2 Powerful Price Patterns & Simple Truth About Trends. Trading Concepts, Inc.

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Madeleine Berry
5 years ago
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1 2 Powerful Price Patterns & Simple Truth About Trends

2 RANGE Price Action Analysis Interpreting the OPEN, HIGH, LOW, & CLOSE on a Price Bar or Candlestick & comparing it to the Prior Price Bar or Candlestick provides insight into what the Market may likely do next. BAR CHARTS (Price Bars) or CANDLESTICKS RANGE: Confirms Momentum. CLOSE: Confirms Price Action Price Action Analysis helps a Trader Identify insight into what the Market is likely going to do next. 2

3 BULLISH Outside Vertical Bar (BUOVB) / BULLISH Engulfing Pattern HIGH & LOW must exceed Prior Bar s HIGH & LOW; CLOSE in Top Quarter of Bar USED at logical SUPPORT in an established UPTREND PROFIT OBJECTIVE (1X Range of BUOVB) PROFIT OBJECTIVE (1X Range of Engulfing Candle) BUY ENTRY BUY ENTRY ISL BUOVB (BULLISH OVB) ISL BULLISH ENGULFING 3

4 Inside Vertical Bar (IVB) at SUPPORT / BULLISH Harami HIGH & LOW both INSIDE Prior Bar s Range Does NOT MATTER where the Bar Closes USED at logical SUPPORT in an established UPTREND PROFIT OBJECTIVE (2X Range of IVB) PROFIT OBJECTIVE (2X Range of IVB) BUY ENTRY BUY ENTRY ISL IVB (Inside Vertical Bar) ISL BULLISH HARAMI 4

5 BEARISH Outside Vertical Bar (BEOVB) / BEARISH Engulfing Pattern LOW & HIGH must exceed Prior Bar s LOW & HIGH; CLOSE in Bottom Quarter of Bar USED at logical RESISTANCE in an established DOWNTREND ISL ISL SELL ENTRY SELL ENTRY PROFIT OBJECTIVE (1X Range of BEOVB) BEOVB (BEARISH OVB) PROFIT OBJECTIVE (1X Range of Engulfing Candle) BEARISH ENGULFING 5

6 Inside Vertical Bar (IVB) at RESISTANCE / BEARISH Harami LOW & HIGH both INSIDE Prior Bar s Range Does NOT MATTER where the Bar Closes USED at logical RESISTANCE in an established DOWNTREND ISL ISL SELL ENTRY SELL ENTRY PROFIT OBJECTIVE (2X Range of IVB) IVB (Inside Vertical Bar) PROFIT OBJECTIVE (2X Range of IVB) BEARISH HARAMI 6

7 The Simple Truth About Trends Only 3 Primary Waves (or Trends) in the Markets: 1) UPTREND Higher Highs & Higher Lows 2) DOWNTREND Lower Highs & Lower Lows 3) SIDEWAYS Market Relatively Equal Highs & Equal Lows Identifying which Wave the Market is in is vital to successful trading. The Simple Truth About Trends is all about pure Price Action! These simple principles form the cornerstone of any consistently successful Trading Methodology. 7

8 UPTREND: Higher Highs (HHs) & Higher Lows (HLs) HH HH HH HIGH HL HL HL HL LOW 8

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11 HIGH DOWNTREND: Lower Lows (LLs) & Lower Highs (LHs) LH LH LOW LH LH LL LL LL 11

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14 SIDEWAYS Market: Relatively Equal Highs & Equal Lows HIGH LOW 14

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17 UPTREND reversing into DOWNTREND DOWNSIDE Penetration of the most recent Higher Low (HL) HH HH (Lower High) LH HH HL HL (most recent Higher Low) LL (Lower Low) HL UPTREND potentially reversing into a DOWNTREND with DOWNSIDE penetration of most recent HL 17

18 HH HL (most recent Higher Low) LL (Lower Low) 18

19 HH (Lower High) LH HL (most recent Higher Low) LL (Lower Low) 19

20 DOWTREND reversing into UPTREND UPSIDE Penetration of the most recent Lower High (LH) LH DOWNTREND potentially reversing into an UPTREND with UPSIDE penetration of most recent LH LH (most recent Lower High) LH (Higher High) HH LL LL LL HL (Higher Low) 20

21 (most recent Lower High) LH (Higher High) HH LL HL (Higher Low) 21

22 (most recent Lower High) LH (Higher High) HH HL (Higher Low) LL 22

23 2 Powerful BULLISH Price logical SUPPORT in an established UPTREND BUOVB (BULLISH OVB) IVB (INSIDE Vertical Bar) BULLISH ENGULFING BULLISH HARAMI 23

24 2 Powerful BEARISH Price logical RESISTANCE in an established DOWNTREND BEOVB (BEARISH OVB) IVB (INSIDE Vertical Bar) BEARISH ENGULFING BEARISH HARAMI 24

25 All rights reserved. This Training Program, or parts thereof, may not be reproduced in any form without the prior written permission of Trading Concepts, Inc. No claim is made by Trading Concepts, Inc. that the trading strategies shown here will result in profits and will not result in losses. Trading may not be suitable for everyone. All comments, trading strategies, techniques, concepts and methods shown herein are not and should not be construed as an offer to buy or sell futures contracts they are opinions based on market observation and years of experience. Therefore, the thoughts expressed are not guaranteed to produce profits in any way. All opinions are subject to change without notice. Each trader/investor is responsible for his/her own actions, if any. Your opt-in to this information constitutes your agreement to this disclaimer and exempts Trading Concepts, Inc. from any liability or litigation. 25

The 4 Step Process for FOREX Trading Mastery

The 4 Step Process for FOREX Trading Mastery The 4 Step Process for FOREX Trading Mastery 1. Identifying Market Condition 2. Identifying a Trade Set-Up Steps 1 & 2 were discussed in the 2 nd Video 3. Determining