Hey hey, what's up my friends, so welcome to the ultimate price action trading course for beginners and in this course you will learn number one: five myths about price action trading that nobody tells you so, for example, one of the biggest myths that i've come across is Someone saying you know: price action trading is all about support and resistance. Now, if you believe that myth right, then you will be blindsided to the other professional tools that price action traders use to get results so i'll share with you. What are these five myths about price action trading and you know how you can? Actually you know, avoid them and not make common mistakes that other traders will make next thing. You'll learn a professional price action trading strategy that works and you can apply this across different markets or time frames and the best part you don't have to rely on indicators, news or signal services.

Then you also know right or learn how to know when exactly to enter a trade and when to stay out of the markets. So you can avoid unnecessary losses and throughout this entire course, i'll share with you a ton of charts and examples. So you can quickly understand the trading strategies and concepts. So now the question is: is this training for you? So who is this, for? This is for you, if you're a beginner trader, and you want to learn more about price action trading.

This is for you. If you want to trade successfully using naked charts without indicators - and this is also for you, if you're an experienced trader - who wants to learn advanced price action, trading strategies and techniques right to improve your trading results, if any of this sounds like you, then today's course Is for you so now before we talk about what exactly is price action trading? Let's debunk, some of the most common price action trading. Myths number one price action trading is support and resistance. So i've seen this a number of times.

Ah right now support resistance. Isn't that price action trading? So let's be clear over here, so i would say, support and resistance. It's a component in price action trading, but it's not price action trading itself. It's like say you know a car and an engine they are the same.

No, an engine is a component of a car. A car has many components. You have an engine, the gearbox, the tire, the steering wheel, the head brakes and stuff like that. So support and resistance is a component of price action trading.

They are not on equal footing. Okay, that's what i will say for now. Next, one price action trading is candlestick patterns. Again candlestick patterns, it's a component of price action trading, but not price action trading itself.

I'll explain more on this later on, but just you know want to kind of debunk. Some of these myths - that's going on right. Price action trading is naked trading. So so i get it right as a price action trader.

You technically don't need indicators in your trading, but that's not to say that you can't use indicators in your trading because, as i've said earlier, once you become more proficient in trading and you understand the indicators how they work, you can actually supplement indicators in your own Trading in your own price action analysis, because what's going to happen, is that indicators will kind of make your life easier. It helps you, you know, summarize uh, past prices on the chart and gives you a certain value that you can use it to make your trading decision. For example, one example i gave you earlier was, you know, trailing your stop loss using a moving average. Another example.

I can share, is you know you can use the average true range indicator to help you set a proper stop-loss, so you don't get. You know stopped up too early i'll share that more with you later. But again i want you to know that price, section trading all right in a way, it's maker trading, on a chart where you know you try to keep it as clean as possible, but it doesn't mean that you are banned from music indicators. No, you can have the best of both worlds.

You can apply price action. Trading methodology supplement it with indicators right to make your life easier. It only works on the higher type. Ah, this is a good one.

Oh rainer price action trading only only works on the daily time frame right, it doesn't work. So, let's, let's do a very simple exercise right now, i'm going to share with you two charts. Okay - and i want you to tell me which chart is on the daily time frame and which chart is on the five minute time frame, sounds good, so just have a look at this chart. Okay, so i'm going to move on to the second chart.

Okay, so is this a daily time frame or five minutes time, i'm going to share the answer with you right, and some of you have just said right. You can't tell and that's my point. You can't tell whether a chart is from a daily time frame or a five minute time frame, because price section is price, section is price action and, in case you're wondering i'll be honest with you. Both of these charts are actually on the daily timeframe.

Both, for example, one and example, two are on the daily timeframe. There's no five minutes timeframe here and again. The point is just to show you that when you look at the chart - okay price action trading as long as there's sufficient liquidity in the markets - it's not a chart - looks like a chart. Price action trading methodology can be applied to it hope that makes sense.

Okay, so again, this is a myth, doesn't mean you know: price section only works on the daily or weekly time framework, it's more accurate on the on the weekly time frame. No none of that and finally, the last myth is that price action trading can only be applied to the forex market because i think that's where it gain its popularity from from the forex market. But here's the thing right: price, section trading. In essence, what you're trying to do is to identify imbalance of buying and selling pressure in the market and then use it to you know time your entry to enter a trade, so the imbalance of buying and selling pressure in the market is due to greed and Fear in the market, so if you say that price action trading can only be applied to the forex market, then you're in essence, saying that there is no fear or great in the crypto markets.

There's no fear or greed in the stock market and stuff like that, which again doesn't quite make sense. So so so a lot of times. You can see that when i come up with uh, i want to say a theory about my my own beliefs of the market. I use this type of questions right to question myself to question what out there to come out and answer right that i am satisfied with and again i could be wrong because i'm always learning i'm always a student of the markets and sometimes my beliefs are challenged.

