take my horizontal line and move it up to the lowest point of
[07:26] this pullback and now with that being the case what does that mean that means that I'm still considering this Market in an uptrend unless price pulls back and eventually closes below this area as long as that doesn't happen we can see
[07:41] long as that doesn't happen we can see anything in between this high and this low price can consolidate move back and forth I am still considering price to be in an uptrend unless we close below the lowest point of the previous pullback
[07:57] have for identifying Trend and an uptrend let's quickly go over a nearly the same thing just flipped upside down let's take a look at that have our starting point followed by our one two three move which is just this
[08:12] move down followed by a pullback and a breaking close below that previous major breaking close below that previous major swing low right here we also have the start of a pullback looking right here so with this being the case what can we
[08:25] do based on what you've learned so far at this point we can point out our major at this point we can point out our major swing low and our major swing High what does this mean this means that we are still considering this Market to be in a
[08:37] downtrend unless we get a candle that comes up and closes Above This previous major swing high as long as that does not happen we can see anything happen in
[08:49] between and we're still considering this Market to be in a downtrend unless we get that close Above This level right here so with that being the case let's push our black Black Box forward and as you can see after our pullback we get up
[09:02] to a swing High we then do what we break and close below our previous swing low what this allows me to do considering that we've seen the start of this pullback is I can now identify my new major swing low as well as my new major
[09:18] swing high that again price cannot break for us to continue in this downtrend if above it with a candle then I'm no longer considering this a downtrend so with that being the case let's see what price did price continued this pullback
[09:33] up to this point then pushed down and closed below our previous swing low again and considering that we've started our pullback already right here this allows us to yet again push our swing low down to this new major swing low and
[09:49] this has now become our major swing High because it's the top of the pullback before the breaking close below the previous swing low next up we get another pullback that ends right here followed by another breaking close below
[10:03] this level so yet again we can move our lines down new swing low new major swing high right here and as long as a candle doesn't close above this area we're still in a downtrend I know what you're thinking though Stephen what if a candle
[10:17] does close above our previous major swing High well that's what we're going to dive into right [Music] [Music] now reversals and trend are intertwined
[10:30] and they are both a major part of price action trading what you've learned so far about trend is going to make it super easy for you to be able to spot through this section rather quickly but let's go ahead and take a look at the
[10:43] exact rules I utilize in order to spot reversals in any Market first we're taking a look at a bullish reversal we have price that has been in what type of trend as you can see from our major swing highs and lows that we have
[10:55] pointed out price here on the New Zealand dollar has been in a downtrend a reversal is simply when the trend fails and what I mean by the trend fails is that instead of creating a lower high and continuing in Trend instead in a
[11:11] reversal scenario price comes up and closes above our previous major swing closes above our previous major swing high that is a warning sign that prices could very well start to Trend upwards now instead of the previous downtrend
[11:26] that prices were just in and the reason this is the case is because now the sentiment of this Market has completely changed we've went from consistently changed we've went from consistently making lower lows and lower highs to now
[11:38] making a higher high compared to the previous swing High meaning a lot more buyers are stepping into this market so with that being the case and with the trend failing here that sets us up for a possible reversal opportunity as prices
[11:52] do in fact head higher here on the Canada Swiss we're going to take a look at a bearish reversal so on this currency pair you can see that we have new highs new higher lows new higher High new higher low new higher high
[12:05] let's go back to trend for a second right now we have our major swing high and our major swing low when this trend fails which means if price closes below
[12:17] our major swing low before pushing up and reaching new higher highs that is when we are looking for possible reversal trades and we're going to talk about how we look for those trades later on when we discuss more price action
[12:30] factors but let's go ahead and take a look here at price and what it does as look here at price and what it does as soon as we get this close below with this big red candle our previous pullback in our uptrend our previous
[12:43] major swing low as soon as that happens it puts us on red alert for possible reversal trades and what does the market do we get a pullback into that exact level and we get a complete reversal out of price so with what you learned in the
[12:58] previous about trending markets spotting reversals is extremely simple it is just reversals is extremely simple it is just when those trending rules fail now that move on to the next [Music]
