Hey hey: what's up my friends, so welcome back to this month's prize section analysis for october. Well, time really flies okay, so so just a quick overview right. So for this type of video is where i share with you my thought process, my trading setups and opportunities that i'm seeing in the financial markets right. I cover forex stocks and futures market, so those markets that i see opportunities.

I will just share them with you in this video, so you kind of, like you know, help you reduce your learning curve, help you spot opportunities and whatnot. So without further ado, let's get started. So, let's kick off with the fx markets, uh first currency pair that i want to share with you - is the pound against the new zealand. So big picture perspective right, you can look either on a weekly time frame or zoom out on a daily timeframe.

It's up to you, you can see that this market is generally, i would say it's in a range to a week up trend. Why do i say that is that it's still respecting this long-term up trend line that you see over here right? That's that uh! You know forming a series of higher highs and higher lows, higher lows, higher lows, higher lows, higher lows, so the essence right for this pair is that as long as this upward trend line holds right, long term view on pound new zealand, i'm still bullish on it. Until the price can break and close below this level, then i'll be bearish. So since i'm still bullish on this market uh, the question is, you know, hey rainer: where do you buy right? Yeah, that's a good question: where do we buy so i like to you know, go down to a lower timeframe to help me fine-tune my entry.

So this way i have a you know smaller stop-loss right and again, i can also see the price section clearly right. There so that might not be visible here on the weekly time frame. So let's go down to the eight hour time frame and you'll see something like this, so in this eight hour timeframe again uh. If you look at the the uh price structure, you can see that the price previously broke above resistance right and it tested previous resistance that became support and now coming back here for a second time over here.

So i have no idea whether this area of support is going to hold, but what i do know is that number one on the higher time frame, i'm still trading right along with the higher time frame trend. So that's one thing i know number two. I know that this is an area of value so because it shows me that the price right has broke above this area of resistance and it has tested once and now it could come back for a second time. So what i'm looking for is for the price to re-test here right and do a false break where the price you know comes down to support and quickly right, reverse away from support, so it quickly, you know, bounce up higher, closing back above this area of support.

So this tells me that the buyers are in control, they're, stepping in and hey the price could possibly heat up higher, so this could be in the form of a hammer could be in the form of a bullish, engulfing pattern, etc. So the faster the price leaves the level the better it is so, for example, you can see this this pattern over here this or something like a doji pattern, came into the level and quickly bounced away right. This is what we are looking for: a quick swift, price rejection. When that happens right, i will go along on the next candle open, stop loss right, one atr below this lows; okay, so for those of you who are not familiar with the atr, it's basically an indicator that measures the historical volatility of the market.

So let's say you pull out your atr indicator. You can get it on this tab over here and let's say the current atr value is 100 pips. What i'll do is i'll find out? What's the low of this candle and minus 100 pips, let's say the low of this candle is, let's say, x, x, minus 100 pips, which is the current atr value, and let's say it's y, so y will be my stop loss so for targets right. So a couple of targets: you can have a look at for traders who just want to capture a swing.

I would say the 197 area is a possible target right for you to capture a swing, so price could come down to a false break enter, and this would be your first target for traders who are more aggressive and wanting to ride the move longer. The next possible target could be around this swing high over here right, i would say before the 202 area level right, so this could be your second target, so this is my take on pound new zealand uh long term still bullish on this market. Next, one right. Let's have a look at the euro against the swiss franc.

So if you look at this market just zoom out again with daily timeframe, you can see that overall, this market is in a downtrend. So if i have a choice, i want to be shorting this market, but if you look closely at this price action, you realize that over the last few months, euro against the swiss franc is pretty much just within a range right between the one dollar one zero. Eight four area and this uh one zero, seven two area so really buy low, sell high. What you wan na do is, you can buy near the lows of support and seal sell near the highs of resistance.

So what you can do is again right. Let's have a look is that what i'll look for is for the price again to reach the extreme ends of support right? Why the extreme ends of support? And this because that will be you know the so so called the best price you could get. That's number one and number two is because when trader they trade breakouts, they tend to place their sell orders at the extreme ends of the range. So, for example, let's say someone who is looking at this chart and thinking man right now, i'm looking to short.