I like to go back and think deeper about it, especially if it's things that i can't quantitatively do a bad test on it. I like to you know, use this uh thoughts, this beliefs, right, question myself and to assess right whether what is right or wrong. So again, i want you to do the same. Don't just take what i say at face value, it's something that i have preached over.

So many of my videos take the stuff that i've teach you test. It out verify it for yourself and see whether it works or not okay. So this is what i do for myself. I always question what i know using new additional input, information that i come across so with that said, okay, let's move on and talk about what exactly is price action trading since we know we have talked about you know, it's not support resistance.

Exactly it's not candlestick pattern, so, in my own humble opinion right, this is the definition of price action trading, at least for me, price action. Training is a methodology that helps you identify the current market conditions, so you can adapt the right trading strategy at the right time. Okay, so in essence, if i see a market that is trending higher in an uptrend, i want to be a buyer. I want to look for buying opportunities or if i see a market in a downtrend, then i want to be a seller.

I want to look for selling opportunities, so this is what i mean by you know: identify the current market condition, so i can adapt the right trading strategy at the right time. So i know what to do at that particular point in time. So that's what price action trading is about. Also.

Another thing to note is that price action trading there are many forms of trading out there. There is, you know what we call the discretionary trading approach and quantitative trading approach, so discretionary trading approach is where price action trading lies because there's this element of discretion over here, for example, you know when you draw support resistance. There is this element of discretion. Do i draw it this level or draw slightly lower, or maybe when you identify, let's say an uptrend, a series of higher highs and higher lows? Do i take into account that swing low or not? So there is this element of discretion as much as possible that we want to be objectively to be objective in our trading when it comes to discretionary trading like price action trading.

There are times right where you have to make a decision, a discretionary decision that could differ from another trader. So this is what we mean by discretionary trading and price action trading happened to false in this camp. So how so? How do we apply price action trading? In the markets, so if you look at the definition i had for you earlier, it's a trading methodology that helps you identify the current market condition, so you can adapt the right trading strategy at the right time. So how do we define current market conditions? So the first thing as a price action trader is that we want to ask ourselves what is the current market structure, in other words, you're asking yourself right? What should i be doing? Do i buy? Do i sell, or do i stay out of the markets? That's the first question, because if you can't answer this question, then really you can't you know, do anything else without you know answering this question first.

So to answer this question right, you know i'm going to share with you three general framework that you can use. There is more to it, of course, but you know, since this is like you know, uh only a 12 presentation, there's only so much depth. I can go so in terms of market structure. You can talk about uptrend, downtrend or rage.

So let me just uh draw an example: let's see if i can give a tool - and hopefully you guys can see so okay, let's talk about uptrend, so uptrend is pretty straightforward. Market makes a series of higher highs and higher lows. Okay like this. So at this point you can see i'm a series of higher highs, higher highs, higher highs, higher highs and higher lows, higher lows, higher lows, higher lows, higher lows, and one thing to point out - is that if you have, you know, studied charts enough.

You know that this market structure works in texas, but in the reality of trading. What can happen is that market makes a deeper pullback like this and then continue higher. So at this point right, do we consider this? You know like a breakdown, or is this just a pullback, so on hindsight is you know you can say? Oh yeah, the uptrend is still intact. So what i want to point out is that this concept, this framework, that i'm sharing with you it's kind of like simplified in the real world of trading things might be different.

I want to prepare you for it. A downtrend market is just the opposite. A series of lower highs and lower low you can see right, lower high, lower high, lower high and lower low lower low range market. What about that? Okay, so range market is also pretty straightforward.

You have this highs and this lows so the price goes up comes down, goes up, comes down, goes up comes down, so you can see that when i do this range, i try to make it similar to how you would see the chart. I didn't. I draw a line over here, but when you have your support resistance, your swing high swing lows on the chart. You won't expect it to respect the line to the dot you might exceed above it and come back down.

You know and then exit go up. Go down, you know, exit by a certain margin. So again, this is really what's gon na happen in the real world of trading. Okay, so that's pretty much what we're trying to do over here to define the market structure.

So let me share with you some chart examples, so you can actually see what i mean. Okay, let's go so let's have a look at this shot. You can see this one is new zealand yen and what is this uptrend, downtrend or rage? I think it's quite uh quite a intuitive right. Then most of you are going to say it's an uptrend, so i'm not going to waste your time so usually in this case, clearly it's in an uptrend and since this market is in an uptrend, we want to look for buying opportunities.

Where do we buy? When do we buy, let's leave that out for now we'll talk about that later next, one dollar against the chinese u.n look at this a series of lower highs and lower lows. So do you need me to draw for you i'll just do this for this one right, lower highs, lower highs, and you can see this lower high. It actually took out above this previous swing high and they continue lower right. So you can see that you know in the real world of trading, it's not going to be as like, pretty as what the textbook or as simple as what the textbook has shared.

