Hey hey, what's up my friend! So in today's training, you will learn. You will discover the price action strategy that I have been using for the last seven years. And once you master it, you'll be able to spot trading opportunities like this. All right.

So the best part is this right. This trading strategy that you're about to learn can be applied to the stock markets, the Forex, Market or even the cryptocurrency markets, right? So here's a breakdown of what you learned today. Number One, I'll walk you through the basics of this trading strategy, right? You know what are things to look for: the market conditions, the entry, the exits, the stops. Target Etc Once you understand that we can move on to the advanced stuff, right? Because here's the thing.

right when you look at the chart, there are so many support resistance areas to trade off. how do you know which are the higher probability ones that you want to focus on? So you have low risk and high reward trading opportunities. And once you understand that, we'll then move on to the final section and share the secret right to capturing explosive moves in the market before it all happens. Okay, so all this and More in today's Trading sounds good, Then let's get to it.

Okay, now let's get started with the basics of this price action strategy and then later we move on to the advanced stuff. Right on. You know how to identify high probability reversals, capturing explosive moves before it occur, and stuff like that. So for this basic price action strategy, we are looking for a few things.

Number one, we are making sure that the market it's in an uptrend. Okay, so you can see over here the price making a series of higher lows higher lows, higher lows, higher highs higher high High higher highs and pretty much this trend is towards the upside. Number two, we want to make sure that the price comes towards an area of value. So what is an area of value? So area of value can be things like support and resistance area where buying pressure could step in to push the price higher or areas where selling pressure could come in to push the price lower.

So since this is an uptrend, we want to look for area of value like support So Now question is, how do you find support in this uptrend? So to identify support right, I have a full flag training somewhere on my YouTube channel. You can search on it if you want to learn more. But the brief uh, overview over here is you want to look for points swing points on the chart right where the buyers have Ste in to push the price higher. So some swing points that I can see over here is this price came down and push up higher.

This is another one. Price came down lower, push up higher, then made a pullback and then push up higher. So these are all the key swing points that most Price Action Traders would pay attention to. So this a potential area of support on the chart and I'm going to highlight this particular area out.

this one here. Okay, so why is this significant? Okay, so uh. first look at this price made up a move up higher, made a pullback and then break out. So this over here is previous resistance price, then came back and test previous resistance which could become support.

So this is a very common phenomenon where price breaks above resistance and it could come back and retest as support. Likewise, if the price were to break below support. okay, break below support, it could come back and become resistance. So over here it became in support and then bounce up higher once again.

So this over here is a potential area of support. So Now that we have identified our area of support area of value, the next question is, when exactly do we enter the trade? There are professional price action traders who just have limit orders. They blindly just enter from the area of value. but for me personally I prefer to wait for an entry trigger, a confirmation that tells me that hey, you know the buyers are stepping in to push the price higher and to look for entry trigger.

Uh, there are two very common Candlestick patterns that you can pay attention to. Number one is what we call the hammer that looks something like this. The second one is what we call a bullish engulfing pattern. So price let's say comes down lower lower.

Then there's a red candle over here. Then what happens is that for the bullish engulfing pattern, the next candle is a green candle that engulfes or cover the body of the previous candle over here. So this is what we call a bullish engulfing pattern and this is a hammer. So these are usually the two most common bullish reversal.

Candlestick patterns that you will likely encounter. So let's see what happens. So in this case the market came towards this area of support. So Now this is where we getting.

Prime Getting ready. Hopefully your alerts have you know, trigger you and let you know. Hey Rainer the price is at support. Pay attention.

Yeah, that's what you want. Okay and let's see what happens next. Boom, we have a hammer Candlestick pattern. So what's the story behind here? So the story is pretty simple.

Market is an uptrend the price then made a pullback towards this area of value. this area of support. So on this day the sellers or rather the market open at this price point and sellers took control and push the price lower. Near this lows over here.

at this point, right? many Traders will think man rer this Market is bearish. Support is broken short, short, short sell. Okay, and what happens next is that the buyers then stepped in and push the price up higher closing near the highs of the days. So in this case would you want to be a seller or a buyer? So if you think about this right, there are number of factors in your favor.

