All right everyone. So the topic of today's episode Price Action Day Trading Strategies. So I want to talk a little bit about this. Uh, today.

It's about just a little before 9 A.m I. I'm hoping that we'll also get some opportunities to take some live trades which will sort of put Price Action trading strategies on display. So those tuning in here for this live broadcast. Thank you guys for being here! Today is Thankful Thursday.

So I wanted to do this, uh, special broadcast and for everyone that hits the thumbs up. I'm going to donate a dollar to charity. so please hit the thumbs up with that thumbs up. Today you are actually donating a dollar.

You're doing it through me. but hey, do it all right and that's great. It's good for good for charity and it's good for Youtube. It's good for the algorithm.

So thank you guys for being here. Thank you for hitting a thumbs up. Let's go ahead and jump into Price Action Strategies. So I'm going to actually switch to my whiteboard here.

Let's see. Yeah, I'll just stay on the whiteboard Big. So Price Action Strategies: When we're talking about Price action, this is a very common phrase. You'll hear active day traders mention Price Action.

I'm watching Price Action. I'm trading Price Action. What is a Price Action Strategy? What does Price Action mean? Price Action is literally looking 100 at the technicals. This right here is Price Action.

This is the visualization of the stock moving. So Price Action. As I look at it as a day trader. this is.

Uh, this is the chart. These are the candles moving up. So the price action here, the Pr, the price, and the action is moving up. The price action is coming back down.

A Price Action Strategy is a strategy that focuses exclusively on the charts. You are not looking really at fundamentals at all. Now I say that because you don't form your bias by using fundamentals at all as an active day trader. However, you know the reason that we're trading Sigma or Siga.

Whatever. Siga today and I already made some money on it was because I had Fda approval. So that was the fundamental catalyst. which is the reason that the stock is up 22 and you can see my P L here.

I'm up 3 000 on the day. So as always my results are not typical. But I show this to you. the real P L, the real deal and these are my real broker statements.

Actually, this is the um, beyond my broker statements. So you guys know beyond a shadow of a doubt that the person that you're learning from today is actually a profitable trader. As of the end of uh, last year, I had produced 9.5 million dollars in a profit right there from a starting balance on January 1st, 2017 of 583. So 583 to 9.5 million.

And that was trading Price action, Price Action every single day for years. All right, let me switch back to the whiteboard. Okay, so when we're talking about Price action, what we're looking at are individual candlesticks. As you probably already know, a candlestick chart has four pieces of information.

We have the open, the close, the high, and the low, and so a candle that looks like this right there that is formed by price action. The stock opened, it dropped down, and it closed. Here, it hit a low which is the bottom of the wick and it hit a high here, which is the top. Now this is a red candle.

A green candle inversely opens, closes has the high and the low, so the open is at the bottom. There we go, and this is the high. Oops, sorry, this is the high and that's the close right there. So when we look at these charts, each one of these candlesticks represents the price action for that period of time.

So Price action strategies are focusing almost exclusively on charts and candlestick charts. Especially now, some traders who are really focused on price action. They'll actually take almost all their indicators off the charts. So if we remove the volume weight, average price.

If we remove the nine moving average. if we remove the 20 moving average, we are just looking at candlesticks on this chart. All right. Now, if we look at a stock from yesterday Dpsi, this is the one that I traded and did pretty well on yesterday.

This was the move that we got and you can see how if you take all of those indicators off the charts, what are you working with? Here, You're working with a stock that popped up from six dollars up to eight. it then pulled back down to a low of 650 and then curled back up. So as you look at this chart, sometimes it really helps with price action strategy to keep it simple just to look at the chart and just not have the distraction of other indicators at least initially. And so right here you've got this pullback, the through the high, and you've got another pullback right here.

So these pullbacks, of course represent potential buying opportunities. Now what I like to do is, I like to look for the first candle to make a new high. and you guys know that. So here's a stock.

Nero that just popped up. So nero. Uh, the float's pretty low, so I'll buy that there. 422 right? First candle, make a new high.

That's a micro pullback. Now I'm gonna add 445. Watching 445 added right there. And then there's profit as it breaks through 450..

So a winner on that trade of about 500. Look at this price action. This is a price action setup right here. Buying this dip.

Now my and I know this stock. I'm familiar with it. This stock just had news that got posted right at 9 00 A.m reports that Quell Wearable device received Fda authorization. All right.

Now that right there was a micro pullback. My fill on the order was a little high. Uh, the high. This candle was 29.

I filled a 22, but that's a price action strategy buying the dip. So right, here's another dip for instance that's forming on this chart. The load there was 14.. add it back at 18 to buy the dip and now looking for the pot back up to 28.