It might have some. You know price exceeding a certain levels to kind of fake. You out to bluff you and then you know, continue back in the original direction, but the general rule is this, or rather when you look from left to right, i'm sure you can agree that this market, the dollar against the chinese union, is in the downtrend. Okay and finally, one last one pound canadian.

What about this one? I think the weekly timeframe is a good illustration. I just zoom out a little bit. You can see that this market, i would say it's uh, it's in a range right. It's uh content between these highs, this highs - and this lows over here right.

So this market is in a range okay. So that's pretty much what i want to talk about market structure so moving back to the slides number two area of value. So where do you buy and where do you sell? So what is area of value, so average value simply refers to a area on your chart where potential buy or selling pressure could step in so, for example, let's say area value at support right. It's a potential area on your chart where potential, or rather it's an area on your chart where buying pressure, could possibly come in and push the price higher, so area value in essence, right.

What it's telling you is that you know where should you buy? So you know that market structure tells you what to do. Should you be buying, should you be selling, or should you trade, the range okay? So, let's say, for example, market is in an uptrend. You should be looking for buying opportunities, but it doesn't mean that you want to blindly hit the buy button. No, you want to trade from an area of value and everywhere you can define your risk right.

So the area of value tells you: where to buy market structure, tells you what to do area of value, tells you where to buy. So where do you buy? Well, you can buy it from an area of value like support and resistance, moving average trend line channels etc. And, if you ask me, my favorite is uh support. Moving average and trend, like i would say, trendline not so much because you know you don't get as many trend lines compared to support and moving average.

So my favorite, or rather the trading setups, that i find myself taking often is having trading from an area of value like support and moving average okay. So there's a area of value that i would say it's worth learning, so let me just uh draw for you. Some examples before we look at the x charts, so, for example, area of value like support in an uptrend would be something like this. Okay, this is an uptrend and price.

We test this area of support right in this existing uptrend. Okay. So that's one support for moving average. It will look something like this.

Okay, let's say market is in an uptrend series of higher highs and higher lows, and what happens is that this particular moving average seems to be you know. Rather, the pullback seems to be respecting the moving average here here and here right. So you will test it a number of times, and this is usually quite apparent when it's in a healthy trend, retesting the 50 period moving average and finally, the last one would be a trend line which is uh, something like moving average. The only difference is that the trend line is straight instead of you know, curvy, so, let's say market in uptrend.

Okay, then you have this trend line that just it's a very straight line that connects the the pullback right. So there's another area of value here here and here so as mentioned right, i would say: support and moving average are kind of the ones that i use very often in my trading. So let's uh have a look. Shall we okay? Let's have a look at some real world examples of how this charts look like brand crude oil.

If you look at this over here, we have a number of support right, acting as area of value of this uh chart right. This is an area of value support in an uptrend, there's, possibly another one over here. Okay, so you can see that, for this chart, this time frame brain crude oil, the eight hour time frame uh. We have a number of area of value here, which is actually support, right support and support.

Okay, so that's a one way to define it another one. Let me share with you another example this time around: let's have a look at uh 50 period, moving average. Okay, so dollar against the chinese year and the eight hour time frame, as i mentioned right, the 50 period moving average can also act as an area of value. So in this case see tested number of times here tested once twice right.

So this one. Actually, this is obviously this twice and this try, so you can see that the time it tests right, it's not exactly to the line, it could exceed the moving average by a little bit and then come back down more just like in this case as well. You can sit a little bit and then come back down lower. So that's why i call it.

I call it area of value, not line of value. It's an area on your chart. Okay, so that's uh and finally, one last thing to share with you: it's a okay. So this is what we call the trendline flip, so you can see the euro aussie, i'm just going to zoom out the charts.

It was respecting. This trend line here tested once twice three times, then it broke below it and then re-tested like a kind of like a back flip. So it's kind of similar to the previous support become resistance. That concept, so this one is, but instead of you know, horizontal line like support resistance, this one is in the form of a trend line, so this is another way that you can define your area of value on the chart.

So these are so this one needs some practice right, but the key thing is to share with you to open your eyes to the different ways you can. You know, define your area of value. Okay, i hope that makes sense and moving on. Let's move on into the next thing, the next concept, which is what i call entry trigger.

So here's what we have covered. We have to talk about market structure. What should you do? Should you buy, sell or stay after markets? Next thing we spoke about? Is the area of value? Where do you buy? Where do you sell and now the third thing entry trigger? This simply means right: when exactly are you going to enter a trade when at what specific moment? So in essence, it's answering the question when to buy or sell when today, tomorrow now five minutes later, when, when exactly so to do this, right, i would say the topic, or rather the the uh yeah. The topic on candlestick patterns is really useful, because candlestick patterns in my opinion, is useful to serve as an entry trigger to tell you when exactly to enter a trade.

