Hey hey, what's up my friend, so in today's training i want to share with you five things to look out for before you place a trade, because i get it right when you're trading the markets there seems to be like so many things to look out for You know support resistance trend, line, multiple timeframe, analysis indicators, candlestick patterns, chart patterns here right now, so i get it right. You are overwhelmed, you're confused and you don't know what to do right. So in today's video i'm just going to break it down to you step by step right and to point you in the right direction, right to focus on just these five things. If you can focus on these five things, you can pretty much ignore.

Everything else sounds good, then, let's get started. The first thing that i want you to pay attention to is market structure. So the point of market structure is all about asking yourself where's the path of least resistance. So if you see a chart right, the market is in an uptrend, then what do you want to do? Well, you want to buy.

Of course you want to be buying in an uptrend and likewise, if a market is in a downtrend, then what should you do? You should buy and i'm just smoking you right, you should be selling right, you should be selling in a downtrend and if the market is in a range you can trade both sides either you know buying or selling. So that is pretty much right. What you're trying to do with the first step right, identify the market structure, identify the path of least resistance, and the way to do it is to classify the type of uh trend the market is in. Is it in an uptrend, a downtrend or range? Don't complicate things further and let me give you a few examples, so you see this one over here right this one.

Clearly right, uh the five-year treasury note futures: what is the trend of this market? I'm sure you can agree that this is a uptrend right. The price is making a series of higher highs and higher lows over time: series of higher highs and higher lows, simple stuff right, so in this type of market condition in this time frame right, you want to be looking for buying opportunities right. Likewise, look if you look at this one over here, uh the oil market. What is the market structure at this point in time? Again, simple, stuff, don't complicate things series of lower highs and lower lows, so what should you be doing? Buy? No, of course not selling.

You want to look for selling opportunities in this market condition, and i know some of you might be thinking. Ah right now, you know these examples. They're all you know clear as daylight, though you know, but there are times where you know it's not so straightforward, rainer. I get it right, so let me just share with you some less straightforward example all right how about this one here.

So if you look at this one, this is the s p 500 and from the looks of things you might think that oh right now this is a uptrend. You should be buying right. Look at this. Rainer market is hitting higher, but then, if you look back a little bit more then rainer there is this strong bearish momentum towards the downside as well.

But if you look even further back there, is this uptrend over here, ah ready to help? Should i be buying or selling right now, so this is where a little bit of uh multiple time frame analysis comes into play. If you are looking at a certain time frame - and you can't tell whether you should be buying selling just go up one time frame higher and see the big picture, all right things will be clearer than so in this case right since uh on this one is The daily time frame you want to go up a time frame higher, which is the weekly time frame. If you look at the weekly time frame right, things are different. Isn't it at this point in time you can say that this market, in the long term, it's in an upfront right.

You still see a series of higher highs made over time and you don't necessarily have a higher low, because at this point right, the price has pretty much taken out this previous uh area of support this swing low. But you can agree right that at this point the price is still hitting higher about to re-test this highs over here. Possibly so at this point right, you can conclude that this market, this trend, the overall trend, is still towards the upside, and you want to look for buying opportunities right, just one more example right to nail home the concept how about this aussie dollar? If you look at this chart again similar right rainer, should i be buying or selling, because if you look at this rainer, this is where the price is heading higher but rainer over here the price is heading lower, so should i be buying or selling hmm again? Don't complicate matters right if you are not sure, just go up one time frame higher so from the daily you move up to the weekly. So now now my friend, do you see how much clearer things have become at this point? Clearly, you want to look for selling opportunities right where, because, on the weekly time frame, the price is making a series of lower highs and lower lows.

Okay, so i hope this gives you an idea right to know whether you should be buying or selling at any one point in time and one golden tip that i have for you is this: if you are in doubt stay out, there are so many markets out There don't force yourself to trade, a certain market if it's not clear, so there will be times right. Trust me, even though you have applied the concept i've shared with you right, looking up a higher time frame, you will still be confused. I don't know whether you should be buying or selling hey stay out of the market. No one is pointing a gun in your head and tell you to place a buy order.

Okay, so with that said, let's move on now that you understand the first thing to look out for is market structure. What's the second thing number two area of value, so once you have identified the market structure, the next thing to look out for is: where is the area of value where my potential buying or selling pressure come in? Because, just because the market is in an uptrend, it doesn't mean that you want to be buying immediately, because the market might be ready for reversal. It might be about to make a pullback. So you want to trade from an area of value.

