Hey hey: what's up my friends, so welcome back to today's training, where you will discover professional price action patterns that work now, here's the thing right. I get it as a discretionary trader, sometimes you're, just wondering when is the best time to enter a tree. You know you know sometimes rainer. I enter a trade too early, i get stopped out.

Sometimes i wait for confirmation. I enter the trade too late and i realize i bought at the highs how rainer how how so this is. Why, in today's training, i will share with you a few price action patterns that has worked for me right and how you can implement to your own trading all right and get results with it doesn't matter what markets, you're trading or time frame as long as it's A liquid market uh the time frame right moves uh in a liquid manner, meaning it you know, goes up and down like a normal market right. Then you can apply this uh strategies and techniques that i'm about to share with you.

So price action pattern number one is what i call the false break. So this pattern is for you if you want to buy low and sell high, okay and and here's what i'm looking for number one. I want to see a strong power move into support. Number two: i'm looking for the price to trade below the low of support and then close bullishly above it.

So it looks something like this. Let's say the market is in the range it goes up down up down right, so i want to see the price come. You know uh bearishly, into support right, the bigger the bearish momentum. Candle is the larger.

The range of the candle is the better. Then i want the price to trade below the low of support. So let's say this is the low of support. I want a price to trade below it and then close back up above support, closing bullishly back above support.

So the reason i'm looking for this is because, when the price trades below the low of support right, there will be breakout traders who are looking to sell the breakdown and when they sell the breakdown and the price does a 180 degree reversal. This group of traders they are now trapped. They are now in the rate they are in losses and chances are their stop. Loss is probably at this level here here or maybe even here.

So this means right, as the price heads up higher it's going to trigger the breakout. Traders stop loss and their stop loss is actually in essence right by stop orders, because if you shot the markets right, your stop loss will be a buy, stop order. So when this group of buy stock orders is hit right, it will fuel more buying pressure to push the price higher. So this is what i'm looking for in a false break pattern.

So let me share with you a few examples, so this over here is uh. The es d s p 500 weekly time frame - so you can see over here this one over here - is the area of support somewhere here notice right how price approached support notice. What i mentioned earlier, strong bearish momentum coming in, so you can see it over here. Coming into support the next candle, we have a false break, the price actually trades below the lows of support, which is this low over here, and it closes right bullishly near the highs of the week, not the most bullish way, close extremely near the highs, not the Extreme highs, but you know, i would say, still rather bullish, okay, so this is what i call a false break.

Price action pattern: okay, so this allows you to buy low and sell high, as you can buy near the lows of support or sell near the highs of resistance, like this example here. So, if you look at this again, concept is the same. If you look at this chart, i just zoom out a little bit. You can see where you are in the grand scheme of things.

This is the highs of resistance. Okay price tested once twice third time over here notice, how the price approach resistance. I said that i'm looking for a strong power move, ideally the candle, nice and bullish like this big candles right. This one even has a gap up even better.

So now it has trade above this high. So you can imagine that traders they are long. The breakout right, they think the price is going to explode higher right now, let's buy then the next candle is where they got trapped right. It's what we call the falls break so notice on the next candle.

The price did a sudden reversal and closed near the lows of the day. This is what i call a false break pattern right, where you can, you know, uh shot this market with relatively low risk, as your stops can just go above this heist, i would say somewhere about here, okay, so this is what i call the false break pattern. So one more example: aussie canadian you can see over here on a four-hour time frame - even area of support - is here: okay notice how this market again came strongly into support right this scandal, bearish bearish and then this third candle sudden reversal, closing up higher back above Support again traders who, who you know when they saw the market, get down lower? Oh market is going to collapse. They go short on the break of this lows, guess what they got trapped? Okay.

So this is what i'm looking for for this uh simple price action pattern number one: a strong power move into support; number two: wait for the price to trade below the lows of support right and then make a sudden reversal higher, closing bullishly above support all right. This is what i call the false break: price action pattern and just you know, vice versa, uh for short, trades, okay, so moving on number two, the break of structure pattern; okay, so this allows you right to to catch the turn of a new trend with low Risk so often right traders, they want to trade reversal the problem with such an approach right, sometimes that there's no logical place to set your stop-loss. You know the market is breaking up to new highs and you suddenly you go short. You know, because you think you can't go any higher and then you got stopped out, and the problem with trading reversal is that there is no price structure that you can lean against to set your stop loss.