Now, don't get me wrong. I'm not saying that. No just because a certain candlestick pattern has form it means by no, we must take it in the context of the market. We must first and foremost or understand what is the market structure, whether it's from an area of value and then and only and then we look at the candlestick pattern to help us act as an entry trigger make sense.

Okay, so let's have a look. I'm just gon na run you through uh, simple stuff, nothing too complex, first, one hammer. So why am i sharing hammer and, as you know, all right? It's gon na next one's gon na be a bullish, engulfing pattern and that's the reason is because it's these two reversal candlestick patterns. In my opinion, it happens with regularity.

So whenever you are trading the markets right, there's a good chance that it could be a hammer or bullish engulfing pattern and it's worth learning. Okay. So let me just walk you through how this works so hammer in essence right the the candle. If we look at the daily timeframe, it means that for today the price opened here.

This is the opening price. If this is a daily candle right, this is the opening price at the low and then it closed at a high of the day. So what happens? Is that when the market opened, the sellers were actually in control right for a certain portion of the day right, pushing the price near this lows over here, then the buyers came in uh uh, i'm back baby. Then you push the price all the way up higher and finally closing near the highest of the day.

So you can see that it's kind of like a battle between the buyers and sellers price open sellers coming push the price down. Then, after you know the sellers, you know they kind of hold their fault, that's enough right, and then they have their full forces coming the rest of the army coming and pushed the price all the way up back and closed near the heist of the day. So this is what we call a hammer, because it looks like a hammer right and it's a it's a it's a bullish signal right, telling you that the buyers right they are now in control of the markets for this temporarily for for now, okay. So this is the hammer, makes one here.

It's the bullish, engulfing pattern case which looks like this. So this one again, if you look at the the concept behind it, it's actually quite similar to the hammer so just to walk you through over here. You can see that you know on this. Let's say on a daily timeframe: the previous day, the price has closed, bearishly lower for the day the next day.

What happened is that the market opened here and it almost immediately. The buyers come in and you know, ramp up the price, all the way up higher and closing near the highs of the day. Okay. So so again, this is a bullish, engulfing pattern.

It tells you that no for today, when the market opened, the buyers were in control from start to finish and they managed to you know, hold up and close higher for the day telling you that hey, we just won that battle. Okay, so temporarily, the buyers are now in control, okay, so this is what we mean by bullish patterns, hammer and the hammer and the polish engulfing pattern. So earlier we were talking about the bullish patterns and then the next thing i want you to know is the bearish patterns, because you can't just know uh bullish patterns, because if the market is in a downtrend right, you want to look for selling opportunities. Then you want to be familiar with.

You know: bearish bearish reversal candlestick pattern, so the first one is hammer, so this is kind of like the inverse. Oh, this is wrong. This should be shooting star. Should i edit here? Ah okay, so let's go right, shooting star.

So what this means right, let me just walk you through the the uh, the buy and sellers psychology of this market, so market opened at this price over here. Okay and the buyers came in to control and push the price all the way up higher. So you can see that during this day the price was actually trading near these highs for the day and then somehow, rather you know, maybe it could be a bad news. Maybe it could be a bad event could be.

You know, bearish sentiment. The seller just came in and stormed all the way down and pushed the price lower for the day, or maybe they took too much steroids. I don't know okay, so you can see over here. This is a shooting star.

This tells you that buyers for a certain portion of the day they were actually in control. The price was heading higher, after which the seller just came in, and just rammed the price down and closed lower for the day. So this tells you that momentarily right, the sellers they are in control because they have actually managed to close the price lower for the day. So the next pattern is this: one here, bearish engulfing pattern so again similar to the bullish engulfing pattern, but just the inverse.

So to walk you through it, you can see that previous day market is closed. Bullishly near the highs the next day the sellers came in open here and then they just smash the price down lower and close lower for the day. So this is what you have a bearish engulfing pattern and one thing to point out right: if you trade forex, if you trade stocks you'll realize that this technical definitions, it is a bit different because for for the forex market, okay, let's talk about the stock markets. The way people define engulfing pattern is that the candle has to engulf the entire previous candle.

So this means that it has to be it has to sort of, like you know, gap up higher and then close, lower and kind of, like you know, cover the entire of the previous scandal. But the reason why you shouldn't expect this for forex is because the forex market it seldom gaps. It runs almost 24 500 a week, so you hardly see gaps on a chart, unlike a stock chart pattern. So when you trade the engulfing pattern, please bear this in mind.

You won't expect to see much gaps in the fx markets, but when you trade stocks right gaps are going to be more apparent. So my technical definition of the engulfing pattern right the bearish encounter or the bullish engulfing - is that the body of the candle has to cover the candle of the previous body, the body of the previous candle, so in other words, okay. Let me just uh re-explain that my definition of engulfing pattern is this. Is that the gosh okay? Is that the engulfing pattern right? The range of the candle has to cover at least the body of the previous candle as long as it covers the body, that's fine! If it doesn't cover the wick, it doesn't cover the highs and lows.

