Setup Price Action - 1: A false break

The false break is a Setup price action that allows you to buy the bottom and sell high with high probability:

A false break occurs when the price breaks through a resistance level (or peak) then reverse the decline in the opposite direction. Similarly when price breaks below a support level (or bottom) and then bounces up in the opposite direction.

The false breakout pattern is strong in that it makes use of two favorable forces to make prices move and make profits: with a false breakout from bullish to bearish, the market will be kicked down by the profit-taking of the bulls. previous buyer, plus the downside force from the buyer, breaks the stop loss when the price falls. Contrary to the break from decrease to increase.

Trading way:
  1. Look for candlesticks that rise sharply to resistance
  2. For the price to break a clear high or resistance (let buyers jump in to buy a break)
  3. Wait for the price to drop 1 big bar and sell when this candle closes.
Do the opposite of the upside.

For example:

Setup Price Action - 2: Break the structure

Breaking structures helps you start a new trend wave.

Breaking structure is a signal confirming that the old trend is broken and forming a new trend, so it will be very advantageous to enter orders at the beginning of a new trend.

Trading way:
  1. Wait for an uptrend to approach a very strong resistance zone on a larger timeframe.
  2. Price cannot make a higher high but instead makes a lower high (this is the stop-loss)
  3. Sell when the nearest swing low is broken.
For example:

Tip: When an uptrend approaches resistance, the candlestick should have a shorter body, a long shadow, and possibly break the ema 21 line before breaking the structure. Therefore, when there are these signals, you should prepare to enter an order.

Setup Price Action - 3: Breakout with buildup cluster

Breakout with a buildup cluster is the best way to trade threshold break.

Price rose to resistance and began to accumulate. However, the price could not fall but was continuously "stuck" just below the resistance. That accumulation is called buildup. As soon as the price breaks to buildup, we buy.

For example:

Tip: the market has to trade sideways in at least 80 candlesticks, so the resistance is strong enough to create a rebound for the break.

Setup Price Action - 4: The first reverse-pull wave

The first pullback of the trend after a long accumulation is the best opportunity to enter after the trend, and usually, the Setup is most profitable. After exiting the accumulation zone, the price will tend to pull back a bit and then continue its path, so entering after the first pullback is the position that has the highest advantage with 1 tight stop hole.

Note that the price does not have to pull back all the way back to the previously broken resistance zone, sometimes the reverse pull-back only takes place quickly, and then the price returns to an uptrend.

Setup Price Action - 5: Break and Retest

Break-and-touch is a classic price action structure, which appears multiple times on charts on all timeframes, and is a very high probability entry opportunity due to its special nature. It helps you to follow the trend in a way that is most advantageous.

Nature: resistance becomes support, and vice versa. Break and touch setup is built upon this property. After breaking a resistance zone, the price tends to "be attracted" back to that resistance area to retest and continue the breakout direction.

Trading way:
  1. Price breaks resistance and pulls back to the just broken resistance (later becomes support)
  2. Price hit resistance again and formed a bullish candlestick pattern
  3. Buy stop above the candlestick pattern, stop loss at bottom.
For example:

Setup Price Action - Tip: Trade near the value zone

Example for easy to understand:

The market is in an uptrend and its value zone is the ghost line 20 and it has bounced off this line many times.

At this point, the price is far from the 20 ghost line, so if you spot a Setup on a lower timeframe, stay away and don't enter. Why? Because the price tends to "be attracted" back to the ghost line 20 before it can continue to increase ma 20, in this case, looks like a magnet. Please only trade when the price is near the 20 ghost line.