In part 2 of this series I do some review on the price bars we are using and then I add the distinctions of major, minor, and relative in the same way we do with swings. Then we do some price reading practice with recent currency, futures, and equity markets. Reading price action like this spreads things out and eliminates much of the noise, so we just relate significant buyers and sellers to other significant buyers and sellers. I finished the video by looking at a qualified tail in a weekly Spotify chart (SPOT) that we can follow live.
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
Effective trading is not about trying to be right on each trade, it’s about being fluid in an everchanging market. When we approach each trade trying not to be wrong, there is a layer of fear that clouds how we see things and effects our every decision.
This video is a Clip From one of our Live Sessions where I talk about consciously practicing with being wrong while demonstrating on a live USD/JPY market. I give a practice exercise to loosen up this aversion. As traders, we are going to be wrong a lot so its best to dispell the shame of it so we can approach each trade with more clarity.