Number one, uptrend, number two at an area of support where you know buying pressure could step in and I'm three you have a hammer Candlestick pattern telling you that hey there are buyers stepping in at this point in time So at this point I hope you are looking for a buying opportunity. Okay so for me personally I would prefer to be long at this point in time. so what you can do is go long on the next candle open. So let's say next candle the market open here.

Let's say entry. We put it in green to Signal our entry point. Okay, I'm just change this to Green Okay now what about our stop loss? Where should we set our stop loss? Okay so let me just remove this box over here to declutter things. So when it comes to stop loss, there are many ways to do it.

There are traders who like to set it just be below the lows because they think that hey the price reaches this lows the trade is invalidated on to get out of the trade. But for me personally I have seen many times right where the market reaches this lows over here and then it revers and goes up higher back in my favor at that point I Want to smash my head against the wall? so I don't want that to happen to me. So to minimize that occurrence, what I usually like to do is to set my stop loss a distance away from support the distance away from the lows. so usually somewhere about here right? you know.

So again, if you don't want to agaa you don't want to, you know have this subjective element of you know where to set your stop loss. You can use a tool like the average true range indicator to help you with it. So this is the average true range indicator at the bottom in case you're wondering. man R where do I find this So let me just walk you through.

Okay, just going to going to remove this go to indicators search for ATR Click on this Tada It's out for my settings I go with usually the SMA 20 period because there's 20 trading days in a month and right now the value is about. You can see over here 1.221 Okay so now how how do we interpret this value? Very simple. What what this means is that over the last 20 trading days this currency pair Swiss Frank against the Japanese Yen moves and average about a120 per day. Okay, so using this number in mind, right, we can actually find out what is the low of this.

Candles of this swing low over here and then minus 188r. So let's say uh, looking at this over here, this swing low. It's about 137.5 So I'm going to take 13715, 13715 and minus 1 ATR and you know the ATR value is 1.22 I mean I can be a bit more precise and put 1.221 but I'll just make my life easier. Yeah, so I'll take my trusty calculator 137.5 minus 1.22 and that gives me 13593.

Okay, so with this value in mind, that is where my stop loss is going to be. Okay, so let me just walk you through 13593. So I'm going to set this over here I'll change this to rate and I think I'll just change this to 13593 and that will be my stop loss. So to so in essence right, what the stop loss means is that from this swing low to this rate, line over here is a distance of 180r.

So that is basically the volatility of this Market that we are taking into account so that we don't get stopped up by the you know sudden spikes down or spikes up in case if you are short. So moving on, where do we set our Target Where do we take profit? So when it comes to taking profits, there are many school of thought. There many ways to do things you can you know have a trailing stop loss to right Massive Trends or you can look to you know just capture that one swing one move in the market. So in this case let's say we go with uh swing trading to capture that one swing.

So usually for the swing trading rule we usually want to set our Target before opposing pressure steps in. So where is opposing pressure? Where could opposing pressure step in? So if you look at this chart, over here is where I would say opposing pressure could possibly come in because it's an area of resistance. Yeah, so this is where again an area where you want to set your target. So in this case let's say we set our Target before this area of resistance.

Okay let change it to Blue as our Target. Yep, so there you have it right. Our entry stops and Target and if you want to take things a step further, you want to find out. Hey Raina what's the risk to reward on this trade? Well we can actually use a tool like this.

uh uh, what? This one here right? Oh sorry this one here click long position right then you you click on this green line that I've drawn earlier. just adjust this stop loss one to this red line, the top one to this blue line. and then we see what number does it give you a risk to reward of about 1 to 1.15 So you're risking a dollar to make potentially A15. and if you think about this, you're trading in the direction of the trend Your winning rate usually should be better than 50% So you can see that in the long run that this strategy right should give you a positive, expected value, positive expectancy.

And do you want to see what happens to this particular outcome of this trade? Let's find out. Okay, so yep, clearly pretty much reach your target relatively shortly because it's a cherry pick example, right? Because uh, this is basically to help you understand the concepts that I'm teaching. So the examples in this training video they all cherry pick again because it helps you to understand easier. But in the real world of trading, you will have winners.

and you have guess what losers right? So don't be surprised right when you encounter losers along the way. Okay, so you have understand, right? the basic strategy. Okay, if you don't, I'm just going to do a super quick recap just for you, right? So identifying markets which are in an uptrend. Okay, coming back towards an area of value like support Looking for a bullish reversal Candlestick Pattern: Go long on the next candle open or you can use a limit order stops the distance below the lows.

