Do you want to be able to open up any price chart, and forecast near term price action with confidence on your own?
Every trader aspires to be an awesome technical analyst. It’s one of the core skills needed to be able to trade the Forex market like a boss.
Price Action Trading is the methodology you will eventually fall in love with.
Let’s face it, it’s a very seductive and addictive form of analysis, and when done right – very lucrative!
At it’s core, price action is something trading systems need, and many have been derived from its principles.
Once you master the charts, you can come up with your own flavor of trading system that works for you and be proud of its results.
But first, you need to master the charts, and become your own king of technical analysis.
In this guide, I’ve got some awesome tips that will make the charts just pop out at you, instilling a huge boost in clarity in your analysis next time you open your trading software!
Are you ready? Let’s begin…
1. Get Context – Read The Story Of Price Action
What’s the number 1 issue with price action noobs?
Easy, trading candlestick patterns in isolation!
This has got to be the trap that every new trader trips over when they first open the door to trade price action, and continue to be stuck with this toxic mindset!
I really can’t stress this enough – a candlestick pattern on it’s own is a very weak signal!
Actually, I have some fun fact data to share from some recent testing.
I wrote a program to evaluate a scenario that would trade every single candlestick reversal, specifically the pin bar / rejection candle.
The program only looks exclusively for the pattern as a trade signal, that’s it! It doesn’t care about the size of the candle, the market conditions, nothing! If the Forex price action pattern appears, it starts recording data.
Can you guess what the success rate was?
Taking ever single pin bar candlestick signal (across various pairs and time frames), averages out have about a 20% expected success rate – which in real life trading terms, is like jumping on the bankruptcy bus.
Candlestick patterns are awesome to use, but they should not be the first, or only factor in your trade decision making process.
This is where I drive home the point to look beyond the candlestick patterns, and get market context BEFORE you make a trade decision.
When analyzing the price action context, some things you need to consider are:
- Current price structure
- What’s happening on the higher time frames
- Forex price action to the left
- Relative location of price to other important technical factors
- Presence of price action reacting with support, resistance, trend line structures etc
If I could illustrate my point here, I would show two charts. The bad way, and the professional way to approach candlestick signals.
Look at the flow chart above, is this level of decision making you take when putting your money on the line?
Now look at the chart below, this is how I recommend you approach a trade decision that involves a candlestick pattern. Give this a try…
The success rate is much harder to achieve with a quantitative simulation, due to the discretionary (human decision) factors – so I can’t put a % against this, but I will continue with my work here.
If you’re guilty of the first flow chart, try switch to the ‘get context’ flow chart, and watch how quickly you start filtering out bad signals.
Check out this example…
Above: Very hard to build value to a ‘sell trade’ here, based off the pin bar candlestick alone.
If you look beyond the candlestick, you can see the market is very bullish. That’s evident by the higher highs, and higher lows being printed, which is the footprint of a bullish trending market
If you want to sell against that, you need to have really strong technical evidence that a reversal is likely to occur (I’ll cover that later in the tutorial).
Above: The ‘what happened after’ shot. As expected the bullish moment continued, because that’s what the market structure was screaming after. Market structure analysis through reading price action takes priority over candlestick signals (remember the flow chart above).
Any price action based signal is going to dramatically change in value depending what kind of market environment the trade setup forms in.
Lets take a look at a signal that fits within the market context…
Above: A candlestick signal that fits well within the ‘story’ price action is communicating here.
A similar structure to the previous example. This market is making higher highs, and higher lows – a bullish market, where we should be looking to buy only.A bullish rejection candle formed here, and off a trend swing level. The trade idea is within context and has a lot of technical value.
Above: The bullish rejection candlestick signal had good follow through, which is expected, because it was backed by many technical factors – aligning it with the market context.
Checkpoint
2. Top Down Analysis is A Critical Step For Price Action Traders
You might have heard the term ‘top down analysis’ being passed around the Forex communities from time to time. This nicely complements the ‘getting context’ tip above.
Top-down analysis is the idea of aligning what’s going on in the market from a higher time frame perspective (top), and then stacking it with your trading time frame analysis(down) – to create strong synergy with your trade idea.
This is a critical, and an overlooked step when evaluating a trade idea by many traders who are trying to learn price action trading.
To begin, start your analysis from the top time frame – I recommend using the weekly chart for your entry point.