That's a quick profit. That's not a huge winner, but that's a price action strategy. The high here is now at 50 so we could put a new order at the high of 52.. there you go And it followed through and broke through the high so I took a little off the table too soon our new high is 60..

Now the Price Action Strategy is going to tell us to wait for the next pullback. So we wait for the next pullback and then watch it again. We're looking at multiple time frames here all at the same time and this is what a lot of traders do. You can see at the bottom left, uh, bottom right.

I've got my 10 second chart. Very short time frame. so each one of these candles represents just 10 seconds of time. Up here, we've got a one minute chart.

This is a more popular time frame for most traders and we have three green candles in a row starting with the breaking news from 3 40 up to 4 40.. the high is 460 and now we're starting to pull back here. Now we can note that the volume weight average price is at 429. this is helpful as part of price action strategy to start layering on helpful indicators, but you don't want to put too many indicators on your charts because then you get analysis paralysis where you lose sight of what is most important which is the price action of the candle.

So you've got first pull back there, you've got second pull back there and as this is pulling back again, we are now forming our first pullback on the one minute chart, but of course noting that the volume weight average price is quite high. We do want to be a little cautious because it's almost coming below view app. If we back this chart out, we can see that Nero was hitting our scanners, so this is a tool that I use to of course find stocks that are moving quickly. It's up 35 which means it's the leading gapper in the market right now.

I'm going to put this chart over this one so you see how we're pulling back a little bit more here. I bought the dip there at 4 12. I'm trying to buy the dip off of that 20 moving average on the 10 second chart and I want to see if we break through 425. So there's 420 on the ask, there's 423.

I took profit at 420 On the ask, This is a bottoming tail. The high is 24, New order goes at 426.. that's a dip trade off of that 20 moving average. So that's again.

Price action strategy. Buying the dip off of that moving average. Most traders who trade price action will add a few indicators to help them better understand the context of where the price is. So we have our candles which we need.

We need our candles obviously candlestick charts, but then what we're going to do. Let's see. Um then what we're going to do is we're going to need. Let's see.

Let me get rid of this. So what we're going to need on this is our moving averages. So we've got on this one. We've got candle, one candle, two candle, three pull back dip and then first candle comes up.

But then when we have the moving average here, this is what helps us understand that this is support. All right. So now let's look back at this chart. So the high This candle is 42.

We did make a new high, the high a day is 60. but we're pulling back again and you can see that this actually is taking the form right now of a false breakout candle which is not my favorite. So what the chart is telling us right now and the price action. It started to move higher and then it immediately reversed.

So each of these candles communicate a message. these two candles at the top both communicate some degree of indecision because they're both Doji's They both have a bottoming tail and an upper wick. So that's this candle here. and this candle.

here. Both of them are Dojis. So when you top out on two Dojis in a row, those are potential reversal indicators. It doesn't mean that you can't take a bounce off of a technical level like, uh, the 20 moving average, but it's still an indicator of a possible reversal now, right here.

The first one minute candle makes a new high, but it doesn't go all the way back to the high of 460, which is what we would have wanted to see on Siga on this one. On the one-minute chart. let's back this up again. Price action strategy here.

Check out this pullback. That one went right all the way up to the high of 980.. But then right there, this red candle. false breakout.

So the first one worked, the second one didn't Now is there any indicator that one setup is more likely to work or that it's not as likely to work? What I focus on is making sure I'm trading the right types of stocks. I want to make sure that I'm focusing on stocks that number one are high relative volume. And so for context here, the relative volume of Neuro is 626. That's 626 times higher than average volume on a typical day.

So the average Volume. of Neuro on a typical day. Uh, let's see, I'll just switch to this chart has been. well.

yesterday's volume was 10 000 shares and today it already has 1.3 million. All right. So very high relative volume. On Siga, the relative volume is 8 000.

the volume yesterday 275 000 shares. The volume this morning already. Siga is How many million shares? Five million? All right. So trading on extremely high relative volume.

Why is high relative volume important? It signals number one catalyst that there's news and high interest stock. So many traders are watching it. All right? That's what we want. We want lots of traders to be watching it.

More eyes on it means better resolution. So this price action here. The reason you get these high volume bars is because thousands, millions of traders, Hundreds of thousands of millions of traders are watching these stocks when they start to pull back light volume on the pullback, and then traders who missed that first move. They see this as an opportunity to get in this stock that's been strong.

