00:00i've been trading for more than 15 years
00:02and in this video i'm sharing the 13
00:05best and my absolute most favorite price
00:08action signals strategies tips and
00:10tricks that i have come to learn over
00:12the last few years also i've prepared a
00:15few goodies so if you want to learn more
00:16about my trading my strategies or just
00:19check out all the resources that i'm
00:21offering then make sure to check the
00:23link in the video description below and
00:24now let's get started one very important
00:27price action signal or just a concept is
00:30the so called fakie and some people may
00:32refer to it as bull traps bear traps
00:35failed breakouts and technically what
00:37you want to do is you look for either
00:39long-term support and resistance levels
00:41or short-term resistance levels or just
00:44single swings and what you want to look
00:46for is a rejection of the level and
00:48ideally you want to see that the candle
00:50and the market is piercing through
00:52whatever level that you have identified
00:54and then within one candle within two
00:57candles very quickly reversing back and
01:00rejecting the level you typically don't
01:02want to see a breakout although there
01:04are cases where it can enhance the setup
01:07if for example like here you have
01:09actually a close above a high and then
01:10within the next candle you have a very
01:12strong reversal candle but let's focus
01:14on what we are seeing here and you can
01:16see that the market is in a very strong
01:18downtrend and then we are reaching the
01:20previous support level and what is going
01:22to happen here a lot of traders who are
01:24short are probably going to take profits
01:26which is contributing to bullish
01:28pressure also a lot of breakout traders
01:31are probably getting into here so
01:33probably the people who have been
01:35missing a lot of those trending action
01:37here are then trying to get in short
01:39here their stops will be somewhere here
01:41and then as the market reverses and is
01:43rejecting the level the stops are
01:45triggered and a stop on a short position
01:47is also going to contribute to buying
01:49pressure so you will often see that the
01:52market is playing around those previous
01:54lows and highs there can be more than
01:56one rejection and typically what you
01:58would like to see then is a momentum
02:01candle here you can see after the pinbar
02:04then we'll have a momentum candle the
02:05momentum candle also has a component of
02:08the pin bar so we take out the hi the
02:10lows once again which is a very very
02:12strong signal a double take out of a low
02:14and then the same candle has also the
02:16momentum here in form of a engulfing
02:19candlestick so it's completely outside
02:21of the past one two three candlesticks
02:24so a very very strong reaction the
02:26market did move a lot in this candle and
02:29it closed almost all the way at the high
02:31the final piece to the puzzle if you're
02:33then looking for a bullish move away
02:35from the level you could wait for the
02:36market to actually clear the so-called
02:38flip zone previous support
02:41may be holding as resistance here so you
02:43want to make sure that you don't get in
02:44under a resistance level so you could
02:46wait for the market to actually get
02:48above this level and then initiate your
02:50long entry and you can see the market in
02:52the candle afterwards closed above the
02:54long level here we have another
02:55rejection which is another stop run and
02:58then you can see afterwards the market
03:00is really nicely taking off
03:02second i love the breakout buildup i
03:04talked about this a few times in the
03:06past i think it's a very very great
03:09pattern it's also a component that you
03:11can use for any other pattern so it can
03:13be considered an add-on so what we have
03:16here is the market is in a strong
03:18uptrend you can see from the bottom left
03:20to here we are making higher highs and
03:22higher lows then the market hits a
03:24resistance level here and we are seeing
03:27a bearish move the bearish move does not
03:30break the last swing low so we are not
03:32technically violating the uptrending
03:34structure which is good so we are still
03:35technically overall in an uptrend and
03:38then the market returns to the previous
03:42the most important thing is how the
03:43market is then reacting after reaching
03:45the highs and you can see whereas
03:48the first time we reach this high the
03:49market sold off very very strongly it is
03:52in fact the strongest sell-off that we
03:53are seeing here in all of this uptrend
03:56but the next time the market is reaching
03:58the level there's just barely a move the
04:00market is very closely staying here at
04:02the highs and this what does it indicate
04:05it indicates a lot of buying pressure it
