Price Action Trading Guide | 5 Rules For price action trading

Price Action Trading Guide | 5 Rules For price action trading
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Identifying Support Levels for Trading Opportunities

Trading Guide If it approaches the support level then there is a  possibility that the price may reverse from here and  go up and here we  look for a bank opportunity.  Everything was fine till now but if the press  approaches the support level by making a lower one then we  Here bank rates should be white  because it is a sign of weakness.

Recognizing Weakness in Price Approaching Support

Trading Guide This  tells us that the sellers have controlled the market,  hence they are continuously  pushing the prices lower and if you see, they are  gradually becoming weak.  How we came to know so if you look at the price  you will come to know  and it goes down and in this concept its  opposite also reduces  and here we get to see so  in such a condition we should avoid selling at the resistance level  because it gives  us  It tells that we are ready to buy even in high press from outside,  then in such situations  we can plan the breakout rate with  respect to price action and information number.

You  look for buy power move in support. This means  when the price approaches its support level.  big red momentum candles  You            should understand the concept behind it.  See, if the price respects the support level,  then from here the price  can go up very quickly and easily because there  are no obstacles. For better understanding,    see the second example.

Importance of Power Moves in Trading

Trading Guide Here you can see that this is our level  of  There is support and the price now approaches the support level,  so a kind of lower  high is being formed here, so if the price  starts going above here, then this lower  will make an optical low, that is, it  will become a hindrance in the price going up.  So I prefer if the price  approaches the support level with power move  then I find out the bank of opportunity here. 

Avoiding Selling at Resistance Levels

See us immediatli  no trade taking us with it respect  conformation pe trade raha hai like koi  bole candlestick pattern ho.  Gaya like Bully  Hammer Bully Single Fee Morning Star ETC  Now see many times this happens when the price  approaches the support level with power mops  then due to the momentum many times the support  level gets broken but most of the  time this has been seen  In the next few candles, the  price comes back above the support level,  then in such a condition, we  can take a good bite here.

Trading Guide This reversal  can be due to profit booking  because those who were short here will  book profits there because we are  near.  Let’s book profit near the key level  and in this example this is our nearest key  level and their profit booking means buy  order and those who have sorted on the basis of this breakout,

Understanding Price Action and Momentum

  Trading Guide their stock plus will  hit somewhere here and those who have shot  Did their stock plus means buy order so in  this way a bank pressure  is created here and the price can go up rapidly from here  so now let’s look at rule number three  avoid placing star plus just see  support for example this is our area of  support  And the price is now near the support,  we biked here, now we  make a mistake here, we keep our stop loss just  below the support, this has happened to me  many times in the next stage,

Taking Advantage of Profit Booking Near Key Levels

I used to  keep the stop loss just below the level and a  Candle used to be  my Star Plus hand, so now we do  not have to make such a mistake, hence we do    not have to keep the stop loss too tight or at the office point  and the price is in the middle of this range. Many of the  trades that take place here, they do it  thinking that  The price will go from here to here  and we will make some profit here but the  problem is where will be your stop loss.

  Setting Stop Loss Strategies Near Support Levels

Now some people will say that we will keep our stop loss  below the people of the previous candle  but the thing to note here is that the price is  still in a range.  It  can move up or down in any way within this range. It is  possible that your stock will hit the plus and go  up or it may come back down  near its support. So we will set our  stop loss in a range.

  voiding Tight Stop Loss Placement

Now some people will say that we will keep our star plus  below the support but is this right?  Keeping topless below the support  can spoil our risk reward ratio.  We cannot take such a big risk on this much profit, so  it is not wise.  There is  no less, so the nine question is what to  do now, the answer is very simple, let the price  come back to support or resistance, 

Waiting for Confirmation After Breakouts

then take trade on the basis of candlestick or other study,  then your star plus will  be somewhere here and your profit will be at the lowest  level.  Rule number five award is in the changing  D market  range and here we get a breakout. There are  many people who  start changing the market, they think that they might  miss the trend or they might miss the  opportunity to make profit.  See.

 Managing Risk in Changing Market Conditions

I would suggest you that you do  not take trade immediately on breakout, you wait for the  first full back after breakout  or kind of flat  pattern is formed after breakout, you take trade on its basis,  so I have already made a video on pull back trading and breakout trading.  I have  made a video whose  link you will find in the description so  do watch the video once. Hopefully  you will learn something from it. So these are  some basic rules which you have to  remember during price section trading. So  hopefully you got some information from this video.  If you  found the video informative then do like the video and  subscribe to the channel. See you  in the next video. Till then best of  luck for stock journey.  


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