This breakdown of this range, so where would this person put his uh, sell, stop order? Well, probably the lows of this race somewhere here? So if the market does break down lower this group of bearish traders, traders they will go short. So here's the thing right. If someone is short right, i want you to ask yourself: where will they put their stop loss? My guess right is that, let's say this is the candle that broke down the world, they might put their stop loss above the highs of this candle. That's one they might put their stop loss in the middle of the range, that's two or even at the highest of the range.

That's three! So if you look at this cluster of stop-loss here here and here, if you think about this right, if you are short, the market, your stop-loss order is actually a buy, stop order, because if you are short and you need to get off the trade you need To buy back your position make sense, so your stop loss right is a buy, stop order and when the buy stock order is being triggered, that adds buying pressure in the market right, because if many traders get, you know stopped out at the same time, that will Have a buying pressure in the market right to push the price higher, so this is why we know we have. You know like so-called short, covering right. That term called shock covering where you know many traders are short. Then we have.

You know a huge spike up right in the uh in the market. Right, that's because you know traders who are shot they get stopped out. They call it shot covering uh in terms like this. So that's why you see a bullish, uh, a spike up.

So same thing over here, so what i'm looking for is again. My point is this right, so i am not looking to sell the breakdown. Instead, i am looking to to to trade the false break right to profit from this group of traders who might get who might get caught on this false breakdown. So what i'm looking for is for the price to hit down lower quickly reverse up higher right.

This time round, if it does happen, traders who are short they are now trapped. So what i'll do is i'll enter on the next candle open, stop loss again 180 below this lows possible target before this area of resistance over here. So this this uh. This could go both ways, you could, you know, do a false break near the lows of support or a false break at the highs of resistance either way.

I am perfectly fine to trade either direction, but, as i've said right, since the overall longer term trend is towards the downside uh when it comes to trade management, i'll be more inclined to write the move towards the downside compared to you know, riding the move towards The upside, since it's against the longer term trend all right, so this is euro swiss franc. So these are the two currency trading opportunities to share with you. Moving on to stocks, okay, let's look at stocks, so again, trading stocks, trading, trading effects right. The charts are pretty similar.

Only difference is that in the stock markets you will see bigger gaps, right could be a weekend gap, an earnings gap, etc. But again, price action is price, section is price, extreme trend is trend. So if you look at stocks right, this is a tril. This is trillium therapeutics zoom out the chart again same thing right market is in an uptrend.

What do you do in an uptrend? You look for buying opportunities. So again, the question is where, where do you look for buying opportunities? So before we begin right? Let me just share with you how i trade stocks when i trade stocks i like to buy the strongest stocks out there, i don't want to buy cheap stocks. I don't want to buy stocks in downtrend. I only want to buy the strongest stocks up there, stocks, which are nice healthy uptrend.

These are stocks that i focus on reason, for it is that in the long run stock markets, they are in an uptrend and i don't want to fight against this long-term uptrend. So i want to put the odds in my favor and only buy up trending stocks. I don't short, i only long so few things to look for number one. Looking for the strongest trending stocks out there.

What you can do is to find is, just you know, pretty much just pull out the uh indicator called the rate of change indicator. Okay - and you can look at the weekly time frame and look - i usually go with a 50 week, roc, so basically a stock price movement of almost one year and i like to buy stocks right that has a high roc value, the higher the better. So in this case, i'm not sure if there's a typo over here is 6 000. I think yeah, i'm not sure.

If there's a there's a typo, maybe there isn't. Maybe there is really six thousand percent right, but like yeah, i like to buy the strongest stocks out there, the higher the roc value, the better and the roc value has to be higher than the s p, roc value so meaning. If the s p is up. 10, this year, the stock has to be up more than 10 this year.

This tells me that this stock right is stronger than the uh overall stock market. Okay, so anyway tri l uh. What i'm looking for is again you can see over here. We saw that the roc value it's a pretty nice and strong in almost 6 000 this year and uh again, i'm not going to buy just because this stock is in upgrade.

I want it to come to an area of value right. Give me a valid entry trigger this way. I can manage my risk setting proper stops proper target. So what i'm looking for is again uh.

