Day 1 - Trading plan

Step 1

Method: choose the trading method of Price Action:

  • Follow the trend
  • Going against the trend
  • Trading within the range
  • Trading breakout/pattern

Risk management: determine total capital

Emotions: Prepare a transaction log

Step 2

Method: choose the tool to use:

  • Average line
  • Volume
  • Trend line

Risk management: the maximum acceptable amount of risk per trade (eg 2%)

Emotions: Thinking about what to do when a trade loses.

Step 3

  • Method: Select time frame: D1 is the most optimal, H4 or H1 can be selected
  • Risk management: No
  • Emotions: start to notice emotions when entering & exiting orders

Step 4
  • Method: Choose a market to trade: crypto, stock, commodity
  • Risk Management: Determine what to do with profit: withdraw or keep in account
  • Emotions: avoid emotional entry
Step 5
  • Method: identify entry and stop loss & take profit
  • Risk management: calculate the order volume
  • Emotions: forget the trade after entering
Day 2 - Understand the market structure

Market structure

Market structure is what helps us to identify a trend accurately and objectively. Without using an indicator, the market structure will immediately answer the question: "should buy or sell" in just a few seconds looking at the chart.

The market structure is the set of low peaks of the price waves forming a meaningful trend.

An uptrend is defined when the price forms a higher high than the previous high and a higher low than the previous low.


A downtrend is defined when the price forms a lower high and a lower low than the previous low.


Just missing one of the two above conditions, we consider the market has no trend and cannot trade.

A trading strategy for a trending market is different from a sideways or trending market. When looking at the chart, the first thing you need to do is identify immediately that the market is trending? If yes, what?

If the chart you are looking at does not clearly show the market structure, minimize it to see more bars.

For example, analyze the following chart market structure:


Since the first points, A and B are completed, we determine that this chart has an uptrend, because B is a high higher than the previous high, and A is a higher low than the previous low. The price zone between the AB pairs is the entry area for traders who follow a pullback strategy (enter orders when the price returns). In a healthy trend, the price will create waves to return to the AB area, the moment the price surpasses the peak B, we confirm that the uptrend is continuing.

From point A1, the price surpasses peak B to create peak B1, so from this point, A1B1 will determine the continuing trend of the market. The price continuously moves sideways in this area. If it goes over B1, we confirm the continuation trend, if it goes down to A1, we confirm the termination trend.

Remember that an uptrend end does not mean reversal. The reversal occurs only when the market forms a pair of lower highs and lower lows, confirming that a downtrend exists.

There will be cases where a downtrend has formed, but the previous uptrend has not ended. Then still not allowed under the SELL strategy.

Day 3 - Price Action has the 3 most powerful entry strategies:

1- Enter an order when the price pulls back after breakout trades
2- Enter an order when there is a decline in supply/demand rejection trades
3- Enter an order at breakout trades

Example 1:


The numbers 1, 2, 3 correspond to the 3 strategies to enter by Price Action as above. In just 1 chart you can see many positions to enter, and each type of trader will have its own way of making profits. More importantly, you can choose only ONE TYPE. Do not be tempted to enter orders in many ways, you will only bring more losses.

This is because each strategy takes time to practice and challenge to create a mindset for the chart viewer. A breakout trader should only look for a breakout opportunity, and a pullback trader should only look for a pullback opportunity.

Example 2:


The price is in a strong uptrend until point 7 creates a Higher low, coinciding with point 5, making this area a stronger demand area. In order for the trend to change, the price needs to break and close below point 7 to create a lower low (LL), then the price needs to make a lower high (LH) point 8, which is in our order. the uptrend is broken, then the downtrend is established.

The price broke out at 46 and the breakout trader entered the position at 1. The price made a higher high at 8 but could not hold and reversed. Down to point 9, pullback traders jump in expecting the price to go up but only get up to 10 then fall. This is the first sign of weakness in the trend.

As soon as the price breaks the bottom 9, the breakout traders bought at 1 panic, and the pullback traders at 9 will panic. A fiery short may come here but remember that the price needs to surpass 7 to reverse the trend.

At 11, the price broke the uptrend, but not yet formed a downtrend, but it is only a matter of time. There is one more impedance that is the larger demand area below when it crosses this area the price will fall like a stone.

Day 4: Correct understanding of the Supply-Demand zone:




Example: BankNifty's market structure on a D1 chart for 1 year:

Just select the most important highs and lows and draw them, you will get a market structure and know what the trend is.

Master Price Action in 30 days - Support resistance

Also a BankNifty chart but we draw horizontal lines to identify support resistance. Notice the spikes and gaps:


Such a number of lines is enough to see the most important price zones on this chart.

However, on the market there is no perfection and 100% accuracy, and these horizontal lines are too "perfect". Price does not always react correctly at these lines, but sometimes it will react a little earlier, sometimes it is a bit skewed.

Yes, we need PRICE ZONE, not price. This is where supply and demand appear.

For example:


Note the red-green areas for space prices to "breathe" and move and still have high accuracy. Price has "memory" and they will remember that in an important area in the past it had a reaction, and will react in the future.

These regions are all "magnets", they have a price attraction. The stronger the price area, the stronger the reaction force after touching. Therefore, if the price hits the zone and reverses immediately, it is likely that the price will not break that zone. However, if the price hits the zone and continues to hold in that zone (below resistance / above support), without reversing, then the price is likely to break out. Watch for reversal candlestick signals around these zones.

Example 2:


Notice the last support zone break-and-retest occurs, ie a break and re-touch, when a support is broken, when it hits again it will act as resistance.

Example 3:


Notice that the 500, 800 circles are the most important regions.

It is not difficult to identify these zones, with the naked eye, we can select the support and resistances with the most price reactions + observe the break and retest phenomenon + the circular numbers to identify.

Day 5: Intensive Supply - Demand 

Mastering Price Action in 30 Days - Price action in supply and demand zones

We know that when we approach the supply-demand zone, the price can either respect that zone or penetrate it. To increase the likelihood of winning, we must know when the price will respect when the price will break that zone. The first rule is that the supply and demand area is determined to be strong enough, that is, there must be at least 2 bounces of the previous price.



Proficient in Price Action in 30 days - Determine the exact supply and demand zone

Here is how to accurately determine the strongest supply-demand zones, one should choose:
  1. Swing highs (swing highs/swing lows) are nearby
  2. The price zones have much rejection
  3. Price zones act as both support and resistance
  4. The price zones where the price starts to move further & further
  5. The price zones are being respected lately.