[13:13] lesson Trends and reversals are how we pick the direction that we want to trade in any Market but after picking the most accurate and the most profitable area to place those trades in for
[13:27] example in an uptrend we know we want to buy but where do we want to place that Buy trade in a downtrend where do we want to place that sell trade and in a reversing Market what's the most profitable area for us to place a trade
[13:40] in in order to capture that reversal this is where major levels of structure with Trend continuation major levels of structure we're going to start out with a bullish example on the screen right now where price is based on what you've
[13:54] learned where is the latest major swing level that would be this level right here so all I do when figuring out if I have a major level of structure for a bullish Trend that I can possibly trade around is point out that last major
[14:08] swing high and when we're looking at structure levels they're never going to be just a line on the chart they're always zones so what I want to do is create a Zone here in this area and this is going to be that major level of
[14:20] structure but the criteria that it has to meet is that not only for a trend continuation major level of structure not only do need this level to be the previous major swing high that was broken in our Trend this level also has
[14:35] to be tested multiple times looking left so we have to scroll the chart back in this case and ask ourselves has this level been tested multiple times that answer is yes as long as those two qualifications are met then I have a
[14:49] major structure level for Trend continuation trades what that means is that I know I do have this major level of structure here while we're in this on for possible trades it's just a pull back into this area and throughout the
[15:03] next sections we'll talk more about entry reasons but if we click play here on this chart you'll see that price did in fact come right to that level of structure and then took off to the upside so these are the levels that
[15:17] we're going to be looking at to trade in and this is how we're going to spot out those major levels of structure in uptrends again the trend is telling us the direction we want to trade these major levels of structure are telling us
[15:29] where we want to be looking for those trading opportunities at now let's take a look at a bearish trend continuation zone so on the screen right now you can just created this lower low this lower high and this lower low meaning that our
[15:43] major swing level in this trend is where where's the major swing low that was just broken that would be this level right here so for that reason what are level of structure that we can trade around we're going to place a horizontal
[15:57] Zone in this area of structure we're then going to scroll left and ask ourselves is this area an area that has been tested multiple times as support or resistance that answer is yes so with those criteria met I know that this Zone
[16:13] this Zone that we have pointed out is in fact a major resistance level it's my major structure level that I want to look for trading opportunities in to which direction if we're in a downtrend and we're trading Trend continuation I'm
[16:26] looking in this area for possible sell trades for the market to continue in this downtrend from this area of major structure if I click play you'll see that eventually price does make it to that area and eventually price does in
[16:40] fact continue in that downtrend next up let's talk about reversal major levels of structure so in this case we're in a downtrend here on the Euros Swiss what High we need to point out in order to determine if we have a reversal out of
[16:55] this Market well hopefully you remember this from the reversal section of the video but the level we want to see broken is the previous high of the previous pullback if that level is in fact broken then we have evidence that
[17:09] this Market could be reversing so in this situation what we would need to see for that evidence is price to push up and close Above This previous major swing High which was the previous pullback in our downtrend now the way we
[17:23] actually spot out the zone for this is by doing a very similar thing that we do for train continuation zones we want to look at this level we want to put a line or create a zone out of this level and then we want to look left and see if
[17:37] that has been tested multiple times now what I mean by this is now since we do multiple times we know it's a major level of structure for a reversal opportunity I'm not going to be looking here for possible sell trades that may
[17:51] work but that's just not how I trade Trend continuation what I would rather see in this specific scenario is I want to see price break and close Above This level and then I'm going to be looking in that zone in that level for possible
[18:04] buy trades because of the anticipation of a reversal based on our Trend and let's click blade so as you can see price does in fact close above our going to adjust the Zone a little bit now that we've created another little
[18:19] level of structure right here and with that being the case the Zone looks a little more like this now and let's go ahead and see what price does if we push forward a bit we get back into this Zone on the very next candle and eventually
[18:31] after doing so price does in fact reverse to the upside and give a major move in the upwards Direction here we have an example of a bearish reversal but let me go ahead and explain this so we have our uptrend here pushing higher
