Continuing the series on Price Action, David focuses our attention on several cases where this trading approach can be used to determine entry points in trending markets. He covers both uptrending and downtrending scenarios on real charts and demonstrates the pitfalls that are always lurking around when it comes to timing your entry.
It’s not an ideal process and we get to see both a winning trade and one that gets its Stop Loss hit. But David talks us through the exact reasons why that happens and gives some tips on how to avoid them. It seems Price Action and patience seem to work well together.
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.
I don’t fully understand the share numbers say “Gold” is at 1258.45 and I want to buy 10 shares how much money is that
Hi, Daniel. Gold is measured in USD per troy ounce. More details at http://www.trading212.com/en/Frequently-asked-questions?cId=2. You can calculate the margin and swap (Forex and CFDs) / commission (equities) details for a trade, prior to opening it, by using the detailed trade box in the web app or the market order screen in the mobile app (for iOS and Android). Please simply refer to the customer support staff in case any questions arise. The contacts are available at http://www.trading212.com/en/Contact.
Thanks you david sir
Base metals not show in app
Hi there. Your comment is appreciated and would be taken into consideration, as always. New trading instruments are added to Trading 212 regularly, so stick around. Wishing you successful trading.
Use MACD to confirm the momentum shifts from the candles and you have a fantastically good trading strategy
Hi, nicely explained.
Of many strategies this is my favourite..
Follow the trend , wait for exhaustion, enter (with a wider stop loss) as you pointed out.
I always enter at two different levels.
My first entry is one lot and second entry is two lots.
Stop loss for both is beyond the previous high/low.
This allows me to take interim profits .
Thanks and regards
Really good analyst on the market …
Thanks, Rayad. Make sure to catch up with the other video tutorials in the channel. Stick around for more, as fresh content is published every week.
what about intraday trade? When to get into a trade?
Hi, Tanmoy. As per the regulations, trading advice is not available.
But do you have a video on that topic? If there please provide the link..
There are still no videos focusing particularly on day trading. Your comment will be taken into account, though.
how to like this video more then once?
awesome video.
Hi, Bhupendra. Your support is appreciated. You can subscribe to the channel and never miss a new video – fresh tutorials every week.
Trading 212 yes mr. David, itwas just a gesture.. haha..
i am old subscriber and watch all your video as soon as i get the notification.
and by the way thanks for making such awesome videos.
You are welcome, Bhupendra. Watch this space for more from Trading 212.
you are genius
Nice!
Thank you, Sir! I see your video. It’s really helpful for any trader
Hi, Mhafuj. Delighted that you are happy with the tutorials. Watch this space for more from Trading 212.
why don’t you use any indicators, macd, bollinger bands, RSI?
If you havent watch3d any of his other videos i highly suggest you take them up. I understand im commenting a year later and maybe your well past this point in your trading career by now but if not he does mention in his other videos his opinions on those other indicators. But basically if i can answer for him to the best of what i remember him saying is that he does occasionally use those other indicators and states that they do serve a purpose. But in his opinion the price action and what is actually going on in the market is what sets those trends which is why he prefers to look at price action first and foremost. And price action combined with the supports and resistance give you good indicators on where to enter. Where to set your stop loss and where to exit a trade and creates the potential for a fairly low risk high reward play. In one video he says that he often sees newcomers in trading try to look at everything and end up with 10 different oscillators/indicators on their screen and thus often times they forget to look at what the price. He believes is a clean screen and just going off of the price action and watching to see if people are buying or selling. I am very new to trading myself but have been trying to school myself as much as possible watching any and all videos i can find. And after doing so id have to say that this method is possibly one of the easiest to understand as well as see in real time and in practice tends to work often and like he says it creates the potential for low risk high reward trades and has clear enter and exit indicators which when just starting out is invaluable.
Thanks for making very good Video’s….Perfect !
You are welcome. Watch this space for more, as new tutorials are published on a weekly basis.
awesome video Sar…
Great one, thanks a lot for investing your time in making those helpful videos! You mentioned there are three videos in the Price Action series. I guess the second is the one called ‘What is price action trading and how to use it”, but somehow I am missing the third one. Which one is it? Thanks a lot for all the support, once again.
Hi there. Links directing to both videos are available as cards (the “i” icon at the top right corner) and in the end of this video. Here are the links for your convenience:
What is Price Action Trading and How to Use it – https://youtu.be/y5vFdozvcrk
How to Recognize False Breakouts – https://youtu.be/GxT-h0WF1OE
sir your video was excellent but have we to consider inverted hammers at the top or hammers at the bottom for the change in trend
Can’t believe all this info is free! These in depth but bitesized videos really do make a difference in helping it sink in faster. You, are making a difference 😉
Steve Hirons you commented a year ago I was just wondering how far have you come in the market at this point?
@DoSe I guess he didn’t come far enough. it’s been 2 years now and no response.
Hes not doing great it’s been 4 years
I hate when I get impatient and sell then the market does what I thought it would a day later. That’s one way to put me in a sour mood…
how is it possible to put the price at extremities of candles ? is it possible to put a text with one click or with a horizontal line? I didn´t find it.
Hello. You can use the text tool in the drawings toolbar.
Hi, but the text tool I need to edit manually, I was thinking in something the put the price automatically, like there is at Metatrader for example.
You can use the Price Alerts in case you’d like to be notified when the market price of an instrument reaches a certain level.
I am from Brazil, very good.
How to identify fib retracement and trend reversals
Hi, Pramod. Check out these videos:
How to Trade Retracements – https://youtu.be/Kz6-8nQLRHM
What are Fibonacci Retracements – https://youtu.be/Ytr__kKKYBA
How to Trade Reversals with Pin Bars – https://youtu.be/vHqsbpkHo4s
Great lesson, thanks so much!
So excited to do trading
GReat videos thanks very much for sharing your knowledege and experience.
I like the sincerity of your videos. You don’t just show perfect trades. Even with apparent set ups, a short rally can sail past your stop loss. It really does make sense to wait for the perfect entry and trust a liberal stop loss
Liam Reeves what? He’s telling not even half the story. Follow the economic calendar and announcements like they’re holy scripture. They’re the reason for reversals, fake outs etc.
@Keevy lu Isn’t that when the markets are volatile
Thanks for the Video. I’m totally new to all of this and learning a lot . What i,m after, is there a graph that goes across the screen 2 lines/bar where by i can set it to tell me to buy and sell, along with colour to set perimeters. Any one have any suggestions Please.?
Thank sir for your explanation plz tell us some fandamentally strong stock in india plz plz sir we flow u sir
David, please, dont trade DIJ30 😀
Sir I’m from India I trade in NSE can you make video on how select stocks?
Hi, Vaibhav. That would be considered a trading advise. It cannot be provided as per the regulations.
Trading 212 okay sir
Thanks
Another great lesson! Thanks!
Brilliant video 10/10
In a downtrend or uptrend how do we analise when the trend would be reversed ?
Hi Devraj, you can watch those videos on the topic:
How to Trade Trend Reversals – https://youtu.be/xtRzvPvnipI
How to Trade Reversals with Pin Bars – https://youtu.be/vHqsbpkHo4s
Awesome video, thanks.
Thank you for another very useful lesson. I have a question though; do all these analyses of price actions, following the trend, breakouts and false breakouts, etc. also work for the stock market – and more exotic markets like the criptocurrency one -? Or are they specific to the Forex market? Thank you in advance.
Hi Rafael, technical analysis can be performed regardless of the type of the trading instruments.
Thank you, as usual, for the quick reply!
Both of your videos on price action are wonderful.. Sir we would be grateful if you explain some more of price action.. And a little more of your experience..
I have been following your videos David for some time. Excellent work. You should thinking about making a playlist of them in the order in which someone should learn. I some times watch the one that should follow first. Best Wishes and keep up the good work.
Thanks for the kind words! We will definitely be making some playlists in the next weeks to make it easier.
hey how to set up multiple monitors? thanks
While in the web app, go to the chart you’d like to open in a new window and open the context menu (right click with your mouse anywhere on the chart if that’s your pointing device). Then select the option ‘Open chart in new window’. Once you have your preferred charts open in separate windows, you can distribute them across multiple monitors according to your preferences.
Thanks. do you have a video on how to set up like that? thanks again.
There is no video covering that but feel free to contact the customer care team if you need any help – http://www.trading212.com/en/Contact.
this is a great video, it helps with timing and positions, keep it up
Thanks for the clear explanations. It’s great to hear you speak so logiclally about something that makes me panic everytime. I have a long way to go.
What are the names of the other “price action” videos?
Here’s the main Jose: https://www.youtube.com/watch?v=y5vFdozvcrk&t
Hey Jose, there are quite a lot videos on the topic in the channel. Here are some of them:
What is Price Action Trading and How to Use it – https://youtu.be/y5vFdozvcrk
How to Recognize False Breakouts – https://youtu.be/GxT-h0WF1OE
What are False Trend Breakouts – https://youtu.be/BcMvEEjAR2g
How To Trade False Breakouts: Beginner Guide – https://youtu.be/v-nnDRwHnso
How To Trade Breakouts (For Beginners) – https://youtu.be/eYaem0OW8gE
Trading Breakouts Strategy – https://youtu.be/2xrdjCjmLpI
How to Trade Trend Reversals – https://youtu.be/xtRzvPvnipI
How to Trade Reversals with Pin Bars – https://youtu.be/vHqsbpkHo4s
What are Fibonacci Retracements – https://youtu.be/Ytr__kKKYBA
How to Trade Retracements – https://youtu.be/Kz6-8nQLRHM
Hey thank you!
Another high quality presentation: a clear introduction of what is going to be covered, followed by a very clear candlestick chart showing exactly where the arrow is pointing and ending in a very concise summary…
Nice job . Thank you David !
Hi – Great videos about price action. i have seen the first one and the last one in the series, but the second one i can’t find. You have a link to it?
Hello Hans, is that the one you are looking for? https://youtu.be/GxT-h0WF1OE
Great Insight again !!!!
Very useful video, many thanks. When looking at price action points can you recommend the best time frame to view i.e 1 hour, 15 minutes etc?
