Structure of "Slide Bridge":

The first structure is defined by several criteria:
  • An important and clear trend line appeared
  • A horizontal resistance/support level
  • The price breaks this trend line
  • Price retests this trend line with a nice price pattern
  • The test point has confluence with some of the main Fibo ratios (optional but often so).
Once all these criteria have been met, you can wait for a nice price pattern, such as the Engulfing bar to act as a catalyst to enter the Market with Entry, Stoploss, and Take levels. suitable profit.

The NZDUSD chart has formed a perfect textbook-like structure as shown below:

The NZD chart shows a very nice trend line

A horizontal resistance also formed at the old high (price has interacted with this level in the past).

This is also the confluence zone with the Fibonacci 61.8%.

And the perfect Bearish Engulfing pattern appeared as well

This type of structure offers a very good win rate. But its drawback is that it doesn't appear often. You just need to wait for the price to return, find nice setup price action to trade only!

"Pinch" structure

With this structure, we must consider retests of a horizontal resistance/support level in a particular price context. To identify this type of horizontal resistance/support, you must analyze the price action beforehand.

In the example below, we will use a line chart for a better view. We can see that price made some "hook" price action at a horizontal resistance, we mark these levels. Then, if the price breaks out of this threshold and bounces back, we would wait for a nice bearish sign or bearish pattern to trade.

Here are some illustrative examples:

When the price breaks this level, we will wait for a bearish pattern to sell down when the price touches it

More specifically, here is an example done on a GBPAUD H4 chart with a lovely Pinbar in a very nice "Pinch" construction. We use line charts to clearly see touches:

And a great discount Pinbar appeared on the chart, offering very good trading opportunities:

"Three touches" structure

This structure consists of 3 higher highs (or 3 lower lows for a bullish setup). The “Three Touches” structure is very rare and can be used with oscillating indicators (such as RSI or MACD) to detect divergence between price and indicator. Here is an example of AUDUSD with divergences:

The structure "Break and re-test the horizontal price range"

This structure is quite easy to spot because you only need to identify markets that are moving sideways. Every price move is subject to some basic rules like strong trend moves, pullbacks, and sideways. The price cannot move in one direction without resting time. And with this structure, we only need to time the price to move sideways within a specific range. During this period, you can easily draw “boxes” to define the price frame as we see below:

Then you have to wait for Price to break this "box". When Price has broken the top or bottom of the box, you can wait for the price to retest the edges of this "box", combined with nice price patterns to enter the order. Here is a beautiful example with an Engulfing candlestick appearing on the AUDUSD chart when the price retests the bottom of the “box”:

Price horizontal movement areas must be clear and easy to see. If the traversing area is not clear, it is better to stay away from it.

Some other structures ...

The above price structures are my favorites. However, sometimes you can find some very well-priced models in less standard structures. For example, made a trade on the GBPAUD H4 chart at a pure horizontal resistance. This price model is very nice and almost perfect:

We can find other classical constructs like “Double Top”, “Double Bottoms” or “Head & Shoulders”. Finding a Reliable Price Model with ineffective price structures is very helpful. As long as you practice a little bit, you can get good probability deals.

Bottom line: If you trade Price Action without taking into account its context, you might get stuck. It is important to always have an overall picture of prices by going back and analyzing past Price Actions.