An area of value. Can be defined numerous way, it can be support resistance trend line, moving average channels, etc. So there are many ways to define an area of value and i'm just going to walk you through right, a few ways right to define it so moving on you see over here dollar against the turkish lira. If you look at the weekly time frame right, you would see that at this point, the area of value might not be very obvious, but when you pull out, let's say a moving average in this case, the 50 period moving average.

You find that this market tends to find value at the 50-week moving average right tested once over here twice tries uh almost four four times five times. So if you ask me, there's a good chance that you might find value again at this six dollar price point, which is a confluence of this uh area of uh resistance, and this is the 50-week moving average. So this is an area of value to look out for on the dollar against the turkish lira. Okay, next one, how about this one aussie against the swiss franc? In this case, you have multiple areas of value right.

You have the 50-week moving average again right, see this one test, it once twice twice almost four times, then you have your classical support resistance right. You can draw this one over here. This line right where the price previous support, which is resistance. Okay and same for this one, this area of resistance and there's another one over here as well.

So in this case right, you have multiple areas of value on this chart and it might even be possible to draw a downward trend line trend line as well. And, let's see one more example: uh how about the smp? Okay, so in this case the area of value - i would say possibly this over here - you can see that this is an area of support tested once twice and this third time over here very strong price rejection, and that's not all if you look back in time Right, you are able to draw actually an upward trend line going back 2009 financial crisis - something like this. So you can see you have multiple areas of value on this chart number one could be this area of support over here. Number two could be this upward trend line, which i can just do another parallel one to to define the area there.

You have it right. Multiple areas of value on this chart make sense okay, so this is how you define an area of value. So this means, when you are looking for buying opportunities. This is a potential area to look for buying opportunities.

This is another one. Okay, so once you have identified, your area of value doesn't mean you buy the moment. The price comes into an area of value, because you want to look for confirmation right that you know: hey buyers are stepping in right and you know ready to take the price higher. So this is where you move on to the third thing: to look out for the entry trigger.

This is what will get you into a trade? This is what will tell you: hey, rainer, oh, hey, john doe. Now is the time to buy right, so you are looking for an entry trigger an entry trigger. Okay, numerous form could be a simple price: rejection like a bullish, engulfing pattern, shooting star hammer or a break of structure on a lower time frame or a trendline break, or some people even use indicators right. You know crossing from over sold to overbought right as an entry trigger.

That's fine as well. So in this case let me just walk you through a few common entry triggers that you can use right in your own trading. So, first one over here, euro new zealand, eight hour time frame, let's have a look and see what it offers. So in this case, this is what i call a a price rejection or a false break at this point right this two, this two candle here.

Okay, you can see that this two candle actually took out this lows over here. This swing low over here right and then price reverse up higher bullishly back above this area of support back above this swing, though, this is what i call a bullish price rejection, a false break right where the price actually broke down below this swing low and then Reverse strongly in the opposite direction. This is one example of an entry trigger. That's not the only one.

Of course you can also look for what i call a break of structure. So if you look at the s p 500, the daily time frame. Okay, the number of lines over here - let me just remove it so, at this point you've seen earlier that the s p 500. It found area of support over here around the two three two one area and before in reverse right.

What you see right? The price action is that it made a series of lower highs and lower lows over here: there's another low, a minor low over here and another low over here right. So at this point right, if you look at the at this point right, you can see that clearly right, the sellers are in control, they're, just pushing the price higher, making a series of lower highs and lower lows. So now, a break of structure means right that the price has invalidated this existing market structure. So this market structure right now is making a series of lower highs and lower lows and to break it.

You need to make a series of higher high and higher low, and this is what happened all right at this point. You can see that the market made a higher high when he broke out of this swing high with a higher low. So this is what i call a break of structure and it's another entry technique that you can use right to get into a long trade. I mean you can use it for a short trade as well and it will just be a lower high and lower low.

Okay, so this is what i mean by a break of structure and finally, you can also use what we call a trend line break. So what you're looking for is in essence, right. Let's say market is in an uptrend. Okay - and you are thinking where, should i buy the pullback right? How do i time my entry on a pullback? Well, you can use a technique called the trendline break.

Okay, so again over here, you can see you can draw a trend line right from the highs over here. This is one trend line. There is possibly another one over here: okay and when the price breaks out of the trend line, in this case, let's say: broke out of this trend line over here. Okay, this one over here this trend line draw lower.

In this case, this one the price broke out of this trend line. You can look for buying opportunities to get locked so again, of course, right this trend line on hindsight it looks easy to trade right, so one tip that i have for you is this: is that sometimes like when you do or trade the trendline break? You don't want to be too early because if you see right in this case, if i have another trend line over here - okay and you trade - a trendline break, this might be either a losing trade or break-even trade. So one tip that i have for you is again let the price come to an area of value. First, then you trade, the trend line, break right.