04:07doesn't indicate a lot of selling
04:09interest anymore probably there was
04:11already a lot of buying interest and
04:13when the market dipped here the buyers
04:15got in here and the most accumulation
04:17probably happened here at the last swing
04:20low then here there is not more selling
04:23left there is very very little selling
04:24left and then you can see the the build
04:27up the market is really sticking to the
04:29level however we definitely always need
04:31to wait for the market to clear the high
04:34so the final piece to this setup and the
04:36final piece to the puzzle here is you
04:38wait for a confirmed close above this
04:40level here you can see that we have a
04:42close and then we have a re-test so
04:44breakout and re-tests often come very
04:47and then the market takes off
04:50the dirty retest is a liquidity concept
04:53i talked about this in the past and it's
04:55a very very important concept even if
04:57you don't end up trading the dirty
04:59retest understanding about stop zones
05:02liquidity zones and stop runs is very
05:06your stop placement or just for general
05:08chart understanding so what do we have
05:10here we have the market in a downtrend
05:12then we have the so called triple tab
05:14tab one tab two tab three which is a
05:17pattern that i will cover later in this
05:20and then we are building this pattern
05:22which kind of looks like a reverse head
05:24and shoulder we have here our neckline
05:26the right shoulder which is a higher low
05:29the left shoulder probably somewhere in
05:30here we have also have the component of
05:33and also you could say maybe the the
05:36right shoulder of a head and shoulders
05:40the the concept of a breakout buildup
05:43and what happens now the market is
05:46breaking out and a lot of breakout
05:48traders are probably getting into around
05:50here their stop is depending on their
05:53style somewhere in here
05:55on the breakout their stop-loss may be
05:57about below the recent low maybe below
06:00the absolute low or maybe just very
06:03close if you're an aggressive trader so
06:05the market takes off and what are people
06:08they are going to move their stop loss
06:10to break even because they want to
06:12protect their stop loss or
06:15so they think or rather they want to
06:16protect their trade more so they think
06:19however stop runs occur very frequently
06:21and it's so obvious right now
06:24where are the stops going to be there
06:26are going to be break even they're going
06:29uh somewhere in this area
06:31and what happens to free up liquidity
06:34the smart money the big players are
06:36going to drive the price back into the
06:39now we are just fishing for the real
06:42break even stops which are just here
06:44and on the next push we're going to get
06:47deeper and deeper until we find the real
06:50liquidity pockets and then once we found
06:53the liquidity pockets around here you
06:55can see how fast is the market retracing
06:58every time we hit a liquidity pocket you
07:00see a strong bullish impact and that is
07:02the key when you see that on
07:05the dip back into the pattern
07:07you see afterwards a very strong bullish
07:10reaction such as here or here very huge
07:12candles that shows you that there's a
07:14lot of buying going on a lot of
07:17stops are being triggered here and also
07:19probably a lot of people are going to
07:21get into the trade you could then wait
07:23for the final piece which is here we
07:25have established a resistance level and
07:28then once we get above it you can see
07:29that's where uh potential entries could
07:33but it's always important to ask
07:34yourself where would other traders have
07:37their stop loss and will they move it to
07:39break even yes or no and then just react
07:42on when the market is coming back to a
07:44previous breakout area for example how's
07:47the market reacting do you see strong
07:49buying going on then that is a very good
07:54a very classic pattern but if you read
07:56any of the classic price action books or
08:00books about technical analysis
08:02they often reference flags as one of the
08:04most profitable patterns and flags are
08:07trend continuation patterns so what you
08:10do is you look for the overall trend
08:12direction so clearly we are coming here
08:14in a downtrend from the top left
08:16and the market is moving lower and as we
08:19have talked about in the past trends
08:21just don't move in one single line to
08:24the target they go back and forth and
08:26the flag pattern is going to help us to
08:29get into trend trades maybe we have
08:31missed the initial move of the trend or
08:34maybe we want to add to our existing
08:36position so what happens is you see that
08:38the trend direction is downwards in a
08:40very short time the market falls and
08:42then we have a flag the flag is the
