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Posted on May 14, 2018 01:46 pm
Trading is a Zero sum Game. Zero Sum game means Your win is somebody else losses , and your loss is somebody elses win. Imagine you playing a game of Cards , Lets say Poker. Poker is a game where if 5 people participate and 1 player wins, the bet of the balance 4 loosing players will be credited to the winner. Stock market is the same.
Big Players Like FIIS and DIIS , if they have to win , you have to loose. They use computer Algorithms to place trades based on their strategy and they do heavy quantities. In order for them to execute heavy orders they split it up into slices or buckets and place in the market. When they place trades , Prices will Reflect the order flow. This is what we call as Price Action. Irrespective of what ever strategy FIIS use the execution is finally Buy or sell and it has to be done in the Live Market. This is dealt via price Action. Price Action Strategies work directly with the order flow which is connected to the computer algorithm strategy of the FIIS, Giving you an advanced Edge.
Today I will be sharing a Basic price action strategy. This is used when Prices are contained in a narrow range , without pull backs. You can find the phenomena when candles overlap , still prices makes new lows or highs thru out the day. By overlap means the body of most of the candles touch previous candles 80% of the time.
One such Example is Shown Below , You can see after the 3rd of 4th candles, markets traded thinly and it was overlapping.
You can see that the Candles are closely traded without any good pull back but each candles makes a new low. when FIIS use this Algo you are not going to get a pull back. Most people don’t know how to trade and they just leave what happens to be a beautiful Intra Trending day. Information is wealth.
What you do is to draw a close trend line above the candles and wait for prices to trigger a false break and then come into the overlap mode like the example shown below.
Look at the Example below
I have given one more example Below
Try this strategy and let me know your feedbacks. I am a full time Price action trader, I teach much ADVANCED Concepts in the Price Action Strategy ful Course. All are simple and effective stratgies. You can ping me in watsapp at 7373339777 or 8508777733. You can also call for discussing about the concepts.
You can also sign for news letter or read my Basic strategies at
Happy learning and Trading...
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Technical trader is born out of passion. Passion to learn, Trade and share about Technical analysis of the Stock Markets. We all know context is the important aspect of technical analysis. The Sustenance of a big move or a breakout of a particular stock depends on the context in which the breakout is happening. As a Traders coach we teach you how to develop context and trade the stock market. Especially the Nifty and the Bank Nifty.