Price Action Strategy ALL Traders MUST know: Stocks, Forex, Futures and Crypto

Today we are going to cover everything you need to know in order to trade the price action alone without the use any indicators other than a simple moving average.

These rules apply to any market, Forex, Stocks, options, futures and Cryptocurrency

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To start what is Price Action?
Price action is the movement of a security's price plotted over time.
Price action forms the basis for all technical analysis.

We will be using Japanese Candlesticks to plot price action for today’s video.

Lets start with some basics before moving on to more advanced techniques
On a Green Up Candle When we refer to the open – we are talking about this area right here
On a green Up candle when we refer to a close – we are talking about this are here

On the other hand

On a Red Down Candle when we refer to an open – we are talking about this area right here
And On a Red Down Candle when we refer to a close – we are talking about this area here

Lets look at two more examples
On a Green Up Candle When we refer to the open – we are talking about this area right here
On a green Up candle when we refer to a close – we are talking about this are here

And then again

On a Red Down Candle when we refer to an open – we are talking about this area right here
And On a Red Down Candle when we refer to a close – we are talking about this area here

Here we will take a look at the the EUR/USD Forex Pair.
This is a 60 minute chart so therefore each candle represents 60 minutes

First we want to add a Simple Moving average to the chart. These can be found in any trading platform under add indicators or add Studies.

When we add the Simple Moving average, we want to be sure that the length is set to 13, this is very important as by default your trading platform probably does not use this value.

Now that we have our Simple Moving Average On our Charts, lets move into the first step of the price action trading Strategy

Step 1 – For and Up Move
Make sure there is a candle CLOSE below an UP moving average line.

Ok so the first time we see this on the chart is right here, we have a close below an UP Trending moving average Line. Lets Zoom into this to look further.
Here we Have an Increasing Moving Average
Next we can see this candle close below the up moving average

This brings us to step 2
Make sure there is a green Candle CLOSE above the most recent red Candle open
Let take a closer look at candles one more time just to drive this home
Here is a what the candles on the chart can look like.

Here is a Green Candle close, and here is the most recent red candle open
Notice that the Green Candle Close is Above the most recent red candle open, this is very important to understand as this is exactly what we are looking for in the price action.

Back to the chart

Once again we have a candle close below an up moving average
Then here we see a green candle close that is higher than the most recent red candle open.

Next we see the resulting up move.

Please NOTE: These setups only have a “probability” of working. No Trading setup has a 100% win rate. Proper money management and the use of protective stops are necessary to ensure preservation of trading capital.
Now lets look at how to do this with a down trade.

Here we have a chart of amazon.com, this is a 5 minute chart meaning each candlestick represents 5 minutes of time.

Step 1 – For a down Move

Make sure there is a candle CLOSE above a down moving Trend Line
Ok so the first time we see this on the chart is right here, we have a close above a down trending moving average.

Here we Have a down moving Moving Average

This brings us to step 2

Make sure there is a red Candle CLOSE below the most recent green Candle open

Let take a closer look at candles one more time

Here is a what the candles on the chart can look like

Here is a red Candle close, and here is the most recent green candle open
Notice that the red Candle Close is below the most recent green candle open, this is very important to understand as this is exactly what we are looking for in the price action.

Once again we have a candle close above a down moving average
Then here we see a red candle close that is lower than the most recent green candle open.

Next we see the resulting up move.

We hope you enjoyed this and found it helpful.

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Видео Price Action Strategy ALL Traders MUST know: Stocks, Forex, Futures and Crypto канала Prophet Market