We can use the following additional elements to create confluence:
  1. Dynamic Resistance Support (MA / EMA 21, 50, 100, 200)
  2. The Trend line
  3. Fibonacci regression 38.2%, 50% or 61.8%
  4. The price reversal/rejection candles
  5. Zones from large frames (week/month/day)
Day 6: Multi-timeframe trading

Strategy description

This strategy will help you calculate the exact entry time using multiple timeframes. You will use the big frame to get the main signal and use the LOWER bracket to choose the right time to enter the order. Ideally, use 3 frames simultaneously with this setup, but you can use up to 4 frames if you can accept the noise and the 4th lowest frame rate.

Example: the set of 3 frames D1-H1-M15
  • Mainframe for signaling: D1
  • Lower frame for choosing the correct entry time: H1 and M15 (15 minutes)
You can use the other 3 timeframes as follows:
  • MN1 (1 month), W1, D1 (position trading)
  • W1, D1, H4 (swing trading)
  • D1, H4, H1 (swing - day trading);
  • H1, M15, M5 (day trading - scalping).
Price Action is still the foundation of this strategy.

Apply in any cases

This strategy works very well in the following cases:
  • Trend reversal trading: identifying early reversals;
  • Breakout: Enter the order after Breakout price goes out of important areas and regression;
  • Trend Continuation: Identify trades that follow the trend to eat the biggest wave.
So it can be said that this is a very versatile strategy, you can absolutely use it to trade with the trend as well as to reverse.

Purchase and sale conditions

On the large frame (D1), you will find:
  • Major trends and market structure (review day 2: market structure);
  • Important supply-demand zones (review day 4 and 5 for supply and demand)
Then define the following conditions on the H1 frame:
  • Breakout out of important supply-demand areas;
  • Prices rejection of important supply-demand areas.
BUY Conditions:
  • When the price fails to fall through but bounces off the demand zone, it closes above ema 21 above the lowest bracket (M15).
SELL Conditions:
  • When the price fails to break through but bounces off the supply zone, it closes below ema 21 above the lowest bracket (M15).
Volume can be used as a condition to filter out the best quality entries.

Stop loss:
  • For BUY orders, the stop loss must be below the previous demand or swing low;
  • With a SELL order, the stop loss must be on the previous supply or swing high.
  • After entering an order that the price goes right, it can drag the SL up / down to follow the price.
Take profit:
  • Take profit at the supply areas closest to the BUY order; at the bridge area closest to the SELL command.
  • Frame D1: There is a signal candle of 1 doji
  • Frame H1: price starts to rise above ema 21, switch to M15 for time entry;
  • Frame M15: price surpassed swing high before, entry BUY.
Day 7: How to exit the order to get the highest profit

Today we will go to the exit section - how to exit positions for maximum profit. Exiting orders is an important part because the profit you earn is from exiting orders. Do this part well, brothers will be invincible.


Many people have trouble escaping their orders, sometimes their entry point is excellent but the exit point is not good, making profits not high, even turning profits into losses. Knowing when to exit is even more important than entering an order.

We will go through 2 parts:
  1. How to determine the target of taking profit
  2. How to define SL and trailing stop
We'll use two ways to do the above:
  1. Use technical analysis
  2. Use the Risk: Reward ratio

Note: There is no correct way in all cases. Based on the trading style and the degree of risk tolerance, you can choose one of two ways that you find suitable for yourself. It is important that you feel comfortable with the method.

To keep things simple, in this article we will use the Risk: reward ratio method to figure out how to exit an order. Using technical analysis, you can rely on the following factors to find the best take profit position:
  1. Swing high or swing low before
  2. Supply/demand zone earlier
  3. Use ema 21 for trailing stop. With a buy order when the price closes below ema 21, exit the order, in contrast to a sell order
  4. Use the Fractal indicator to find fractal points
  5. The top or bottom of the previous day
  6. Pivots (calculated by formula) of day/week/month.

Now let's go through an example of the RR ratio:

Get the RR equal to 1: 2, which means that for each R risk, you expect to double return, i.e, 2R.
When you enter the command, the distance from your entry to the Sl is 1R. For example, BUY TSLA price 100, SL 95 with 110 targets is 1R risk to eat 2R.

There are 3 possibilities for this trade:
  1. Price moves to the target of taking profit
  2. Price does not move and move sideways for a period of time
  3. The price hits SL
The price moves to the take profit target, and on that path, when the price hits 1R profit, you can:
  1. Move Sl to breakeven (100) for the entire position
  2. Take 50% of your profit and keep SL (95)
  3. Take 50% of profit and move SL to breakeven (100)
All 3 options above have their own strengths & weaknesses and I understand that you know this. Brothers must choose 1 out of 3.


Price moves sideways in more than 10 candlesticks after entering the order. It is best to exit the breakeven order. Good orders are successful within the first 10 candlestick bars.

If the price hits SL, then the loss will only be released.

Day 8: How to surf the long waves

What is long-wave surfing

Longwave surfing is a method that helps you to profit from a long wave and can hold your position until that wave reverses. If you surf the wave on a large frame, you will not care about the daily position and keep that order until the trend reverses. The same rules apply to bullish and bearish trends.


How to define a new trend

Usually, a new trend will form after moving sideways or an accumulative price range. It means that the price moves to accumulate without trend in 1 period and then break to initiate a new trend. This range can last for 50, 100, 200 bars, or more depending on the timeframe you choose. Therefore, to identify the currency/stock pair with a new trend, you can find the top/bottom break out of the 50/100/200 of the previous candlestick, or the 52-week high/low.

If a stock/currency pair/commodity breaks the top/bottom of 50/100/200 days or 52 weeks, it is considered that it has just established a new trend.


This is the rule for the break order of the legendary Turtle Traders, led by Richard Dennis. They will buy when the price breaks the 52-week high, and sell when the price breaks the 52-week high.
Price after accumulation can be broken in any direction (up or down), we cannot know what it is but only reacts after it.

Another way is to find higher highs-higher highs or lower highs-lower lows. These are signs of a trend.

The trend also exists if the price respects the Ma 50/100/200. The larger the Ma line, the longer the trend.

Measure the strength of a trend

The measurement is as follows:
  • Strong Trend: Price did not touch/close below ema 10
  • Good trend: Price respects ema sugar 21
  • Weak trend: Prices often pass ema 10 & 21 and respect ema 50.

Momentum: Measured by the length of the bars. The longer the candle, the stronger the momentum, so the trend is likely to continue. Short and small bars have weak momentum and high reversal potential. As the reversal comes, you will see bars getting shorter and smaller, real bodies are very small, and candlesticks elongate (indicating rejection).

Day 9: How to surf the long waves

How to find entry points

There are 2 methods of entering the command:


a, Breakout: On the time frame of the day (D1), if you want to find the best entry point for a BUY order, then check the following conditions:
  • The price has broken the top of the last 20 days
  • The price should be on ema 21
  • Volume must be higher than the average of the last 20 days.
If the above conditions are met, the buy entry is above the top of the top breakout candlestick of the last 20 days.

b, Pullback: Another way to enter an order is to wait for the price to touch the ema 21 for the first time and if the price is rejected by the ema line, the BUY STOP entry is above the top of the previous day's candlestick bar. This is a more reliable way to enter with a lower risk. In this case, the SL will be below the 21 ema line or below the bottom of the previous day's candle bar, which is the candlestick bar that we BUY STOP above its top. Sometimes the price (current bar) breaks the bottom of the previous day, at the same time it hits the ema 21 and breaks the previous day's high too - this is an even better entry because it is a pattern. The bullish engulfing candle is bullish engulfing because the bar has a top and bottom that surrounds the whole bar in front of it. Do not miss out on these opportunities.


To trade stronger and more durable uptrends, it is possible to buy breaks at 50/100 day or 52-week highs. For sell positions, the above conditions just do the opposite.

How to surf the long wave

With an uptrend:

Once a trend is established, look for corrective waves with low volume down ema 21 and look for signs of price rejection by this ema (creating pin bars or long lower shadow candlesticks when it hits the ema). Find pin bars, bullish engulf candles, dragonfly Doji, morning star, or any bullish candlestick pattern.

With a downtrend:

Once a trend is established, look for bullish corrective waves with low volume hitting ema 21 and look for signs of price rejection by ema 21 (creating pin bars or long upper shadow candles). Look for shooting star candlesticks, dark cloud covers, engulf bearish, headstone doji, evening star or any bearish candlestick pattern.


How to Set Stop Loss
  • With an uptrend: the initial stop loss is located below the nearest swing low or below the ema 21 line
  • With a bearish trend: stop loss above the nearest swing high or above ema 21.
  • Take profits at least reach RR 2: 1.
Day 10: pullback and reversal


The first arrow breakout accompanied by increased volume, breaking the critical bottom pivot. This is a reversal.


The next upside wave is a pullback with volume descending, hitting a previous resistance then falling back.

The first arrow breakout is a reversal, with high volume, 3 candlesticks behind is a pullback with very small volume.

Day 11: Fractals system for surfing - stuffing

Descriptions of Fractals

Surely you have heard the word Fractals in trading. Fractals are basically small areas of supply and demand that are established according to a market structure or by an ascending/descending structure. These are areas that in the past prices have served as support and resistance, i.e. key areas on the chart.


In its simplest form, fractals are the trending highs - with the uptrend being the higher highs-the higher lows, and the downtrend being the lower highs and the lower lows, however well represented. is clearly indicated by a technical indicator on the chart (you don't need to define it by ourselves). In particular, when there is a break out of these fractal areas, you can see it as a breakout entry signal to follow the trend.

You can use fractals to identify trends, identify early trend reversals, or look for break-in buy/sell signals.

The form of the system

Price Action trading system incorporates fractals in the form of breakout - breakout, that is, enter an order when the market has a strong move (usually with a higher volume), exit an accumulation area or a high previous bottom. The advantage of breakout trading is that it is immediately profitable to predict the right direction of the breakout.

This system can also be used to enter a trend reversal order. When there is a break out of the lower Fractal line in an uptrend, it is considered as a trend reversal from bullish to bearish.

System details

Buy conditions:
  • When the price breaks the Fractal line is above
Sell Conditions:
  • When the price breaks the Fractal line is below

Stop loss:
  • With buy orders, the stop loss could be below ema 21 or below the fractal below
  • With a sell order, the stop loss could be above ema 21 or above the fractal line above.
Take Profit: Surf the waves until the price closes below a lower fractal (with a buy order) or above the upper fractal (with a sell order).

Timeframes: Works on all timeframes for all markets.

Profit and loss ratio: lowest 1: 2, can add a position when there are many consecutive buy/sell signals to make the most profit.

Day 12: Understanding and applying Volume in Price Action

What is volume and why is it important

The volume shows the actions of buying and selling taking place over a certain time frame. It shows the level of interest and interest a trader has for a certain price and creates momentum for the price to move when it hits that level. Many people who are interested in buying in a demand zone indicate a high quantity demanded, and many people who are interested in selling in a supply zone show a high quantity of supply. The volume shows a balance or imbalance between supply and demand.


In other words, price is what attracts buyers or sellers, depending on what price they feel is high enough to sell, or low enough to buy. For example, at an electronics store, not many people buy (less volume), but when a 50% discount starts people interested in buying more (more volume).

Understand volume in a simpler way

Suppose 3 people (A = 100kg; B = 75kg; C = 50kg) climb the same mountain. They were extremely excited and energetic when they first started climbing. Because they are healthy, they travel great distances in a very short time. They took a break between the hikes, and as time went by they began to tire, their speed slowed down. Above them, the sun (external factor) starts burning them and makes them more exhausted. Finally, they gave up, stopped climbing.


What happens next? Since they were unable to climb any higher, they started rolling down the mountain at a speed depending on their weight.

Who will touch the ground first? Whoever is heavier will roll down faster. So A will touch the ground first, then B, and finally C.


Day 13: 3 Wyckoff principles & 7 elements of 1 candlestick

3 basic principles of Wyckoff:
  1. The Law of Supply and Demand: When demand is greater than supply, the price will increase to meet this quantity demanded, and vice versa when supply is greater than demand, the price will decrease to absorb all the supply.
  2. The Law of Cause and Effect: To have a result, you must have a cause, and the cause will be entirely reflected in that result. In other words, a small volume of trade will only produce a small amount of price action. If the cause is great, the result will also be great. If the cause is minor, the result will be small.
  3. Rule of effort and outcome: The price action on the chart must reflect the action of the volume. These two must always be in harmony with each other, with the effort (which is the volume) will produce the result (which is the Price Action). If they do not get along, there is an abnormality and we must recognize that abnormality in order to trade properly.
7 elements of 1 candlestick bar

Here are 7 elements of any bar:
  1. Open price
  2. Close price
  3. Bottom price
  4. The Peak price
  5. Ballon
  6. Lower ball
  7. Range (length of candle body - called the spread)
Abnormal volume and normal volume

According to Wyckoff's No 3 Principle, effort and outcome must go hand in hand and in accord with each other. This means that the range of a bar must match the volume associated with that bar. If it does not match then there is a problem and we have to be suspicious and careful with the bar. To put it simply, if a weak and skinny person wins the wrestling competition, then he must see if he uses doping or not.

There are many cases that we need to analyze to fully understand this concept. Here we have a screenshot compiled from Anna Coulling's famous book - A complete guide to volume price analysis), like this:


The figure above shows the normal and irregular situations between the candlesticks and the volume column associated with them. It can be understood simply that large candlesticks with large volume are normal, small-volume candlesticks are normal; Small large-volume candles or small-volume candles are unusual.

Similarly, an increase-volume price or a decrease-increase in volume is normal. A decrease in the increase-volume price or a decrease in the volume-decrease price is unusual.

Day 14: Predict the Sharks by Volume Analysis

The smart cash flow is smart enough to manipulate a stock but it will always leave footprints as well as signs. All we need to do is learn to understand those signs and trade them. Here are 10 golden rules to follow a shark's footing by volume analysis:

1, The price should increase with a stable volume during an uptrend and should decrease with a stable volume during a downtrend. This is a very normal symptom and if the price and volume do not follow this rule then something is wrong and one should spot it.

2, If the price rises with a volume higher than average and amplitude is greater than average, there is a high chance that the next bar will rise proportionally with its column of volume. If no candlesticks go higher then be careful with your buy orders.


3, On the contrary, it can still be applied to the downtrend (if the price cannot fall deeper after a big bearish bar, it means that the selling force has been absorbed by big hands). If the price falls by 1 big bar but does not decrease further, but forms a small inside bar with a volume equal to 50% or higher than the previous one, avoid a sell order and wait for the next bar. In this case, the bottom of the large candlestick and the inside bar is very important. If not broken, there is a very high chance that the price will start to rise again because the selling force has been absorbed by the shark.


4, If the price breaks through a high but closes lower than that high and leaves an upper shadow, then the possibility is that a shark is absorbing the upper buy orders. Expect that when the price returns to the zone with that candlestick's tail, the bears will kick the price down again. If a stock is rejected three times at the same price range, it is likely to fall heavily afterward. If the next candlestick closes below the bottom of the previous candle, the price is likely to decline further (bearish engulfing pattern).


5, If you see a pin bar with double the volume of normal in a demand or support area, the possibility of a sharp increase in price is VERY HIGH. Similarly, if you see an inverted hammer or gravestone doji at a demand or resistance area with a volume that is twice as much as normal, it is likely that the big hand is selling down and the price will fall.

Day 15: 10 Golden Rule to predict the direction of the Shark

Rule 6: After a strong sell-off (large candlestick with a skyrocketing volume bar), the price accumulates for a while before rising again (if the accumulation is real). The first bounce back will often fail (V-shaped reversals are very rare) so there is a high chance that the price will retest the bottom first.

The supply is then checked again to remove the weak players. Sometimes the price will break the bottom first with weak volume and the price will immediately bounce back. This is for hunting stop losses and getting rid of weak bulls. We then look for times when the price hits the supply zone with low volume before the price bounces up and reverses to bullish.

Rule 7: When you see a long upper tail with extremely high volume (at least 2-3 times the average volume of the previous 20 bars) & close below 50% of the bar's length, That means a great deal of supply has been shifted from shark to fry by smart cash flow. Any bounce back around the long tail (with weaker volume and a weaker candlestick) can be oversold and you could enter a sell. The opposite is true for extremely long lower tailed candlesticks with extremely high volume. Any retrospect of the long candlestick can be bought if the price pattern is good enough.


Rule 8: Successful breakouts (breakout of a sideways price range, trend line, price pattern, or any type of breakout) must have a high volume at the break and fall back at correction after that. If it's not like that, there's a high chance of failure.


Rule 9: Remember that during a strong downtrend, after the first successful breakdown of the price, the price will try to drop another 2-4 more before a reversal occurs. Notice how the price approaches the ema 21 line after the first successful breakout (in many cases the price doesn't even hit the ema 21 and plummets more). Watch for bullish vs. bearish candlesticks. Notice the size of the bars and the volume of the candlestick touching the nearest arc. Volume must be lower than the last time of the last retest of this zone. The opposite is also true of an uptrend.


Rule 10: The first attempt to break the resistance/support zone will usually be weak, while the 2nd and 3rd attempts will be stronger and at least you have something to compare. Hence the chance of success at the 2nd break or more will be higher. Please be patient.

Day 16: Analyze the Volume to track the Sharks

Analyze what on a chart including price & volume

1, Identify trends & potential supply-demand areas. Do this to get the scene and the full picture. Let's analyze 200 candlestick bars on 1 screen.

2, Look for candlesticks and their respective volume columns near the supply and demand areas to find important signal entry & price bars.

3, If you see a Big Body Candle with a volume column at least twice the 20-day average volume (the bigger the better), pay attention. This means that the smart cash flow is moving and this price zone has the potential to enter orders. Always trade in places where there is a big change. This is your Signal Candle Bar.

4, If this signal bar is in the supply zone (look left to see if there is any sell-off from this zone or if there is any long-tail left). Notice body length, volume, and closing price of that bar. Most of the time, we will see the Shark's intentions through this candlestick.

5, Observe the next 2-5 (sometimes more) candlestick bars to see price movement after that and enter an order

Example 1:
Every time the price approaches support (red line), the volume decreases. The price breaks support with skyrocketing volume columns, a quality break. Price tests supply zone with low volume and decreases with large candlesticks with large volume. So the first big candle bar (after the small candle retests the supply area) is the signal candlestick, the entry sell is right below the bottom of this bar.

In the second square, the middle candle bar is the pin bar with the tail touching the ema21 line + extremely large volume, which is the signal bar, entry sell at the bottom of this bar.

Last box: very large volume, sharks are buying here. No more sell.

Example 2: continue with example 1


The price is stuck below the downtrend line with low volume throughout. As the trend line breaks up, the volume starts to increase gradually. Entry buys when seeing volume increase + ema retest candle.

The breakout has a strong increase in volume. This is a very good breakout.

Example 3:


(from left to right) The price touches the ema line with high volume columns, it is possible to sell at these positions.

Support zone (red line) is broken with a large bearish candle + large volume, confirming that the downtrend is continuing.

Gap jumps to create a new bottom but does not reduce further + large volume -> selling force is absorbed entirely.

Similar analysis with the rest of the chart.