Target just before the recent swing High Pretty straightforward stuff, and if the market is in a downtrend like what you're seeing right now is just the inverse. So now the next question is that you know man, right now you know when the market is in an uptrend. There are so many area of support which are the ones should I pay attention to. Great question.

Okay, so one way to go about it is to utilize this concept of what I call some Traders call, call it Confluence I call it a stack area of value where multiple area of value comes together that makes it even more powerful. So there are other ways to Define your area of value can be using moving average trend line Etc But today I want to share with you another concept that you are probably not familiar with. and it's uh, using the Open The quarterly Open Right. This is a tool technique that I learned from a Trader Aset.

So what exactly is a quarterly open? So let me explain. So Quarterly Open Right? Basically, in a year you have four quarters January April, July and October. So the first trading day of each month, the opening price of the first trading day. that price point is the quarterly open.

Okay. So let's say for example, January 2nd for example. okay, January 2nd. All right, the Market opens.

the first trading day of January opens at let's say $100 Okay, so the $100 is the quarterly open for that quarter. So the $100 right is the quarterly open for the quarter of January. So you can actually project $100 all the way right to the end of March And that is the quarterly Open. And to make your life easier, There indicators to help you with it.

Uh, there's this one over here which I use. Just going to show you where to find it. If you go to settings so you can see, this one is called DW Mqy Op. Okay, I'm just going to remove it so you know where to find it.

just go to again. Indicators: Search for Quarter Open and it's by this guy called Copelli. All right, Caelli. All right.

Click on this. Whoops. Click wrong thing. Click on this over here right and that indicator will be shown on the chart.

right? Where is it did I Not click it? Let's try again. Quarter Open. Come on Cachell there We have it all right there we have it. Yep, there it is.

So I go to settings. I Typically just want to show the quarterly open. You can show all the other opens right? Uh, but not for now and then for the sty. I Think uh, just leave the quarterly open one there.

There you have it. Okay, so I just going to show you on the chart how it looks like. There you have it the quarterly open. So in case you want to see the settings again, I Just set the quarterly open quarterly.

Open Click Okay, and what you're seeing over here is a series of dotted lines and those are pretty much the quarterly Open. So if you look at, let's say this one over here. This is start of July the 1 trading day of July. You can see that the dotted light on this day's opening price, it projects all the way right to where we are right now.

Same for this one over here on the first trading day of April Opening price project all the way you know to where it is right now. notice how straight my line is. Not bad huh? Maybe Can you know be RT is right part time. So anyway, you can see over here the Quarterly Open.

These are prices that you know ahead of time and these are potential areas of support and resistance on the chart. So I'm just going to zoom out a little bit and see how this Market respects the quarterly Open. So look at this over here. Quarterly Open Price breaks above it before it came back down lower and about to retest it once again here.

Not bad, right? This quarterly open price came into it had a bounce break below the quarterly open and retest previous support which could become resistance this case. There's no test over here, but if you treat it as a zone right, you can you know say hey, not too bad as well in this case, quarterly Open Here price is consolidating below the quarterly open before it hits down lower. This one quarterly open here, right Price breaks through it and then face some resistance right at this quarterly open before it breaks out higher and retest it once again. Same for this is a quarterly open price retested.

Slight bounce retest bounce up higher, came back down lower. hit up higher before it breaks below the quarterly open once again so you can see that. All in all right, this market right The dollar against the Mexican PES Right it does. You know.

Respect the quarterly open So that's one potential area of value that we can look at. We want to see where they is respecting previously if it does great. Next thing, if you look at this currency, pair notice. over here.

it tends to retest previous support which could become resistance. So if you draw here right, this is previous support projected out right became previous support became resistance resistance. How about here previous support right becames become resistance. How about here previous support becomes resistance.

