Hey hey: what's up my friends, so welcome back to this month's price action analysis, where i break down to you step by step the best trading opportunities that i'm looking at in the market right now, i share with you my thought process. The reason why i'm looking to enter a trade, how i'm going to manage it entries, stop loss and much more so to kick things off right. Let me just share with you two traits that i took recently one winner, one loser. So let's get started so the first trade that i want to share with you, it's new zealand.

So let me share with you the top process to this trade. Why did i enter? Where did i enter and what's the outcome of this trade? So new zealand, as you can see, i think we can go to the eight hour time frame so on this time frame. At this point i was actually looking at this market and i was bullish on it. I noticed that on this time frame, this market is in a nice bullish, uptrend containing a series of higher highs and higher lows, as you can see over here, higher lows, higher lows, higher lows - and we have this over here - where previous resistance resistance resistance became support And could become support once again, so where it caught.

My attention is when the price made a pullback towards this area of value towards this area, where previous resistance became support and then on the next candle. As you can see over here this one here, the price form a bullish, engulfing pattern where it actually engulf right over the last three candles, one two and three and close higher for this time frame the eight hour time frame. So what i did is, i went along on the next candle open, which is over here on this small bearish. Looking candle, i went along at the open.

My stop-loss is 180r below this low somewhere here and my first target is it's quite interesting for this one, because i noticed that this market - it has two swing high, this extreme one over here and this uh nearer one towards me, and i have no idea whether This market could easily break out of this level already or whether it will quickly. You know just blast through this level, so my plan is that i'm looking to take half my position at the swing high and i'll watch how the price section unfold itself right before i decided before i decided to take half the position off. So let me just walk you through what i was thinking. Is the market hit up higher okay, you can see over here i'm thinking.

Okay, it's still pulling back and now breaking out higher, i'm thinking, okay, the price might get to this swing high. So, let's watch how it reacts over here, so what i noticed is that he formed a doji closed down lower and on this candle he had another lower close on this candle here. So to me at this time my thought process. Okay, this swing high might hold.

The market, might now reverse back and hit my stop loss, which is somewhere about here. So i exceeded half my position at this level over here: okay, half my position is exited and the remaining half is still i'm just holding that trick. Then what happened next is. At this point right, i am looking to write the trend on the remaining half of my position.

So half position is exited for a small profit and the remaining half is still holding to see how much further the market could move in my favor. So the way i trail, my stop-loss was using three atr on the daily time frame. So if you look at the daily time frame, so at this point, okay was where i exited my trade earlier. You saw on the eight hour time frame.

So what i did next is that to trim my stop box, i just pull out this chandelier crawl indicator and my trailing stop. Loss is now actually just below this blue line. So, if the price at any one point in time, the daily time frame, breaks and close below that blue line, i'm out of this trade, so what happened next is that the market you know i continue to grind higher in my favor and recently did a small D, i'm not i'm not sure you can see, but i'm going to zoom in you can see that on this day, this candle it actually break and close below this, this purple line, so my trailing stop losses hit, oh rather it actually break and close below this Blue line, okay, so my trailing stop-loss is hit and i exited this trade. So, overall, this one is a is a winning trade for me now, on the other hand, let me share with you another trade that i took, but this one didn't quite worked out for me.

Okay, so thought process is very similar again on the eight hour time frame for this market and notice over here. Okay, so for this one again the market, i noticed it's in uptrend, so i was looking for buying opportunities. Price came into this area of value. This area of support and on this candle we have a very nice green bullish engulfing pattern.

I went along on the next candle open okay, so it was somewhere here. Stop loss one atr below this lows, and my first target was just before the swing high, where potential short sellers could come in. So i set my target right just before that swing high. What happened next is that the market did went in my favor a little bit before i just boom collapsed down lower, and i got stopped out on this.

This spike down lower and it's as you can see right now. What happened is that the market continued to rebound higher and actually kind of miss this uh. This huge chunk of the move up higher and it happens in trading right. You can have you can be trading with the trend.

You set a proper stop-loss and you still get stopped out and the market does 180 degree reversal and then you know, move in your direction. So it's really part and parcel of trading, and i want to share this with you because it happened to me as well. Okay, so these are the two couple of trades that that i took right and uh one went in my favor one didn't and if you look at in terms of the trading setup, they look pretty much similar. The concept is the same trading with the trend trading from an area of value and then having a valid entry trigger to enter a trade.

So, looking now at this week right, let me share with you a few trading opportunities that i'm looking at. First, one is the pound against the yen. This is the eight hour time frame and again you can see on this time frame. Market right is trending really nicely and if you overlay, with the 50 period, moving average you'll notice that it's also acting as an area of value tested once twice almost a third time over here and right now, it's kind of heading higher in the middle of nowhere.

So at this point, i'm not looking through to trade, the pound yen, i'm not looking to bind the british pound against the yen, because the price now to me it's in no man's land, it's in the middle of nowhere! So it's somewhere about here! If you think about this right, if i were to set a logical stop-loss, it has to go at least below this swing low and i usually set it one atr below it, which is probably somewhere here. So you can see that this is like kind of like my potential or rather the size of my stop-loss if i were to enter a trade right now. So what i like to do is to let the market come to me. Let it come to an area of value, and where is the area of value on this chart on this time frame and it's actually over here, which is i'm looking at this swing low over here? Okay, you can see previous swing.

