In this THREAD I will explain "Price Action"

1. How to identify a trend

2. How to draw a chart from 0

3. How to trade between ranges

Here’s a breakdown for your "Price Action" THREAD with explanations:

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1. How to Identify a Trend

Understanding trends is crucial for effective trading. Here's how to identify them:

Uptrend:

Higher highs and higher lows.

Price moves in a stair-step pattern upwards.

Look for bullish candles dominating the chart.

Use tools like trendlines and moving averages to confirm.

Downtrend:

Lower highs and lower lows.

Price moves downward in a stair-step pattern.

Bearish candles dominate.

Sideways (Range-Bound):

Price oscillates between a clear support and resistance zone.

Neither bulls nor bears have control.

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2. How to Draw a Chart from 0

Drawing your own charts helps you understand market structure better:

Step 1: Choose a time frame (e.g., 1H, 4H, Daily).

Step 2: Mark key levels of support (lowest points) and resistance (highest points).

Step 3: Identify supply and demand zones where price reacts strongly.

Step 4: Add trendlines to connect higher lows (uptrend) or lower highs (downtrend).

Step 5: Include indicators like RSI or volume if needed, but keep the chart clean to focus on raw price action.

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3. How to Trade Between Ranges

Range trading involves buying at support and selling at resistance:

Step 1: Identify the range by marking clear horizontal support and resistance zones.

Step 2: Wait for price to test the support level; look for bullish reversal patterns (e.g., hammer, double bottom).

Step 3: Enter a long trade at support with a stop-loss below the zone.

Step 4: Set a target at the resistance zone.

Step 5: Reverse the logic at resistance – short the market with a stop-loss above the zone and a target at support.

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BONUS TIP:

Always combine price action analysis with volume and candlestick patterns to confirm trades. Patience and discipline are key!

#PriceAction #TradingTips