Price Action Trading Strategy (loss of momentum) — Transcript

Full transcript

1. 0:00this five minute video is going to
2. 0:01change the way that you look at support
3. 0:03and resistance levels when it comes to
4. 0:05price action and when and if it's going
5. 0:08to reject off of that level
6. 0:10[Music]
7. 0:15welcome back to the channel everybody my
8. 0:16name's artie and this is the moving
9. 0:18average a show where we discuss
10. 0:20everything day trading to keep you
11. 0:21profitable on a consistent basis over
12. 0:23the next several weeks i'm going to be
13. 0:25putting out more content when it comes
14. 0:27to price action because everybody knows
15. 0:29that price action is king let's just get
16. 0:31right into the charts so this price
17. 0:33action strategy works on everything
18. 0:36whether it's crypto currencies whether
19. 0:38it's indices or forex a majority of you
20. 0:41are trading forex so it's going to be
21. 0:43easier for me to explain this in regards
22. 0:45to pips and take profit levels so let's
23. 0:47just say you hop on the charts
24. 0:48australian dollar us dollar and you
25. 0:50start seeing rejections off of this area
26. 0:53this is when you draw out your bracket
27. 0:56and actually put a level here
28. 0:58of known support meaning that the price
29. 1:01is being pushed up by that level it
30. 1:03won't go past it also side note anytime
31. 1:06you see anything like this this was
32. 1:08either a news event or a stop hunt all
33. 1:12right so having the information that the
34. 1:14price rejected here price rejected here
35. 1:16and price had a very big rejection here
36. 1:19your thought process should be a long
37. 1:22position from here when you have a
38. 1:25general idea of what your trade is going
39. 1:27to look like i want you to look at the
40. 1:29parameters to see if you could at least
41. 1:31get a one to two risk to reward ratio
42. 1:34out of this trade
43. 1:36and if your take profit level is even
44. 1:38worth taking 20 to 50 pips or more now
45. 1:42your stop loss is going to be below the
46. 1:44swing low especially knowing that this
47. 1:47was a stop loss hunt by the market
48. 1:49makers now when price moves towards a
49. 1:52level of support and resistance that has
50. 1:55been rejected before what we need to
51. 1:58look for is slowing momentum
52. 2:01big ass candles is large momentum but as
53. 2:06the candles get smaller
54. 2:08as it gets closer to a level of support
55. 2:11and resistance you know that you're
56. 2:13getting a loss of momentum with the loss
57. 2:15of momentum
58. 2:17comes a higher probability that it is
59. 2:20going to use that same level as support
60. 2:22or resistance depending on which way the
61. 2:24price is going this is just another tool
62. 2:27to put in your tool belt knowing what
63. 2:30you're looking at when seeing price
64. 2:32action also you do not get into a trade
65. 2:36unless you see a firm rejection off of
66. 2:39that zone with the loss of momentum
67. 2:42leading up to it so on a 15 minute time
68. 2:45frame we are seeing a movement down to
69. 2:49that zone large momentum candles
70. 2:52followed by subsequently smaller candles
71. 2:57this right here is all i want you to
72. 3:00learn out of this video you want to see
73. 3:02a loss of momentum
74. 3:04coming up to a support and resistance
75. 3:06zone in this case it is a support level
76. 3:08once we get to that zone and have a big
77. 3:11rejection candle off of it that is when
78. 3:14you want to enter into your position and
79. 3:17wait for the close of the candle because
80. 3:19the size of this candle is so massive
81. 3:22your stop loss does not need to be below
82. 3:25that previous stop hunt just below the
83. 3:28zone is completely fine and your take
84. 3:30profit should be at a level where price
85. 3:33has hit the most so we're looking at 36
86. 3:36pips right here a 1 to 1.5 risk to
87. 3:39roared ratio which is completely
88. 3:41acceptable in this scenario because you
89. 3:43do not know if this is going to break
90. 3:46out of this consolidation range that it
91. 3:48is technically in so this is your first
92. 3:51take profit level and this is your stop
93. 3:53loss knowing that you had a loss of
94. 3:55momentum and rejection off of this zone
95. 3:58now if we look left this should not be
96. 4:01your primary target having these high
97. 4:04points as your target is a little bit
98. 4:06more risky than getting in wherever the
99. 4:09price crossed the most and had the most
100. 4:12resistance especially seeing this right
101. 4:14here so your second take profit level
102. 4:16can be right there comfortably not
103. 4:19stressing if it's gonna hit that high
104. 4:21point which leaves you a total take
105. 4:23profit level of 80 pips which is a one
106. 4:26to three point risk to reward ratio when
107. 4:28trading like this you shouldn't have a
108. 4:30scalping mentality you should have more
109. 4:33of a swing trading mentality catching a
110. 4:36long trend up so as you can see our
111. 4:38first take profit level right here at 36
112. 4:42pips was hit nice and easily on one move
113. 4:45up then the overall move actually took
114. 4:48one day and 22 hours so you can see this
115. 4:51is a longer position but the payoff is
116. 4:54absolutely incredible so when it comes
117. 4:56to price action and you start seeing
118. 4:58these huge momentum candles getting
119. 5:00smaller and smaller and smaller to a
120. 5:02zone that's an area that you should be
121. 5:04looking to get in and as i explained in
122. 5:07a previous video that loss of momentum
123. 5:10leading into multiple wicks on the
124. 5:12downside is a nice signal again with
125. 5:16price action for the up movement now if
126. 5:18you guys want to learn more about price
127. 5:20action candlestick patterns please watch
128. 5:23this video where i choose my top five
129. 5:25candlestick patterns that i love trading
130. 5:28when it comes to price action and if you
131. 5:29guys got some value out of this video
132. 5:31and you like the way that i teach make
133. 5:32sure you're dropping a like on these
134. 5:34videos and make sure you're subscribed
135. 5:35to the channel for more videos like this
136. 5:37thanks so much for watching and we'll
137. 5:38see you in the next video