I can guarantee if you follow every single one of these price action secrets, you will
become a better trader.
Trading around pure price action is one of the best ways I ve ever found to trade.
If you can manage to master the skills of reading price action, you will not only set
yourself apart from other traders who only know only how to read indicators, but also
increase your probability of becoming a consistently profitable trader.
I m going to be show you some of my own personal price action secrets that you can spot in
live markets and use them to predict if price is going to go up or down.
I ll show you simple and easy ways to spot these signals.
So if you think reading price action is like rocket science, well after this video, you
should have a pretty good idea on how to read the market.
Let s get straight to it.
The first trading pattern we are going to look at, is one of the most popular price
action patterns out there.
If you ve ever read any price action books or any books about technical analysis, this
pattern is often recommended as one of the most profitable patterns.
What s the pattern?
The Flag.
Flags are continuation patterns.
So for example, you want to find a strong trend heading in one direction.
So in the example, we found a strong down trend and the market is moving lower.
Now whenever a chart heads upwards and downwards, it never moves in just a straight line.
Ahhhh if only it were that easy.
They often have these up s and downs.
So maybe you missed the initial movement downwards for a short.
Or maybe you want to add onto your already made short position.
Well, the flag is the perfect time to do that.
So you will have a strong trend movement, followed by a short move to the opposite direction.
In this case, we headed downwards and are now starting to move upwards a bit.
As you can see this is how it get s it s name.
It looks like flag.
Upside down.
One thing that is often very common with successful flag patterns is that the angle is often much
shallower than the actual trend.
What I mean by that is this.
So here the downtrend fell pretty strong, so the angle is pretty steep.
But the flag pattern is a gradual uptrend, much shallower than the downtrend itself.
This is a VERY important.
As this is showing that yes, there are buyers counteracting this downwards movement, but
this move is not as strong compared to the downtrend, so overall sellers are still winning.
Which is important to understand.
We would not want a flag pattern that is very steep heading in the opposite direction.
As that s showing buyers are starting to have control.
Once you have identified a gradual flag pattern, and marked the trendlines.
You can enter a short once price breaks the trendline, or if you want a little bit more
confirmation, you can wait for price to break the trendline, and often times it will head
back up, retest it, and fall again.
So you could enter at the retest of the trendline for a little safer entry.
So price broke the trend, we entered a short, and look what happens.
Price falls.
But something very interesting happens.
When price falls, it falls extremely fast.
Then it ends up consolidating and moving sideways.
Just from this happening we can almost predict what the chart is going to do next.
how would you do that ? Well, as you can see here when price was rising,
it took a very long time for it to rise, but then when it dropped, it dropped extremely
quick.
Then instead of it rising back up again making another flag pattern, price started to consolidate.
So that s showing buyers weren t able to get price back up.
Which shows that buyers are starting to lose control even more, and sellers are gaining
momentum.
So you could potentially, if price breaks this lower consolidation trendline.
Either enter another short or add onto your position.
As the chart is showing seller momentum.
And price ends up breaking the trendline yet again, and look what happens, price falls.
This next price action secret is unbelievable, once you see it on your chart, you can predict
when the market is going to reverse.
But first, check this out.
I found a trading platform called primexbt and they have option that I haven t seen on
any other trading platform.
It s called covesting.
They basically have a dashboard of successful traders and their trading strategies where
you can pick choose and copy their EXACT strategy.
Let me show you how to do it.
So for example, you would click the link in the description.
It will bring you to this.
Click Get started . To be able to copy trades you have to add
funds to your account.
You can deposit any amount of crypto you would like.
Just click the deposit button.
You can either buy it directly on PrimeXBT or send it there.
Before you deposit, make sure to go to the margin tab, click account, and make sure to
use my code LAB7000 as that will you give a free 7% of whatever you deposit.
So its basically free money.
You can thank me later.
Once you have your funds added click this copy-trading tab.
Then it ll bring you to this dashboard.
This is all of the strategies.
Here are some tips to find a good strategy.
First the longer the strategy is active, the more established it is.