The weekly chart offers a lot of value, big technical details that you might otherwise miss on your trading time frame. I mostly use the top time frame (weekly chart) for gathering information.
I am looking for information such as:
- Critical support and resistance levels: Levels which have proven to act as a major turning point in the market before.
- Dominant technical features: Major trend line structures or price squeezing structures.
- The market structure: Which way are we moving/trending? Where are we within a range? Is this a choppy consolidation period?
- Previous weekly candle anatomy: Provides good insight to where price is likely to try move.
Then we move down to the trading time frame…
Because I am dominantly a swing trader, that’s anything between the “4 hour” to “Daily” charts. Occasionally I will use the 1 hour chart for an aggressive swing trade entry, but only when I can build very strong top down analysis.
When you’re on your primary trading time frame, it is business as usual – looking for details such as:
- Market structures: trending, ranging, etc.
- Turning points: trend lines, swing levels, support/resistance or whatever your trading system dictates is a technical feature.
- A clear trade signal: usually a candlestick pattern, or some kind of price action event.
To illustrate why this is important, lets walk through an example where we disregard top down analysis and focus only on the trading time frame.
This example is a ‘what can happen’ if you ignore the bigger picture, so we will just check in to see what the higher time frame chart is communicating so I can make my point…
As per usual, I begin on the weekly time frame.
From the weekly time frame we gather the key information I would normally bring down to the trading time frame.
We can see price is testing a major weekly resistance level here. This is something we do not want to attempt to buy through.
It is a risky practice to try trade ‘through’ weekly turning points.
If anything, we could consider looking for sell signals off that level on our trading time frame.
Now we have the information in hand, keep it in mind. We will go to the trading time frame – in this case, the daily chart, and disregard what we’ve learned from the weekly chart.
So we see a bullish candlestick signal on the daily chart.
If you were stuck in the mind-set of ‘trading a candlestick signal just because it’s there’, then you might take taken this.
This is what happened next…
Above: A classic scenario where the higher time frame analysis overpowers the single value of a candlestick trade signal on the trading time frame.
In this case, it is bad practice to try and challenge the market by buying or selling through proven major turning points.
Without the top down analysis element here, we could have easily overlooked the major level, not even knowing the danger was there in the first place.
This is the kind of ‘tunnel vision’ a lot of faster paced, lower time frame traders suffer from.
Top down analysis is extremely important when you’re thinking about trading counter trend. I am speaking from a swing trading point of view, where you’re looking to catch a really big move.
Higher time frame analysis actually becomes paramount in a counter trend trade decision!
Above: Starting our top down analysis, we can see the price is testing a major level.
We look to the left and see this level is a proven turning point, so we can only logically anticipate one thing – a good chance of a reversal occurring.
Next step: look for signals to fit that analysis on the trading time frame.
Above: We step down onto our trading time frame and see a bearish candlestick sell signal.
This signal fits the context of the market, and aligns with our higher time frame analysis. An authoritative counter trend signal which builds a very strong case to position against the existing market trend.
If the signal follows through with this bearish pattern, it’s like to be a very extended move, as weekly levels tend to be the starting point for complete trend reversals.
Above: A powerful example of counter trend trading done right.
You’ve heard the sayings over and over: ‘trade with the trend only‘, ‘the trend is your friend‘.
Well, those catch phrases are only true while the trending context is relevant.
You need to use top down analysis to make sure you’re not going to trade into any serious trouble spots, or even better – use the technique to spot lucrative counter trend signals, like the one shown above.
A lot of traders are very reluctant to move into lower time frames, due to a lot of misconceptions about trading on charts like the daily and weekly.
Let me extinguish all your fires right here: Busting myths about trading Forex price action on the daily charts.
Checkpoint
3. Focus on Charts With Clear Price Action to the Left
One of the quickest ‘spot checks’ you can do on your chart is have a look to the left.
What do you see? Clear trending price action, or a highly congested traffic jam?
When the market seizes up, and the flow of price action stops – we can get these horrible, hostile, churned up periods of consolidation that create ‘minefield’ like signals.
Candlestick signals, and other trades will often form within these conditions, and may be tempting to trade – but are just too unreliable in an unstable market.
There are times you would have had an experience where a trade ‘dragged you through the mud’, because you took the position in choppy market conditions.
A simple check to the left rule can be a good reminder to move on to the next chart, or wait for the next position.
