# 1 Using the support-resistance price zone is better than using a specific price

Using support resistance in price action is a very common idea. However, very few traders can actually profit from it. And the principle is usually quite simple, that is, they only use single horizontal lines to identify support resistance instead of using a price area to identify support resistance. The reason is that because these single horizontal lines cannot fully reflect price movement, the price needs a certain range of movement. Therefore, when you use a price range, you can eliminate signal interference compared to using a single horizontal line. Please see the illustration below to better understand this idea.

# 2 High and low prices are all you need to focus on

This secret number 2 describes the very basic but extremely important idea, and sadly it is not used wisely enough. High-low price analysis can provide a lot of information such as the strength of the trend, the direction of the market, or even predict the end of the trend.

High-low price analysis can be combined with other traditional methods, here are a few examples that can help you understand the high and low prices beyond common sense:
  • Do you see a long trend with only a small recovery (this is a strong trend sign);
  • Does the price seem to be unable to produce higher highs or lower lows? This could be a sign of the momentum has decreased;
  • Do you see increasing volatility, bigger candles, while making new highs and lows? (pay attention to them because the biggest volatility is in the pivot point);
  • During an uptrend, the price fails to make a new high, and this is the point you need to pay attention to.
# 3 Enter controlled orders to improve your win rate

You can increase your odds if you focus on the important and meaningful prices that come with price action. Most amateurs enter orders whenever they see price action and then wonder why their win rate is low.
Draw support resistance zones, then mark the supply-demand zones, then wait for the price to reach those zones; only enter orders when the Price action forms within the zones I have marked. This not only helps you to reduce pressure when trading (use alert) but also significantly increases your trading performance.

# 4 Everything is relative - accept the context

One big mistake that traders often make is wanting the Price action to be exactly like a drawing or like a pattern they see in trading books. Trading is not like that, everything is just relative and you need to put price action on what happened before.

Please see the illustration below. During an uptrend, you can see some pin bars, but the first 2 are quite small compared to the previous candles, so they don't make much sense. The pin bar candle is really at the top, a very long shadow shows strong price rejection, this pin bar is even bigger than the previous candle and this is a good signal for you to enter.

Remember to compare the price action candles you saw with what happened before.

# 5 Four clues of candles about price action

The four points below will help you avoid the common mistakes that path thinkers and traders make.
  • The length of the shadow. If you see a lot of candles with long shadows it means volatility and uncertainty are increasing. Especially at the market tops or when the price is compressed, the shadows tend to get longer;
  • Candle shadows up and down. Compare bullish versus bearish shadows, if the lower shadow of the real body is much longer than above it means the price has dropped to the level at which the bulls ambushed, where the price is rejected. strong and possibly an alternating price signal; same for the opposite case;
  • The position of the body of the candle. You should pay attention to where the candle body is? If the upper part means there is pressure to push the bulls up, this signal becomes more secure if it is accompanied by a long bearish shadow; and vice versa. If the body of the candle is in the middle, it proves that there is a strong struggle between the buyers and the sellers, the longer the shadow, the more fierce this struggle;
  • Candle body. The ratio between body and shadow can give you a lot of information. If the candle body is almost completely occupied, it means buying/selling at that place is quite strong, if the shadow occupies the majority of the candle, there is a hesitation in price.
# 6 The time zone the broker uses is not important
    There is a question that if the time zones that brokers use are different it will lead to different closing times and of course the consequence will be different price action. Honestly, it doesn't make much of a difference in your trading although if you compare the charts of the H4 or D1 charts they will be different. Please see the illustration below:

    Both charts are of the same currency pair, at the same time, are the same H4 frame, but use different closing times and therefore the two charts are slightly different. Some important price action appeared on one chart but not shown on the other side and vice versa.
    So there is no way that broker time is better than another, the most important point is your own event, do not make yourself difficult by changing the broker time, just stick to one because In the long run, everything is balanced if you keep your consistency.

    # 7 “Stop-loss hunter” and amateur trader innocence

    Traditional price action patterns are often quite clear and many traders believe their orders are "hunted" by brokers because they find that their orders always seem to be stop-loss scanned despite the beautiful setup.

    You know, for a professional Trader it is not difficult to predict where the amateurs will enter and place the stop-loss once a setup takes place. Those "hunters" are not your brokers but the veteran Traders who have made a profit in this market. So you either wait for these amateur Traders to be "processed" or enlarge your stop-loss to avoid being hunted by professional Traders.

    # 8 Choose the right market

    Building a portfolio of currency pairs you want to trade and choosing potential pairs to trade is very important but often overlooked. For example, if I check about 15 pairs on a Sunday in preparation for the new week but I usually just pick 6-8 potential real pairs and stick to them, the reason is that you should. remove the setups under unfavorable market conditions.

    Choosing the market to enter is very important, you should choose markets with clear price action while avoiding turbulent and unstable markets. Don't be too tied on a certain currency pair that you trade, be flexible up a bit and focus on the best setup.

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