you guys have heard everybody in the
entire day trading world say that price
action is king there's a reason for that
in this video i'm gonna show you how to
look at the big picture check out the
charts no indicators just trading simple
price action
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis like
you guys have probably seen in some of
my live streams i like to start out my
day with a fresh perspective absolutely
no indicators just looking at the charts
so that i can get a good idea of what's
going on in the market without all the
noise and distractions indicators are
there to supplement your knowledge
not to predicate your decisions i'm
really gonna try to keep this video
under five minutes so let's get into the
charts alright so we're looking at us 30
right here on a 15 minute time frame and
what i like about us 30 and other
indices is that they trend very very
very well like you can see these long
periods of down price action long
periods of up price action long periods
of consolidation
all of this just makes me extremely
happy and it's it's basically a puzzle
to me so
what i like to do when i see this you
guys know about my support and
resistance levels but i'm gonna
completely not do that i'm gonna try not
to do that in this video and just talk
about price action and how you can draw
up trend lines
then looking for the divergences at the
overbought and oversold areas not
definitive points just those areas all
right give me a few seconds to mark this
up and then we'll get back to it
okay this is not zooming in whatsoever i
just drew up general areas of resistance
that i saw where the price rejected
consistently as many points as i can
connect the dots with this can be
fine-tuned once you zoom in but doing
this type of markup on your charts and
then looking for divergences like
just without even putting up an rsi
right here i'm pretty sure that this low
and this low created a divergence so
let's pop up an rsi indicator on here
and just just take a look at what it
does unfortunately unfortunately trading
view won't let me have my divergence
indicator like publicly available so i
don't know i'll probably just like make
the script available in the telegram
group or something but you guys know how
i change my settings we're going to go
yellow remove the upper band and the
lower band middle band is going to be
solid
and the background is going to go away
make this line just a little bit fatter
i think
now we'll keep it thin
and we're gonna look at this point
draw a vertical line
and this point draw a vertical line
right so sure as
we have a price action made a lower low
right but if you look at the rsi
we made
a higher low and it's like a clear and
concise divergence you can obviously see
that that's making a higher low so now
that you know that information and you
take this trend line and you make it
more just a little bit more precise you
know we take that top part we get where
all the price rejected you see these
like small breakouts if you don't know
how to avoid these please
please for the love of god watch my
video that i did to avoid false
breakouts but you know you see this
price continue to go down continue to go
down and then you see this like you know
opening bell type of mess right here
like say you didn't you weren't trading
this and you just saw you know this
trend line so i'm gonna have to explain
why why because with false breakouts
right so you you break out of the trend
line and then the next candle comes back
in so you want like to wait until you
know that candle has
like you know not done that and also you
want a divergence at the same time so so
when looking at like a break and re-test
with the divergence these are the things
that you need to look out for because
you're basically looking for a trend
reversal trade at this point which is
very risky and it's easier to trade with
the trend as you guys know from all of
my videos begging you to trade with the
trend but this is a trend reversal this
one wouldn't even be an option because
we're having basically the same point on
all of these not really lower lows yes
the rsi is making higher lows but that's
not a definitive divergence like you
want to see a nice big fat you know
angle and then you get this engulfing
candle it continues down makes this low
but then we had a breakout right here
and it it broke out and then the next
candle went down that's the thing you
need to look out for
this is where you need to be very very
cautious you already had your first
warning right here that this is a
possibility so i would be very cautious
on breaks and retests right here
this one would have been attractive to
me but i would have watched to see what
happened with this next candle then we
got this huge one and it's like okay i
know that there is like liquidity here
and they want to get as much as possible
so once you see things like this you
need to keep an eye out for the trap
these are all traps trying to bring
people back in draw the price down a
little bit more
and then we got this definitive
divergence right here at this point you
know you're still looking out for the
traps it happened here again
and then at this point right here where
this next candle did not break below
that trend line this would have been a
nice indication for me like okay now we
can think about taking long positions so
even if i did take it there at the close
of that candle and i know there's a lot
of people that like to put their stop
loss below the swing low but when you
see huge candles like this it's it's not
it's not intelligent to have a 230
point stop loss on us 30. so what i
would do is just go to the bottom of
that candle that signified the actual
break out of that trend line that's
still a huge stop loss but when looking
for a trend reversal trade
that's gonna have your biggest benefit
because you're getting the bottom of
that move and you can actually ride that
wave up quite high so this i mean
definitely would have scared the piss
out of me but only risking one percent
you know i would have been fine with the
loss if it did happen knowing how much
manipulation was happening here and all
of these like stop hunts to grab