So price action is the language of the financial markets. Just like traffic signals are the language of the road, You need to know the language of the financial markets. Otherwise you're going to be blowing right through obvious red lights, so to speak. Obvious cell indicators like gap fill resistance, topping, tail doji, an inverted hammer, shooting star.

you're gonna. you're gonna buy right into that and not realize there's a red flag and other people are stopping. So you should Shouldn't be surprised when you don't see volume at that type of breakout because there is a red light there. You just haven't seen it.

Learning Price action empowers you to better understand what is happening right now in the stock, so you can predict what's going to happen next. Ultimately, the best traders are the traders who can predict the future. Now, we can't predict the future with 100 certainty, but you know you look at the accuracy of any trader. My accuracy maybe is 68 69.

That's pretty good, right? So you know that that's what you're That's what you're looking for. 65 70 Accuracy You're predicting the future pretty well. and the way we do that is by understanding price action. So this is, sort of, um, in a way.

I suppose this could be the first, um, the first video of a series on price action I'll have. I do have some other videos that I'll be uploading um in the coming weeks that will tac sort of tag on to this topic so I might put a link. um, right up here. I'll put a link on how to read stock charts right there so you guys can check that out when I get it posted and I'll post another video a couple videos at the end of this so you can check those out.

So right now it's about 10 past nine, I am still of course watching the market for opportunities to take more trades. Let's go back to Nero and see where it's at. So this is actually setting up. Uh, I'll take along here.

This is first five minute candle to make a new high. So now we're going to look to add on Nero through 455, watching the ad and then that extension is what we want to see through 60.. So you see that there's a 10 000 share seller. I don't like seeing a big seller like that.

Let's see what it does. I'm going to unwind the position flat. I jumped in there at 40. I was expecting it to break through 50.

it hit a high of 52. but did you notice that 10 000 share seller? So now we're combining levels of analysis. We have the price action and the price action is giving us confirmation. The price action says buy right here.

that's a green light. The high a day is 460 but then the red light is actually coming from our level two. So the best traders you're watching multiple indicators at the same time and if you miss on one of them you know obviously that could be a problem. The seller was at the ask at 50 the half dollar.

So you have to be able to layer on this level of of analysis to your trading. So a price action strategy you could trade it on. You could trade it on the daily chart. But the problem with trying to swing trade price action strategy is that when you're holding stocks overnight, you have to be thinking about the implication of earnings.

You know things that are happening in the company. Uh, watching. I'm still watching. Uh, neuro.

I'm leaving my order at 4 455. You have to be aware of the fact that does this company have an S3 shelf registration filed with the Sec? Uh, you know what is their balance sheet when their next earnings call? Because all of a sudden you could be in a trade focusing on price action? The news comes out and it drops 40 overnight and that happens. I mean, we see that happen all the time. If you look at the bottom of the gap scan today, the biggest gapper to the downside is 20 overnight.

You know that's a big haircut and that's on a two billion float stock. So it's a big company that can happen. So really price action for me? I you know again, there are hedge funds out there that use price action for you know, multi-million hundred million dollar short-term trades where you know they're buying a stock. I mean, look.

um. Bill Ackman recently bought Netflix, took a multi-billion dollar position as it gapped down. Uh, right here. So news came out that he acquired a big position around 400.

It bounces back up. but then he ended up. bailing out Right here. They had their next earnings call a court one quarter later.

Three months later and it dropped. and it dropped hard. So he ended up taking a loss on that. But to me, that was kind of like a price action strategy oxy.

Uh, Warren Buffett's been buying this. This is a bit of a little bit of a price action off the low. What's kind of funny here is that I believe Carl Icahn sold out of his position. He had gotten really underwater on it, but he may, I don't know where where he finished.

He might not have lost money, he might have gotten out when it started coming back up. So you know, in any case, you can do some price action strategy on um, you know, mid caps, large caps, and a swing trading. But I'm really focusing on it as a day trading strategy. So what's the price action now Telling us on Nero? Well, this five minute candle has one minute left and it's kind of a false breakout because we made a new high, but we didn't go higher.

Now is there any warning that that might have happened? One warning is the fact that this is so extended off of these moving averages. Super extended off the 9, the 20 and the view app not as much, but it is extended right so again. Now, when you start to layer on these additional levels of detail and analysis, the Moving Averages The V Web It starts to help you form your bias of whether or not you're going to take this particular trade. Um, one of you know there's there's an infinite number of indicators that different traders use.

You've got Rsi relative strength index that a lot of traders like to use, we can apply that. You've got Macd, which a lot of traders like to use moving Average Convergence divergence. So price action traders use these different indicators to help them predict the future. I mean, that's what that's That's the reason.

it's to help them predict what they think is going to happen next. And some traders really believe that these are very, very helpful in their trading and and and they very well, maybe. But you have to use them consistently. If you're not using an indicator consistently, you're not going to find a lot of success with it.

