Tag: price action patterns

3 Price Action Chart Patterns to Learn Today

Now, we shall examine the three different types of price action chart patterns. In case you are unfamiliar with the term “price action,” it refers to price movement, patterns, and other observable price characteristics on day trading charts. We use price action to determine how we trade, including first recognizing whether an opportunity exists, what the goal (profit target) and risk (stop loss) should be, and how to manage a trade after an order is filled. In the video, you are first shown an example of a trend. Price moves upwards (aka bullishly) over a considerable period of time. If...

Free Trading Method & Forecast Strategy: 2020 January Effect

We’ve posted about the predictive/forecast method called the January Effect for a number of years. Now that we’re at the end of January 2020, we can soon look to use this long-term, historical method to predict if price will ascend to new heights by the end of 2020. This information is useful for futures, options, currency, and stock traders. To summarize how the January Effect works, we look at the E-mini S&P 500 price value at the start of the 2020 (January 2, 2020). We compare the value with price on the last day of trading for the month, January...

How to day trade using price action: Day trading for beginners episode 11: Reversal patterns

In last week’s episode of how to day trade using price action, you gained an understanding about how the pricing of securities worked through my simplified and silly examples. We also had a look at the “Big Green Candle” and you learned what it really means when you see one of those big green candles. I believe it is important to for you understand the mechanics behind the candles in your chart. Usually the Big Green Candles are found in strong uptrends, and they signal a continuation of the trend.  I didn’t go through the “Big Red Candles”, but I...