this five minute video is going to
change the way that you look at support
and resistance levels when it comes to
price action and when and if it's going
to reject off of that level
[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 over
the next several weeks i'm going to be
putting out more content when it comes
to price action because everybody knows
that price action is king let's just get
right into the charts so this price
action strategy works on everything
whether it's crypto currencies whether
it's indices or forex a majority of you
are trading forex so it's going to be
easier for me to explain this in regards
to pips and take profit levels so let's
just say you hop on the charts
australian dollar us dollar and you
start seeing rejections off of this area
this is when you draw out your bracket
and actually put a level here
of known support meaning that the price
is being pushed up by that level it
won't go past it also side note anytime
you see anything like this this was
either a news event or a stop hunt all
right so having the information that the
price rejected here price rejected here
and price had a very big rejection here
your thought process should be a long
position from here when you have a
general idea of what your trade is going
to look like i want you to look at the
parameters to see if you could at least
get a one to two risk to reward ratio
out of this trade
and if your take profit level is even
worth taking 20 to 50 pips or more now
your stop loss is going to be below the
swing low especially knowing that this
was a stop loss hunt by the market
makers now when price moves towards a
level of support and resistance that has
been rejected before what we need to
look for is slowing momentum
big ass candles is large momentum but as
the candles get smaller
as it gets closer to a level of support
and resistance you know that you're
getting a loss of momentum with the loss
of momentum
comes a higher probability that it is
going to use that same level as support
or resistance depending on which way the
price is going this is just another tool
to put in your tool belt knowing what
you're looking at when seeing price
action also you do not get into a trade
unless you see a firm rejection off of
that zone with the loss of momentum
leading up to it so on a 15 minute time
frame we are seeing a movement down to
that zone large momentum candles
followed by subsequently smaller candles
this right here is all i want you to
learn out of this video you want to see
a loss of momentum
coming up to a support and resistance
zone in this case it is a support level
once we get to that zone and have a big
rejection candle off of it that is when
you want to enter into your position and
wait for the close of the candle because
the size of this candle is so massive
your stop loss does not need to be below
that previous stop hunt just below the
zone is completely fine and your take
profit should be at a level where price
has hit the most so we're looking at 36
pips right here a 1 to 1.5 risk to
roared ratio which is completely
acceptable in this scenario because you
do not know if this is going to break
out of this consolidation range that it
is technically in so this is your first
take profit level and this is your stop
loss knowing that you had a loss of
momentum and rejection off of this zone
now if we look left this should not be
your primary target having these high
points as your target is a little bit
more risky than getting in wherever the
price crossed the most and had the most
resistance especially seeing this right
here so your second take profit level
can be right there comfortably not
stressing if it's gonna hit that high
point which leaves you a total take
profit level of 80 pips which is a one
to three point risk to reward ratio when
trading like this you shouldn't have a
scalping mentality you should have more
of a swing trading mentality catching a
long trend up so as you can see our
first take profit level right here at 36
pips was hit nice and easily on one move
up then the overall move actually took
one day and 22 hours so you can see this
is a longer position but the payoff is
absolutely incredible so when it comes
to price action and you start seeing
these huge momentum candles getting
smaller and smaller and smaller to a
zone that's an area that you should be
looking to get in and as i explained in
a previous video that loss of momentum
leading into multiple wicks on the
downside is a nice signal again with
price action for the up movement now if
you guys want to learn more about price
action candlestick patterns please watch
this video where i choose my top five
candlestick patterns that i love trading
when it comes to price action and if you
guys got some value out of this video
and you like the way that i teach make
sure you're dropping a like on these
videos and make sure you're subscribed
to the channel for more videos like this
thanks so much for watching and we'll
see you in the next video