You want to find performance charts that have a steady uptrend like this.
Then the higher the star rating, the better rated the strategy is.
Just choose whichever you would like and you can literally just copy the strategy.
If you guys are interested, I ll leave a link in my description.
Back to the price action baby.
The next price action secret we are going to be talking about are bear traps (screams)
Now, while bear traps and bull traps may sound scary, you can actually use them to your advantage.
So here we have a support line from this recent swing low.
As price is heading back downwards towards it, you have to think in the mind of the people
who are shorting this play.
Where would you take profit?
Right at the support line.
Also breakout traders who want to short this play, are going to do so when price breaks
this support.
Which means, they will be setting their stop losses around this area.
So we have to keep that in mind as well.
If price breaks the support, then ends up coming up and closes up here.
That is a very strong bullish sign.
In this case, it happened twice.
Which is an extremely strong sign.
This is showing that sellers don t have enough momentum even when price breaks the support.
You also have to remember, the breakout shorters are going to start covering their position
in this area which will also make the price up.
This example is even better because these bear traps are paired with a momentum candle.
A bullish engulfing candle.
So you have 3 signs that the market is going to reverse.
The final confirmation would be price breaking this resistance that was previously used as
a support.
Which it does, which gives us confirmation to enter the trade.
And look what happens, it goes up.
The next price action tip I want to talk about is called deceleration.
First we have a supply zone.
Usually supply zones will be at the start of a downtrend.
Then you can see that price has a huge spike and rises back up to the supply zone.
But look closely to what s happening.
(zoom in meme) Right here we have a super strong long bullish
candle heading upwards, but then the candles start getting smaller and weaker.
Right in the supply zone.
If an uptrend is strong, the candles should be gaining in size as they go up.
Not shrinking.
Now, I wouldn t necessarily say this is enough to go short.
What I would do, is go on a lower time frame and get a closer look.
So we re on the 4 hr timeframe now, let s check out the 15m.
You can see that price is making this very nice pattern, where its made a trendline and
a support.
So if price ever breaks this support, that is where you could look for a potential short
opportunity.
So as you can see, it broke out, then try s to retest the pattern again, but it ended
up being a bull trap, which from what we just learned, is another very great sign the market
will continue to fall.
Which it does.
Next, I want to talk about one of my favorite price action formations.
The Triple Tappppppp.
The triple tap helps you figure out when a trend is over and is about to reverse.
Ideally you would want to see a trend trending for a long time, then see a triple tap at
the end of it.
That s where you can really get a good sense of how the chart will play out afterwards.
All the triple tap is, is 3 consecutive highs, but they get weaker and weaker over time.
So we can see the market trended up pretty good right here.
But As we keep moving forward, price was barelyyyy able to make a higher high.
That s warning sign number 1.
Then next you can see the market starts to consolidate, taking a very long time, and
finally makes higher high, but just barely again.
This indicates a lot of weakness at the end of a strong uptrend.
After that, price ends up making a lower high, which is just the icing on the cake.
This is where you would enter your short position.
Then the market collapses.
The last and final pattern I want to talk about is the breakout buildup.
And this is one is extremely powerful.
So what happens is price starts trending upwards, making new higher highs, and new higher lows.
But then it rejects off this resistance level and starts making a bearish move downwards.
It doesn t end up going past the previous low though, so technically we are still in
an uptrend.
Which is very important to understand.
Then look what happens.
Price reaches this resistance yet again, but it barely bounces off of it this time.
Compare that to when it first happened, you can see a big difference in selling pressure.
Then after that, it kind of consolidates here right under the resistance.
What this is representing is a lot of buying pressure in this area.
After seeing these signs, you can enter once price breaks the resistance, make sure to
wait for the candle to close over the resistance, or wait for a retest.
We get the retest here, we enter.
It works, Price goes crazy upwards.
Being able to pair these price action secrets with support and resistances is a magic strategy
and will work wonders.
If you want to the secret formula for drawing perfect support and resistances, watch this
video.
It will absolutely change the way you trade.
Thanks for watching, and I ll see you guys, next time.