Last month we followed the Dow E-mini futures and EUR/USD and learned about contracting swings in the Dow and about rapid change in the EUR/USD. This month we will track Copper futures and the AUD/JPY. Keep in mind that these tools have the main function of enabling us to learn from price.
Learning to read price action is easy. Its a matter of the relationship between buyers and sellers which is expressed in the bars. You don’t have to memorize complicated bar patterns with funny names or dozens of dead mechanical rules and formulas. In this video, I will show how to define a few significant bars, how to mark them out, and then talk about the essence of these price bars and how they relate to price flow. They show you where the controlling areas of buyers/sellers are and filter out the noise in the same manner swings do. In the next post, I will talk about reading a chart with price action.
Where going to study: (WRB stands for wide range bar and is defined as a bar bigger than the previous 3 bars).
•WRB Hard-up/Hard down
•WRB Outside bars
•WRB Mirror bars