So what this technique allows you to do is to you know: let the market show signs of weakness first, before you take on a position right and catch the new wave of the trend, and you can also define your wrist right, relatively uh, with low risk on This particular pattern i'll explain to you, so what you're looking for is again right: number one: a downtrend approaching support area number two you're looking for a higher high and low to form right against the downtrend, otherwise known as a break of structure. So let me just illustrate to you simply: let's say this: let's say this line over here is a key area of support and the market comes into support right, pretty bearishly, you can see a downtrend right series of lower highs and lower lows. So what you're? Looking for in this uh pattern is for the market to break this existing downtrend structure, so you're going to see the market rally up higher and then make a pullback okay on this pullback is key. You want this pullback right to have small range candles.

The range of the candles must be tight must be small, because this would tell you that the sellers have difficulty pushing the price higher. That's why the range of this candle here is small, then, when the price breaks out higher when it breaks above this highs. At this point, you have a higher high and higher low and we, so this is really what i mean by a higher high and higher low against this existing downtrend. So this in essence right.

This portion here actually broke right. This prevailing price action structure, it formed a higher high and higher low at this point, okay and vice versa, for short trade. So let me share with you a few examples, so you can see where i'm coming from first one dollar against the norwegian chrono chrono. So you can see over here this black line over here is a key area of support.

I know you can't see this because it's quite zoom in so what i'm going to do is to zoom out okay. So i'm going to zoom out, you can agree with me that this is a key area of support. Okay, this is the previous area of resistance, then now previous resistance that could act as support. So the key thing is that, let's say you are looking at this chart right in the real time right at the most extreme right end of the chart.

You have no idea. Let's be honest, you have no idea whether it's going to break down or it's going to reverse. I myself. I have no idea, but i would say it's going to go up because this is a cherry pick chart.

That's why i think it's going to go up. Okay, but in real time you have absolutely no idea whether it's going to break down or reverse. So this is where you know you can use the break of structure technique right to read the price section of the market. To give you clues that hey, you know, buyers are stepping in and about to push the price higher and you can use that right to time your entry towards the upside.

So here's what to look for all right, remember. I said we're looking for a break of structure, so this is the first wave right over here price has, you know, made this first wave up higher now on the pullback right, the key things on the pullback. We want to see a small range candles. We don't want to pull back right to exhibit like such bearish momentum that you have seen previously like this type of bearish momentum.

We don't want to see this right, because this is telling you that the sellers are in control and you know they're still uh in having strong momentum right with the sellers. You don't want that to happen. You want to see a weight pull back, so the range of the candles must be nice and tight and shallow. So you can see over here.

Look at this. Just compare right, use your eyes and see the type of pullback over here. Compared with this right. You now see the difference.

This range of the candles is much tighter. The range of the candles here are much smaller compared to this one over here. So what this tells you is that sellers right they are still present, but not as strong as before, and how you can enter the trade is very simple right. If you notice this weak pullback over here, you can just simply go with a buy stop order.

Above this heist and go long, okay, so in this case, that's what happened and again for stop loss. It's very simple! You can now reference this lows to set your stop loss. You can put it like, let's say, 180 below this lows somewhere here. Of course, there are some traders, which are even more conservative.

They reference this area of support to set their stop-loss. That's fine as well, if that's what you prefer, but now you have options to play because you have swing low. That now you can reference against to lean against to set your stop-loss okay. So this is how the break of structure uh technique works.

Now, at this point, some of you might be wondering hey rainer, why why not this one man you know over here? We have a higher high and higher low as well. If you look at this right at this point, price made a higher low and a higher high. Why don't you consider this one as a buy point? Well recall right: i say that when you trade a break of structure technique, you want to watch the pullback right. You want it to be weak.

If you look at the size of this bearish candle, it's pretty large. This tells me that hey sellers are still in control. I have no no interest to buy at this point. I want to see a weak pullback and this weak pullback pretty much exhibit at this point over here where i've shared with you earlier.

Okay, this is the weak, pullback notice. The range of the candles right relative to the earlier ones there's a huge difference. This one here is much smaller telling you that the sellers are getting weak. Another example right dollar.

Against the same, why is this my home-based currency? So same thing over here right over here. Why did i draw this black line? Because this is a key area of resistance right? You can't see this, so let me just zoom out okay, so you can see that over here previously tested once over here. Maybe it's tested more than once right, but uh. At this point, i think this is uh as much as the number of bars i can put on this chart so over here.

What i'm looking for again same thing, right, break of structure. So at this point i have no idea right whether the price is going to break out higher or lower. In fact, at this point, if you ask me, i would say, the buyers are still in control. It has formed a series of higher highs and higher lows consistently.

Okay, so is it higher swing low, higher low higher low? So i would say the buyers are still in control. So for the break of structure to occur, i need to see a series of lower high and lower low. So at this point this is where it occurs. Right notice, here again same thing: look at the range of the candle on the pullback.

This is weak right notice, the range so small. Previously the range is large right. This candle is big. This is big.

This is big and then, when he tried to stage the rally again to continue the uptrend, something happened right, the bias. Somehow you know the strength went missing right, like hey, wait, where's the strength man, you know where's the the bullishness that he had previously it's gone. So this is where you know you would feel safer right to shock this market to shot this reversal and again right. Uh, your entry could just be the break of the swing low.

Could either be this low or this low over here stop loss. You can reference from this swing high, this wing high here or this swing high here, depending on how conservative you want to be okay. So this is what i mean by the break of structure, so one more example before we move on to the next price action technique. So again, this one here is the s p.

500. Okay. So if i look back in time again, you can see that this is a key area of support. So again, looking at a break of structure, i zoom in a little bit, so you can see at this point again.

I have absolutely no idea whether the price is going to break down lower or reverse higher. So i let the price action of the market right speak to me: hey raider, i'm about to break up higher yeah. Let it speak to you right. Don't anticipate, don't predict! Let the market unfold itself from then on right.

You can, you know, manage your trade, you can time your entry, you know, set reasonable, stop loss so again right. This is where the breakout structure occurred. Nice reversal up higher at this point. Very nice candles are pretty big and bullish, but i'm not ready to buy it because again, i have no idea whether the sellers are still in control.

I want to see the pullback, is it weak or is it strong? So i'm looking for the pullback to be weak. So at this point you can see that the pullback yep it has pretty much mellowed down a lot previously a pullback. You know strong bearish momentum, candles, strong bearish momentum, candles and even here, but when you look at the most recent one, the size of the candles has been reduced dramatically. Okay, so this is where i feel you know.

Okay, you know i'm it's much safer to enter the trade right now and again. I have levels right that i can use to set my entry and stop loss break above this highs. I can look to buy then stop law, so i can go below this swing. Low over here, okay, so this is what i mean by the break of structure technique so moving on the breakout with a build up.

Okay, so this technique right allows you to identify high probability, breakout, trades, okay, so uh two things to look out for right: the market has been ranging for 80 candles or, more ideally at least 80 right is the usually the guideline i use because the longer the Market has been, it's been in the range right, the harder it tends to break out, and then another tip to share with you is that you want to see a consolidation, a build up form right just before the breakup. This allows you to have a tighter stop loss and that improves your risk to reward on the trade, and the 20ma is very useful right to help you identify build up on the chart. You're gon na see the 20ma support the price right just before it breaks out, and i'm gon na share with you a few examples so over here: uh new zealand, yen. Okay, you can see that over here before this okay to the naked eye, right to someone who is new to trading.

You know you see. Oh the price breaks up high over here. You know they. They can't see why that's the case, but to an astute price action trader the signs were there.

Okay, of course, this is a cherry pick chart right. Of course, right things could could uh go in the opposite direction, so this is why you know whatever stuff that i share with you here. Okay, please right validate it. Do your homework.