High became a support and became support, and right now, i'm looking for the price to re-test this level around the 147.50 level. We have the uh this area of support, as well as this 50 period, moving average to act as a confluence. So what i'm looking for is for the market to form a bullish price rejection as what you've seen earlier on new zealand, yen, aussie, swiss franc, looking for a bullish hammer, a bullish, engulfing pattern for the price to quickly reject this level and close up higher. When that happens, i'm looking to buy a linux candle open, stop loss will be 180 below this lows.

Target right would reference either the swing high or this one over here, depending how the price react at these levels. That's for my first half of the position for the second half of the position i'll be looking to ride it right and to catch the trend right, if it does, you know continue up higher. So, in a way, half of my position will be exited as a swing trade, you know booking some partial profits and the remaining half is to write the longer term trend, because if you look at the trend on the eight hour or the daily time frame, it's Still generally to the upside, so i'm looking to you know right with the train okay, so this is pound yen. The first setup that i want to share with you.

The next one is a platinum, a commodity. If you look at this market on the daily timeframe again, the concept is pretty much similar market is in an uptrend and forming a series of higher highs, higher highs, higher highs, higher highs and higher lows, higher low higher low higher low higher low okay. So, like you know, karate movie high yeah, low okay, so so what i'm looking for is again uh again. The price has now made a pullback into this area of value, there's a previous resistance which could become support, and if you overlap the 20ma all right, you can see that it didn't really respect the 20ma to the to the exact level.

But generally you can see that around that area. You found price rejection right bounce here here here and now, possibly over here. So the way i'm going to trade. This is that this market now has shown you know signs of strength, the most uh second recent candle.

This candle here show that the price is, you know, close higher for the day, okay. So what i'm looking for is uh. I know historically, based on my statistical data. I've backed has a number of markets, forex and futures right, and i know that platinum right.

It's a market that, whenever it breaks above the previous day high or whenever it breaks below the previous day low, it tends to have follow-through. So, in a way you can call this like a a trending market, a market with momentum whenever it breaks above the previous day high or the previous week high, it tends to have a follow through. So what i'm looking for is that, since i already have a bullish bias on platinum, i want to use this on a stackless statistical behavior in my favor. So if the price, if platinum, can break above the previous day, high i'll, be looking to buy, placing a buy, stop order to get into a trade, stop loss again, just one atr below this lows and my first possible target just before the swing high and then To write the remaining half of my position to catch the trend, so i'm going to do a quick, uh stop-loss right to share with you how to actually set your stop-loss using the atr indicator.

So i'm going to search atr, i like to use 20 period moving average. I actually have it over here already, so you can see over here 20 period and i use sma. So what do you see over here for platinum, the value now it's about? If you look at the most recent atr value, it's about 50, you can see it's about 49.2 over here, but let's make things simple: let's say it's 50. So what you'll do is that you find out what is the low on this candle over here.

So it says that the loan here is about one one, six, nine, so we take one one: six, nine minus fifty dollars and you'll get about hundred and twenty one thousand one hundred and twenty dollars. So one one, six: nine minus fifty dollars. This is the low of this candle here. 50 is the atr value, which is i rounded up a little bit, and what happens is that you're gon na get about one one, one, nine or one one, two zero.

You know plus minus one two dollars not gon na make much of a difference, so my stop loss will be at this level here, as you can see one one, two zero somewhere about here and i'll be buying on the break of this previously high over here. Okay, first possible target again just before this swing high, possibly before they won the 1320 level somewhere about here and i'll, be looking to write the remaining half of the position to see how much this market can move in my favor, because after all, i'm still trading With the trend, okay, so one last trading setup that i'm looking at this one back to the stock market. So, let's have a look, so it's c-a-l-x, which is over here so for this one over here. You can see that this stock right nice, beautiful uptrend calyx and you can see that daily time frame forming a series of higher highs higher lows, pretty much a no-brainer up frame.

So where is the area of value now? We know the trend is up. The next question is: where is the area of value, so what i'm looking at is two possible area of value. One is over here and then one it's over here. Okay, so there's a two possible area of value to pay attention to and if you want to overlay with the 50 period moving average, you can see that it's also acting quite nicely as an area of value tested once twice three times over here.

So i would say the 36 dollar is the first area of value to look for and possibly by then the 50 period moving average would have. You know, caught up with the uh with the price, and you have a two confluence factors coming together. Let me just redraw that okay, this is the area of value around here, where previous resistance could become support. 50Ma will probably you know, inch up higher when the market makes a pullback, i'm looking for a bullish price rejection for the price to head up higher close back above there's a previous resistance which could become support looking to buy on the next candle open, stop loss 180 below this lows first possible target just before this swing high over here, okay and again, the way i said, my stop loss is using the atr technique.

If you just pull out the atr indicator, you can see the atr failure is about two dollar and twelve cent as of right now, so the concept is really really the same, whether you're trading, fx stocks or whatsoever, and by the way, if you're, enjoying this training Right what's happening right now, is that for a limited time until this weekend, i actually have opened up the doors to my premium training program. We have a couple of programs. We have the ultimate price action trader, which is this one here? Okay, you can see it over here the ultimate price action trader over here - okay, so this program right really focuses on helping you become a price action trader to trade, without indicators, new sentiments and much more. So it's a discretionary nature and the other one over here is called the ultimate systems trader this one over here right helps you to trade, the markets in a systematic manner.

You know, without looking at charts, without doing much technical analysis so depending on which method you prefer and if you prefer both. We have something called the ultimate trader: bundle where you can get both of this a special training program at a discounted price. So really the link i'll put it below this video or, if you want to manually, you know, go to the webpage. You can go to trading with reynold.com special again.

This offer is just until this weekend i'll put the link below this video. You can check it out if it suits you. If not, i wish you good luck. Good trading, i will talk to you soon.