I don't go too deep into it, because i will talk more about it later, but generally the idea is again: let the price come to an area of value first. So in this case the price is at the area of value. Then you apply the trendline break technique, this one quite almost there, so this one might be a little bit uh discretion up to your discretion, whether you're going to trade it or not. Over here you can draw another trendline break.

Okay, at this point, where the price came into this area of value, then you applied a trendline break technique, so this means right before you apply the trendline break technique. You want to make sure that price the market is at an area of value right before you use this entry trigger right. That's just one tip for you so now that you understand right the entry trigger you know how to look out for it. The fourth thing you want to look out for is the exit if you're wrong.

This simply is to ask yourself right: have i click like and subscribe to the channel? Well, if you haven't do it, then do it right now? Okay, so where was i yeah exit? If you're wrong see, i got carried away right exit if you're wrong. This means right is: where do you put your stop loss on your trade? At what level will the market prove you wrong? At what level will your trading setup get invalidated? So let me just give you a very simple uh explanation: okay, head and shoulders pattern right. You know what it is right. It looks like just three triangles like that.

So let's say the market breaks down below this line and you go short. So let me ask you at which point on this chart will this head and shoulders pattern look distorted? Will it look funny? Will it look wrong? Well, the answer is above the highs right. If you imagine the price breaks down, and it goes back all the way up high to this size, does this still look? Look like a hidden shoulders pattern to you not quite right. It looks like some.

I don't know some some mountains or whatever so clearly. This is where i'm coming from right. You want to place your stop loss at a level where it it invalidates your trading setup. Okay.

So let me walk you through a few examples right, because this is something that you will be using on every trade, so the first one over here is uh. Let's look at how about pound aussie okay. So if you look at pound aussie the weekly time frame, you can see that okay, where is the area of value so area of value? I would say it's possibly here, okay here here and let me just draw one more online. So let's say the market now is at this area of value and you are long.

Maybe there is a bullish reversal pattern like a hammer like this and you go long. So let me ask you right now at this point in time, right at which price point on the chart, would this setup be invalidated? Would this area of value be broken at which point on the chart right? Would the previous resistance that you act and support right be destroyed and i'm sure you can agree with me that if the price were to reach around this - let's say 180 level, okay or maybe just about here and clearly this area of value. This area of support right is invalidated. It's no longer intact, because the price has just breached through it.

It has broken below it make sense another example: let's say how about the aussie against the dollar the eight hour time frame. So at this point you can see that you have a series of higher highs and higher lows. So let's say you know you bought the breakout of this heist. Okay.

Now let me ask you at which price point on the chart right. Would you know that your breakout has failed okay? So if you ask me there are two possible levels: number one you can reference from these lows over here and you know at this point. If the price reaches this level, then clearly, when the price breaks out and comes back down, this breakout has failed right because it breaks out and then reverse down lower. I know this is a very familiar picture right because many of you buy breakouts, get caught stopped out and the market reverse higher again right, so so not trying to traumatize you.

But that is a logical place to put your stop-loss right at a point where your breakout trade has been invalidated. Another way you can put it for more aggressive traders. Is that if the price, let's say it, breaks out? Okay, let's say over here to see breakout level, it breaks out right and it comes back to the middle of the range here. Then clearly the breakout has failed as well.

It doesn't mean that the trend is invalidated, but it means that the breakout trading setup that you have traded right is invalidated right, because the breakout trade doesn't look like how a breakout should be like right, because if you imagine this, the price breaks out of this Highs - and it comes back down lower to the middle of the range, it doesn't quite seem how a real legitimate breakout should be like so, okay, so here are two possible levels to consider right, depending on how aggressive or conservative you want to be. So this is what i mean by placing your stops right at a level where it invalidates your trading setup and just one final example right looking at this one over here. If you look at this again, this is the five year bond futures. Again, you can see the potential ascending triangle, that's being formed right and a higher lows into this highs.

So let's say the market breaks out of this ascending triangle, at which price point would this chart pattern? Be invalidated? Is it over here? Is it over here or is it over here? So let's call this a let's call this b and let's call this c. What's your answer five seconds, one, two, three, four: five! The answer is c right that at point c, if the price reaches point c clearly, this ascending triangle pattern is invalidated. The price can go back to a or b, but you can see that the ascending triangle is still intact, because the the trend line is not broken. Yet this is the trend line that i'm referring to okay.

