Price Action Trading Strategies That Work

1)

Determine a highly successful price consolidation breakout.

Bullish traders will buy when it reaches the resistance level. Bearish traders will sell when it reaches the resistance level.

The “stop loss” done by the bearish traders will scramble to exit their short trades, this will further exacerbate and trigger the upside and price will continue to rally higher until it hit another resistance level and consolidate again.

When price reaches the major resistance area, it will trigger the huge buy stop order by the bullish traders and they will want to sell quickly. This will create more demand and prices will go higher to the next major resistance level and prices will reach consolidation again.

The price Action Consolidation candlestick will get smaller and smaller. The tighter the range of the candle, the chances for a breakout is higher.

2)

For traders to sell high and buy low. (bearish)

For traders to buy low and sell high. (bullish)

When it reaches slightly above the resistance level, it triggers the sell stop order. There will be more supply and prices will fall.

FX trading {1 pips = 0.001}

https://www.cashbackforex.com/article/order-types

Couple of times candlestick went slightly above the resistance.

It is a false breakout for bullish traders. Bullish traders will look for long green candlestick.

Good for bearish traders. Bearish traders wait for a false breakout pattern or big red candlestick and short.

3)

Allows bullish traders who miss the first breakout another chance to take part in the early formation of a bullish uptrend.

Breakout level is defined as the resistance level turns to become the support level.

Bearish traders will start to sell more, demand increases for bullish traders.

4)

Big long green candlestick and breakout. The pullback level did not go all down to the breakout level or the resistance level.

The second breakout the red candlestick pullback is more shallow compared to the first. Afterwhich, the candlestick size is getting smaller and smaller. And it breaks out on the third time with a long green candlestick and price rally up.

5)

reversal of the trend from bullish → bearish or bearish → bullish.

bearish traders will take advantage of the lower lows and short their position.

look for a rally and sell on the downside of the breakout.

1. range breakout (find high possibly breakout breaks)
2. reversal pricing strategy (sell high buy low, buy low sell high)
3. break and test price action (allows traders a second chance to enter an upside)
4. break and pullback (allows traders to capture an uptrend or a downtrend)
5. break and reversal continuation pattern (allows traders to enter the market during a possible start of a new trend)

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