08:44so-called consolidation and the market
08:47moves up it is going against the ongoing
08:49trend direction one thing that is often
08:51common for a flag is that the angle is
08:56shallower than the trend so here you can
08:58see we fall very strongly in a short
09:01amount of time so the angle is very
09:02steep whereas here the angle is not as
09:05steep it's not very aggressive buying
09:07and that that distinction and the
09:09difference between how strong is the
09:11buying versus how strong is the selling
09:13is also helping us understand okay this
09:16is actually a or could be a potential
09:19flag consolidation and on the breakout
09:20we may go lower and resume the trend
09:25what you don't want to see is a very
09:27flag pattern so if the market rises very
09:29strongly that's often not a very good
09:31sign because it indicates actually
09:33either a lot of buying or a lot of
09:34profit taking from the sellers and you
09:36can see after the flag was broken we
09:38moved down very very quickly so you can
09:41see in a long amount of time a long time
09:44the market rose very little whereas here
09:47in a short amount of time just a few
09:49candles less than 10 candles the market
09:51not only broke below the flag but we
09:54continue to move lower then here we
09:56don't have a typical flag but we have
09:57another consolidation and here the the
10:00market was not even able to go higher
10:02here we were just able to make equal
10:04highs so whereas here in the initial
10:06flag we did have some upwards momentum
10:09here the buyers absolutely had no say
10:11over the market and there were only
10:13sellers probably a few sellers getting
10:15out more sellers getting in at the top
10:17and then you can see the breakout candle
10:19very very strong and then we resume and
10:21again when we resume that is where the
10:23market moves a lot whereas in this
10:25consolidations there's barely any
10:28triple tab one of my favorite patterns
10:30it's a very very important pattern to
10:32note and the triple tab can help you
10:35understand when are trends likely to end
10:39and ideally you want to look for a
10:41in an existing trend so if the market
10:44has been trending for a long time and
10:45then you see a triple tab that's where
10:48you want to really get interested and
10:49basically the triple tab just means
10:51three consecutive higher highs however
10:54each high is less and less strong so we
10:57can see that the market was very
10:59strongly rising higher and then from
11:01here to here the market barely able was
11:04able to make a higher high so that's
11:06already indicating a very strong weak
11:08market then from here to here first of
11:10all it took a very long time whereas in
11:12a trend you typically don't see that the
11:14market takes so much time to move higher
11:17also the distance is very long so or
11:19very short here from here to here
11:23small amount that the market was only
11:24able to push higher so this indicates
11:26weakness a lot of weakness in a strong
11:30then you can see afterwards we have a
11:32lower high so here the market was not
11:35even able to make or get above this high
11:37so a very very important
11:39additional piece to the puzzle
11:41we see here then the market is breaking
11:43the lows of the previous uh uptrend and
11:46that's where the market really collapses
11:48so the triple tap is the first sign the
11:50lower highest the second sign and then
11:51on the breakout that's usually where
11:53breakout traders and trend reversal
11:57price divergences they're kind of
11:59similar to triple taps they just
12:02focus on a few other concepts and or we
12:05could say they focus on the same thing
12:07but we're looking at it differently so
12:10we're looking here at a downtrend
12:11obviously and we can see the downtrend
12:14was moving down here very very quickly
12:16and strongly there was almost no bullish
12:18opposition right the market just moved
12:21and then here suddenly we have a strong
12:23uh buying period so the market moved
12:26higher which it has never done during
12:28the past downtrend so what happened here
12:30probably a lot of profit taking
12:32people who were short who got out of
12:34their trades they locked in the profits
12:37and then maybe a few people who maybe
12:39missed the trade or the trend then got
12:42in here on the next leg but what happens
12:44the next leg here seems to be much
12:46shorter whereas here the market trended
12:48lower for a long time
12:50then here for now we don't see a lot of
12:53trending going on and when we look ahead
12:55you can see we are skipping ahead a
12:57little bit and you can see very strong
12:59selling then strong buying which is
13:01something you don't want to see and then
13:03a very short amount of time of selling
13:05only so we cannot even compare this