So this is a a very simple concept right, but it's useful right to placing sound logical, stop, loss, okay and that's the fourth part right, knowing when to exit when you're wrong and finally, where to exit. If you are right, what, if the market moves in your favor, where do you exit the trade so for this part right, you need to look out for two things. Number one ask yourself: are you trying to capture a swing or are you trying to ride a trend so using uh with different goals in mind, you would use different trading techniques so, if you're trying to capture a swing right, they want you to do is have A fixed target profit usually at swing high swing, low support resistance. Some people even use fibonacci extensions.

It's up to you for trailing, stop loss. You can use techniques like you know, moving average price structure, chandelier crosstalk there are many out there, but again, i'm just going to go through with you, the few popular ones right and if you want to explore further right, you can, you know, look through at the Other training materials out there so, first and foremost, let's talk about fixed target right. This is very simple. Let's say this is new zealand, okay, let's say eight hour time frame.

Let's say you know you have a entry trigger to go short right. Maybe there's this price rejection over here a bearish engulfing pattern. You went short and you want to capture a swing in this market, so ask yourself right. Looking at this chart right now, where might potential buying pressure come in because you're selling at this point in time? So you want to exit your trade before the buyers step in and push the price higher.

So if you look at this chart, ask yourself where might potential buying pressure step in and from the looks of things right, i would say they could possibly come in around this area of support somewhere here. Okay, so if i want to take profit, if i want to capture a swing, i would say the 64 price point right would be a level i'll be looking at to take. Profits, make sense, okay, great moving on what about palladium, okay, palladium, daily time frame. So if you look at this one over here right, let's say you happen to buy the breakout of this heist all right.

Let's just let's say hypothetically market is an uptrend, so let's buy okay, so you bought the breakout and you want to capture a trend. So what can you do? Well, one way to go about is using the moving average right. So what you can do is, depending on the type of trend you want to capture, you can use the 20ma for capturing short-term trend 50ma for capturing medium-term trend and 200ma. For the long-term trend, so in this case let's say you want to capture a medium-term trend, you can just overlay the 50ma and then trail your stop-loss right using the 50-period moving average.

So when the price closes below it right, then you exit the trade. So, in this case, you would, you know, write the move up higher swallow this draw down this retracement, but because it's not close below the 50ma yeah you'll still hold on to the trade. Then it goes up higher higher higher higher down retracing retracing ouch ouch pain, pain, pain, retracing ouch, ouch, ouch, ouch. All right, then you you get you exit the trade right when the price breaks and close below the 50ma right.

So this is how you trail your stop-loss using moving average and one final technique. Again i can share with you is using simple price structure, so you know that in an uptrend the market consists of a series of higher highs and higher lows. So at this point right, let's say again: hypothetically you bought the break of this heist and then you're on the trail using price structure right, you can see that the price hits up higher, retrace heads up higher and it returns down lower and breaks below this swing. Low, so at this point, okay, at this point, this specific specific price point: the price is broke below this previous swing low and you exit the trade okay.

So you can see that uh, it's not foolproof right. There are times you might exit the trade prematurely, but the key idea here is just to simply trail your stop loss using the previous swing low, the previous swing low, and to write the wave up wave up higher okay. So another option to consider so with that said, right, uh again, all right, we have covered quite a bit right. So let me share with you a few examples on how to piece the puzzles together right on the five things to look out for.

So if you still remember right what i've shared number one, we talked about the market structure first thing to look for is market structure. Number two is the area of value right. Where is the area of value number three? The entry trigger? What is the thing that will get you into the trade? What is the signal? Number four is the exit when you are right and exit when you are wrong, basically, where's your stop loss and where's your targets. If you are trying to capture a swing so yeah, so for this part, it's actually two right, this exit, if you're right or wrong.

So there could be another e over here right. This could be exit if you're right. This is exit if you're wrong. So, as you can see, this is what we call the may formula right, so some of you might be familiar with it.

Some of you not doesn't matter. So, let's walk through a few examples right and see how we can apply this may formula to your own trading right. It doesn't matter whether you're trading stocks, forex the daily time frame on the weekly time frame. This concept can be applied.

The same first example: let's have a look at the euro against the swiss franc. How about that right? So at this point right, what is the market structure of this chart that you're looking downtrend? Yes, great right, so we know that the market structure here is in a downtrend next thing area of value. Where is the area of value so from what i'm seeing over here right? We have a possible area of value at this area over here right where this uh is an area of resistance, so area of value is resistance. Number three entry trigger.

Do we have an entry trigger to trade this market? From the looks of things, i see a price rejection over here and then another price rejection over here, so multiple price rejection. I would say that is a entry trigger to short this market. So let's call it a pj right price rejection. Oh sorry, pr! Okay! What about exit if we are wrong right is the other e? Where will you exit if you are wrong, i would say at this point right where the resistance will be invalidated if the price you know reaches at this level over here, if you can reach this level, i would say: hey.