Do your own research right to see whether the concepts and strategies i teach whether it works or not right, you don't just want to take what i teach at face value trade it to a live account. Then, when you lose money, ah rainer's a scam, he's a fraud, doesn't what he's talking bs dude, it's all on you, i'm just sharing with you. What has worked for me, but what has worked for me doesn't necessarily will work for you. So take it validate it test, it take accountability.

So, as i was saying right so, okay, you can see over here. This is an area of resistance. Okay - and you can see that over here, you just calculate the number of bars from the start of this range to the end right. We have about 80 candles, so where i was talking about the 20ma, a build up is basically this portion here.

This is a tight consolidation and resistance. This is a sign of strength because it tells you that buyers are willing to buy even at these higher prices. Buyers are willing to buy at resistance. This is a sign of strength, and one way to tell right when the market is ready to make a move is to overlaid with the 20ma, doesn't matter whether you're using ema, sma or mma.

What, whatever just pull out the 20 period, moving average overlaid on the chart? You want to see the lows of the build up right touch the 20ma, and in this case right it has you already touch and cut through 20ma. This is a good sign. This is where you can see. Volatility of this market is contra contracting right notice.

The range of the candles getting smaller and smaller, okay and in this case, is what i call a breakout with a build up and to trade it. It's very simple just simply place a buy, stop order above the highs right and you can get long stop loss is one atr below this lows somewhere here, okay, so this is what i call a breakout with a build up so another one bitcoin. So it works on. You know: fx cryptocurrencies stocks.

The concepts can be applied. So let's look at bitcoin as well. So again, look at here. This is the area of resistance.

Okay, price come into resistance, so i want you to pay attention right notice, how the price approach resistance here and compare it with the false break price action pattern that i shared with you earlier. Do you see the difference? Do you see a key difference here which actually results right in us taking different trade direction so for the false break? Let me just do a quick, quick recap right. If you look at the false break the way, the price approach resistance is that we are looking for a nice strong power move up higher strong bullish momentum move, but for the one that you're trading the breakup with a build up, you don't want that. You want to see all right, a stair-stepping price section, like you know, you're walking up the stairs right step by step up up up up right.

This is what we call a stair-stepping price action. You want to see a up format, resistance, a consolidation and again 20ma is a useful tool right see when i overlay the 20ma notice how it has touched. The lows of this build up right. This build up is slightly different because it's more of a ascending triangle pattern right higher lows into resistance, but the concept is the same: it's telling that buyers are willing to buy these higher prices.

Okay and again, entry trigger is very simple. This that's actually the easiest part right. The harder part is understanding the context, understanding the. Why? Behind the pattern and recognizing the pattern, entry is always just.

You can use a buy, stop order or wait for the market to close above the highs, simple stuff. So again a buy stop order above this highs and your stop loss. So i can just set it one atr below this lows somewhere here: okay and uh. Really for me, i find that there is no point showing you the outcome of this trade, because the process is what method i can.

You know pick a chart, fabulous outcome, but when you trade it right and you realize - hey man, rainer mainly rain - is garbage man. He showed me all the winning trades on the chart, but when i trade it, i have losses like dirt. Of course you have losses right. The reason why i picked this chart, so i illustrate my point - is because it's easier to pick.

You know uh cherry pick charts to illustrate my point. No point for me. You know picking chart that you know uh proved my concept wrong. It's harder for you to kind of you know picture it.

So this is why my charts are cherry, picked and as much as possible. I don't really want to focus on the outcome of the trade. Where is it going to be a winner? How much profits you'll make it's irrelevant, because the process is what matters so another one right. Let's look at stock, then right so to kind of share with you that hey you know these concepts can be applied across across the board.

So same thing, here, amazon, look at this right. This is a slightly different variation but notice the price again approaching resistance all right. It forms a build up over here with a mini ascending triangle pattern, and this one is nice right because it actually shows you that you might actually suffer a loss on this trade. So you can see that over here we have a false breakout over here on this candle price, actually trade above this heights.

