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Price Action Madness, Part 2 - 2-15-17

1) The document provides an overview of a training session on price action analysis focusing on identifying trend states and the signals needed to confirm trend changes on single timeframes. 2) Examples are given of uptrends and downtrends on charts with explanations of what indicators are needed to confirm the existing trend or signal a trend change. 3) Attendees will have a chance to practice identifying trends and trend change signals on a live chart during the session.

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kalelenikhl
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189 views29 pages

Price Action Madness, Part 2 - 2-15-17

1) The document provides an overview of a training session on price action analysis focusing on identifying trend states and the signals needed to confirm trend changes on single timeframes. 2) Examples are given of uptrends and downtrends on charts with explanations of what indicators are needed to confirm the existing trend or signal a trend change. 3) Attendees will have a chance to practice identifying trends and trend change signals on a live chart during the session.

Uploaded by

kalelenikhl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1

PRICE ACTION MADNESS


PART TWO!

Starting 1900 CT tonight


2

Goals for Tonight


• Continuing last week’s “intro” session on price action
• Focusing on rules/structure for single timeframe price action
• Exercises
• Questions
3

1) The Single Timeframe Price Action


Framework
4

Let’s define “trend” again….


5

Three Different Trend States


• Uptrend
• Downtrend
• Chop/Trendless
6

Uptrend State
• A series of consecutive higher highs…
• And higher lows
• This gets broken if/when the price prints a “lower high”
• And changes polarity if the price then puts in a subsequent
“lower low”
7

Downtrend State
• A series of consecutive lower highs…
• And lower lows
• This gets broken if/when the price prints a “higher low”
• And changes polarity if the price then puts in a subsequent
“higher high”
8

Chop/Trendless
• An uptrend pulls into a “lower high”
• But does not print a “lower low”
• Or a downtrend pulls up a “higher low”
• But does not subsequently print a “higher high”
9

Once we identify the current trend we


need to anticipate what would have to
occur to make the price fall into a sideways
trend, or reverse.
10

2) Uptrend Framing Example


11

What type of trend?


What would need to
occur for the price to
change state?
12

Notice how some of the pullbacks are deeper


than others. These pullbacks are occurring on
larger timeframes, while the smaller ones are
likely happening on a smaller timeframe.
13

See anything now? What might be


happening?
14

Can you see how the reversal


was formed?

What would have to happen to


change the polarity again?
15

What is beginning to happen now?


16

What needs to happen to fully


reverse the downtrend?
17

Today….
18

3) Downtrend Framing Example


19

Here is a strong uptrend, but what


just happened?
20

What can you say about the


“character” of the new trend?
21

Notice “larger timeframe” pullbacks,


and the general nature of the
downtrend price action.
22

Here’s an intraday NQ chart. What is


starting to occur?
23

Can you now spot the change in


polarity? Now that the downtrend has
been established, what must occur to
maintain the downtrend and/or
change polarity to an uptrend?
24

Now that the downtrend has been


established, what must occur to
maintain the downtrend and/or
change polarity to an uptrend?
25

The downtrend is still in force, what


must occur to maintain the
downtrend and/or change polarity to
an uptrend?
26

What just happened?


27

Can you see why a short-squeeze


fires off from those shorting too far
along in the pattern, holding weak
hands?
28

Let’s do some “hard right edge” on a live


chart.
29

Questions?

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