Day 17: Everything about the Japanese candlestick pattern

4 elements of 1 candlestick bar

Before entering any candlestick pattern, we need to understand 4 factors that any candlestick has, and what they mean:

1. Body: shows the strength of the bar

  • The bullish candles have a long body, which shows that the buying force is getting higher and the bullish action is fast and strong;
  • The real body length candle is increasing gradually, the trend is accelerating and will likely continue;
  • If the real body length is decreasing, the trend is going to the end because the strength of the two sides starts to be equal;
  • The body length is stable, ie the current trend is stable;
  • If the market turns from a sudden long bullish candle to a long bearish candle, it shows a sudden change of momentum and an imminent reversal.
2, Candle ball: shows the volatility


  • A long shadow is a sign of uncertainty because at that time both the buying and selling sides are fighting fiercely, but neither side has won;
  • The lower ball represents the buying force; the upper shadow represents the downward force;
  • Short shadow means stable market, low volatility;
  • Stable trends often have candles with short shadows, because only one side is prevailing.
3, The length of the body compared to the tail

  • During strong trends, the real body is usually much longer than the tail;
  • When the trend stops, the body-to-tail ratio changes, the candle's tail starts to get longer and occupies more length of the whole candle, because then the take-profit force begins to appear;
  • Flat and trend change periods often feature long-tail and small real candles.
4, Candle body position
  • If you see a candlestick that takes up most of the whole candle and the real body completely deviates to one side, it is market rejection and is called the setup pin bar. Expect a reversal after 1 pin bar;
  • When a candle with upper shadow and lower shadow is evenly long and the real body is almost absent, it is confusion. It is also a balance between the buyers and the sellers.

When combining the above factors, we will get a lot of information that the market is telling from just a single bar. When combining many candlesticks together, we will see the movement of the market and all relevant information, enough for trading.

Japanese candlestick pattern synthesis

Summary of Japanese candlestick patterns:


Day 18: 4 trade settings 80% probability of winning

Properly understand trade setup

A trading setup is a price pattern, a candlestick pattern or any kind of price action that tells the trader that it's time to place orders. Trading setup is like a green light for traders to place orders, when this light is turned on, traders are allowed (and required) to place orders.

A good trade setup does 2 main things:
  1. Determine the timing of entering the command correctly (timing)
  2. Determine a reasonable stop loss to have a high-risk reward ratio.
So a good trade setup must both tell us the exact time to enter the order and have a reasonable stop loss (neither too wide nor too narrow). These 2 factors create an advantage for trade to make money.

4 trade setups with an 80% chance of winning

There are 4 main trade settings:

1, Trend continuation
2, Reverse the trend
3, The Trend reversal
4, Trade when the price breaks out of the sideways.

The tool is used for all 4 setups: candlestick and ema 25.

Explanations and examples for each setting:
  1.  Trend continuation is trading after a pullback wave to follow the mainstream. This is the setting with the highest probability of winning.
For example:


The ema 25 line shows the main uptrend, we aim to buy after the first bearish correction wave (candles 1-4). Draw a 1T downtrend line, after candle 4 closes (bullish candlestick), buy stop above the top of the candle.

Wave 7-8 has not hit the ema line, so it should be ignored.

Wave 9-11: buy stop above candle 11.

Remember that the pullback wave that draws the trend line will have the highest trade probability.

2. Trend reversal: to enter orders when the price is overbought (sell when overbought, buy when oversold), basically to eat a wave of recovery.

For example:
The price hits the 1.355 circles at the bottom of bar 11, the next candle is a strong bullish candle, buy at the close.

3. Trend reversal: enter an order when you see a trend reversal, aiming to eat a whole new trend.

For example:
Head and shoulders pattern (678 candles), has broken but has not entered yet. We wait for the price to rebound to retest the resistance 1 candle and then sell. Sell at the bottom of 10 candlesticks and eat a whole bearish wave behind.

4, Breakout trade from the sideways price range: enter an order after the price breaks out of the range and retracts the retest.

For example:

The price broke the top of the range 156 and retraced the wave 13-15, buying above the 15 candles.

Day 19: Breakout trading in depth

Overview of breakout method

Remember that breakout is a highly advantageous method because the right time of entry is also a time of strong market volatility, we will quickly make an immediate profit if we choose the right breakout direction.


However, the weakness of conventional breakout methods will be the distance of the stop loss is too large and at entry, there is no way to confirm that the breakout will be successful or not. So we will wait a bit for the breakout to show its potential level before entering. We will wait for the price to pull back (pullback) for the first time or the second time down the ema 21 and find opportunities to enter. Strong enough breakouts will pull back to ema 21 before returning to mainstream trend.

How about setting stop-loss? Experience has shown that the next swing high or swing low is the best position for SL. With a bullish breakout, SL will be below the nearest swing low and with a bearish breakout, SL will be above the nearest swing high.


Breakout trading method

Any breakout will belong to 1 of 3 results:
  1. Breakout is complete, the price goes in the Break direction immediately, very fast and strong and there is no reverse-pull (must set a wide SL if you want to enter the order as soon as the breakout occurs)
  2. After the breakout is complete, the price pulls back to the just breakout area (potential re-touch the ema 21 line) and then continues the trend (enter the reverse wave to have a short SL)
  3. Breakout failure and price touch SL on previous swing high/low (with wide SL)
There are basically two ways to trade breakout:
  1. Preset pending orders so that when the price breakout is also the match order: the strong point is not to miss any breakout, the weak point is the wide Sl and very often to keep the negative order because of the pullback price after the breakout.
  2. Wait for the price to breakout, wait for the pullback, then enter the order: the strong point is the short SL and there will be times when the order is finished, the price will continue the trend; The weak point is that sometimes the winrate will be low due to not knowing how much the pullback will go to the trend.
Note: After a breakout, we Should Identify a potential pullback zone where the price might re-touch before moving on.

For example:


The pink, blue and green zones are the potential areas where prices may retest before moving on to the uptrend after the breakout. This zone extends from the breakout point to the previous nearest swing low.

Day 20: Catching the top of the market bottom with just 1 EMA

The basic way of applying ema line

The exponential moving average (ema) is also a common ghost line, but there is a slightly different formula to make ema stick to price more closely, and more sensitive to price movements. Put two ghost lines and ema on the chart, you will see that the ema line will react faster to the price.

The ema we are using in this article is ema 21, on all trading timeframes.