What about here previous support which could become resistance. Okay, so let's see right what happens next. So now the price. We have two potential area of value to trade from.

okay from this smaller one over here and then this area of resistance right over here. So let's see what happens. So in this case, the market head up higher into this area of resistance and then boom right. we have a bearish reversal Candlestick pattern I Think this.

this is what you call a dark cloud cover. Yeah, so at this point again, you have multiple factors going in your favor. Number One Price is in a downtrend, number two, it got rejected off this quarterly open as well as this area of resistance so you can put Qo plus resistance. Okay, so can you see how this stack area of value is coming together? and number three, you have this, uh, bearish reversal Candlestick pattern.

Yeah, so this to me is again right. Uh, multiple factors coming together right to help me trigger right this trading setup. So of course if you want to enter the trade, you can just simply go short on next candle open. Or if you want to be a chip skit I'm usually a chip skit I Like to place a sell limit order just to get in at a better price, right? So if I see the market closes here sometimes I might just place a sell limit order a few Pips higher.

Let's see over here. Okay, somewhere here just to see if I can get Fi at a better price. So let's say Green again Is our entry all right? Let's see if we get fill in this case. Boom right? We pretty much did on Next Candle.

we got field again right, stops and targets right I'm not going to go into too much details, but stops is usually a distance above the high somewhere about here. I Just put this to rate. So this is my stop loss and Target usually I said it before this recent swing low if you want to capture That Swing So somewhere about here. Okay so I'm just going to change this to Blue Okay so in this case right.

Uh let's see what happens next. So again, this is a cherry pick chart. You can see that uh, the market Consolidated while before reaching our Target right and in this case it then continue to Rally up higher. So you can see that the the concept of Swing trading that I'm trying to share over here.

Why I Don't like to set my target at the extreme end of the lows because support and resistance. it's an area on the chart. It may not get to the lows of this support before it red up higher. so if your target is usually to a bit too far right Beyond support and resistance area.

let's say somewhere about here or here or here you may not get fill and then you'll see how the price then reverse against you and then hit your stop loss. So that's the reason why. usually when I set targets is usually a bit more conservative. right is before support and resistance right on my charts.

Now besides the quarterly open you can also use other type of opening prices right to Define your area of value. So this going to be fun right? Pay attention. And by the way, if you're enjoying this training so far, smash the Thumbs Up Button if not hit subscribe. So as I was saying right, the quarterly open is one way to define your area of value.

But it's not the only way right you can use. So some other open that I find useful are, let me just list up over here for you. Number one, We talk about the quarterly Open right? That is, uh, useful. Okay, number two, the yearly open is useful as well.

yo yearly open and number three. the previous year's high or the previous year's low is useful as well. Okay, so where do you get all these indicators all free on Trading View. Let me just show you so the yearly Open I can just go through here I Just show you the settings.

Just look for yearly open levels right? Just go to indicator. you search for yearly open right? Something is going to pop out right? Uh, and you know, just just go ahead. I Believe this is the one I'm using Yearly Open Levels by Jim Hilum I Believe So right? So you can see yearly open levels. Uh, the other one would be the previous year high or the yearly high low high low yearly.

So again, go to indicators search for high low yearly. Uh I Believe this the one I'm using. It's uh, this one over here by Repo 32. Okay, so this is the one.

So again I have all this indicators are up already. So I'm just going to just need you know uh, release them right on the charts as and when as I need to. So so again. right? Uh, nothing has changed.

The price action strategy is still the same number one. We're looking for a market or a stock in an uptrend. so this stock is pretty much in an uptrend. Okay, so as you can see in an uptrend, you have multiple area of value to trade from this one here.

This one here. this one here. this one here. Raina Which one should I choose? I Can't decide? You know, like choosing Gfri right? Just pick the one that you know make you the happi.

No, not that right? So anyway this example again using the concepts which I've shared with you, we are looking for stack area of value. So this is where we can you know. bring the yearly open, the quarterly Open, and see you know where it lines up. So let's bring out the Yearly Open.

Boom. Hey, not bad, right? This area of support coincides with the yearly Open. Wow. Interesting.

Now what about the quarterly Open? Let's find out. Boom! Wow! The quarterly Open is also near the yearly open and this is an area of support that you can see on the chart. H Let's see, what about the previous year's high and low? How about that? Let's pull it up. Boom! Wow.

This red line right? So what is this rate line? Let me just explain. So this rate do line pretty much represents the previous year's high. So you can see that right now is 2023. The high of 2022 is demarked by this level over here and the lows of 2022 is Dem Market by this low over here.