Sometimes no position is a good position – especially when you’re trade is drowning in draw down.
Above: A series of bullish candlestick buy signals form in rough conditions.
We take one quick look to the left, and we see the market very cluttered and congested – just like a peak hour traffic jam.
This immediately tags the signals as very risky. The unstable price action, and no clear market structure makes these types of charts very difficult to make money with.
3 out of 4 of the signals in the example above have had their low’s broken – which means they would have highly likely been stopped out.
Trades will often float between profit and draw down for days, and give you unwanted anxiety.
I just recently experienced this myself. My trade got caught in congestion for weeks, and the swap rate (interest rate) charges started to build up quite a bit.
Lets take a look at a cleaner example.
Above: Looking to the left of a bullish price action signal, we see a nice clear trending structure.
The higher highs and higher lows give a nice clear picture to the left, which builds value into the bullish trade idea.
Remember this line:
Muddy waters are best cleared when left alone.
Simply meaning, if you see bad conditions – leave the chart alone and come back when things have cleared up.
If you want to dive deeper into this topic, check out my tutorial: Learn how to trade price action in Forex without using indicators.
Checkpoint
4. Time Your Breakout Trading Decisions Carefully
One element to a trading decision, is the timing.
I really don’t think many traders consider this, and just pull the trigger ‘in the moment’.
Depending on what time you evaluate, or make a decision to execute on a trade order – can be a ‘make or break’ factor if the trade succeeds or not.
There are many time-based nuances in trading price action, however in this segment, I am mostly focusing on breakout decisions.
Here is my industry secret…
Breakouts that occur in the Asia session are deceptive, very risky, and continue to have a high failure rate!I speak from my swing trading experience, but this phenomenon would definitely seep into other trading strategies also.
What usually happens is this:
- A breakout event occurs in the Asia session
- When London opens, the breakout event has failed – then market then explodes in the opposite direction
The fix is simple. Wait until London opens before you make any breakout decisions!
If we know it’s prone to failure, then we can actually use this fakeout as a signal itself. In my opinion, this one should be left to experienced traders – but here is some food for though.
I call this kind of price event the Asia session breakout trap.
Above: A price action breakout event occurs – the current daily candle breaks below the previous day candle.
In many cases, this could be a trigger for a breakout structured trade. But look what happens when we allow it to be triggered during the Asia session…
Above: The key moment for this concept. Asia session is coming to an end, and London is about to open. The Asia breakout has faded, and is building strength going into the money sessions!
This is the point of failure. This is the reason right here why I avoid the Asia breakout triggers.
If you frequently check your charts at the London open, you will see this price action event unfold many times. The London open is one of the best times to do your technical analysis, and to make your breakout trade decisions.
Above: The initial bearish breakout is completely wiped out, and the market actually rallied in the opposite direction for days later.
That’s why we can exploit the fakeout event, and use it as a trade signal.
My theory to why this method is so powerful…
With stops being triggered, there is now less resistance for the market to move in the opposite direction due to an influx of closing trades.
This produces a very powerful ‘aftershock effect’, where price can move great distances on the chart during that session, and beyond.
The event creates an excellent opportunity for us to catch a nice explosive trade – it’s one of my favorite breakout strategies.
If you want you can trade the Asia fakeout directly, or utilize an extension of this setup – which I call the breakout trap and reverse Forex setup.
The breakout trap and reverse system is built off more confirmation:
- First we wait for a an Asia fakeout to occur, especially around key technical areas on the chart
- We can enter on the ‘aftershock move’ using breakout orders (buy & sell stop orders), at the opposite end of the previous candle’s range.
Breakout trap and reverse moves can be violently explosive and give you very high return on investment. But you will need to hold onto them to milk them for what they are worth.
Next time you see an Asia breakout occur, watch the price action at the London open to see what happens.
- Is the breakout showing sustainability, and continuing to produce a nice powerful move going into London as well?
- Or, does it collapse and cause price to charge in the opposite direction?
Checkpoint
Want To Learn More Secrets?
I hope today’s Forex price action tips was a good knowledge injection for you. You should be able to go to the chart now and apply these concepts immediately.
If you really enjoyed the strategies and concepts shown in the article today and are hungry for more – then you are invited to check out all the other price action articles, lessons, and video trade tutorials on my site. I am sure you will find them just as insightful.
I recommend my big price action strategy guide.