Use ema to identify trend & strength:

On all timeframes:
  • An uptrend exists when the ema 21 line slopes up and the transaction price is consistently above the ema;
  • The downtrend exists when the ema 21 is sloping down and the price is consistently below the ema line;
  • There is no trend (or sideways) when ema 21 moves sideways continuously up and down the ema line without going in any direction.
It can be seen that the way to determine trends according to ema 21 is much simpler and more objective than the usual low at price action.

Table of determining the strength of trend according to the slope of the ema line 21:

  • Uptrend: ema 21 slopes in the direction of 1h-2h30 pm
  • The more toward 1pm, the stronger the trend
  • The more towards 2:30 pm, the average trend
  • Downward trend: ema 21 slopes down in the direction of 3:30 - 5:00 pm
  • The more toward 5pm, the stronger the downtrend is
  • The closer to 3:30 pm, the lower the average trend
  • 2h30-3h30 pm: sideways area, no transaction.
Note that this table is compiled from personal experience, with some specific markets the results will fluctuate.

Use ema to catch the top of the bottom of the market

Option 1: Wait for the rejection signal

In the downtrend, wait for the price to pullback to the ema 21 line then form a long upper tail candle then sell stop below that candle's bottom, stop loss above the top.

In the uptrend, wait for the price to pullback to the ema 21 then forming a long lower tail candle, buy stop above the top of that candle, stop loss at the bottom.

Do not enter a sideways market.

For example:


Option 2: Wait for a squeeze.

A squeeze occurs when the price is compressed between two technical factors, here is the ema line and a trend line. When the price breaks out of the compression, we enter an order.

For example:

Price is tightly compressed in the 5-11 candle between the ema and the dashed downtrend line, buy stop above the 11th candle.

Price is compressed in the 13-15 candlestick segment, buy stop above the top of the 15th candle.

Day 21: How to overcome fear when entering orders

The fear of placing orders occurs spontaneously for all traders using a variety of methods, and usually includes three reasons:
  • Trader does not have confidence or confidence in his trading system
  • Traders do not strictly follow the principles of capital management and calculation of order volume
  • Traders are borrowing or using money that is not their own to trade.
The fear of entering is so risky, it causes traders to bend the system's advantages and ignore many good trading opportunities (while on the contrary, accept bad trading opportunities). Please follow the following 3 principles to repel fear when entering orders and have firm and confident entry positions.

Trust the system

The distrust in the system can only be caused by not having traded long enough, enough with that system, or not checking its past (backtest). Choosing a trading system is like choosing a wife, you have to eat, sleep, work, play, confide in, and company with it day after day to be able to understand it and have faith in it.

When you are dealing with a system long enough (1 year or more), you will gradually see times when the system takes effect, and times when it loses to other methods. Every system has strengths, weaknesses, and whether to make money or not is thanks to real traders who understand the system and the method they use as the palm of the hand.


Strictly comply with capital management

Fear of entry may come from too large an order, leading to fear of losing money. When a trade has no capital management, it will enter the order wildly, big and small. Once he has suffered huge losses, he will be afraid and dare not enter orders again.

Simple capital management principles aren't many, but they are extremely useful in eliminating the fear of entering traders:
  • Always use stop-loss when placing orders;
  • Enter the order with the highest risk of 2% of your account;
  • Point to the markets with the lowest 2: 1 profit and loss ratio for higher advantage;
Only use your own money to trade

The borrowed money will be pressured to repay the loan and interest, making it easy for traders to lose their temper. Besides, using other people's money brings additional pressure that is to commit to profit, and any psychological pressure makes traders afraid to enter orders.

Day 22: Two signs of reversal with 90% correct probability

In this article, we will learn 2 simple but extremely important signs that signal an upcoming reversal of the market with a very high probability. Please focus.

Try to understand the bars and spot the following 2 signs:
  1. When the price fails to decline after a Setup or bearish candlestick pattern
  2. When the price cannot go up after a Setup or bullish candlestick pattern.
It's a sign you need to pay attention to. If only you were trying to convey something to you through this action, and you need to listen carefully.

The fact that the price cannot go up despite a bullish Setup or bullish candlestick pattern nearby proves that even though the Setup is shaped bullish, its internal momentum has exhausted. Maybe it was just the last bullish reaction of the rising momentum, when in fact the volume may have dried up and not enough to push prices up anymore.

For example, a bullish pin bar with a very long lower tail, if standing alone, we can think that it is a bullish candlestick pattern and the price is likely to continue to rise. But when it is placed in the context of the pin bar appearing after a long series of bullish candles crashing into resistance, it is a sign of bearishness and exhaustion.

That pin bar is saying that at some point during the candlestick formation, the price fell sharply downwards leaving a long tail, although it was then pushed up by bulls to close at the high. but the key is the price DISCOUNT FIRST. That is the fatigue of the bulls.

For example:


BANKNIFTY hit resistance again (which was the previous support just broken) and formed a bearish pin bar pattern, which is very bearish. The current accumulation segment is also in the form of a Bear flag and the possibility of a further bearish wave is high.

But look at the volume. Notice the price retest resistance by a very small column of volume, and the selling volume seems to be running out. Volume is saying that there is not much selling force. If the price breakout scenario happens then it could rise to the mid resistance.

Result:


The price increased sharply. That tells us that the candlestick patterns are not necessarily correct, the story behind it may be very different.

The bearish pin bar at this resistance zone is beautiful, but the probability is low because of low volume, as the bears pushed the price down but with too weak volume it failed. Selling force can be confirmed exhausted by this low volume Pin bar.

Day 23: A valuable experience after 20 years of trading Price Action

Today we will learn about the Price Action trading experience after 20 years using this method to trade by the same author who inspired Hoai to write this 30-day masterful Price Action series - PAVLeader (hidden Name). This author has more than 20 years of trading using the Price Action method - price action analysis on naked charts. You have valuable experience and unique and accurate chart analysis methods, we will learn from you today.

Valuable experiences after 20 years of trading Price Action:

1, No top is too high and no bottom is too low. So it's never too late to buy or sell, as long as the trend persists. Besides, never assume that the price is too high to sell, or too low to buy.


2. In cricket, the more time you spend observing the ball, the louder and clearer it will be, and the more likely you are to score a goal.

Similarly, in trading, the more time you spend observing the market and learning to analyze, the clearer the market's story will be for you, and the price chart will gradually talk to you. Trust me!

3, The stock market is like the Rubik. Every time you think you understand it, all its complexity and difficulty change, never the same. The people who solve the Rubik's Cube are the ones who understand the principles, so any multifaceted variation of the Rubik's Cube can be solved by following the rules. And those who do not have principles or do not know how to obey will ultimately fail.