That's perfectly fine by me as well all right. So here it's really uh. I would say the context is what matters here right. The main thing you're gon na see is that you know either the buyers or sellers in control and quickly.

You know, push price away from a certain level, the speed of the price moving away from the level that's the key over here now. We know whether it covers half body naked or whatsoever. That's really, you know, you know getting away missing the forest for the trees. Okay, so another thing i also want to point out is that when you deal with engulfing i mean when you deal with candlestick patterns, there are a lot out there.

I'm sure you know. Most of you have studied no things like shooting, star hammer, harami abandoned baby graveyard, doji and stuff like that, and and really i find that it's pointless trying to memorize all these different patterns out there, because there's just simply a variation of one another. And you remember all the names and stuff like it's just gon na you know you know tire your mind out. So there's only two questions that you need to know when you're dealing with when you're dealing with candlestick patterns.

The first question to ask yourself is: where did the price close relative to the range? So if you look at these two patterns right, the reason why they are bearish is because the price closed near the lows of the range look at this, this candle first, one is a shooting star this one, clear, close. The entire range of this candle is from this high to this low. Let me just it's from this high to this low, so where did the price close relative to the rate? So this is the range right from this high to this low. Well, it closes near the low of the range.

If you look at it like in terms of percentage right. Let's say the high is 100 and the low is at. Let's say i know, zero percent. This one pretty much closed right, like i would say, 10 month of the range.

So where do you close relative to range at the bottom 10 of this range? So this is obviously it's a bearish signal right, because the price has closed near the lows of the range same for this bearish engulfing pattern. This is the highs. This is the lows: where did the price close relative to the range it closed near? The lows of the range, so this is bearish. If you look at the bullish examples i had earlier, where did the price close relative to the range? The same concept? This is the highs.

This is the lows this price here closed near the highs right relative to the range. So really, the first question to really ask yourself is: where did the price close relative to the range so because, once you know whether you're closing the highs, the lows on the middle, you know sort of what type of meaning to expect from the pattern. If you close near the highest, you know it's bullish near the lows: bearish in the middle is indecision, so it's undecided. Okay, so that's the first question second question is this: is that where did the price, or rather, where did the candle? What's the size of the candle relative to the earlier candles? So what i mean by this is that if you look at this, let's say the engulfing pattern: you see that the range of this candle - it's so much larger than the previous one over here.

So this is definitely more significant. There is more conviction behind it. Okay, because if you think about this, this bearish encountering pattern. It could just as well look something like this.

Let's say this is a green candle. It could also be like this. You see the size of this candle compared to this candle. Do you see the difference? So if you tell me in terms of conviction in terms of like kind of like the the strength behind the move, i would say this.

One is definitely definitely more significant right because it the size of this candle is significantly larger than a previous candle. So when you look at candlestick patterns, you don't want to look it in isolation as well. You want to look at what's the size of that candle relative to the earlier candles to the relative to the earlier two or three candles. Is it much larger or is it much smaller, because if it's much smaller, then it's going to be less significant compared to if the candle is much larger compared to the earlier two or three candles make sense so i'll share with you some examples later on, but These are kind of like two questions that i want you to bear in mind whenever you know you're dealing with candlestick patterns.

So with that said, let's move on next one right. So so we have talked about market structure. We have spoke about area of value. We have spoke about entry trigger so now, where do you exit if you are wrong? So this is a question right in essence, right to ask yourself: where will i get out of the trade if i'm wrong? In other words, it's your stop loss and the way to set your stop-loss right.

You want to set it at a level where your trading setups, your trading setup, gets invalidated. So, first and foremost, let me share with you how how not to set your stop-loss right a mistake that many traders make. So let me just share with you: how not to do it right. So this is how not to this is a bad example.

So don't follow this. So let's say market is in a range okay markets in the range up down up down and maybe near the lows of support uh. Someone might think. Oh hey raider! This price is at support available value time to buy so dubai.

So let's say just put here: buy okay and where do they set their stop-loss? Oh, the textbook says you know you should set your stop-loss, you know below support, you know, because that's where support breaks set your stop loss there, so they will set their stop loss somewhere about here. Let's say here: stop loss here: let's call it sl now, what's the problem with this and the problem with this is even if the price were to reach this level here, does it mean that support is broken? Well, not quite because, if you recall, support right serves to act as an area of value. That is an area on your chart and if you were to put your stop loss just smack below support. What makes you think that support is broken because it could be an area, it could be a pretty wide area.

So, if you ask me that area of support is still not invalidated, it's actually still intact. So don't set your support. Don't set your stop loss right at a level where the setup is still intact? If you ask me, even if price will hit down to this lows, support is still intact, isn't really broken to me, because it's an area on your chart. So what you want to do is to set your stop-loss at the level where, if the price reaches it right, it would tell you that man, this support is likely to be broken.

So if you ask me, it's probably going to be somewhere here because, let's be honest, if the price will come down to these lows - and here probably this looks more convincing - that support is broken right compared to just below the lows of that the level okay. So this is what we mean by you know. You want to set your stop-loss at a level where it gets invalidated. Oh, let me give you another example.

Let me talk about good examples right this time now so, let's say uh enough of bad examples. So let me just walk you through a few examples. So let's say you want to trade, a double top. Okay, double talk, let's say double top you wan na you wan na sell at a double top price.

Goes up comes down, goes up comes down, so maybe it forms a double top over here. Okay, so where should you set your stop loss? Clearly, you've learned right. You don't wan na set your stop loss just smack above these highs or just above this highs, because that is an area of resistance. Ideally, your stop-loss should go somewhere here, because, if you think about this, the price comes down and it goes up and hit your stop-loss here.

Let me ask you: does this double top still looks intact? Doesn't look like a double top anymore right, so this means that your setup is now invalidated. If your setup is invalidated, then you have no business staying in their trade anymore, get off the trade cut, your loss move on. So that's how you want to set your stop loss at a level where it invalidates your trading setup. Let's let me give you an example: how about a bull flag price hit higher, come down both flag like this? Okay, so let's say price then hits higher and trigger your bull flag trading setup you go long.

So where should you set your stop loss? Do you set it at a b or c so, b and c are the two primary answers i i get but and i'm going to share with you why i lean more towards c. So yes, if the price come back to b right, your blue flag pattern will look quite weird: it becomes some kind of like you know, maybe a like a double top or something like that. But why do i go with c? It is very simple. The reason why i go with c is because yes, price could hit b and the b flat is invalidated, but if you look down shortly below here, this is actually a swing low and a swing low, as you know, right is where potential buying pressure could step.

In and push the price higher, so if you put it at b, you're actually cutting your loss into this swing low, where the price could reverse higher and hit higher from there. So you don't want to do that. So what i'll do is i'll lean more towards c at a level where, if the price really gets to zero, i know that entire bull flag is invalidated. I know that swing low has broken down and i want to get out of the trade right.

So there's basically there's no more bullish reasons for me to stay in trade anymore. Okay, so that's my thought process for for going with c okay, but i i'm glad that you understand the concept that i've shared with you uh. Let's have a look at how about some uh real world chart example. All right sounds good.

Let me share with you a trade that uh. I i hit the loss right. He hit my stop loss and let me explain uh how i set that stop-loss. So if you look at this chart, aussie swiss, franc, okay, this is a losing trade by the way, but i'm still glad to share with you.

So what happened is that aussie swiss franc? When i took this trade, it was a as you can see. Uptrend looking to buy buy from an area of value, so what happened is that i was actually referencing this this uh, this area of support to set my stop-loss, so i didn't want to set it smack below this load, because you know i could get. You know stopped up prematurely, so what i did is that i gave it some buffer from here to here kind of like a buffer. But now the question is, you know: hey rayna, how much buffer should i give? Should i give like 10 bits, 50 peeps, 100.

Pips so now this is this is subjective because it depends on the currency or trading. It depends on the time frame. It depends on the volatility volatility of the market, so one objective way to define the buffer is to use an indicator called the average range. I'm going to walk you through step by step how this works.

So what i did is that you go to your indicators. Look for something called the average true range pull it out, and i usually go with a 20 period, hdr and sma. So what you want to do is that you know you can do this for any time frame like the daily time frame. You know weekly or whatsoever.

This concept works the same. So what you want to do is find out what is the current atr value of the time frame of the market you're trading, so in this case it's about 30 pips, as you can see over here, 0.00306. So it's about 20 pips. So what i did is, i then identified the low over here and then i minus 30 pips.

So i don't have my calculator here with me as of right now. So i'm just going to you know just do some very simple, round-off, mathematics. Okay, so let's say the low over here is 0.681 0.681. Okay, let's say this low over here 0.681, i'm minus 30 pips.

What that is going to give me so minus 30 pips. That will give me a value of about okay. If my math served me right, it's going to be about 0.678, okay, this value. So what i did is that at this 0.678 level, i'm guessing it's about here - this is my stop-loss and from here this low down to my stop-loss level is exactly 30 pips that we have, you know, did earlier okay.

So at this point, if you think that my stop loss is at this level, so let me ask you: if not the price will reverse down lower and hit my stop loss? Okay, does this area of support still looks like it's intact? Does the support behaves like how a support should behave, and i'm sure you can agree to answer is is no right if the price hits my stop loss right, it would look to me on the chart that this trade has gone wrong. Support didn't you know, uh held up, and i should get out of the trade right and, let's see what happens so, we can see that eventually, what happened on this chart is that the price went a little bit in my favor a little bit and it collapsed And boom right hit me up for a loss at this area. Over here i got stopped out and what's interesting is that after i got stopped out, broke up to new highs and really that is again the name of this business. Ah, isn't trading so exciting, so yeah i followed the plan to follow the rules.