Going beyond that, I do have a price action war room that I offer for serious traders only. Without giving a sales pitch, it consists of:
- A very comprehensive Forex price action course [The Price Action Protocol]
- My ‘Chart of the day‘ and weekly video market walk through
- A 24 hour Private Chat Room for the War Room group (share charts, ask questions etc) – prooudly custom built by me
- + More – check out my War Room Information Page.
You can also check out my MT4 & MT5 App store which has all my popular tools (in high demand by price action traders).
- Price Action Battle Station (A candlestick pattern, and breakout detector + a lot more)
- Custom Chart Builder (Build custom time frames, custom candle open/close times, Renko & Heiken Ashi charts)
- Trade Management Panel (Quickly open trades, auto calculates lot sizing, OCO orders, straddle trades, trailing stops + a lot more)
Again I hope you walk away from the lesson today, feeling empowered to master Forex price action. If so, please don’t forget to leave a comment below and let me know your thoughts.
Best of luck on the charts!
Naj
Thank you this information was very helpful
John Paul
Hi Dale,
I am very happy that in my journey as a beginner trader that I have found your website
I am like a sponge that has so much info that I would like to absorb.
i choose to absorb all the information from you.
i find your teachings very informative and helpful in my journey as a trader
Adejo Friday
More than useful. It has drastically changed my mind set and approach to the market. How do I laid my hand on full course on the price action. Thanks
Larry
Great education material. Thanks Dale, you helped clear some clutters in my trading habit.
peci
Good text!
Tonderai Peter
Waaal thank you.I am going to check the video over and over.
RĂ©mon
Great article Dale!
I want to ask something about top down analysis:
Is it also effective to use the Daily timeframe as top time frame, and use the 4hr timeframe as trading timeframe?
Replying to: RĂ©mon
Dale WoodsAuthor
For top down analysis, I use daily/weekly to identify really important turning points in that market and bring that down to the trading time frame.
Tukesiga Peter
Thank you for the empowerement , am a beginner and need your guidance how do I begin trading in Forex right from Uganda here? Thank you a lot.
Easub Khan
Very impressive and useful tips to enhance your trading at theforexguy.com
Lucas Obiora
Thanks for the article is quite enlightening, keep the good work, more grease to your elbows.
gary Winfrey
Awesome material.
prem
buy/sell
bubu
Dale thanks for your guide.in boosted with ur price action
skill.may i know what time frame do your use to observe the asia season trap breakout?
VICTOR ANIOGBE
Your publication is just awesome. A million thanks to you
AlfieKoda
Your article is really great. I love how authentic and open you were when giving information. I am truly greatfull.
I was thinking, you said that when trading breakouts, you wait till the london session starts, can I ask you, what currency pair in most situations could actually be speculated correctly using your strategy on break outs (mentioned above)? What pair gave you the best profits?
Replying to: AlfieKoda
Dale WoodsAuthor
You can use it all of them really. The “hot” markets change from month to month. Once currency might be a money maker one day, and flat the next. I just follow what the money likes.
Panpha
Very eye opening article indeed…..i like the Asia fake breakout concept…….please keep on sharing concepts/discoveries of this nature …..THANX!!!
Rick Tollefson
Good stuff here….It’s all about ‘perception.’ That’s why top down works so well. I have one micro critique. Reference the chart with the ‘cup and handle formation’ approaching resistance. You suggest that the third bump into resistance will be rejected, and true enough, they can get rejected initially. But, often, they turn right around and ‘power on up’ through resistance. Otherwise, it wouldn’t be a ‘cup and handle.’….
hey, I appreciate what you do and how you train….
Rick….
Gary Huynh
Hi Dale. Thank you so much for your great great article. I read it slowly and understand your awesome strategy. About part 4 – the Asia Fake Out, or I would consider it outside bar, wouldn’t I? As you mentioned that we would place the buy stop to enter the trade OR it would be better to wait for the next candle to re-test after the fake out candle ? Thank you
Nwabueze
Nerver seen any article as this. Very experienced
Lesly
Best forex guidelines in the world
Lian Iu
Hi, how to identify and draw the right n exact swing level from weekly timeframe chart (normally previous rejection area we could seen many closed price level of candlestick shadow and body)
Alfonso
This is what i been looking for for a whole two months finally.
Thank you!!!
Peter Awino
I must say God bless you so much, I have gained a lot from this article on price action. Nobody teaches this subject the way you do, I believe you are the best.