4. Don't trade all the price moves or everything you see on the chart. Just trade a few Setup (transaction settings) for mastery, and only trade when that Setup appears. You only need 1 Setup to make a lot of money, no more.

5, Never use part or all of the profits you make in the day to enter an unplanned trade. Many traders will think "the risk is low that, even if I lose, I am still profitable for today." That thinking is wrong. That trade will lose and will affect your trading confidence and feeling for tomorrow.


6. 99% of your trading problems will be solved if you start to learn to think like a hedge fund.

Instead of thinking that you are about to enter 1 lot, think that you are about to enter 1000 lots, do you accept the position?

7. When you try to catch all trades on multiple timeframes, you catch a loss.

Day 24: Real trading

The bottom has been established on the Banknifty chart. Wait for the price to correct down to buy and keep the SL 10 points away from the demand zone. If you pass 26855, you can reach 26965 again.

Chart:

  1. Gap jumps to opening hours, prices close below the demand zone with extremely high volume. The upper shadow is a long, sell signal.
  2. The next candlestick is a bearish candle with a lower volume than the previous one, closing lower than the previous one, short shadow. Selling pressure is still going on
  3. Small Doji with even lower volume. This is puzzlement (small candlestick shows that the bears have lost their selling power and the bulls are starting to be interested in buying).
  4. Candles with a very long lower shadow with a higher volume than the previous candle and close at the upper body of the candle. This is the bulls' buying interest. This is the signal bar, but we still have no confirmation
  5. This is a bullish candle towards the top of the market with good enough volume. Shows strength and confirmed buying force from previous candlestick bar. If the previous candlestick had false buying power or weak buying power, then this candle could not close in such a bullish way.
  6. Small discount pin bar candles with lower volume. The bears were still alive and wanted to kick the price down, but the force was weak.
  7. This candle broke the bottom of the 6th candle but could not fall any further. Instead, it rallied strongly and closed very bullish in the upper part of the candle with volume higher than the previous candle. This is a candle that shows the strength of the bulls.
  8. These 2 candles are weak candles with the upper shadow but the volume is negligible. This may be temporary profit-taking for buyers who can buy around the bottom.
  9. The candle is extremely bullish, eliminating all bearish doubts of candles 8 and 9. It shows that the bulls are still strong and could push prices higher. At this point, the price hits the confluence resistance at the supply and ema 21, which is reasonable to take profit.
  10. Leaving the candlestick showed the profit-taking force, but the price quickly broke the supply area with a very strong candle with very high volume. View changes to bullish.
Day 25: Real analysis of each candlestick

Today we will learn how to actually analyze each candlestick to see the story behind the price action, from which to decide on the most reasonable entry. The skill of real-time analysis of each candlestick is essential to any price action trader and can help increase the probabilities in price action trading.

Each candlestick is marked according to the following analysis in order:

  1. large bearish candlestick with shadows on both sides with huge volume and bottom of the previous day. Although it is a candle showing a heavy decline, there is still a shadow below showing the bottom-catching force to buy up -> decide to wait, not yet sell hastily.
  2. the price goes up but suffers from selling pressure, possibly because the traders who bottomed before are now taking profits. The closing price increased but still left the upper shadow, showing that the selling force was still strong
  3. the action is similar to candlestick 2 but this time closed down, ie around the top of candles 2 and 3, bears are ambushing, it's important to observe how these bears can push prices down.
  4. a bit of strong selling has occurred and we saw a strong bullish candle at a strong close. This means that the previous 2 candles didn't have a strong enough selling force. This candle is simply a profit-taking candle by weak bulls. Volume is still decreasing although the candle closed well up, showing that the buying force behind is still weak and not enough to push the price up.

5. This candle is a re-entry with very nice low volume and closes again near the top. The sell signal is exhausted but we still need to wait for the next confirmation candle. Usually, tests like this will be followed by a strong bullish candle, as we can see, the next candle is a weak down candle, not yet traded.

6. 1 candle hits again with low volume and closes near nice high again. The bulls are supporting the bottom of this candle and not letting the price fall below that zone. The likelihood of the price going down from here has been lower and buy orders for risk traders can be placed above candlestick 6. Conservative buyers can wait.

7, the bulls rallied, 1 large bullish candle crossed the top of the previous candles

8, where the bulls meet the strong bears and get kicked down, the main resistance is the ema 21. This is the Setup we wait from the start to sell the trend. The column of the maximum volume shows that the bears have ambushed around this area very much and extremely strong. Sell ​​below the bottom of the candle, stop loss above the top.

Day 26: Real analysis of each candlestick


Candle  9: Aggressive bears can go short when the price breaks the bottom of this bar, but I want to wait for one more bar to see if the bulls have enough attack to make the price rise to retest the 8 bar okay? The bulls tried several more times in 2 bars behind candle 8 but were defeated by the bears at bar 9. This confirms that the bears have been more active around this area.

Candle 10: This is the last attack by the bulls but the price just rallies and closes a bit high, a weak bullish candle with low volume. This is just a weakness for the bulls.

Candle 11: This is a confirmation candle that the bears have completely won and is a safe candle to sell. A bearish candle with a large real body, has a higher volume than the previous one and closes very low around the bottom. We can sell at the close of this bar or the opening price of the next bar.

Candle 12: After entering a sell order, we wait for the answer of the market. The next bullish candlestick closes very weakly, the next candlestick is even more bearish because it leaves the upper shadow, which is a failed attempt of the bulls to rise again. It shows that the bulls are still alive and trying to protect this bottom area from a fall.


Candle 13: This candle breaks the bottom of all previous candles and also rejects the price at the previous highs, which is an extremely bearish candle. The volume dropped strongly higher than the previous volume columns, this was a strong attack by the bears. The ideal scenario is that the price has a further decline after this bar and gives us the majority of the profits on this trade.

Candle 14: Price creates a new bottom, but extremely strong buyers reappear. This is the price zone that has begun to attract buyers who are standing outside the market to buy. This bar 14 has an extremely bullish close, very strong volume (highest since candle # 2). This is a warning sign that the bears should exit a previous sell position.

Candlestick 15: The price falls back, like a bull's break before resuming an attack. This candle with small volume shows that the bears are very weak and the bulls are simply paused.

Candle 16: Price crossed the previous high of the 2 preceding candles and closed above with higher volume. Strength has been confirmed. The bears, if not closed, have to close immediately after this candle. Aggressive buyers can buy at the top

Day 27: Real trade with each candlestick

Day 28: Real trade with each candlestick


Candle number 1: Look to the left and check the trend. We are in an uptrend but the key structure (96-101) has been broken, thus initiating a downtrend.