13:09maybe how much is it maybe a fourth of
13:12what happened here so a fourth only of
13:14the selling duration here so there was
13:17not a lot of interest in selling that's
13:18the point here not a lot of people
13:20wanted to sell after we got here and
13:23then the market started to completely
13:25reverse and made higher highs and higher
13:27lows until it reached this point so now
13:31we have really shifted our bias
13:34i wouldn't say when we look at the
13:36market in this way it doesn't look
13:38bearish anymore right i wouldn't say it
13:40looks really bullish either it's more
13:42like a transition we are going from
13:43downtrend to sideways range so the
13:46market is in a transition period it is
13:49between trending legs
13:51and then the final piece to the puzzle
13:53is you would like to wait for the market
13:55to clear here this area and what does
13:58this mean it would mean that the market
14:00if it breaks above this and if it closes
14:02above it it's making a higher high and
14:05it's also breaking out of the transition
14:07and you can see how are we moving into
14:09this with higher highs and higher lows
14:11we could make a case that this area here
14:13resembles also a buildup whereas when
14:16the market was here the last time we had
14:17a lot of selling now the market is back
14:20at the same level but almost no no
14:22almost no selling is going on here if we
14:24turn around and you can see this is what
14:26happens we have a breakout and
14:28immediately a stop run and another
14:31retest and then we take off higher so
14:33the price divergence helps us to look at
14:36trend waves how strong are different
14:39trending phases very strong trending not
14:42very strong trending and those little
14:44pieces of information really help us
14:47understand who is in control of the
14:49market and is it likely that the market
14:51is going to continue lower or completely
14:58super nicely complementing the last two
15:01points the triple tap and also the price
15:03divergence so in a downtrend you will
15:06see the market is making lower lows from
15:07here a lower low a lower low and so on
15:10and we are making lower highs until here
15:13now is the first time that the market is
15:15breaking a higher high and what's that
15:17what does it mean so in a downtrend what
15:19you will see that the market people are
15:21selling obviously more than they are
15:23buying and what they're doing they're
15:24putting their stop loss above the
15:26previous high typically so as the market
15:28moves lower they are locking in profits
15:30and they're moving their stop loss from
15:32high to high to high and then once
15:34the stop loss is hit and once people are
15:37forced out of their position so people
15:39who are short have their stop here and
15:41people who are short and executing their
15:43stop that's buying pressure and that
15:46could indicate here or could lead to
15:48more buying as well and this is where
15:50the one two three pattern starts the one
15:53pattern the two is signaling our first
15:56move against the previous trend
15:58direction so we are breaking the
16:00previous downtrend structure we are
16:01making our first higher high
16:04and from 1 to 0.3 we are making the
16:08and then you can often see that the
16:10market is continuing into the one two
16:12three four five trend direction so the
16:15one two three pattern we are breaking
16:16above previous highs is often an
16:18indication for a new trend direction and
16:21of course we could see that the 0.3 is
16:24coming much much beyond what we have
16:27seen here and that would then be also a
16:29dirty retest or could be a liquidity run
16:32if we get here below that that could
16:34mean we are testing a lot of stops as
16:36well the flat top triangle similarly to
16:40our flag is a trend continuation pattern
16:43and now you will see that we slowly are
16:46able to combine the different concepts
16:49and tools that i've shown you and by the
16:50end of this video i have prepared one
16:53special very important tip so make sure
16:55to stick around until the end to really
16:58and what we see here first of all we
17:00want to identify the trend direction and
17:02we are clearly moving higher then we are
17:04hitting a resistance level we have a
17:06high where the market is not able to
17:09which is not a problem this is very
17:12common probably people are taking
17:13profits here not everyone but a lot of
17:16people are probably sitting on quite a
17:18good amount of money and they are maybe
17:22and the key to the flat top triangle is
17:25how's the market moving lower every time
17:28we hit the resistance we're moving lower
17:30and here we hit the resistance and we
17:32move lower and so on but the point is
17:35that even the more even though the
17:37market moves lower we are never making
17:39lower lows we are always staying here
17:43above this trend line or at least within
17:45the trend line so even though the market
17:47is selling off each sell-off is less and
17:50less strong so this has components of
17:52the breakout buildup
17:54if the market or when the market is not
17:57able to pull away from a level where it
17:59has previously shown a strong reaction
18:01that is a good indication that they may
18:05be building a lot of pressure and then
18:07you can see we have the breakout here a
18:09lot of breakout traders will get in then
18:12they will be very very happy about their
18:13profits when the market is here as we
18:16are building the double top probably a
18:18lot of traders are moving their stop
18:20loss to break even and then that's where
18:22you see the stop runs so i would really
18:24really recommend to if you have problems
18:26with breakout trading
18:28think about your stop-loss approach are
18:30you moving stops maybe too soon too
18:33aggressive and is to stop run having
18:37problems or creating problems for you
18:39and are you often frustrated because you
18:42are able to anticipate the overall
18:44direction correctly but your trade
18:46expression is not working out
18:48then i would also recommend to really
18:50think about your stop-loss movements
18:53deceleration one of my favorite favorite
18:56topics because it is
18:58very simple but powerful so what do we
19:00have here first of all we have a supply
19:02zone and i will come back to supply and
19:04demand trading in a moment
19:06and supply zones often exist at the
19:09beginning early on in downtrending
19:11markets so in here we have a supply zone
19:13and the market dips into the supply zone
19:15again and then we have the concept of
19:17deceleration we have a strong
19:22and afterwards we see that the candle
19:24size is decelerating it is getting
19:26smaller and smaller that's a very very
19:30if you look at up downtrends here for
19:32example or healthy downtrends you can
19:34see that the candle size is decreasing a
19:37little bit but not in a significant way
19:40whereas if you see that after a very
19:42strong candle the candle size is
19:46significantly that's an important
19:48finding here as well
19:50after the market pushed lower you can
19:52see the next push was followed by a very
19:54small inside candle and then that's
19:57where trends reverse
19:58so the deceleration not necessarily i
20:01would say is a is a time to go short but
20:04it's a first heads up and what i would
20:06recommend when you see deceleration at a
20:10location at a level support resistance
20:12supply and demand zones where it makes
20:14sense to see a turnaround then we drop
20:17to a lower time frame
20:19so now we are on the 15 minute whereas
20:20we saw the deceleration on the four hour
20:23so 15 minute time frame and here we can
20:26see that's a triple tap probably
20:28and also we have a nice pattern we have
20:30a nice support level where we could use
20:33a breakout approach so if we get
20:36a breakout that is where we could for
20:38example look for a short opportunity
20:41and this is what happens we have the
20:43and then here we have the dirty retest
20:45so very very interesting scenario we can
20:48combine one two three patterns we can
20:49combine breakouts we have our stop run
20:52concept and we have the higher time
20:53frame deceleration which we are now
20:55slowly able to put together in very very
20:59now we come to the supply demand zone
21:01and this is a supply and demand
21:03indicator that is coming from pattern
21:05alpha and we are also behind pattern
21:07alpha if you want to learn more about
21:08the automated supply and demand zone
21:11indicator for trading view check the
21:13link in the video description as well it
21:15automatically finds the best supply and
21:16demand zones for you across all markets
21:19across all the time frames and the way
21:21you want to approach this is identify
21:23strong supply and demand areas and then
21:26wait for the market to get there you can
21:28see this is the zone that we have
21:31and the market comes back to it and it's
21:32deceleration here for example
21:35there's also a supply zone but there was
21:37no deceleration you can't see that the
21:39market moved higher and then the next
21:41candle was a continuation
21:43so we don't just trade supply demand
21:46zones blindly we which is very important
21:48for any topic and any concept whether
21:52support and resistance whether you look
21:54at the previous highs and lows
21:56you never trade them blindly you always
21:58want to wait for some other type of
22:00confirmation or signal around it
22:02here now we have the signal we have
22:05deceleration you can see that the market
22:07slowed down significantly and now we
22:10could for example go to the lower time
22:12frame 15 minute this is how the