So that explains why this blue line over here is the previous year low and this red line is the previous year's high. So what's important now is to pay attention this area. This area is what I call a sweet stack area of value. You have multiple levels coming together, the quarterly open, the yearly open the previous year high and an area of support when you see such trading opportunity.

Please please please tell me right sometimes I might even miss this opportunity out. So if you see please tell me, drop me an email, let me know R Now you know this has multiple stack area of value. Pay attention thank you I would appreciate that. Yeah, so this again right is an area of value worth paying attention to.

So what do you do next Again, look for a valid entry trigger to go along. Could be a hammer Candlestick pattern a bullish engulfing pattern, a false break setup. Etc So in this case let's see Market hit towards this area of value. Boom right starts to bounce up higher but still not a valid entry trigger.

Boom hitting up higher at this point again some Traders might for more have the fear of missing out. a Chase again I Don't chase the price comes to my area to trade off or I skip the trade altogether. In this case, price didn't came back down forming something like a hammer Candlestick pattern but closing near the lows of the day and then boom the next candle we have this green candle showing signs of reversal. So at this point okay, this tells us that hey, you know the buyers or rather the sellers tried to break below the lows of this price point but fail notice how the price came down lower taking out the lows of support but couldn't as the buyers then step in and close near the highs of the days.

So to be honest I I find that you know buying near this highs right is a bit too too. uh, too much for me. I prefer to get in at a slightly better price. So what I'll do is I'll usually have a buy limit order to see if I get filled or not if I get filled.

Great! If I don't get filled, never mind. I'll move on to the next trade. So let's say I place a buy limit order somewhere here. Let's change this to Green Okay then let's say my stop loss is again.

As you know by now, it's usually 1R below the swing low. Let's say somewhere about here I just change this to rate as my stop loss. Okay and let me just remove all the opening prices so it doesn't clutter the chart. Okay, and you can see much better now.

Okay, so my entry will be somewhere about here. Stop Loss somewhere about here I'm I'm not giving precise levels because again, you know how to do using the ATR method. I Shared with you earlier. So let's say the next candle open you can see I clearly I would have gotten field right as the market actually did open at a lower price or or rather not not open at lower price but rather open here and traded near the lowest of this for this day, but since my buy limit order is here I would have gotten filled anyway.

Now what about Target So earlier you learned how to capture a swing and now I want to talk about how we can actually write Massive Trends in the market. So if you just zoom out, you can see this stock is pretty much in a nice uptrend and capturing a swing? It's not wrong. It's a perfectly legitimate way to, you know, trade the markets. but there are some traders who thinks May R Now on right, Massive Trends You know, bigger the better, Big is good.

Yeah, so how can I do that many ways you can do it? You can use you know, uh, indicators. uh Market Structure Etc So one simple technique to share with you right now is you can use a tool like a moving average. So I'm going to pull out the simple moving Average indicator Dem Market by this blue line. Okay so this is a 100 day moving average.

Click! Okay and so what this means right is that you can actually continue holding your position as long as the price is above this blue line. over here and till the price closes below this moving average this 100 day moving moving average. then you exit the trade right so there one way you can go about trailing your stop loss. So in this case all right.

As I mentioned right, it's all cherry pick chart. So over here you would have hold this, continue holding this trade as the price didn't close below this blue line. So continue holding and you closes below it which is somewhere about now, still not yet there. We have it on this candle, it closes below the moving average.

This is where you exit the trade thereby giving you the opportunity to write uh trends at the market. Of course when it comes to Trend following, bear in mind that your winning rate is usually below 50% because you know you are giving your trade quite a bit of breathing room to breathe right? So this is why when you the longer term trends that you capture, your winning rate naturally will go down. So don't get shocked and realize hey man R now why is my winning rate only 40% Well that's because when you are right right, your winners. are you know, a lot bigger than your losers? Yeah, All righty.

So we've covered quite a bit so far in this training. so earlier you've just learned how to identify high probability, high probability reversal areas in your chart. Now now we're going to talk about how you can actually get into trades right before the boom, right? The big moves occur. So to do that I need to explain to you a concept about volatility.

