Hey hey: what's up my friends, so in today's episode i want to share with you the six best practices for beginner price action traders. So the first thing is this: you must know: what's the current market structure or maybe, if that's uh, something not familiar to you, that simply means right to find out. What's the current market condition, is it in an uptrend? Is it in the range or is it in the downtrend, because once you can define the current market structure, then you know what to do at any given time if the market is in an uptrend, then clearly you want to look for buying opportunities. If the market is in a downtrend, then clearly you want to look for selling opportunities.

What if the market is in a range, then you know that you can look to buy low and sell high, buy near the lows of the range at support or sell near the highest and resistance. So things become clearer once you can define the current market structure. Number two identify the area of value, so here's the thing just because the market is in an uptrend doesn't mean you want to blindly. You know, hit the buy button bye-bye.

No, it doesn't work that way because the uptrend the market could be you know overbought. It could be overstretched and you know about to make a pullback or reversal. So what you want to do instead is to identify the area of value on your chart. It could be areas of value, multiple areas of value.

So again, if the market is in an uptrend, an area of value could be at an area of support. It could be at a swing low. It could be at a respected moving average like the 50 period moving average. It could be at a respected trend line where the market has bounced it off right over the last three times.

These are areas of value that you want to identify on your chart. The third thing you want to know your trading setup ahead of time. So, for example, let's say we talk about uptrend again. If the market is in an uptrend, there are numerous ways to trade that trend.

You could look to trade, the breakout of the swing high, you could look to trade, the brake and then re-test of that move. For example, price breaks out of resistance and every test becomes previous resistance becomes support. That's another possibility. You could look to trade, the uh, the re-test of the previous swing low, the re-test of support.

So you can see that there are numerous ways or numerous setup right that you can go about trading and uptrend. So you want to know ahead of time right, which trading setup you're going to go with right to trade, that particular market condition or market structure number four avoid trading in no man's land. So what i mean by this is imagine that the market is in a range contained between these lows and this highs and the price right now is in the middle of the range. So if you were to be trading in the middle of the range, your risk to reward on the trade is usually unfavorable, because your stop-loss has to go logically, or rather, if you are going with a proper stop-loss, it has to go below the low of the Range: okay: as for target you're not going to target like you know, you know ten thousand a thousand or two thousand people above the highest of the range, because the market could jolly well.

You know reach near the highs of resistance, get rejected and come back near. The lows of the range so for most people for most swing traders, they would set their targets right just below the highs of the range just before resistance. So if you look at the chart, if you're buying near the middle of the range, your stop-loss is below the low of the range and your target is before resistance. Before the highs of the range from a risk to reward standpoint, it's usually less than one to one you're, probably risking a dollar to make like 60 cents or worse, okay, so avoid trading in no man's land avoid trading when the price is in the middle of Nowhere avoid trading when, when you know it's uh, it's far away from an area of value, okay and uh.

The fifth thing know the behavior of the markets that you're trading because different markets. They have different behavior, for example, the stock markets. It's uh proven, statistically and according to academic research and according to my own, back testers as well the stock markets, it's in a long-term uptrend right - and there are - you - know, pullbacks along the way. So what happens is that more often than not when the stock market makes a correction a pullback? What usually happens is that it will not become a bear market or recession that pullback will usually end, and then the uptrend continues itself.

So if you are a stock trader, you are trading stocks in an uptrend whenever there's a pullback there's a correction. Those are actually trading opportunities for you to to buy to get long, because there's a good chance or more than 50 chance that the trend will resume itself. So if you understand this behavior of stocks, or rather the stock markets right, you can actually use this to your advantage, even as a price action trader. Okay and another example - is uh currency, market, pound, yin, so pound yen, pound dollar.

This are, i would say, trend in trending forex pairs. They have momentum behind them. So whenever these currency pairs it breaks above the previous day high, it tends to continue higher. It tends to have follow through or whenever it breaks below the previous day low.

It tends to follow through towards the downside as well, so these pairs are actually quite good to be trading uh, for example, breakout trades or trend continuation, trades. And finally, the last tip that i have for you is as a beginner price action trader. If you are in doubt stay out because price action trading is discretionary trading, there will be subjectivity involved. Sometimes the market structure might not be something that you're familiar with.

It looks like an uptrend. By the same time, it looks like a range as well. You know, i'm not sure well, if you're not sure, if you're in doubt stay out no one's pointing a gun at your head and tell you to put on a trade. No just stay out.

Look at other markets, other time frame that have uh trading opportunities or trading setups that you're more familiar with don't force trades, don't take trades you're, not comfortable with don't take trades where you're thinking, maybe i should maybe i should maybe i should no don't take the Trade, okay, so with that said, let's do a quick recap. First thing: first, identify the current market structure. Second thing identify your areas of value. Number three know your trading setup number four avoid trading in no man's land number five know the behavior of the markets that you're trading at number.

Six, if you're in doubt, stay out, you.