Then it forms a bearish engulfing pattern and close near the lows of the day. Okay, you may or may not get stopped out depending on where you set your stop loss. If you set your stop loss, let's say 180 below this lows or below this lows: you'll probably still be in this trade, but if you set it smack just under this lows, right you'll probably get stopped out, but nonetheless right uh. You can see that the the market continued all right.

The build up has hole up. It has held up itself right notice. What happened is that in fact, a mini false break over here right. So this is now the new range of this build up and again right, buy stock order, buy, stop order can go above.

The break of this highs. Stop loss 180 below this lows of the build up okay, so this is amazon and last but not least, right. This one over here, the five-year treasury note futures market, so over here uh. You can see that the 20ma.

This is the key area of resistance, okay and notice right how this range of the market right. The volatility of the market has just simply died down. If you look at this price action previously market is volatile, right range of the candle is huge, but recently over the last few weeks, volatility just somehow went, you know, just you know, went for a whole day. You know maybe uh you know covet has you know, caused them to be not feeling too well.

So anyway, volatility is low right now, so yeah you can see right again right if price breaks above this highs. That would be a valid entry trigger to go long again. This is the build up that i'm seeing over here nice, tight consolidation, stop loss right. Can reference from this lows of the build up 180 below it to set your stop loss again? Some of you might be thinking that, especially those who are new to my videos uh.

What is a 180? Our stop-loss, you know uh after this video is over just go to youtube. Google, i'm gon na go search for trading. Brainer atr stop loss. You'll get your answer.

Okay, so this is pretty much what i mean by you know: break up with a build up. Bonus tips right, number one. Yes, this price action patterns focus a lot about your entries, but your entry is not everything. Remember if trading is all about entries right, then you know, all of us will be pretty done rich right, but entries is just one part of the equations.

You have your risk management, your trade management, your time frame, the markets that you're trading - and i want to talk about two important aspects. Besides your entry number one have reasonable stops right, so you don't get stopped up prematurely because here's the thing you can have amazing fantastic sniper like entries. But if your stop loss is too tight, guess what you will get stopped up before the market can move in your favor? So don't be such a! You know: a cheap skate. Okay, have reasonable stops.

If you have difficulty, you know placing your stops. You can just follow the techniques i just shared with you earlier. Identify the swing high and swing low. Add some buffer to it.

Like you know, one atr that usually would put you in a trade right or put you in a sweet spot where your stops is not too tight or not too large. Number two have reasonable targets right, so you don't want your open profits evaporate before your eyes, because some traders, i know right they they set their entry and they know right that. Oh, my risk to reward must be good, so they risk one dollar and their profit target is a 1 to 10 risk reward ratio. So their target is so far away doesn't make sense.

The market doesn't care where you set your targets. It goes where it needs to go so a brief and quick example. Okay, so let's say you are trading the false break. Okay, go up come down, go up, come down price, did a false break pattern right.

You went long when you set your target, don't set it here, don't set it here. Why is that? I would say a more conservative approach is to reference this area of resistance. This is where the market could come up and find and have difficulty. You know breaking above it because this is an area of resistance and if you want to set target right, set it below resistance somewhere here, so you have a good chance right of taking profits.

Sure you can set it here and here, but you must remember: the market has a lot of obstacles to go through to before it can reach your level and chances. Are it may not even reach your level so have reasonable targets? If not you just you, don't see the market because in your favor reverse and stop you out, because your target is just so far away. Okay, so those are a few bonus tips for you and quick recap right number one. We talked about the false break pattern.

This is where you can buy low and sell high. We spoke about the break of structure, so we can capture the a new trend right at the start of a new trend. And finally, we talk about the breakup with the build up to identify. You know high probability, breakout trades and last but not least, if you want to learn more about, you know: price action trading.

I got this guide over here called the uh ultimate guide to price action trading. Just click on this guide or the orange button right and enter your email address or send it to your email for free and you'll. Learn how to you know better time your entries exits. We talk about market structure, support resistance, candlestick patterns, so much more right.

There will take your price action trading, uh skill set to the next level. Okay, so with that said, i wish you good luck and good trading. I will talk to you soon. You.