Tradeciety.com
In this video, the speaker shares their 13 best price action signals strategies, including the fakie and breakout buildup. They also discuss the concept of liquidity and stop zones, demonstrating how stop runs occur frequently. The speaker emphasizes the importance of waiting for confirmed close and momentum candles before making trades. Additionally, they provide a link to resources for further learning about trading strategies.
Mastering Price Action Signals: Strategies, Tips, and Tricks for Successful Trading
Introduction
As someone who has been trading for more than 15 years, I understand the importance of having a solid understanding of price action signals, strategies, tips, and tricks for successful trading. In this video, I will be sharing my 13 best and most favorite price action signals, strategies, tips, and tricks that I have learned over the years. Additionally, I have prepared a few resources for those who want to learn more about my trading strategies. Let’s get started.
Price Action Signal 1: The Fakie
Understanding the concept of a fakie is important for successful trading. This signal is also referred to as bull traps, bear traps, or failed breakouts. Essentially, you want to look for long-term support and resistance levels, short-term resistance levels, or single swings. The goal is to identify a rejection of the level, ideally seeing the candle and market piercing through the identified level, and then quickly reversing back and rejecting the level. Breakouts can enhance the setup, but you typically want to see a rejection. This setup is best seen in a strong downtrend, where the market reaches the previous support level. You will often see the market playing around previous lows and highs, with multiple rejections. Ideally, after the pin bar and momentum candle, you would wait for a clear of the flip zone before initiating a long entry.
Price Action Signal 2: The Breakout Buildup
The breakout buildup is a great pattern to add to your trading strategies. This signal involves the market being in an uptrend, making higher highs and higher lows, hitting a resistance level and seeing a bearish move that does not violate the uptrending structure. When the market returns to the previous resistance level, it is important to observe how the market reacts to the level. The sign of strong buying pressure and little selling pressure indicates a buildup. Once the market clears the high, you can wait for a confirmed close above this level and a re-test. The breakout and re-tests often come close together, indicating a strong bullish move.
Price Action Signal 3: The Dirty Retest
The dirty retest is a liquidity concept that is important to understand when it comes to stop zones, liquidity zones, and stop runs. This signal involves the market being in a downtrend, forming a triple tap pattern, and building a reverse head and shoulder pattern. Breakout traders will likely enter the market and move their stop loss to break even. However, stop runs occur frequently, making it important to observe where the stops will be located. The smart money will drive the price back into the zone to find the real liquidity pockets. Once found, the market will see a strong bullish impact.
Price Action Signal 4: The Pinocchio Bar
The Pinocchio bar is another important signal in trading. Essentially, the Pinocchio bar is a long candlestick that sticks out from the rest of the candles on the chart, indicating a false move. This signal is most effective when combined with volume analysis and price action context, making it important to observe the market carefully.
Price Action Signal 5: The Pinbar
The pin bar, or pinocchio bar, is a candlestick pattern that signals a potential reversal in the market. This signal is best seen at the end of the trend, where you would look for a bullish pin bar at the bottom of a downtrend and a bearish pin bar at the top of an uptrend. The pin bar has a high success rate, but needs to be used in conjunction with other technical indicators to be effective.
Price Action Signal 6: Inside Bar
The inside bar is a two-candlestick pattern that indicates a pause or consolidation in the market. This signal is best seen when there is a strong trend, indicating a potential continuation of the trend after the consolidation period is over. You would want to wait for a clear breakout in either direction before entering a trade.
Price Action Signal 7: Outside Bar
The outside bar is a two-candlestick pattern that signals a potential reversal in the market. This signal is best seen when there is a strong trend, indicating a potential reversal of the trend after the outside bar is formed. You would want to wait for a clear breakout in either direction before entering a trade.
Price Action Signal 8: Two-Bar Reversal
The two-bar reversal is a two-candlestick pattern that signals a potential reversal in the market. This signal is best seen when there is a strong trend, indicating a potential reversal of the trend after the two-bar reversal is formed. You would want to wait for a clear breakout in either direction before entering a trade.
Price Action Signal 9: Price Action Context
Price action context is the overall picture of what is happening in the market, taking into account support and resistance levels, trend direction, chart patterns, and candlestick signals. Understanding the price action context is essential for successful trading, as it helps you identify the best entry and exit points.
Price Action Signal 10: Support and Resistance Levels
Support and resistance levels are essential for successful trading, as they indicate where the market may pause or reverse direction. You would want to look for levels that have been tested multiple times, indicating a strong level of support or resistance. Once a level is broken, it can act as the opposite level.
Price Action Signal 11: Trend Lines
Trend lines are used to identify the direction of the market trend, indicating potential support and resistance levels. They are drawn by connecting the higher lows or lower highs, indicating a trend reversal when broken.
Price Action Signal 12: Chart Patterns
Chart patterns are used to identify potential support and resistance levels, as well as potential breakouts and breakdowns. Examples of chart patterns include head and shoulders, double tops and bottoms, and triangles.
Price Action Signal 13: Volume Analysis
Volume analysis is an essential tool for successful trading, indicating the level of market activity and interest. High-volume moves indicate interest and potential price direction, while low-volume moves indicate a lack of interest or potential trend reversal.
Conclusion
Mastering price action signals, strategies, tips, and tricks is essential for successful trading. The 13 signals discussed in this article are just a few of the most important ones to keep in mind when analyzing the market. Remember to always keep the price action context in mind and use other technical indicators in conjunction with price action signals for the most effective trading strategy.