You know this resistance, it's broken and i should be out of the trade. So, yes, we have our exit if you're wrong call this the stop loss, okay and finally, exit. If we are right so again, this depends on what you're trying to achieve. Are you trying to write this downtrend or you're just satisfied with capturing one swing? If you're just happy with one swing, then this is a possible target right to exit your trade at this area of support.

Okay, so let's call it swing. We have this area right to capture this one swing, so this is how you apply the may formula to your trading right. Let's look at another example: canadian, yen again, what is the market structure? I would say, market structure is down right. Market is in a downtrend aerial value.

Where is it? I would say this is an area of value at resistance, so call it r entry trigger right. So this m, this is a entry trigger. Do we have an entry trigger at this point, not quite right, because the price is still a little bit off from the area of value, so this one not yet so once we how about exit? If we are wrong right, we know that if we have an entry trigger to go short right, we want to be out of the trade right if the price you know reaches around this 79 dollar price point, because you can, if you can reach the 79 dollar Price point then: clearly, this area of resistance is broken right and we want to get out of the trade okay, so this exit, if we are wrong, but what? What about exit? If we are right? How are we going to handle this? So maybe this time around, you want to write a trend, that's cool right. So what we can do is you can use price structure to to write the trend? Maybe the price comes up, get rejected, we go short and we continue holding the trade right as long as the price makes a series of lower highs and lower lows.

Okay, so this is how you apply the may formula. One final example: all right sounds good, copper right. So let's look at one final example. So when you look at this chart again, uh you're confused man right now, i don't know whether i should be selling or should i be buying.

Oh rainer said: look up one time frame higher, so let's do that right now, so you look at the weekly time frame. You see that hey, copper is actually in a long term. Downtrend right! This is simply a retracement right against this long term. Downtrend, that's great! So, looking at the daily time frame, okay, we could look for possible trading opportunity, but you know what let's go down: even one time frame lower and look for a break of structure sounds good.

So at this point in time right, you can see that clearly, the buyers are still in control. If you just pull out your trend line, okay, you can see that the price is still above this trend line. So what you're looking for is a break of structure. So the existing structure right now in this market is a series of higher highs and higher lows up trip.

So you're gon na see the price break below this price structure right. If you can come down lower, we test and break down. At this point, you have a lower high and lower low and your and your trend line right. Your upward trend line is broken as well.

So now you have a break of structure and this broken trend line, so that could be an entry trigger to go short right when the price forms are lower high and a lower low over here. So now you know that the market structure, in this case this one, is a little bit more advanced because you're using multiple time frame analysis but you're, seeing that yes, overall, the trend is still down your area of value. It's at this uh area of our resistance. Over here, which i think you can't see it, but if you look at the higher time frame, you said it's resistance.

Your entry trigger is a break of structure. What about stop loss? What about stop loss right, so this one is a bit special. So, in this case, right, you can reference your stop-loss at two possible options. Number one is at this swing high over here or number two, this one over here, depending on how aggressive or conservative you wan na, be so, let's say, you're more aggressive, you're willing to go with tighter stop-loss.

You can reference this highs over here, so your stop-loss can just be somewhere over here, because, if you think about this, if the price breaks down and then reverse back up higher, then clearly right, this trend line is not broken right. It's just pretty much a false break and you're wrong and you should get out of the trade okay. So this is a e exit. If you are wrong, what about exit? If you are right? Okay, so let's say if you want to capture a swing, you know that this is a possible area right where potential buying pressure could come in and this swingle over here you can look to talk, look for targets right at this area of value that this swing Over here, then, that could be exit.

If you are right, does it make sense? Okay, so these are the five things to look out for before you place a trade. I hope you got a deeper understanding of how this works and to do a quick recap, number one. Look at the market structure number two look at the area of value. Look for the area of value number three look for a valid entry trigger to get into the trade number four look to know where to get out if you're wrong right exit.

If you're wrong and number five, you must know where to exit. If you are right as well, okay, so with that said, i hope you got value out of this training uh. If you want to learn more, then what you can do is just go down to my website over here tradingwithrainer.com this link over here and just download. This guide the ultimate guide to price action trading, to learn more about price action in the markets, or if you want a little more about candlestick patterns, then this guide is really useful.

Okay and it really would complement right what you've just learned today. So with that said, i have come to the end of this training if you've enjoyed it smash the thumbs up. Button subscribe to the channel, and i will talk to you soon. You.