Don
I have never tradedb4 and I have been looking for sites that teach price action in trading the forex mkts..I am 74yrs young and really like to learn how trade with some degree of competency. I truly am a newbie, but have a tiny bit of knowledge of the forex mkts. I did like the way u showed ur examples and actually saw some of the things u were trying to explain. Albeit just a few of ur examples. Do u think u could actually teach me how to trade without expecting a great deal of knowledge coming from me. I have found most sites expect a newbie to understand just about everything that they say. U won’t get that from me. sorry. Also I am interested n becoming a swing trader. Just sayin.
Thanks and take care. Hope to hear back from and expressing ur thoughts and suggestions.
Don
JohnWoo
That was so helpful thanks a lot…????????????????
Ahmed
Hi,
Can you please share the moving average settings used on the Daily chart through your analysis.
Martin Paul Muriithi
Hi this is damn good information and very helpful. Just starting off in the forex and hope to get mentorship from your articles. Thank you.
andron scott
do you always draw your support and resistance level starting from the weekly? and can make a video drawing these levels
Gerald
Hi Theforexguy,
What are your thoughts on the future of forex trading? With trading AI becoming prominent, how do you think us individual traders will fare? Do you think ultra fast trading AI will render markets too choppy and unpredictable to trade in? Your feedback is much appreciated!
Replying to: Gerald
Dale WoodsAuthor
Algos can create noise, but usually only short term. Remember there are algos for fast scalping, but also for trend trading. Swing trading will be ok, because we are working with the bigger data. That’s why I stay away from scalping / day trading stuff, because there is a lot of noise, and whipsawry type of volatility. It’s very rare to see stability or clarity in the shorter time frames.
Najib ul Rehman Malik
You have made trading so easy I wonder…
Yaw Adu Gyamfi
That was a fantastic article to read. You took your time to break everything down, and deconstruct it in a way for all “newbies” to get the clear picture of what price action trading means. Many thanks.
By the way, how do we get a copy the forex guy MT4 trade management plug-in?
Thandeka Loveness Khanyeza
A very helpfull information.
Emmanuel Geffie
This was awesome, and I am starving for more. I can’t wait to checkout the other articles. Thanks a lot for sharing.
Damien
Good , concise material
Mathew
personally i also believe in price action based strategies without the distractions of
too many indicators.Your strategy is easy to understand as it is basically a common sense approach
.Im looking forward to learning more from you
best regards
mathew
Lynn Bilodeau
Loved this article. Thanks.
ROTIMI OGUNGBENLE
Your article is in-dept and is an eye to beginners.
Errol Gasa
Very insightful lesson indeed, thank you… I have learnt a lot from you and your videos on utube have proven to be of great help and benefit.. Highly recommend any trader that wants to learn forex-trading to follow your lessons and thought process…
spha
Dale I’m from South Africa, I know trading today because of you, you the best man,I read you articles I watch your videos..I only have few months on live account, I need you to help me to enhance my skills.would I be able to enter the war room as I’m in South Africa?
AP
First i would like to thank you for your website very informative..i think i improve my trading skills..i interested on the War room but just want to know if a basic knowledgeable trader like me who is just started few months ago can easily adapt/understand the course.
Replying to: AP
Dale WoodsAuthor
Yes absolutely 🙂
Wendall
Great article ????????
Emmanuel
Thanks Mate,your article just makes trading forex more interesting and exciting.Gives me that confidence to approach forex from a different perspective.
Too good you are!!!
Cheers 🙂
makili
Dale, am enjoying you; please do more articles on forex trading. This your article is a brakethrough for people like me who are not experts at forex trading.
pravin
excellent
Benrodgers
Quite real and practical- I have experienced each one of them live.
Duncan
thanks Dale for another great article
Irris Jayson
This articles was very informative and detailed. I hope that I can learn more and do you have any books to recommend?
Riley
This is a really powerful strategy. Thanks so much for setting it out the way you did, it made it really interesting and easy to understand.
bob
thanks alot. Nothing new but alot of great reminders still. after many months, these things are core of trading knowledge from beginning that we tend to ignore.
Michael
Hey im pursuing into getting my feet wet in trading, but before i actually start trading my real money, i want learn more..so with everything to teaching about price action trading forex, will it work for a guy living in the United States, with the Asian session and the London market?
