Simple Price Action Trading Strategy
Find High Probablity trading setups — consistently and profitably.
In my previous blogs, we’ve learned the essentials of Price Action Trading (Support & Resistance, Market Structure and Candlestick Patterns).
Now, here you will learn my developed price action trading strategy on how to get high probablity setups in live market.
There are three steps into it:
- Structure of Market
- Point of Control
- Trigger Point
#1: Structure of Market
While looking at charts in live market, it is quite difficult to decide whether we should buy, sell, or stay out?
That’s why the first thing to do is identify the market structure as it tells you what to do.
So we have to decide:
Is the market in an uptrend, downtrend, or rangebound?
Once we can identify the structure of market, then we’ll come to know trade along the path of least resistance.
If the market is in an uptrend, we look to buy only.
If the market is in a downtrend, we look to sell only.
If the market is in a range, we can buy and sell.
#2: Point of Control
Now after identifying the structure of market, we have to identify the Point of Control.
It is important because we also need to know where to enter your trade.
We want to trade from a point where there are some control of buyers and sellers so we can buy low and sell high or vice versa.
- Support and Resistance (Areas and not just lines)
- Moving Averages
#3: Trigger Point
Now the question is to know when to enter ?
Personally, I like to enter when the market has shown signals of reversal, in order to get better risk to rewards.
Below are form of reversal price patterns :
- Shooting Star
- Bullish Engulfing Pattern
- Bearish Engulfing pattern
Let me share with you a few examples
ACC : Structure of Market
ACC : Wait for Price to come to Point of Control
ACC : Trigger Point
Now What ?
We’ve just learned what price action trading is all about, and how you we use it and to get entries for high probablity trades.
It will improve your entries, exits and trade management.
Now… it’s time to pull our socks and put techniques into practice.