[18:46] into new structure highs new structure lows new structure highs what has just happened our reversal scenario has just happened by Price breaking and closing below our previous major swing low or the previous pullback for this uptrend
[19:03] that's when I'm actually Drawing the Line to point out my major structure level in this reversal scenario the where do I want to place this trade I know we're in a reversal scenario I know there's evidence that we can see this
[19:17] uptrend disappear and we can see the start of a new downtrend with that being profitable and the most accurate area for me to place a trade in is going to be and that's where this major structure level comes in again we want to point
[19:32] out a Zone utilizing that previous swing low that was broken we want to turn it into a Zone and ask ourselves has it been tested multiple times looking left if the answer to those questions is yes then we have again a major level of
[19:45] structure and in this case a major level of structure to look for possible short trades in based on the fact that we have evidence of a reversal from our previous uptrend that could turn this Market into not enough Trend anymore but now a
[20:00] to catch those profits is by looking for trades in this area in anticipation for that new downtrend to start now there is actually one more thing we can add to more accurate and that's what we're talking about in the next lesson so
[20:16] let's go ahead and move on [Music] now so utilizing higher time frame analysis is actually very simple but it's also optional what you've learned so far works even if you're only trading
[20:31] on one time frame but if you really want to step up the accuracy of your price action trading then trading utilizing higher time frame analysis is going to be the way to do that so let's go ahead and talk about how simple utilizing
[20:43] higher time frame analysis really is the only thing you have to do to utilize trading when it comes to price action at least for the way I utilize it in my trading is to go up one time frame from
[20:56] your trading time frame or in other words the time frame you plan to place the trade on go up one time frame and do the exact analysis you've already learned throughout this video so what I mean by that is if you were someone who
[21:09] wanted to trade on the F minute chart you would do your Trend SL reversal and major structure level analysis all on the 15 minute so you'd look on the 15 downtrend or preparing for some type of reversal you would also spot out your
[21:25] 15-minute time frame and then you would go down to the 5minute time frame to place an entry now we're going to talk about entries in the next couple of you have to do in order to implement higher time frame analysis into your
[21:40] sure you have a handle on this if you were trading the 15-minute chart where Trend or reversal scenarios and your major levels of structure you would be you were trading the 1 hour you'd obviously be looking at the 4H hour
[21:55] chart for those things and if you're trading the 4 Hour you would be looking at the daily chart for Trends structure levels and possible reversals now I know that this is an extremely simple concept but to ensure everyone's on the same
[22:09] page let me go through one example with you here we are on the Aussie New Zealand daily chart we're on the daily chart we've looked to find our Trend which is what in this case we have a push up that broke Above This previous
[22:21] swing high that also was then broken above once more so at this point we're not just in a reversal we've actually started a new uptrend so since we're in an uptrend what's our level we're going to be looking at for possible trades
[22:35] inside of it's going to be that previous major swing High we also have to look left here on the daily chart to ensure that that level has in fact been tested that that level has in fact been tested multiple times since that is all the
[22:47] case here on the daily chart utilizing multiple time frames just means I'm going down one time frame 2our 4our chart and this is where I'm looking for my possible rentes I'm waiting on the 4our chart at this point for price to
[23:02] get into this Zone I created on the daily chart and give me an entry reason show me buying pressure in this area to insinuate that we are looking at Trend continuation out on the daily chart but we're getting involved with entry stops
[23:16] we're getting involved with entry stops and targets down here on the 4our chart and so again with this higher time frame analysis we're just looking one time frame above our trading time frame for all the analysis you've already learned
[23:28] dropping down one time frame to our trading time frame to look for the entry to place our stops and to place our targets so now that you understand Trend and reversing markets to give us the direction we want to trade in now that
[23:42] you understand major levels of structure to tell us where we want to be looking understand how to add a little more accuracy with higher time frame analysis the next question we have to ask is how do we actually enter the trade and
[23:56] move [Music] on so Candlestick patterns are something I use every single day in my own trading
[24:08] and the reason for that is a Candlestick pattern is going to show you a clear sign of buying or selling pressure depending on if you want to go long or go short and it gives you a completely objective way of entering into a trade I
[24:22] love both of those things so for that reason I love Candlestick patterns and the ones I'm going to be teaching you are the on that I utilize in 90% of the patterns you're about to learn two Candlestick patterns I have found to
[24:35] perform the best in my own 10-year trading career let's go ahead and Jump review for a lot of you but for those of you brand new or those of you that don't want to go over some quick examples of it the first Candlestick pattern you're
[24:48] going to be learning is the engulfing Candlestick pattern we're going to start off with a bullish engulfing pattern which is an extremely simple pattern all it is is is a red candle followed by a green candle and the green candle has a
[25:03] larger body than the previous red candle if that is the case we have a bullish engulfing candle again extremely simple you should be able to spot these very objectively with no confusion about
[25:16] whether or not you have an engulfing candle and what this candle shows us is buying pressure we had a previous red candle that was completely eclipsed by our buyers on the very next candle this shows us aggressive buying pressure
[25:31] in this area which can often lead to a push higher now just to be clear on how I would utilize this in my trading we're on that same aie New Zealand right now the a New Zealand is right here we've
[25:43] already found our area that we're looking for possible trades in we're utilizing higher time frame analysis then we're doing this on the daily chart I would be dropping down to the 4 Hour I would be waiting for price to get into
[25:57] this Zone I would then be waiting for that engulfing Candlestick pattern to occur and that Candlestick pattern would be my entry now Candlestick patterns are a more aggressive form of entering the market that I utilize I like to utilize
[26:13] these patterns in what I consider perfect scenarios so this would be an aggressive way to enter a trade after all of your analysis is already done already determined whether or not the Market's reversing you've already found
[26:26] your major level of structure can sck patterns by themselves are not going to them to all the other things you've learned in this video they have proven now let's take a look at a bearish engulfing candle so in this scenario we
[26:41] have prices pushing lower we have a new lower high this creates our new lower low what are we looking at next we're going to try to find that major level of going to utilize one time frame no higher time frame analysis here is our
[26:56] area of structure and if we scroll left we can see that it has in fact been tested multiple times so what this is telling us is we're in a downtrend and we have a major level of structure right here in this area is where I would look
[27:09] for a more aggressive entry if that's something I decided to do and the way I would be looking for that is by looking for a bearish engulfing candle and you can see that candle right here so for a bearish engulfing candle we're looking
[27:21] for a green candle followed by a red candle and the red candle has a larger body than the previous green candle that is a bearish engulfing candle and what this candle signifies is selling pressure we had buyers really trying to
[27:36] take control on this last candle then buyers pushed up a little higher with this Wick followed by sellers taking complete control and closing all the way Candlestick pattern and what this pattern indicates is that sellers could
[27:50] be taking back control in our overall downtrend and that we can see prices start to push lower from here which is exactly what we see happen here on the pattern you're going to learn is the hammer and shooting star Candlestick
[28:06] patterns these Candlestick patterns are super simple as well and I have a very specific way that I personally spot them to keep things as objective as possible what I do is when I see a Candlestick that looks like a hammer candle which is
[28:19] this by the way a hammer candle is normally going to be a candle with a long Wick to the bottom side and with the entire body of the candle in the top 1/3 of that entire Candlestick so what I
[28:31] mean by that is from the low of the candle to the top of the candle the high of the Candlestick itself the body normally needs to be in the top third I have a very easy way that I spot this personally and that is by utilizing a
[28:43] Fibonacci retracement I just take the Fibonacci retracement from the lowest point of the candle up to the highest point of the candle and as long as the entire body of this candle is above the 38.2% retracement then I classifi this
[28:58] 38.2% retracement then I classifi this as a hammer candle so that is how simple it is to spot Hammer candles any candle that meets that criteria for me is a hammer Candlestick if you want to copy my Fibonacci settings right here they
[29:10] are just to have the same exact setup I do and if you use Fibonacci in your trading outside of this you may not want to do that but this is the only way I use Fibonacci in my own trading is to spot these patterns so that is a hammer
[29:23] Candlestick and the way I would utilize this is if we look left here what do we have on price action what has price done based on our Trend and reversal analysis well we have prices pushing lower new lower high new lower low and then what
[29:38] then we have a breaking close above our previous major swing High what does this tell us the downtrend could be over and we could be looking at a possible uptrend here on the New Zealand Yen the next thing we do is spot out our
[29:52] previous level of structure by asking ourselves has that swing High been tested multiple times in in the past the answer to that is yes so once we get down to this level if I'm looking to enter this trade in a more aggressive