Candle number 2: The price has dropped quite heavily after breaking out of this area, so if you sell right here, it will not have many advantages in terms of the risk-reward ratio, thus removing the sell bet

Candlestick 3: It is best at this position to find a chance to trade against the downtrend. The 2 nearest candlestick bars have many meanings. The main candlestick between candles 2 and 3 is a bearish candlestick with good volume but failed to break the bottom of candlestick 2 and immediately found support as the ema 21 below. At 3 candlestick the price broke the 101 resistance zone, which closed very bullish and good volume. This is just a sign that the bulls are about to buy, we need confirmation.

Candle 4 (behind candle 3): this is a confirmation candle that shows that the bulls are in complete control of the story: because candle 3 has an upper shadow, we still wonder, but if the price breaks the top of candle 3 then we Buy confirmed signal.

So at this time we can buy stop above candle number 3, when the order is matched, we have signals confirming the bulls have won, stop loss we put below 96 (below the bottom of candle 3). A bullish sign of price at this point is that the price closed consistently above ema 21.


Candle 1: We are in an uptrend, but the price is approaching an extremely strong supply zone (the previous peak). Candle 1 shows an important price rejection at the supply zone.

Candle 2: Candles 1 and 2 have a very long upper shadow with a large volume, meaning that the selling force at these 2 candles is very strong

Candle 3: a divergence in the form of a Doji followed by a strong bearish candlestick (candle 4), which confirms that the bears are winning and will pull the price down.

Candle 4: We can either sell when this candle closes, or sell stop below the bottom of this candle a little bit because we already have a confirmation signal. This is the Setup that shows the participation of money flow smartly kicking the price down

Candlestick 5: aggressive traders can place SL above the top of the Doji, and conservative traders can place SL above the top of candlestick 2.

Candle 6: Candle 5 found support at the ema line, but candle 6 is an extremely bearish candle that closes near the bottom.

Candle 7: 1 extremely strong bearish candle penetrating the ema shows that the bears have completely won.

We have 3 profit-taking targets corresponding to the previous 3 swing lows. Watch out for heavily rejected ema road access prices (green arrows)

Day 29: Analyze real battle and enter orders

Example 1:


Looking at the chart above (currently in the rightmost position), answer the following questions yourself:
  • Whether to enter orders, buy, or sell?
  • Where is the entry point, stop loss and take profit?
  • What are the reasons to enter an order?
Answer:

  • The context is that the price has broken the demand zone before and is now retesting this area as a supply.
  • The price is pulling back to retest the supply zone, notice that this supply zone converges with ema 21, increasing its strength.
  • Candlestick 1 with bullish momentum is still strong but left the upper shadow showing a bit of selling, which is reasonable because the top of candle 1 has not yet reached the ema.
  • Candle 2 has a higher high and a higher low than candle 1 (a small uptrend on a low timeframe), however closes bearish and is a bearish candle, which shows that the bulls are losing momentum.
  • Candle 3 acts quite similarly to candlestick 2 (creates higher highs higher low), but shows even stronger selling force due to the very long upper shadow. This is also referred to as a bearish pin bar
  • Candle 4 breaks down the previous bottom of the candle but does not close lower. It means a bit of buying pressure near this bottom zone (315-316)
  • Candle 5 made a higher high with a fairly bullish close, however, the decline at ema 21 and at the supply zone was stronger. We need to pay close attention from one candlestick onwards, the next candle can decide whether we should sell or not;
  • Candle 6 opened slightly lower, failed to break the top, and closed near the bottom indicating selling pressure continues to increase. At this point, aggressive traders could place a sell stop at the bottom of the 6th candle, and the stop loss was at the top
  • Candle 7 breaks the bottom of the strong accumulative candlestick cluster, here is the bulls have completely lost, conservative traders can sell as soon as the 7th candle closes
  • Take profit at the first bottom area is a strong demand area
Example 2:


Similar to example 1, answer the questions: where to buy or sell, where, where to stop loss and the reasons for entry.

Answer:


On the left we see the price tends to decrease mainly, then perform a complex pullback (complex pullback) in the shape of a small uptrend. It is easy to see that this pullback is the flag of the bear flag pattern, preparing a sell position.

Candle 6 broke the 1-4 uptrend line and closed below the ema line. Sell stop below the bottom of the 6th candle, the stop loss is at the top.

At the red arrows, the price is continuously declined. Sell when the price breaks the green line

Day 30: The beauty of Price Action

Example 1:


Look at the chart and determine reasonable action at the last bar: buy or sell? Cause the order? Where are the entry and exit points?

Answer:


As soon as the swing low 1 was broken down, we had a structured break that caused the trend to change from bullish to bearish. Zone 1 also automatically becomes a sellable supply zone when the price comes back.

The price goes up at a swing low of 2, can draw a prolonged uptrend line, the price is adhering to this trend line, so it can be sold when the trend line is broken.

The price tested the supply zone at 3, leaving 1 bearish pin bar with a long upper shadow. Aggressive traders can sell right here, stop loss above the tail of the candle. The price breaks the trend line with the 4th candle and retests the trend line with the 5th candle. Conservative traders can sell at candle 5, stop loss above the tail of the candle. Insert more sell orders when the supply at the bottom 2 is broken.

Example 2:


Same question as example 1.

Answer:


In this chart, we have added ema 21 as a reference source. 1-2-3 are 3 technical re-touches at the previous peak, and the price is adhering to this peak. The price re-hit the previous swing High of 5 at 6 and fell again immediately, however up to this point the trend is still bullish and the ema has not yet failed.

Candle 7 breaks the 1-2-3 support, closes below, confirms a breakdown of the structure, and at the same time, ema 21 is also penetrated. Now we have a downtrend and find a selling opportunity right after the price makes the first retest.

Price hit ema 21 again and support has just been broken by the tail of a long pin bar candle. Sell ​​just below the bottom of this bar with stop loss above the tail. When the price approaches the first demand zone created by the swing low previously, we lock 1/2 of the position. When the price approaches the second (very strong) demand area, we lock the remaining 1/2 position.

The beauty of Price Action is that it stimulates the creativity of each trader who uses it. While every naked chart looks the same, each trader will have different analyses and viewpoints that make this approach extremely interesting. Then right and wrong will no longer matter, how to profit from chart analysis, and how to understand the movement of the market. And the good thing is that every trader will improve with each practice every day.