So volatility in the market is very interesting. It's not static, right? Volatility in the market has a cycle, right? It moves from a period of high volatility right where the market you know, so crazy every day and then it gets quiet. You know, for weeks or even months and then boom right? Volatility explodes up higher once again. So to illustrate on the chart, it looks something like this, right? Market expands out higher, Then volatility gets quiet, starts to tighten up, and then you know, breaks out either higher or lower.

Okay, then it goes quiet again and then maybe possibly break out higher this this time around. So you can see that the market, right? The volatility moves in cycle so clearly. Right when you want to get into trades before the explosive moves occur, you want to do it in a low vol ility Market Environment. And how do you spot such low volatility environment? So pay attention to the Chart right.

You typically want to look for tight consolidation on the chart, so in this case I have one over here. So this is the volatility of this market, right? The the price isn't isn't really going anywhere, just kind of like chopping up and down within this very tight narrow range. So this is where you want to do business because this is where trading opportunities lie And this is by the way, it's a daily time frame and it's very hard to time your entry on. The Daily time frame when the consolidation is so tight.

So this is where you need to kind of like level up a little bit and use multiple time frames. So if you usually spot a tight consolidation on The Daily time frame, you can go down to the 4-Hour time frame to look for trading opportunities. So let's say we go down to the 4 Hour time frame. It looks something like this Now at this point, right? does this look familiar? Well, it should be right because this pretty much is the same uh, concept or same strategy that you have learned earlier.

We're looking for price to retest this area of support to look for potential buying opportunity and the trend is again, as you can see towards the upside. But before we talk about the entry trigger and stuff like that, I go back to the Daily time frame. The area of value right on the daily time frame as you can see is this one over here previous resistance, resistance, resistance breaks out become support. So this is a key level just using basic technical analysis.

But as you've learned by now right, you can use other tools right to Define your stack area of value. In this case, you can use your you know your yearly open Quarterly open and see if this is significant. In this case I Believe the okay. the previous year low is this blue line over here.

So this is significant, right? This coincides with the previous year low and notice how significant it is as the price came into it. Rejected Hit down lower, Rejected Again, hit down lower Rejected again, hit down lower. This is actually the same area of resistance that became support which I shared with you earlier. But imagine this: this previous year low is already decided on this first trading day of in this case I can't remember what year this is 2023 First trading day of Uh 2022.

In this case, this example is on the first trading day of 2022. Look, look at this blue dot over here. Okay, all right, the first trading day of 2022, you already know that this is the previous year low. You can project it way ahead of time.

This is not a lagging indicator, this is like a future projection right all the way ahead of time. So again, this is useful tool and this is uh, a previous year's uh, Low, right that we have on the chart. So what about our quarterly open? Let's find out. Look at this.

the market or rather, the quarterly open is also at this area of value. You have multiple factors coming in. What about a yearly open? Let's just pull it, pull it out and see. In this case, the yearly open is Ah, I should set this to 2022.

Okay, let's see. where's the yearly open? Okay, not quite. Yearly open is over here and notice how the yearly open is also acting as an area of resistance. tested once, twice, three times.

Are this is this magic or what you decide? Okay, so anyway, the concepts and strategies that I'm teaching you is meant for you to go and research and develop it and make it your own right. So don't take what I said right with you know like the holy girl, oh Raina I trust what Raina say don't don't trust what I say never trust anything, always verify everything. Okay, so anyway, uh, since the yearly open is not too relevant, right? let's remove it. Okay, so now we know that this is a stack area of value and that's not all right.

We also have a consolidation that's forming over here, and as you know, the market moves from a period of low volatility to high volatility. So now it's a low volatility environment and we want to look to do business at this area of support. But as you know, right on the daily time frame, it can be difficult to time your entry at this area of value. So what we can do is go down to a lower time frame to time our entry.

Okay, so let me just remove those levels to declutter the chart. Okay, so going down to the 4H hour time frame, what are Weing looking for? Again we looking for the stuff that you've seen repeatedly over and over again. So we're looking pretty much for a bullish reversal Candlestick pattern right to take out this area of support to take out this lows and then close up higher. So if let's say I were to identify this area of support be somewhere about here, right? We think for the price to come into this area, take out the lows and then close back above it.

