Table Of Content

How to Trade with Price Action (Kickstarter) Trading Definitions, Concepts & Price Patterns Galen Woods ©2014 Galen Woods Contents Notices & Disclaimers . . . . . . . . . . . . . . . . . . . . . i Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . iv 1. Price Action Trading Primer . . . . . . . . . . . . . . . 1 1.1 Definition of Price Action Trading . . . . . . . . . 1 1.2 Origin Of Price Action Trading . . . . . . . . . . . 2 1.3 Markets For Price Action Trading . . . . . . . . . . 5 1.4 Essential Price Action Trading Concepts . . . . . . 6 1.5 Price Action Trading Methods . . . . . . . . . . . . 9 1.6 Beyond The Primer . . . . . . . . . . . . . . . . . . 11 2. Beginner’s Guide To Reading Price Action . . . . . . . 12 2.1 One Price Bar . . . . . . . . . . . . . . . . . . . . . 12 2.2 Three Price Bars . . . . . . . . . . . . . . . . . . . 19 2.3 Reading Price Action . . . . . . . . . . . . . . . . . 20 2.4 A Rose By Any Other Name Would Smell As Sweet 22 3. A Beginner’s Guide to Day Trading Futures Using Price Action . . . . . . . . . . . . . . . . . . . . . . . . 24 3.1 Choose The Futures Contract You Want to Day Trade 24 3.2 Get Your Trading Platform and Data Feed . . . . . 25 3.3 Learn How to Trade with Price Action . . . . . . . 26 3.4 Trade in Simulation . . . . . . . . . . . . . . . . . 27 3.5 Start Day Trading Futures Using Price Action For Real . . . . . . . . . . . . . . . . . . . . . . . . . . 27 CONTENTS 4. 10 Price Action Bar Patterns You Must Know . . . . . 29 4.1 Reversal Bar Pattern . . . . . . . . . . . . . . . . . 30 4.2 Key Reversal Bar . . . . . . . . . . . . . . . . . . . 31 4.3 Exhaustion Bar . . . . . . . . . . . . . . . . . . . . 33 4.4 Pinocchio Bar (Pin Bar) . . . . . . . . . . . . . . . 35 4.5 Two-Bar Reversal . . . . . . . . . . . . . . . . . . . 37 4.6 Three-Bar Reversal . . . . . . . . . . . . . . . . . . 39 4.7 Three-Bar Pullback . . . . . . . . . . . . . . . . . . 41 4.8 Inside Bar . . . . . . . . . . . . . . . . . . . . . . . 43 4.9 Outside Bar . . . . . . . . . . . . . . . . . . . . . . 45 4.10 NR7 . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4.11 What’s Next? . . . . . . . . . . . . . . . . . . . . . 49 5. 10 Price Action Candlestick Patterns You Must Know . 51 5.1 Doji . . . . . . . . . . . . . . . . . . . . . . . . . . 52 5.2 Marubozu . . . . . . . . . . . . . . . . . . . . . . . 53 5.3 Harami Candlestick . . . . . . . . . . . . . . . . . 55 5.4 Engulfing Candlestick . . . . . . . . . . . . . . . . 57 5.5 Piercing Line / Dark Cloud Cover . . . . . . . . . . 59 5.6 Hammer / Hanging Man Candlesticks . . . . . . . 62 5.7 Inverted Hammer / Shooting Star Candlesticks . . . 64 5.8 Morning Star / Evening Star . . . . . . . . . . . . . 65 5.9 Three White Soldiers / Three Black Crows . . . . . 68 5.10 Hikkake . . . . . . . . . . . . . . . . . . . . . . . . 69 5.11 What’s Next? . . . . . . . . . . . . . . . . . . . . . 71 6. 10 Chart Patterns For Price Action Trading . . . . . . . 74 6.1 Head & Shoulders . . . . . . . . . . . . . . . . . . 75 6.2 Double Top / Double Bottom . . . . . . . . . . . . 78 6.3 Triple Top / Triple Bottom . . . . . . . . . . . . . . 81 6.4 Rounding Top / Rounding Bottom . . . . . . . . . . 84 6.5 Island Reversal . . . . . . . . . . . . . . . . . . . . 87 6.6 Rectangle . . . . . . . . . . . . . . . . . . . . . . . 90 6.7 Wedge . . . . . . . . . . . . . . . . . . . . . . . . . 93 6.8 Triangle . . . . . . . . . . . . . . . . . . . . . . . . 95 CONTENTS 6.9 Flag . . . . . . . . . . . . . . . . . . . . . . . . . . 98 6.10 Cup & Handle . . . . . . . . . . . . . . . . . . . . 100 6.11 What Next? . . . . . . . . . . . . . . . . . . . . . . 102 7. Price Action Trading Strategies (Beyond Price Patterns) 104 7.1 Market Bias - Price Action Context . . . . . . . . . 105 7.2 Price Action Trading Setup . . . . . . . . . . . . . 109 7.3 Trade Exit Plan . . . . . . . . . . . . . . . . . . . . 110 7.4 Creating Your Own Price Action Trading Strategies 112 8. Instantly Improve Your Trading Strategy with Support and Resistance . . . . . . . . . . . . . . . . . . . . . . . 114 8.1 What are Support and Resistance levels? . . . . . . 114 8.2 How to find support and resistance levels? . . . . . 115 8.3 How to use support and resistance levels in your trading strategy? . . . . . . . . . . . . . . . . . . . 120 8.4 Support & Resistance - Essential & Effective . . . . 122 9. 4 Ways to Trade a Channel . . . . . . . . . . . . . . . . 123 9.1 Trading Trends with Channels . . . . . . . . . . . . 123 9.2 Trading Reversals with Channels . . . . . . . . . . 124 9.3 Trading Ranges with Channels . . . . . . . . . . . 125 9.4 Trading Break-outs with Channels . . . . . . . . . 126 9.5 Make the Most out of Trading Channels . . . . . . 127 10. How to Keep Trading Records as a Discretionary Price Action Trader . . . . . . . . . . . . . . . . . . . . . . . 128 10.1 Recording Price Action . . . . . . . . . . . . . . . . 129 10.2 Recording Discretion in Trading . . . . . . . . . . . 130 10.3 The Critical Difference: Ex-Ante versus Ex-Post Trading Records . . . . . . . . . . . . . . . . . . . 131 11. What’s Next? . . . . . . . . . . . . . . . . . . . . . . . . 133 11.1 How to Trade with Price Action (eBooks) . . . . . . 133 11.2 How to Trade with Price Action (Online) . . . . . . 133 11.3 Day Trading with Price Action Self-Study Course . 134 Notices & Disclaimers Copyright © 2014 by Galen Woods (Singapore Business Registration No. 53269377M). All rights reserved. First Edition, October 2014. Published by Galen Woods (Singapore Business Registration No. 53269377M). All charts were created with NinjaTrader™. NinjaTrader™ is a Registered Trademark of NinjaTrader™, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, without written permission from the publisher, except as permitted by Singapore Copyright Laws. Contact Information Galen Woods can be reached at: • Website: http://www.tradingsetupsreview.com • Email: