Price Action That Matters

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 :wink:

Also don’t be put off stuff that’s hard to get your head around.

'best

darth

Sounds good!

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.

'best

darth

Wow,

I just put a trend line on the daily chart and went to the h1 to see the stetups… man some good setups could have been taken with insane R:R

Im definitely going to start learning more about channels before anything else.

Toolkit so far:
Engulfing bar
Pin Bar
Inside Bar (only the one that makes it look like 2 bar reversal)
2 bar reversals
Double top/bottom

Learning:
Channels
Head and Shoulder

Wish list:
Everything else

a great start mate, just take it slow each setup is a snowflake no 2 are the same. also use h4 instead oh h1.

'best

and with r:r try not to be greedy. its a killer.

I agree

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 :stuck_out_tongue:

hi guys,

great forum guys, am new here and learning the basics from the pros :).

Anyone care to explain to me what VVSA stands for or where can i dig for these kinds of terms? thanks you all.

Below is a picture of NZDUSD

I have drawn what appears to be a rising wedge after a down trend.

Does this rising wedge indicate that a bearish move is on its way?

If so, does one trade this pattern by breakout or when PA bounces off the lines in the bearish direction?


It looks like you are trying to make a pattern where there isn’t one. Your lines are inconsistent, some on the shadow ends and others on the bodies

You may be write.

I thought lines are okay as long as they don’t go through any one of the body?

I know I started at the wick and then went in closer to body because thats how I saw it fit.

But i don’t know if what i am doing is correct or not.

Trial and error will help soon enough!

Do you draw lines from wicks to wicks?

price has broken that wedge going lower tho may have just got lucky i didnt enter it since it was too late

well see how you go. better to make money than to lose money so if you aiming high best to take profit along the way.

google it.

darth

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.

'best

darth

Yes. That made bank, there was a nice inside bar entry signal on H4 :slight_smile: 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.

Hope all that makes sence :slight_smile:

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…

Again, here is another trade on Gold.

Given the daily pin bar, I took this IB at the high, was showing weakness to me with the hanging men candles and candles with low spread.

Red lines are entry, SL, TP 1,2 and 3…

Img link - http://puu.sh/cnpfu/339a49bd8c.png