So you have to use it on on every trade. You have to use it consistently and you know if otherwise, it's just sitting there and you run the risk of analysis. Paralysis Where you have this sort of, um, you know, just too much stuff going on and then you start losing sight of what's right in front of you, which are the candlesticks. You don't want to lose sight of the candlesticks because that's that's really where it's at.

Now I use level two in my trading, so I've got the level two right here. I mean, that's part of my strategy because I'm a day trader and I trade pretty quickly. But um, is there's traders that don't use level two And that's okay as well. It just depends on what your hold time is.

So right now, we actually have an Abcd pattern on the one minute chart, but we don't have really great multi-time frame alignment. Multi-time frame alignment is when both the One minute and the five minute chart are telling us the same message. they're both giving us the same signal. that same green light.

The one minute is giving us a little bit of a green light here because you've got this wedge that's forming right? So that's the price action. The price action pops up. It pulls back, it pops up, it pulls back. and hey, by the way, those tuning in for the Morning show here on Youtube.

Uh, this is a special episode on Price Action Day Trading Strategy and I said for everyone that hits the thumbs up, I'm gonna donate a dollar to charity so let's see how many thumbs up we can get here. Uh, before the opening bell. I'll get my um, I'm gonna get my uh my paypal up here so I can send a uh, send a donation as soon as the morning show uh ends. All right, so that'll be ready to go.

So what we don't have here is multi-time frame alignment, right? So this is a one-minute chart. So each candle represents one minute of time. This is a five-minute chart. Each candle represents five minutes of time and the five minute is not set up as well.

Because it's so extended now, it could still go. It could. and sometimes they do. But they're better when you have multi-time frame alignment.

That multi-time frame alignment is what. So there are traders out there that don't even use the one-minute chart. they're only using the five-minute chart. Those traders are not going to buy this right here because they're going to say no, it's to extend.

It hasn't pulled back enough. I can't trade it. So what that does is it takes all of those traders who are. Let's say, you know you've got one minute, five minute.

You know, 15 minute whatever traders. And let's just say you know the these are all your day traders. and maybe you have 50 percent of traders who are one minute traders. You've got 30 percent who are five minute traders and you've got, you know, 15 percent who are 15 minute.

And then you've got maybe a smaller group of traders who are trading on. Um, you know, what is this? The 30? So 80, so 15? So another 15 percent here, or 10. Whatever it is, Whatever it does, doesn't really matter. So you've got, um, it's five percent.

So you've got these traders all sort of. you know, segregated in different areas of. the market. So what you want is multi-time frame alignment.

Because then you have all the traders coming in and taking that trade. And what does that mean? That means more volume, more volume, bigger breakout, better resolution right here. So that's multi-time frame alignment. That's what you like to see.

But we know that a lot of day traders are using the one minute chart, so even if we only have a one minute setup, we can still take a trade on. and a lot of times that's fine. If we have one minute and five minute alignment, that's preferred. If we have even longer term alignment, that's better, because then you're just going to have more of these traders that are trading on longer time frames coming in and their volume is all going to fuel the breakout.

All right. So let's jump back over to our chart here and look at the price action. So Nero predictably here, is pulling back a little bit. This is not surprising.

now. you could take the inverse position and go short on it on this break of this yellow ascending support trend line. It's also looking like it's breaking the volume weighted average price, so that would be fine. You could, you know you could? You could take that trade if you wanted to.

You can absolutely use Price Action strategies for small caps, mid caps, and large caps. There's no question about it trading on the one minute chart and trying to do quick breakouts on large caps is probably not going to be as successful as doing that on small caps, so just be aware of that. And that's just simply because small cap traders small caps are so popular because they're great for retail traders. The price is what makes them so attractive.

You know the small cap stock here. Neuro? it's up 40 today. 40. That's huge.

So see how we broke down and now we're coming back up. That's called a false breakdown. It broke down. Now it's retesting this level and you have to be a little bit careful because the fact that it did that whip shows that it's a little bit.

You know it's a little choppy, but we can watch it here and see if it wants to break through the high. I would watch this as a micro pullback watching watching the tape right now. so I have the price action, but now adding there at 48. So that's a tape trade watching the tape and that is a technical trade that was a micro pullback.

Those who have not already checked out my micro pullback strategy, I will put a link down below. You can download it if you'd like. All right, we'll actually we'll pin that link to the top of the comments here. uh, on Youtube.

We'll also put the link down in the description. So if you want to download my micro pullback strategy, you can check it out. That trade was A. It was like a 300 winner, 400 winner.

