Price Action Trading Strategy

27 Pages·2017·1.81 MB·English

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Mudassir Siraj 2018
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Thank you for your Purchase I AM Sure this
guide will Change the way you Trade.
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Welcome to the Price Action Trading Strategy. I will show you
a price action trading strategy that will change the way you
trade now the core of the strategy relies on the concept of
momentum loss shown through candle sizes and shapes which
is a very powerful price action technique. This strategy is
aimed at simplicity as well as high probability trades. I have
been in the FOREX market for almost Six years. I learned very
early that Forex trading is not for the shaky ones. One must
have a tested and definite trading strategy as well as well-
organized discipline to follow the strategy and execute the
plan as to the letter. One must be exact and precise.
Therefore I paper traded for almost two years and read
everything I could lay my hands on. I bought books and
courses. I attend a 5 day live web seminar. All this did not help
me at all as it did not fit my style of personality and I just did
not seem to connect with all this different strategies. Over
two years of watching the graphs with different indicators,
moving averages etc. I started to get a feeling for the
movement and motion of the market especially the Euro
dollar around certain moving averages. It wasn’t till late last
year that I discover that Price Action gives easy to read signals
on a regular basis on a Daily timeframe. I like the daily
timeframe as one are not glued to the screen full time. There
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are times when some signals does not produce positive
results. I then had to work on a filter system to only let me
take the best ones. I found that the “HEIKEN ASHI” in a certain
way produces 95% accuracy. I will show you later how the
high probability trades look like but here we will be focus on
Price Action Strategy if your Beginner then uses Heiken Ashi
for better result.
Let’s get started.

STEP 1: IDENTIFY A KEY LEVLE
Here we have the Euro Dollar so we always want to identify
key levels first and as you can see

We have a level of support here where a price hit and reverse
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from and now we are back here again now here's a very key
point you need to know in order to spot high probability
reversal trades we want to see candles getting smaller and
smaller as they approach a level of support or resistance
because it shows that price is losing momentum very key
point you want price to be losing momentum and slowing
down as it approaches key levels now as price approaches this
level of support look at how the candles behave

as you can see we have a big candle followed by a smaller
candle followed by an even smaller candle another smaller
candle and then a smaller long wick candle rejecting support
and then finally an even smaller green candle that is also a
doji and also an inside bar which is a reversal candle and this
results in a bounce upwards so I'll show you this again on
another pair
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This is a key level of support as you can see from when price
got here last it hit and reversed upwards so as price
approaches this level again we have a big

candle than a smaller candle an even smaller candle which is
also rejecting support and then we have this beautiful green
long wick candle rejecting support and then followed by
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another great inside bar candle rejecting support as well and
as you can see price bounced to upwards which would have
presented a great trade opportunity through the intraday
timeframes.

so when approaching support what these smaller and smaller
candles show is that the sellers and people shorting the
market are losing steam meaning some sellers might be taking
profit as they notice this level of support which causes these
smaller candles so let's jump to another example here's
another example
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As you can see we have a double top here before price tanked
down making this a key level of resistance now as price
approaches this level of resistance again look at how the
candles start acting

we have a big candle followed by a smaller candle followed by
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a smaller red hanging candle another hanging candle and then
a candle where the wick is rejecting this level of resistance
before dropping down which was another great trade
opportunity here's chart

We have three rejections of this level before it reversed
downwards which makes this a key level of resistance as price
approaches this level again

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