Let's see what happens next. So in this case the market, then uh come towards our area of Support Over here this is where again right your your your watch list. your signal should alert you. hey Raina pay attention.

Okay So now we have a slight bounce over here. Boom right there. Another now we have this bullish reversal candle. This is what we call a bullish engulfing pattern as this candle has engulfed the body of the previous candle.

So at this point you can look to go long on the next candle open so go bit faster you already familiar. Let's just change this to Green Okay and let's say uh, our stop loss again is a distance below this low say somewhere about here. Okay, change this to red. Okay now I Want to talk a little bit about targets right? As you know, this is a market which is in a low volatility environment and you don't want to just capture that one swing because what if the market explodes up higher in your favor and then you just capture that one hour that you know 50 Pips and that's it and the market continue to movees on Like let me say 300 Pips right? So you're living a lot on the table at the same time, right? What if the market moves in your favor and then reverse and then hits your stop loss right? So you see your open profits turn to losses Also, not a good feeling.

So what can you do about it? So this is where we can go with a hybrid approach. We look to capture a swing and write a trend at the same time. So let's say for example, uh, let's say for example, we buy one standard lot of Euro or Z right? we can take 0.5 Lots take profit 0.5 Lots just before this recent swing high. So let's say I just change this to Blue Okay, okay, I just change this to Blue Okay, let's say if the market gets to this blue level, we exit half our position.

So in this case the market did eventually. Yep, reach this blue level we exit half of our position. So half our position we have book profit profits and it's in the money. It's in the bank right? So we have another half of a position remaining.

So the other half of the position, right? Nothing changed. The stop loss is still at this level because this is where our trade will get invalidated and it's either it hits our stop loss or it give us a chance right to write this new uptrend. So let's see what happen. So in this case the market then uh, can see chop up and down breaks out higher right into this area of resistance which is the yearly open as you've seen earlier as well.

Then it came back down lower right to our entry point. Okay so you can imagine how difficult psychologically this can be. When the market moves in your favor, go against you moves in your favor. So when you take a portion of your position out in profits psychologically it's going to be much easier to handle.

Then you can see rally up once again right messing with your mind and now breaking out of resistance will this time finally break out. Let's find out right? It comes back down under resist resistance, again, collapse back now heading back towards the the mid of the range. And then finally we have this breakout over here, right? So I'm not going to, you know, uh, walk you through the different trailing stop- loss mechanism that you can use. You can use moving average you can use uh Market structure maybe Market structure is something that you're not familiar just to explain.

So as you know, an uptrend consists of series of higher highs and higher lows like this. Okay, so what it can do is that whenever the price uh breaks out higher in this case it breaks up higher. You can reference this previous swing low to set your stop loss. So until the price breaks and close below, this lows right like this breaks and close below it.

Then you exit the trade. If thought, you can continue holding the position and to write the trend up higher. So I Think this example very clearly illustrates that You know trading can be simple, but it's not easy because psychologically, as the market moves in your favor, moves against you, moves in your favor, moves against you. It will wreck your mind.

It will make you take decisions right? That is not part of your your plan, right? So this is why it's very important to have a readymade trading plan ahead of time, right? You know where exactly to enter. You know where exactly to exit because at this point you can know that this red line is your exit. You will not exit the trade till this rate level. This stop loss is hit right.

So until then you just continue holding that position right. Either hit your stop loss or a new trend is born and you get to write the trend. Does it make sense? Now at this point of time you might be thinking, but rain, you know all this. Cherry Big charts, all hindsight, trading blah blah blah I Get it right? So right now I'm going to share with you a live potential trading setup, right? It has not happened yet.

But I'm going to share with you my thought process right? How I'm looking to trade this Market based on the strategies and the tools and techniques I've just shared with you. Sounds good, right? So I could be right I could be wrong, but hey, it doesn't matter. the top process right the way. I'm going to engage this Market This is what matters all right, Because when you do this repeatedly over time, next 100 500 a th000 trades, that's how you get your positive expectancy from the markets.

So again, let's have a look. This is dollar against the Indian rupee. I Reset a chart you can see I zoom out right. Uh, what is this Market condition doing? You can see that this Market is pretty much in an uptrend.

Great. Next, What I'm seeing over here is a volatility contraction. So a few things first. I Noticed that recently we have this area of resistance.

Price made a series of higher lows higher lows, higher lows, and they broke out of resistance. Then they retest back this previous resistance which could become support and right now it's kind of like consolidating. So when I pay attention to this consolidation, it forms a a build up right or a tight cons consolidation which we talk about earlier. So this means right that I could actually possibly could get an entry right somewhere in this type consolidation on the lower time frame.

So now the next thing I also want to find out is that is there a stack area of value? Is there any other Confluence Factor Like the yearly open Etc So let's see I pull out the yearly open. Aha, pretty nice, right? You can see that this Market the yearly open was drawn way ahead of time the start of 2023 all the way project all the way to the end of 2023, right? Price tested once, twice, three times, four times. Pretty much the resistance that I drawn out earlier. Okay, so hey, if the price can come back towards this yearly open, this is a potential potentially a stack area of value that I might want to trade off.

So let's see. so going down to the lower time frame like the 4 Hour time frame ahuh now I have a few area of there's an area of value I to pay attention to this one here. Okay, so I have an area of support on the for time frame that coincides with the 2023 yearly open. So how am I looking to trade this? So if the market get, come down towards this area of value and give me something like let's say a hammer Candlestick pattern or maybe like this, even a bullish reversal Candlestick pattern that's a sign right? That's a signal that hey I want to go long I can go long on next candle open stops a distance below the lows.

and what about Target So Target I'm going to go with a hybrid approach because I know that this could, possibly, uh, lead to the resumption of this uptrend and I want to write this uptrend up higher but at the same time I know the market could possibly go up. Come down, go up, come down, go up, come down. you know, whip up and down and no mess with my trade trading psychology. So as much as possible I to exit half my position right before opposing pressure steps in and where my opposing pressure steping this over here is an area of resistance.

Okay, so if the price goes up higher just before this area of resistance, I to take half my position off the table so this way psychologically is easier for me and then I have the remaining half I Can you know write the trend right or write the position right if the trend resumes itself. So this is my game plan right to trade a dollar against the Indian rupee and hopefully right through this tutorial which I shared with you earlier. You understand how this price action strategy right will allow you to profit in Po and bare markets whether you're trading stocks, currency, crypto. Etc Now I know I've covered a lot in this trading, so let's do a quick recap right to what you've just learned.

Number one, we talk about the basic price action strategy which looks something like this: wait for a market to be trending, in this case an uptrend. let it come back towards an area of value like support and look for a bullish entry trigger like a hammer, a bullish engulfing pattern right to get long, can enter the next candle open or using a buy limit order stops a distance below the lows. and if you want to capture a swing Target is usually before the recent swing high or before resistance. And of course if you are to write massive Trends you can use a trailing stop loss.

Then the second part, we talk about the stack area of value using things like the quarterly open, the yearly open the previous year highs, or the previous year lows right to identify a stack area of value to help you filter out filter out which are the higher probability areas that you want to trade off. And finally we talk about the Uh. capturing of explosive moves, right? So if you spot a tight consolidation on The Daily time frame, you can go down to a lower time frame like a forward time frame and again look for that same basic Price Action strategy that you you've just learned earlier to get an entry and hopefully allows you to capture the Uh. breakout or the explosive moves right with it happens.

Now if you have enjoyed this Price Action Training so far then you will love right? This book called Price Action Trading Secrets So it's a full 142 page right full color trading book Right where we dive into know price, action, trading strategies and techniques to profit in Bull and Bare markets. We talk about Candlestick Patterns we talk about Market Structure We talk about support resistance. You know how to know when it's going to break or when is the price is likely to reverse from it. We talk about breakout strategies and much much more, right? So go and grab a copy right? I'll put the link below this video right we Shi to almost anywhere in the world and and here's the thing right: I Want you to be absolutely satisfied, right with this book? So here's what I'm going to do right when you receive your copy of Price Action Trading Secrets Right? You have a full 60 days to read it and after you read it you find a man.

R This is Not for me I Didn't get the value that I was expecting. Guess what? Just drop us an email and we'll happily refund you in full. Plus, you can still keep the copy of the book. Sounds good right then.

I'll put the link once again below this video, click on it, grab a copy, and I will talk to you soon.