Is it a home run? No. But it's a small trade that's a micro pullback. and that is absolutely a price action strategy. And that's the strategy that I was using almost exclusively in my last small account challenge.

Because I find that micro pullbacks they're They're instant. They either work or they don't And that's what I like as a trader. I like to get in and have it working right away. Your best trades work instantly.

Your worst trades. You get in and you're in the red instantly. So you want to make sure as much as you can that you're focusing on. you know, focusing on those kind of instant resolution type of trades.

Uh, can you put micro pullback link on the Youtube? Thanks. All right, so I'm just sending a message to, um, a member of my team. We'll get that link posted right here on Youtube. I want you guys to check that out if you want to learn a little bit more about the micro pullback strategy.

It's a price action strategy. Okay, so we've got eight minutes to the opening bell. Um, thank you guys again for uh, being tuned in here today. Let's see.

let's so so the way I have my charts set up and the indicators that I'm using, I've got my candlestick charts of course, right? keeping it simple with candlestick charts and then what I add are a couple of indicators. I add the volume weighted average price keeping it simple and I add the 9 ema so that's an exponential moving average and I add the 20 ema. so the 9, the 20 and the volume weight average price. Download the micro pullback strategy Pdf here.

All right. So there you go guys. I just posted that. Um, we got that posted so you'll see that and it'll be pinned to the top.

All right, Seven and a half minutes to the opening bell. So as we get closer to the open, many of you know that I trade pre-market very actively. I do like pre-market trading. Um, so at this point on Nero, you know we're kind of churning a little bit and what's happened here is that we broke this descending resistance.

We came back down and now this yellow line is being tested. see how we broke above it? and now we were testing back below it. Now, depending on how this line is drawn, this is always a little bit subjective because different traders will draw these ascending lines a little differently. But the high there is 56 and our pre-market high is right around 60..

So watching this, hey girl, hey sorry about that. Uh, so the high here 60. I'm going to take along there 55 because I think that we're going to ascend through 60. So I'm trying to time this and then What I actually want to do on this is I want to add over 65 and 70 for the pull away, adding at 65 and now I'm going to look to add at 70, adding at 70.

We're watching this pulling away as we're getting closer to the opening bell. So next ad is going to be 75. this is a nice breakout. We're at 50 right now, so watch over 70.

So this is a spot where I hold and then I'm going to look to add at 73 for the break through this level, adding right there, 73 and then there I can take a little off the table. lock up a little profit. That was a micro pullback right there. Uh, it was a little premature, but it was a micro pullback so we dipped right here.

and then we popped up to a high of 76.. So now I'm holding 2500 shares and we've got a high up there. At 76, my average is 462. I want to see it break through 75 and go up to 85.

we do have the 200 moving average, which is another technical level right there at 519.. I'm going to unwind a little bit more profit on this and go down to smaller size. Let's watch to see if this now pulls back and tries to retest this yellow line right here. So that's called a high a day break.

And then we have a small micro pullback on that. So the volume on that candle. It's a topping tail. So the price action.

It's actually a shooting star. So that is a shooting star candle right there on the one minute chart. That's reversal indicator. But we're coming back down to support at this yellow trend line.

So we've got yellow support right here at this. Uh, this trend line. Support ascending support. I'm going to dip trade at 62 buying the dip off this level off that pullback and then I look for back up to 67.68 That's a fine trade.

So you see how you have that little wave of pullback and then you look for the wave back up and this is what I do. I'm a price action trader, so the strategy that I'm trading is just based on price action. I'm watching the level two, I'm watching the charts, and I'm trading the range back to flat on the rest of the position. So sitting right now at six thousand thirty, nine dollars and ninety six cents with about four minutes to the opening bell trading.

Price action. All right. So um, what I'm going to do for those that have been tuning in on youtube, I want to thank you for hitting the thumbs up. We're going to donate uh, to charity today.

So for every person that hits the thumbs up, that's going to be a donation to charity. Thank you guys! One dollar for every Uh thumbs up! So appreciate you guys! doing that. You're helping, um, pay it forward and so we're gonna do a donation. This morning, I will post a link on the Youtube channel.

for those that want to learn a little bit more, I'm going to post two links. I'm going to post a video right up here to my pre-market trading strategy and I'll post a video right there to the simplest day trading strategy, how to get started trading. So I'm going to have those two videos right there and I encourage you guys to keep watching. Keep studying.

Reminders always that my results are not typical. Trading is risky, so take it slow. Practice this simulator before you put real money on the line. I can't make any guarantee you'll be profitable, so take it slow.

I hope you check out those two videos and we'll see you back here first thing tomorrow morning for the morning show on Friday.