Yeah he provides a good place to start from, but I recommend to also learn about trendlines, channels, ma’s, multiple candle formations, multi-timeframes, momentum, and all types of PA candle.
Just to start with
Also don’t be put off stuff that’s hard to get your head around.
Since I trade on daily charts, there are not many patterns that occur frequently enough to learn. I have seen Adams videos and thats what I truly saw what PA patterns looked like in the real charts and not some perfect picture of them. The perfect pictures mislead me because I looked for that to occur to perfect. But with Adam’s videos I saw how a tiny movement could be a head and shoulders problem.
With drawing channels. In your opinion. Should I draw them on daily and trade them on h4? or Draw them on the timeframe intended for trade?
draw on both, as you can have channels within channels. And your right picture perfect setups are like rocking horse s*** forget about them and learn the formations, go back through your charts on any timeframe on any pair and you will see them over and over again.
But is it not reasonable to target the top/bottom of channel in the direction of the channel?
I been playing with channels today. I draw them on daily and look for entry on lower time frame while targeting top/bottom of channel. Work well if all goes well
He’s line are fine actually there perfect, that is a perfect example of a wedge/ pennant whatever lol. But just because its a pattern doesn’t mean it will work out. But great spot.
Yes. That made bank, there was a nice inside bar entry signal on H4 Not really a wedge btw, more or a channel/bear flag. Hit TP 1 and 2, waiting for 2 to be hit if it makes it that far.
VSA is volume spread analysis and is the study of volumes and the relation between them and candle stick spread and wicks. You can tell a lot using volumes, though most people don’t understand how to use them, yet I see so many people with them on their charts, and think because there is a pin bar and spike in volume, that means it will work. Not true, there is so much more, volume divergance, no supply/no demand candles, pump and dump (which creates huge spikes in volume).
What you need to understand is, volume is not the actual quantity traded, but the number of transactions that took place in the given candle. When trading VSA there are a few things you need to understand, and some main principles, there is accumulation, markup, distribution, re-accumulation, markdown… and so on. I wouldn’t recomend using VSA though, it is hard to master, plus, you can tell everything from candle sticks and the patterns they make without using volumes. It just takes sometime to learn, but is possible.
There is no right or wrong way to draw trend lines. Everyone draws them differently, I just use them as a guide for trading, and never take them too “seriously” though you do need to take note of them.
Here are my TL’s for NSDUSD. This is an H4 chart, the horziontal levels are my SL, Entry, TP 1 and TP 2 (3 not hit yet… so not inculding it on chart.
Right click image, copy image location and paste it into a new browser window to view full screen…