[30:04] way then I may decide to do so with this Hammer Candlestick pattern now something that adds a little more accuracy to this is to wait for a green candle after it decide though because if you wait for that green candle you may miss a few
[30:19] opportunities and although it's a little more accurate to do so you're going to that green candle your trades are going to be slightly more ACC accurate but these Candlestick patterns essentially represent a full candle where sellers
[30:32] tried to take control and push prices down but buyers said no took back control and pushed prices all the way back up to the top oneir of this entire candle and that obviously signifies buying pressure and that buying pressure
[30:48] along with all the other analysis can signal that we're going to see a big push to the upside just like we saw here on the New Zealand Yen on the screen in front of you prices what type of trend based on our Trend analysis we can tell
[31:01] this is a downtrend because of this one two three move if we're in a downtrend and we're looking for a major level of structure what do we do we take a look at the previous swing low that was broken right here and we look left to
[31:14] see if that area has in fact been tested multiple times as we can see here that area has been tested multiple times here on the pound New Zealand after that is patterns in the this zone so what we're going to do is push price forward a bit
[31:30] as you can see we're now in this Zone and it may be a little hard to see but what do we get right here this would be a shooting star candle and the reason is for a shooting star candle the way I objectively identify these candlesticks
[31:43] from the very top of that candle the bottom of that candle the lowest point of the wig and as long as the body of the wig and as long as the body exists below the 38.2% retracement I
[31:56] have what I consider a shooting star candle now those are the rules for the shooting star candle and what this candle indicates is quite the opposite of a hammer this candle indicates buyers trying to take control all the way up to
[32:09] the top of this Wick but within the same exact candle sellers said no pushing prices all the way back down again to the bottom thirds of this entire Candlestick pattern that creates our shooting star and again these indicate
[32:24] possible selling pressure when we combine that with our already being in a spotting a major level of structure and waiting patiently for price to get to that level we can often times see prices
[32:37] that level we can often times see prices push lower after that shooting star candle as you can see here the trend continuation of that previous downtrend patterns and again I use Candlestick patterns like these to enter in a more
[32:51] aggressive way but what if I want to take a more conservative approach to these zones that's what you're going to learn next let's go ahead and take a look at the next section [Music]
[33:05] now chart patterns are another one of my favorite ways to enter into trades I use them for a more conservative and a slightly more accurate approach to placing trades than Candlestick patterns themselves chart patterns do provide
[33:18] more accuracy but with that added accuracy comes fewer trading take in trading so keep that in mind when deciding what you want to trade but my favorite two chart patterns these patterns account for 90% of the trades I
[33:35] plac when utilizing chart patterns so let's dive into them right now the first chart pattern you're going to learn is the double bottom chart pattern now as with candlestick patterns these chart patterns are only applicable after all
[33:49] of the other analysis is done that we've talked about so we're going to say that all that analysis is done we're going to say this is our major level of support what I mean by that is we're looking for buying opportunities from this Zone
[34:02] based on all of our other analysis with that being the case let me explain the exact rules I utilize when trading double bottoms so when trading double double bottoms so when trading double bottoms I wait for our first bottom of
[34:15] the double bottom I wait for a pullback and at the point that I start to see this pullback I actually create a Zone utilizing that first bottom and the way utilizing that first bottom and the way I do that this Zone exists between the
[34:28] bottom of the bodies of that first leg of the double bottom all the way down to the lowest Wick of this first leg of the double Bottom now with this being the case I call this our termination Zone what that means is price must come down
[34:43] what that means is price must come down and at least touch this area with a wick price can come all the way down and close inside of this area a wick can go past this area the only thing I cannot see is price close below this area and
[34:58] as long as that's the case then I have a valid double bottom what I mean by that is if we get a close below like this awkwardly drawn candle we have on the screen now that's going to indicate what that close below indicates Trend
[35:12] continuation to the downside so I don't want to look at that as a double bottom but as long as that does not happen and as long as we do in fact get at least the touch of this zone I'm considering that a double bottom let me go a little
[35:25] further here once we do this I consider this a double bottom but I do not place a trade just because I have this valid double bottom here the only time I place a trade is when I see buying pressure after the second leg of this double
[35:40] bottom so this would be considered the second bottom of our double bottom and what I want to see is after the touch of our termination Zone that we see buying pressure before we see a close below the wick of our previous swing low so at