liquidity but it didn't hit the stop
loss which is nice and then you just do
like you know a one to five if you're
skittish or a one to two risk to reward
ratio you know and once it broke out of
that range like you see that that second
rejection you feel more comfortable with
your trade and it obviously worked out
really well but once that happens you
need to see like where's the new trend
line forming and you you know you can
take it from the bodies or the wicks you
know it's it's all subjective i like wix
sometimes
because i know that at one point that
was an entire solid candle so you know
you take it off the wicks and you you
start drawing this new trend line and
you can adjust it depending on like if
it's literally vertical skyrocketing you
know
whatever
and you just rock that and then because
this is the new trend you know you you
see it kind of like losing momentum but
it's coming down to this trend line
again so at this point you know i would
be looking for a rejection off of that
because i haven't seen any divergences
here on the rsi so like i said again
price action is king when you can just
follow price
make good trend lines and make the
decision and avoid these traps like know
that the traps are always there this is
why 95 percent of day traders fail is
because they fall for these traps you
have to deploy patience it's the most
important thing you don't want like the
one candle to break a trend line because
the next one
most likely is going to go the opposite
direction you always want that break and
re-test and if you see a lot of noise
like this where it's just like whip
sawing back and forth you need to be
extremely cautious and know that there
is a chance that you're going to be
stuck in a position like this like
honestly this could have consolidated
here for a few days now one thing i'd
like to discuss about divergences is
that a lot of people are like taking
divergences at like the 60 or you know
65 level or on the bottom side you know
say 40 45 and it's like it's not it's
not what it's meant to do a divergence
you want it to get to that typical rsi
oversold the 70 and 30 levels and or
above so you know if the rsi hit the 90
level
and then you know price continues up but
then the rsi is going down that's the
area that you want to focus on so
anything
higher than 70 or lower than 30 like we
hit here we got a 23.5
on the rsi so once that happens you
don't want to immediately get in for a
buy what you'd like to do is wait for
the divergence and see if it makes like
a substantial divergence which it did
right here it went from the 23 all the
way up to the 40
while creating that lower low and those
are the things that you really want to
take advantage of you want to see that
divergence you want to track your trend
line and watch that break and re-test
and then get in on your trade but know
that that is the most risky area trend
reversal trades are extremely extremely
risky so you have to be very very
cautious and understand that you're
probably getting into early and it's
best to wait to see subsequent you know
continuous bullish candles out of that
old downtrend but the cool thing about
marking your charts up like this
is that you can just wait for things
like this to happen so we had this nice
run we had our first rejection at that
point you see you know this is your new
trend line so at this point any time the
price rejects off of that trend line
like it did right here with this trap
you know we had that break and then the
next candle like you know that that's
your old trend line
this is where you get in on a trade and
this is a really really safe one because
of that huge huge three-line strike you
guys know that i like to trade the
three-line strike a lot and at that
point it's just below you know you can
keep your stop-loss just below the
bottom of that candle and go for one to
two so these types of things having
trend lines already up and then while
you get on the charts and you check out
price action and you see like okay cool
it's getting to my trend line let's look
for trend continuation trades if i
haven't seen a good divergence here i
don't know for sure but let's just check
the rsi to see if there was a hidden
bullish divergence here look at this
we had our
you know our low and then our higher low
right
and then on the rsi we had a low
and a lower low that right there
is a hidden bullish divergence so at
that close of this candle i literally
yeah this is a money trade right here
and you had already known that because
you had drawn your trend line once it
rejected off of here so say
i don't know price action where's that
replay button boom you know you see this
and this is where you've already drawn
your trend line
because you you have this low point and
you have this higher low so you've
already drawn your trend line and you're
watching you know price action you know
while you're trading or whatever on the
15-minute time frame and you see price
coming down to your trend line and
you're just you're just sitting there
and you're waiting
and then you get that break
and then the next bullish one and you're
like okay i'm golden it's
this is why it's always good to have
markups on a naked chart apologies about
my low energy level um huge climate
difference between the canary islands
and like
mucky rainy poland so i'm a little bit
under the weather and i'm coming down
with it but like i said trend lines
price action divergences their money in
the bank but if you couple this
with support and resistance zones like
those big ones
look at look at what you're getting here
you know you're getting
levels and once price hits these levels
and rejects off of it dude it's price
action price action naked trading if you
can master this then add a few
indicators on it to help you make
decisions you know buy or sell whatever
it's good you just have to keep
practicing you have to keep practicing
this stuff and you have to just keep
watching charts the more you watch
charts the more the patterns come out
and you're like the dude from the
beautiful mind with all the flipping
numbers and you know oh my god i see the
patterns if you guys enjoyed this video
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