I followed the concepts that i'm teaching you i got stopped out of the trade and then the market continued to break out and work in my favor. So yes, this happens from time to time. Don't think that just because you set a proper stop-loss, this will never happen to you that that's not what i'm saying, but if you follow this method, this concept right more often than not or there's a good chance that you know your your trade right will or Rather, this concept right will help you avoid getting stopped out of your trade too early or prematurely okay. So this is what we mean by you know: uh setting a proper stop-loss moving on right next thing: we talk about exit if you're wrong, i believe you know know where to set any proper stop-loss now what about exit if you're right? What? If the market moves in your favor, so now, where should i you know, exit my trade? Let's talk about this, so in essence, what this does is to tell you right: where will you get out of your trade if you're right and there really? There are many approaches to this.

I mean this is a two-hour session. I can't share every single approach to you, but what i would say i would recommend, especially for new traders, since i saw earlier that you know many of you are in stage one stage. Two is to you can consider looking to capture a swing in the markets. So let me why let me talk about why capture a swing.

A few benefits is that your trading results are more consistent. Okay, your win rate will be improved and the downside i can think of is that if you were to go with capturing a swing approach is that you will miss out on trends because you're not able to write trends because you exit your trade. You know earlier so there's like kind of like a pros and cons to it, but from a psychological standpoint i would say you know, having a higher winning rate to be more consistent in your trading is important right for new traders. So i'm going to share with you a swing trading approach right where to exit your trade, if you're right from a swing trading methodology.

So let's get started so we're going to capture a swing and the way to capture a swing is you can use swing? High swing, low support resistance, as kind of like reference point markers on your chart right to to help you uh capture a swing. So, let's say market is uh in a range okay, let's say the range you buy near the lows of support so to capture a swinger. What you want to do is to ask yourself where might opposing pressure coming, because i want to get off the trade right before opposing pressure comes in. So if you buy and support there's a good chance opposing pressure or sellers could come in at resistance.

So this means that you want to exit your trade just before resistance, why, before resistance and not at resistance or above resistance, remember support resistance. Is an area on your chart. So if i were to kind of like properly define it, it's going to look something like this. This area, okay and support - will be like this area over here it looks kind of messy, but i think you get my point so you want to exit your trade before this area of resistance, because what could happen if you set your let's say your target above This highs - or here it comes in this into this area of resistance, phase selling pressure and then reverse down lower, and if your target is too aggressive like at this heist over here, you will notice that the price almost reaching your target and then take 180 degree Reversal and it hits your stop-loss - you don't want that, so what you want to do when it comes to target is to set it just before that area of resistance.

Yes, you give up a few pips. You give up a few takes a few dollars in the stock markets or fx is a few pips, but i would say it's worth giving up that few pips right then watching the entire trade turn sour and hit your stop-loss okay. So so you want to exit your trade right just before you know, opposing pressure comes in okay. So let me walk you through an example.

If you look at this one here, okay, let's say price - had a bullish reversal here. At this point, price, close higher, looks bullish trading in an uptrend from this area of value. All looks pretty good so far, so where could we exit our trade right to capture a swing in the market? So again, remember. The key thing i said is to exit your trade before opposing pressure steps in and, if you look at this chart, i would say opposing pressure could possibly step in right at this swing high, like some people.

Look at this as the i'm not sure. If it's the all-time high, but this swing high right where sellers could come in to you know short the markets or earlier buyers could look to take their profits at this level. So this is where you want to exceed your trade just before the swing high, which is about a 290 dollar price point just below it. Maybe 288 287.

Okay. So this is how you don't go about capturing a swing in the market, so basically you're going to capture this particular move here. Okay, so swing trading is in essence, right, capturing just one move in the market: you're not trying to ride the entire way of the entire trade you're just trying to capture one move, one swing. Okay, so now we have, you know, covered quite a bit right.

We spoke about market structure right. What to do in different market conditions, buy, sell or stay out. We spoke about area of value where to buy. We spoke about entry trigger when to buy.

We spoke about exit if you're wrong stop loss. We spoke about exit if you're right target. So at this point right, we can actually use these new concepts and techniques that we have learned right to actually spot. You know trading opportunities in the market, so what i'm going to do right now is to actually share with you some trading examples right using these concepts that i've shared with you and, of course you know you can use it to you, know trade, the fx market Stock markets, you know whatever you defeat again verify validate and don't make it work for yourself so own it right own it.