That depends on your trading style, goals and preferences. It is believed that bigger time frames on the chart provide more reliable trading signals.
Most definitely the simplest and best trading lesson on youtube. Cheers mate
Thanks for explaining with great detail, it’s making it easier for me to understand.
thanks
When identifying trends is it better to look at a longer term chart or a shorter term chart time frame and thanks for your videos they really help a lot..💰
Hello Sergio, it is generally accepted that bigger time frames on the chart provide more reliable trading signals.
Great video! Its interesting how peoples strategies differ from one another. I was taught to play off the breakout failure.. Once it broke that price failure high one the back side of the chart, wait for a reversal bar (@1800) and buy once (1900) bar brakes the previous bars low. Of course I trade the nasdaq 100 but the trading seem about the same.
Thank you for this video. It’s a great example of how to read and estimate a good price action move.
Great lesson, I like how you show real possible scenarios!
Very nice thanks for this video
I would like more information what are you trader futuros or option
thank you! By the way lovely accent
Please made any price action video knowledge in indian market
Us Americans can’t use Trading 212, but everyone else in the world can trade on the American stock markets…… That’s fucked up brother man!!… p.s. luv the platform. It sucks I can only paper trade =(…Tampa,FL)
I love your videos. so many people suck at teaching it is irritating lol, but i can listen to you all day
I’m a beginner and been watching everything but your videos have helped me the most. Thank you
Awesome video guys. really love your channel.
so easy
The mic cover is in a downtrend.
Question: In the USD/JPY example, it looks like the prices are breaking above the long term trendline, and when you zoomed in on the prices it showed many strong signs of a reversal (Low, Lower low, and higher low. In addition to it pushing above the previous high). These all point to a bullish move yet this was not the case. I know its super easy to say after the fact but If I was looking at this real-time I probably would have been expecting it to go even higher. If someone could try to explain this, I am pretty new to trading so it’s greatly appreciated.
Great stuff you make the best forex videos and your advice is practical, understandable, very informative to the novice and experienced traders alike some people try to overcomplicate price action strategy tooooo… much GREAT VIDEO!!!!
Is It really hard to read the Candlestick chart…?
Thanks very helpful information with clear explanation.
Re the USDJPY… Why don’t you inform viewers of the economic announcements and breaking news/rumours that occurred during the times of ‘irrational’ price behaviour?
Hi…Sir…What is the time frame for this chart for see price action…Which will be more accurate bcz many time seen fals signals …..
Pure price action beautifully explained! Thank you.
Does anyone on here but in the canadian stock market ? and if so is it profitable ?
Solid principle . This again shows small position size + wide stop loss works better. A wide stop loss gives you more margin of error as long as you are right in the right direction.
love these videos
Great tutorial Davy..realistic, explanatoric, descriptive and comprehensive..at 1:45
The escalating downside sell bars at the right means an hour sell at 6:50
95 complicated traders thumb down
Thank you David. Am a big fan. Your videos are always easy to understand. Keep up the great work.
So candle Shadow is very very important.
Thanx David
I love your drawings it reminds me of primary school.
As a beginner something’s are not just clear, but I Believe with time I should get to understand it better.
Do u know guys that PA it’s the direct way to loose ?
I have two issues with the second example. The market made a higher high and broke the original down trend signifying there may be a push higher still. Second, when you expect something to happen, you infect your trading with bias. There was a good R:R trade opportunity to the upside if I was looking at the market objectively. Understandably, bias will infect our perception at times. It is at these times, you need to ask yourself what if I’m wrong? If I see the market going down, I have to also acknowledge that based on current market condition, it can also go up and possibly test resistance. Perhaps a better trade opportunity to consider if I am so inclined to sell is set a reverse order. I fully know that it’s easy to trade after the fact, but it is important for traders to imagine taking the other side of the trade they are making. It will, if nothing more, make you a more conscious and market aligned trader.
Can you make a video on Level-3 data or 20 market depth?
Thank you for this top tier class, again! Love the fact that someone shares these things without asking for money like every second guy on the net. Cheers! 🙂
Hi Sir I from india I wanted to learn more about price action trading can you please provide more knowledge about it. You have course about it
thanks
Nothing works all the time but being right more than wrong will make you profits. If you manage the size of your lots like 2% trades with a good strategy like this will make your account grow.
Great teacher, thanks
I don’t think the Candle Stick should be used to base decisions on. This is my opinion only and I never use the Candle Stick or even look at it.
Hi, where can I find number two? found number one but can’t find number two
thank you
super example thanks !!! you guys are doing grt job…
second one is an evening star so that would help to predict the lows to come
Can you show us Japan style way in shot version easy way because we don’t good at English. Write your own style we don’t understand anything I am sure beginner will don’t understand anything.
Make zoom video system .
I only use Fibonacci to confirm my entries against stop loss and take profit and In my opinion I think price action is the best strategy to use in the market because it Visually tells you what exactly is or about happening in the market and with that being said, you really have made that clear with your videos.
Huge thumbs up sir👍
Thanks for this video
Well Explained
All this for free!Thank you
This changed my thinking when trading thanks @212