Ariel value, i would say, is over here at this swing low. This uh could be an area of support, swing, low, etc. Waiting for the price to come down, lower swing now lower and do a false break and close close up higher for the date enter. Next.

Candle open, stop loss again, one atr below this low, so for possible target right, depending whether you want to ride the trend or capture a swing. If you want to capture a swing right, i would say before the 16 price point is a possible area to take profits. But for me personally, when i trade stocks, i like to ride the trend for as long as possible. So what you can do to write trend, you can use a trailing, stop loss like moving average uh percentage, changing price, etc.

So so i'll talk more on that on the next stock to cover, which is this one over here, lvg? Okay, so this one is again right, instead of uh, again same concept, zoom out your charts, you realize that this stock is in a nice uptrend or if you pull out your rate of change indicator, i can assure you this is definitely you know, has increased in Price right more than the s p 500 over the last 50 weeks. So now we are looking for a valid trading setup. So this time around right, the setup is instead of trading from an area of value, i'm looking to buy the breakout of this highs, which has actually kind of happened right. The price has actually broke out of this highs and if you look at the closing price right, it has closed the highest price point right over the last few months or even years.

Look close at this highest price point: okay, so i'm looking to buy on the next days open when the market open. As for stop-loss right, what you can do is you can adopt a trailing stop-loss technique so for the stock markets i like to go with the 30 trailing stop-loss. I find that that's kind of like the sweet spot. The stop-loss is not too tight where you will get stopped out on the pullback right and at the same time, right it's not too too long right where you know the reversal comes right and you could you know uh.

I mean it's not too long right where you have to hold this this trade forever. So this to me, 30, trailing stop loss for me personally, is my own sweet spot. So how do you use this right? Is that let's say uh the stock? Now, let's say it assumes 150 price point: you buy 150 dollars, so a 30 trailing stop loss. What you'll do is calculate right.

What is 30 of this price of this 150 right now, so you can see that thirty percent of 150 is about forty five dollars. Okay, so what you wan na do when it comes to trailing stop loss is just identify the highest price point and multiply by uh. Thirty percent find a thirty percent value of it. So thirty percent of hundred fifty dollars is 45.

You take 150 and you minus off with 45 and you get 105. That is your trailing stop loss, so 105 is somewhere here. So this means, if the price - let's say it, breaks out, comes back all the way down, lower and close below this 105 dollar price. Point you exit the trade and let me give you a shortcut right so for those of you who suck at math like me right, how do you get this number quickly? You can just take the highest price point in this case.

Let's say 150 multiplied by 0.7 and you will immediately get this 105 dollars as well, so just kind of save one step. Okay, so let's say right now: if the price moves up to 200, let's say it goes up to 200. Where is your trailing? Stop loss right, you will shift your stop loss higher and in this case you just take 200 multiplied by 0.7. You will get 140 dollars, so your trailing stop.

Loss now is at about 140 here. So let's say the price goes up higher right to 200. Imagine here is 200 and if you trace back all the way close below 140, you will exit the trade. So that's what i mean by using a percentage, trailing stop loss.

Of course, this percentage you can adjust it to your preference, whether you're 20, 10, 40 et cetera, but for me personally, 30 is my sweet spot. I don't get stopped up on the short-term pullback right, so this kind of like allows me to to write the move. Longer to write the trend longer so yeah, this uh, that's kind of like the setups that i will share with you for this month end and by the way. If you want to learn more about price action trading, you find that this trading methodology - you know, resonates with you, then get a copy of this book called price action trading secrets right.

This is 140 page color trading book. There is color on every page right where you'll discover our proven price action trading strategies to profit in bull and bear markets. We talk about reversal trading, breakout trading, support resistance, candlestick patterns, risk management, position, sizing and so much more. It's 140 page of content right.

So if you want to get your hands on on it, right just go down to the website. Pricesectiontradingsecrets.Com right - and you can, you know, get your copy over here and along the way i'll. Send you a few bonuses, like you know, giving you a ebook version of it. If you want i'll, give you my own proprietary, uh position, sizing calculator as well as an exclusive training webinar.

So all this and more right over here, so with that's it. I wish you good luck and good trading. I will talk to you soon.