So let me just uh get started. First, i want to share with you is a new zealand yen? Okay, so let's get started okay, so for this trade here you can see over here we have a valid trading setup and we'll highlight the setup over here. So what happens again market structure? We can see that number one market structure is heating up higher. We are in up trend number two area of value.

We have this, this uh area of support over here number. Three. We have. We don't really have exactly a bullish engulfing pattern, but i would say at this point right: the buyers are in control, as they have pretty much closed near the highest of the range.

So, okay, bullish, let's call it - i just put it up: okay and before stop loss right. I referenced this low sorry and set my stop loss, one atr below it: okay and number five where's the nearest target nearest target like actually the nearest uh uh, or rather the level where opposing pressure might come in with. I would say it's just before this area of resistance somewhere about here. Okay, so this is, i would say, uh possible trading setup that you could have you know traded.

So i'm not going to walk you through the outcome of this trade because it's not important. I would say that the top process right is really what matters: okay, next, one dollar against the chinese yuan. So if you look at this one over here pretty interesting, so this one again, you can see that what is the overall trend of this market? Okay, number! One downtrend number two area of value, so this is quite interesting. We can see that the price retested previous support support support which could become resistance and resistance.

Okay, so we can just call it r and number three entry trigger. So this one is neither a shooting star or a bearish engulfing pattern, but remember i said there are many variations to it. If you look, if you look at this pattern right, this one seems to be that the market pretty much closed, where it opened for the day, but during the day actually try to attempt to break out higher but failed to do so and then close way open. So this one is near the lows of the day, so i'll consider this a bearish signal.

Okay, so that's very signal number number four area of i mean uh the exit. If you're wrong, you'll stop loss again, i will reference this highs. Setting 180 are above it somewhere about here and then five potential target. I would say this will be the nearest swing, low exits, possibly before this level over here, and also one thing else to share with you is that there is a concept called uh stack levels where you have multiple area of value coming together or you can call It stack area, so let me just share this with you, so you can see over here.

If you i overlapped the 50ma, it has the confluence of the 50mb as well as well as this previous support, which could become a resistor. So this makes this level even more significant okay. So this is the dollar against the chinese yen. Okay.

Moving on another example: okay aussie against the swiss franc. I actually shared this one earlier: okay, where the trade was a law, so yeah there's another example. You saw earlier and let's move, how about a little bit to the stock market, because i want to share with you that you know price action trading can be applied to stocks as well. So let's have a look right at the uh stock markets, so this one is fiverr.

Okay. I actually use this company uh for for my own use right when in business, where i need people to help me go, do some website. You know uh work all right. So five, what it does is that it helps you connect freelancers with uh so-called business owners, so you can use freelancers to help you with whatever work.

You need, whether you need to transcribe a podcast where you need some graphic design book design. You know proofreading and stuff like that, so so yeah so for fiverr. Let me just share with you this one here. So again you cannotice that when you look at the stock chart, one thing is that very obvious compared to a forex market.

Is that the number of gaps i look at all this gets pump up gap here get there. So this is one of the key differences and then you have to be prepared for that. So again, right. If you look at fiber the setup is over here.

Let me just walk you through it number one uptrend number two area of values. At this point we are trading off this swing low over here; okay, let's call it sl. Ah, it's not very nice. Let's call it swing.

Swing, glow, okay, number! Three entry trigger! So this entry figure - if you ask me it's not a hammer, it's not a bullish engulfing pattern. I don't really have a fixed name for it, but again using the two questions that we have learned right where the price closed relative to the range pretty near the highs. Second question: right: what's the size of the candle relative to the earlier ones, i would say it's pretty much on par. So hey you know, since this was on par, would say, the strength of this buyers right are pretty much matching the strength of the earlier sell-off.

So, okay, fair enough, i would take this this uh this this entry trigger as a bullish signal. Okay, but if you know, let's say in a downtrend or range market condition, i might choose to skip it because you can see right. This is where discretion comes into play, but the reason why i could like afford to like close one eye for this using my own, a trading approach, is because i'm trading overall in the direction of the trend. The trend is strong and if you overlay the 50ma, which i'll do so later, it also has the confluence of the 50 period moving average.

So weighing all these multiple factors together - and this is a trait that you know - i want to take okay and number four. Stop loss right again, i can reference this swing low, to set my stop loss, possibly somewhere here and number five target right to capture a swing exiting just before this swing high over here makes sense. So again, i'm just going to you know, share, maybe the 50mm. If you want to see we have the confluence of the 50ma there you go over here, all right, so so yeah, that's pretty much it so one last example: shall we one last example: kirkland so again same concept? If you look at this market, overall trend is towards the upside.

Okay. Overall trend is towards the upside area of value. This one is also like a kind of like minor swing, low right. Let's call it swing, l entry trigger, so you look at this entry trigger.

Now notice, uh, it's bullish yeah, but if you look at the size of this candle relative to the earlier ones, it's actually quite small okay. So this is again where your discretion comes into play.