22:14deceleration looks on the lower time
22:16frame we have here a double top lower
22:18highs we have the breakout and that
22:21could be your entry or if you wait for a
22:24you can't see it happen afterwards a lot
22:27of selling going on afterwards very very
22:28strong reaction here so
22:30very interesting study and we can slowly
22:33start putting things together
22:35the engulfing momentum candlestick is a
22:38very important signal and the way you
22:42you identify it on a higher time frame
22:44for example here we have an engulfing
22:46candle on the daily time frame it's
22:48happening at a demand area which is
22:50inside here and the golfing candle is
22:52showing you here a momentum reversal we
22:54are coming from a very strong selling
22:57sequence we have little parts of a
23:00deceleration after strong bearish
23:02channels the bearish channel is getting
23:04also this is what i call or what is
23:08and in forex we typically don't have big
23:11gaps such as in in stocks for example
23:13but this is resembling a gap in forex
23:17and once you cover those big moves then
23:20there's often a lot of demand waiting
23:22here at the bottom side and it makes
23:24sense to look for a reversal here
23:27so once we see that we go to the lower
23:29time frame and here we can see we have
23:31here a rejection of the lows we have a
23:34fakie and then we are back at the
23:37previous highs and you can see we have
23:39our breakout build up we have our dirty
23:41retest here and then once everything is
23:44cleared we really take off so this is a
23:46beautiful multi-time frame analysis we
23:49have our higher time frame bias we have
23:52our lower time frame fakie we have our
23:54build up here we have the stop loss run
23:58zone the dirty retest and then you can
24:00see the market really really explodes
24:03and i now want to conclude with a few
24:05final words that really help you to make
24:08this all work for you because i have
24:10been mentoring traders and i've been
24:12making training courses and working with
24:15years and years and i see
24:17that many traders have problems with
24:20one of the reasons or five reasons here
24:23is first of all blindly hunting for
24:25signals you should not blindly hunt for
24:27signals you should combine the different
24:30tools as i said don't just use a single
24:32support level and then once the market
24:34gets there go long don't just use
24:36support supply and demand really make
24:40understand the concepts combine
24:42different concepts and then
24:45that will help you greatly increase your
24:49also understand all underlying
24:51principles don't just remember
24:53different patterns don't just remember
24:55how they look and then try to hunt them
24:56down really understand the principles
24:59between buying and selling where are
25:01people putting their stops
25:03people are getting in people taking
25:04profits where are they moving their stop
25:06loss and so on and so forth and this
25:10to look at any chart at any point in
25:13time and really understand what is going
25:15on and that is going to in really
25:17enhance your decision making connect
25:20signals um yeah just combine different
25:22tools breakout buildups are great dirty
25:25retests and all of those tools can be
25:27very nicely combined together learn to
25:29see impaction imperfections of the
25:31market a big problem that i see is that
25:33many traders just learn the price action
25:36patterns from textbooks and everything
25:38looks great on blogs everything looks
25:41great there's never a problem
25:43in your textbook and then you try to
25:45apply this knowledge to the live charts
25:47and then everything obviously is much
25:49much more difficult and things are not
25:51working out the way it is described in
25:54and that is why i try to highlight a lot
25:57of imperfections that's why i uh try to
26:00help you understand stop runs liquidity
26:02concepts dirty retests because they
26:04happen very very frequently and that's
26:05really what creates a lot of frustration
26:07for traders and specialize i have seen
26:11traders professional traders who just
26:13trade one pattern for many many years
26:15they are not all over the place they
26:17wait for maybe one or two very specific
26:19patterns to occur they don't trade that
26:21often but when they see the edge they
26:24are full with confidence and they really
26:27are a specialist in their system
26:30so that is my final words here i hope
26:32you enjoyed this video if you did let me
26:34know in the comments below if you want
26:36to see more of those types of videos
26:38until the next time thank you for
26:40watching and thank you for all the great
![Welp, Here's what the Fed *Just* Said [Fed FOMC Minutes]](/_next/image?url=https%3A%2F%2Fi.ytimg.com%2Fvi%2Fl8u23oq1E9E%2Fhqdefault.jpg&w=3840&q=75)