[35:56] this point what am I waiting on I'm waiting for buying pressure now I count buying pressure as a significant green candle or as a hammer candle so next up that's what I want to see once I see that my rules are met to actually place
[36:12] an entry at this point is when I would place the actual entry I would place a stop loss below the lowest swing low of the double bottom I have different ways that I take targets but for this example we're going to go with a 1.4 to1 reward
[36:25] to risk ratio and that would be the ACT ual trade setup so to briefly go over that one more time when I see this first bottom I create a zone between the body and the lowest low of that first bottom once we start to see a pullback I want
[36:40] to see in order to classify this as a double bottom prices pull back enough to at least touch this Zone again a body closing inside this zone is fine and if we see a wick go past this Zone that's completely fine all of that still
[36:54] indicates that we have a double bottom the only thing I don't want to see is a close below the wick of that first bottom and as long as we don't have that after we touch the termination Zone and we see buying pressure like this candle
[37:08] here that's when I'm okay placing the trade based on this double bottom again after all the other analysis that we've talked about so far in this video is all met after all of that is when I want to see this exact double bottom setup and
[37:23] what these double bottoms do is indicate obvious buying pressure ESP especially when you add that you want to see buying pressure after the second bottom as you'll see here this can often lead to a rise in price and major push to the
[37:38] upside the next chart pattern we're going to take a look at is a double top now this is the same exact thing just flipped upside down I utilize the same exact rules so for a double top in this case we're going to pretend that this is
[37:50] our major level of structure and that we're trading a trend continuation trade and now we have our first top followed by a pull back once this pullback starts to happen I'm going to be creating a Zone with a box from the bodies to the
[38:04] Zone with a box from the bodies to the top of the wick of that first top this is what we call the termination Zone and in this zone is where I want a candle to in this zone is where I want a candle to at least touch but not close above if I
[38:17] get a close Above This Zone that signifies Trend continuation I don't want to be a part of that trying to sell after the market tells me Trend continuation is likely so if that happens I'm not interested in a double
[38:29] top trade but if we get a candle that closes in this area if we get a wick that touches this area or even if we get a wick that goes beyond this area all of that is still valid for a double top trade as we push price forward a bit you
[38:41] can see that we do in fact touch our termination Zone with this candle now this candle also happens to be what this is a shooting star candle so what this is showing me is not only a double top but now this is showing me a double top
[38:56] with selling pressure at the second top so this would be my actual reason for entering these trades again I'm not just utilizing the double top itself I want to see selling pressure at that second top stops the same way above the
[39:11] examples we're going to do a 1.4 to1 reward to risk ratio after we get that double top and we see selling pressure and again we've already done all of our previous analysis that showed us we were inside of a major level of structure
[39:25] that double top can now indicate that prices are likely to fall and that we could see a major push to the downside so those are my two favorite double bottoms and those are my exact rules for how I actually Place trades
[39:41] utilizing those two patterns let's move on to the next section of the video right [Music] now now we're going to take everything you've learned so far in this video and
[39:53] combine it into an entire price action trading system you can use utilize to going to do so by taking a look at a dollar Canada trade I had last week I the screen so you can see that I actually did place it and this trade was
[40:09] taken based on the exact price action trading system you've been learning and break this trade down and create a full trading plan around the price action skills you've learned throughout this entire video here we are taking a
[40:22] look at the dollar Canada chart and based on the trend and reversal analysis in the video what would you say is happening right now on the dollar Canada based on price action well here on this
[40:34] as the market was continuously making new higher highs and higher lows and what has recently happened what recently has happened is price has pushed down
[40:46] breaking below the most recent pullback of our uptrend or our most recent major swing low when this happens what does that tell us that tells us that the market is primed for a possible reversal so if we're looking at this as a
[41:00] possible reversing situation what's the next step the next step is to make a next step the next step is to make a Zone where that previous swing low is and ask ourselves is it a major level of structure we do that by looking left to
[41:14] see if that zone has in fact been tested multiple times and that answer is yes if we look left here you can see that we have another test of resistance here here and here along with a little test of resistance right before that swing
[41:28] low so with that being the case we not only have our reversing situation but we also have our major level of structure point it out and this is where we're going to look for those opportunities remember the trend in reversal analysis