Bahri
For me, this is a new view in Price Action.
Thank you.
David
The one thing o took out of this was basically looking at the candlesticks wick body ratio and the where they occurred between the open and close and volatility of the candles basically, looking left paying attention to the context is everything to me and the beautiful doji candlesticks do a fine job you the best way to beat the market is to beat yourself first this is a big mind game most traders open the chart don’t know what they’re looking for try using textbook examples and forget that the market is dynamic in movements and price changes into different formations all the time it’s important you know what you’re​ looking for thanks Dale this is good do an article on wicks
Muamba
Hi Dale
Do you think your strtegy can work with breakout of a doji candlestick that form near Bollinger outerbands on weekly chart ?
Thanks
Muamba
Bruce
Awesome information which has certainly injection of Forex knowledge.
Really appreciate it, can’t say anymore.
Many many thanks for this insightful tutorial.
Nikhil
An excellent article Dale….very thorough and in detail analysis….and above all, a Proven Theory. Thank you very much for motivating and guiding us….
vasilika
I’m a beginner and this lesion was so important and useful for me. Thanks a lot
Elhadi
Thank you so much Dale for such an article. it`s very useful in reach of information
erwin morales
hola
felicitaciones muy buena esplicacion del la accion del precio
facil de entender
me interesa hacer el curso como me contacto
Timothy,Nigeria
This is one of the best article I ever read in recent times
Keep up the good job
Kudos
sadoCk
You’re very important and resourceful
Aaron
Very informative. Greatly helped!!
Joubert Petrus Lesibo
I really enjoyed this and with time I will enjoy trading very much
RoooooOoon
Im a price action trader and i love your post sir. 🙂 This kind of technique that i need. Thank you so much for this post!
Cho
Really summarizes all my 15 years forex trading bitter experience. Thank you for giving me in point form.
Maanan Gordhandas
Dale – When are you going to post more trade signals and commentary on recent trades you’ve made yourself?
This article was great btw. Thank you!
wasfi cheaito
Dear Dale,
Thank you for the file , i will read it carefully and again thank you for your support
Regards
Nizam
Thank you for the technic. It help me a lot in my trading but little bit confuse and always fall down into breakout trap. Is it I need to wait daily breakout candle closed 1st then i put my order? or I need refer to H4 TF to verify my entry? Need your help on this issue.
Moffat
Thank you very much with this info Dale, i really appreciate your work for us. Now i know more about where and where to enter a trade and why. I thank you very much sir.
Rondell
This read like a FOREX bible. Such good ‘clean’ information. I breathe a sigh of relief every time I read one of these. I come back to these when I try something new with my demo accounts, and it doesn’t turn out well.. I reminds me of the value of the basics. Thank you again.
Valerie Galvin
If i keep reading your articles I might understand it one day. I really need some one to help on an actual trade Still I read. I only use trends on a unfussy chart and just trade 5 To 15 minutes. I just break even.
Replying to: Valerie Galvin
TheForexGuyAuthor
You’re getting wrecked most likely because you’re trading 5/15 min charts
I don’t trade time frames lower than the 4 hour. Much more reliable!
Prakash
Hi Dale, first I would like to thank and congratulate you on the fantastic articles on price trading, each article is a gem in itself, after reading support and resistance article I realised how to draw a simple but a powerful horizontal line which will re-define the way it will increase our confidence and shape our trades, hats off to you. Regarding trap trades can we use the following technique -when the price breaks a resistance or support since we don’t know whether it will reverse or continue (a) put a reverse order at the low of the previous candle in case the trade fails and catch the stop loss orders momentum trade or (b) if the price sustains above support/resistance, wait patiently for the retracement to the support/resistance and take trade in direction of breakout after getting the confirmation signal.
Replying to: Prakash
TheForexGuyAuthor
Yes, but you don’t want to double up so to speak. Most of the time it’s better to wait for a breakout to fail then catch the move the other way instead of trying to catch initial breakout also.
Chris
I too think that price action is the best way forward. Makes sense to me.
nihal bhat
hi re breakout trap above, how will you know its a trap, until after the candle has closed(i.e. daily chart each candle printed after 1 day). how would you enter in that situation.
Replying to: nihal bhat
Dale WoodsAuthor
Because the initial breakout fades and price breaks the other end of the previous daily candle.
Replying to: nihal bhat
nuno
Normally called as “bear trap”