In this lesson you’ll be introduced to the basics of technical analysis. We’ll be going over market structure, how to read price action and some of my favorite candlestick patterns.
Key topics from this lesson.
The Market is always looking for areas of liquidity, areas where a lot of trading action will occur. Taking out people’s stop losses, is facilitating more trades and transferring their money into the hands of the well informed. Which is why throughout this course we’ll learn to never predict where the market is going. But rather FOLLOW where price is going. Waiting for our opportunity, never jumping the gun and executing a trade too early. Great traders understand the difference between looking for a trade, and seeing a trade. Always be patient, and let the trades come to you. And when they do, it will be obvious.
(00:40) We observe 3 market environments, Expansion, Consolidation, and Pullbacks
(04:20) Trend or Market Environments are all relative to the timeframe that you’re looking at. A Bearish trend on the 5-minute chart, could still be a part of a Bullish trend on the Daily chart. Always be aware of the higher timeframe trend. But that does not mean that we should not respect the short term, lower timeframe trend as well.
(06:44) Flip Zones! My favorite candle stick pattern and one that I use A LOT in my own trading. Great for identifying market structure.
(08:50) Double Tops/Bottoms
(13:10) Price Gaps. Inefficiencies that the market has failed to fill with trading action. Very commonly seen when the market begins trading Sunday evening EST. We can use the Gap low & high as Support/Resistance levels.
(14:22) Trend Lines. Support/Resistance that is drawn non-horizontally
I like to view trend lines in a non traditional way, the more touches I see, the more that I want to see them fail and break.