[41:41] we're looking for short trades because of the reversal the major level of structure shows us where we want to trade and our Candlestick SL chart patterns shows us how we're going to enter into the market into in this case
[41:55] that sell position so what we're waiting on now is a pullback to this area followed by either an aggressive entry if that's the way you decide to trade in Candlestick pattern that we've discussed in this video or a more conservative
[42:10] entry like a double top in this area let's push price forward and see what we got last week right here what do you notice does this Candlestick pattern look familiar hopefully you said yes this is the exact rules we have for an
[42:23] engulfing candle and this is actually exactly when I decided to place this analysis already done and then seeing this Candlestick pattern I decided to enter aggressively on this trade and when it comes to a stop loss I always go
[42:37] above this swing high but if I can also get that stop loss above the Zone I've created then that's always a plus so in this case I went just above the zone and I had my first Target set at a 1.4 to1 reward to risk ratio and as we push
[42:51] forward you will see that this did in fact come down far enough to hit those first targets at a 1. 4:1 reward to risk ratio not only did I take this trade in my own account this was also a trade I sent to all the students we have
[43:04] involved in the TTC Forex University they receive analysis like this two to five times every single week based on the trades I'm actually taking to show them how I'm placing trades in real markets and in real time not only that
[43:16] the university is essentially an entire trading course talking you all the way through the complete Basics to extremely Advanced Techniques and strategies you can utilize to pull profits out of the market and on top of that it is a
[43:28] you have trading related questions I will personally be there to answer those ensure that your journey to profitable trading is as smooth as possible so if TTC Forex University just click the top Link in the description of this video or
[43:44] Link in the description of this video or go to www. thetradingcarder
[43:59] works whether you use it on a single time frame or utilize higher time frames to add accuracy let's walk through the higher time frame trade plan right now trading plan is to identify the conditions of the market the way we're
[44:11] frame which is going to be one time frame above whatever time frame you're trading on is we're going to identify whether the market is in a trending or reversing Market structure in the same way you've learned how to do throughout
[44:24] this video the second step of the strategy to make sure the market is structure so you'll be identifying that major level of structure the way you've learned in this video and you'll wait patiently for price to get into that
[44:37] area because you know that's the most accurate area to trade from while either trading with the trend of the market or with the possible reversal after that we're going to be dropping down to your actual trading time frame to look for
[44:50] to be if you want to enter in a more aggressive style utilizing Candlestick patterns like the engulf in pattern or 38.2% candle that you've learned throughout this video the 38.2% candle again is just either a hammer or
[45:05] because of the way I identify them with the Fibonacci retracement next up if reason for entry then you're going to be looking for chart patterns like double tops and double Bottoms in that area with the added buying or selling
[45:21] pressure after the double top or bottom after we have our conditions and entries we then then move on to stops and targets these are very important as well for stops we always want to go above or below the swing high or low that was
[45:35] created by the Candlestick pattern or that was created by the chart pattern if we can get above or below the zone of structure we've created that is always a I would suggest for anyone who is a beginner is to utilize fixed targets
[45:49] beginner is to utilize fixed targets between a 1.4 to1 and a 2:1 reward to risk ratio so I'll go ahead and delete all of my drawings if you feel like it on a Google doc or even have it printed out beside your desk that way
[46:02] you know every rule you need to follow in order to follow this price action move on and we're going to talk about the single time frame trade plan for this price Action System the single time
[46:14] exactly the same except we're not switching time frames so I don't feel like I need to go over that again instead I want to put this here just in utilizing a single time frame trading plan and you want to take a screen
[46:26] screenshot so feel free to do that now so with that being the case you now have a complete price action trading plan that you can use to practice with you can back test and you can decide whether or not you want to implement this as
[46:39] another trading strategy in your trading Arsenal this system is something that market for over the past eight years and I really hope that it can do the same interested in the TTC Forex University our mentorship program go ahead and
[46:53] click the top Link in the description or go to www.th trading channel.com if deal at all just be sure that you're subscribed here and click the we come out with more valuable content click that like button comment if you
[47:06] comment that says they made it to the end I hope you trade green best of luck in the markets and I'll talk to you in the next video see you soon