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12/18/2020 Advanced Price Action Analysis - Trading with Smart Money

Price Action
Advanced Price Action Analysis
 How to Study Candlestick
 Candlestick Analysis 
Back to: Trading with Smart Money
 Price Action Analysis
 Advanced Price Action
Analysis Advanced Price Action Analysis
 Thrust Pullback and
Measuring Move Analysis In this article, I am going to discuss the Advanced Price Action Analysis. This is a continuation part of our previous
 How to Trade with Smart article, so please read our previous article before proceeding to this article. As part of this article, I am going to

Money discuss the following pointers in detail.

 How to Trade with Supply


1. What is high and low?
and Demand Zone
2. What is the swing high and swing low?
 How to Day Trade with Trend
3. Criteria for drawing swing high and swing low
 Multiple Time Frame Analysis 4. Types of swing high
 Head and Shoulder Pattern 5. Strength and Weakness of Trend through Analysis Swing.
 How to Trade with Support
Before going forward let me know you that, This is the extension part of price action analysis. so I would suggest going
and Resistance
through the previous article
 Advanced Candlestick
Analysis How to Study Candlestick
 Trendline Trading Strategy
 WRB Trading Strategy Price Action Analysis

Day Trading Strategies Let’s begin


 VWAP Trading Strategy
 How to Day Trade with the 5 Understanding Market Structure through the swing
simple Gap trading strategy 
 Intraday Open High Low It is similar to learning to read a new alphabet-once you understand the characters, you can read the words, and once
you know the words you can read the story. The first letter to master tells you what market activity causes the formation
Strategy
of a short-term high or low. If you learn this basic point, the meaning of all market structures will begin to fall into place.
 PIN BAR Trading Strategy
 Trading with Sideways Price The market moves in the up-down wave, what we call a market swing. In a healthy bull trend, the upswing generally
Action Area exceeds the downswing in length, the reverse is true for the bear market. Hence by observing market swing, we are
 Pullback Trading Strategy able to glimpse into the structure of the market and get clues on whether the market will move up or down
 Intraday Breakout Trading
Strategy Swing high and swing low

Risk Management Criteria for drawing swing high and swing low
 3 Techniques for Risk
Management in Trading SWING HIGH Or SWING LOW CONSIST OF MINIMUM 5 BAR. The middle bar must be higher high and higher low
then the two proceeding bar and the two following bar
Stock Selection & Live Scanner
 How to make own Day
Trading Scanner
 How to Select Stocks for
Intraday Trading

Intraday Trading Course 2020


 Intraday Trading Course
 Multiple Timeframe Analysis
for Intraday Trading 
 VWAP Trading
 Opening Range Trading
Strategy
 Opening Range Breakout

Volume Price Action Analysis


 Stock Volume Analysis in
Trading Restriction for drawing swing high and swing low
 Volume Price Action Analysis

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 Volume Spread Analysis in 1. If bars high is parallel to the middle or high(LOW) bar, it does not count as one of the five bars in the swing HIGH
Trading (LOW) because it does not have a lower high(HIGHER LOW) than the middle bar
2. TWO ADJACENT swings high or swing low may share bars
 Candlestick Pattern Analysis
 Finding Entry Opportunity
using Volume Spread
Analysis
 Spring and Upthrust Trading
Strategy
 VSA Trading Strategy

Option Chain Analysis


 Option Chain Analysis

Indicator 
 RSI Trading Strategy

BTST 
 BTST Trading Strategy

TECHNICAL ANALYSIS
MASTERCLASS
 Technical Analysis
 Market Structure 
 Understanding Market
Structure through Swing 
 Supply and Demand Trading

1. A swing high
2. B both swing high and swing low, this happens because two proceeding bar and two following bar are inside
bars, that fulfills the requirement of the middle bar must be the highest or lowest point of five bar sequence
3. C both up and downswing by sharing bar
4. D requires six-bar to form swing high as the fifth bar is equal high to the middle bar

Why important?

These points not random, they created by the market. they represent momentary changes and demand and supply
forces. The bulls could not move the market above the swing high. This means that at that point in time, no one was
willing to offer a price higher than the swing high. Traders saw no value above the swing high

In a nutshell, there are two key skills in reading price action:

1. Evaluate how likely a swing pivot will hold up as support/resistance


2. Understand the implication of a swing pivot not holding up as support/resistance

Swing types

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There are two types of swing

1. High and low


2. Swing high and swing low

Let me explain to you

Swing low(SL)

The market tried to move down. Then, it stopped and the bullish trend resumed. The market broke all resistance(swing
high) and made a new trend high. In other words, the market failed terribly in its attempt to move down. The lowest
point it pushed to is called swing low

Tip: valid pivot makes sense only within the trending price action. To find a valid low, you need to know the start point of
the trend and the last extreme trend high. Then what about point B. Point B called a LOW not swing low

Swing low

Every major market has some pullback that is shallow and some last for one swing. The point where pullback goes
deeper and lasts for more than one swing, forming a LOW. Eventually, this deeper pullback terminated and the trend
resumed. A low becomes a swing low once price breaks out above the last extreme price high for the resumption of the
bullish trend. Let me explain to you

All the concept are discussed above are applicable for a swing high and high

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HOW TO KNOW WHEN LOW BECOME SWING LOW

When the price cleared the above swing high level. To clear a price level, the market must form a price bar that is
completely above the price level. This means if a bar low is higher than a price level, the market has cleared above the
price level.

UNDERSTANDING MARKET SWINGS in Advanced Candlestick Analysis

We have understood how to find out swing high and swing low

Let understand STRENGTH AND WEAKNESS OR TREND THROUGH ANALYSIS OF swing

Momentum
Thrust and pullback
Volume

What is Momentum?

The rate at which price move with respect to time

We are simply observing price action in order to compare the current speed and acceleration of price movement with
historical speed and acceleration. Momentum is visible on a chart through observing the slope (angle) of price
movement

The same concept applies to price action on charts. Changes in momentum are observed through changes in the slope
(angle) of the price action

Analysis of momentum is not about measuring any absolute value of momentum, but in making a comparison
of current price action momentum with prior price action momentum.

WE can compare through

1. Candle
2. Swing
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Momentum through candle

Compare the momentum of the current candle with the momentum of the previous candle

BAR COUNTING

1. Counting number of bars in a half cycle and comparing one-half cycle to another (previous half cycle)
2. Comparing each swing(relative strength of move)
3. How much time to get up or how much time to get down

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Momentum through swing

1. Compare the momentum of the current price swing with the momentum of the previous price swing in the same
direction?
2. Compare the momentum of the current price swing with the momentum of the previous price swing in the
opposite direction?
3. Is the current price accelerating or decelerating? What does that mean?

1) Compare the momentum of the current price swing with the momentum of the previous price swing in the same
direction?

Now let’s remove the downswing and study what it is showing Is price faster or slower than before?

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Compare the slope of UP-swings (a), (c) (e) and (g). Note the decreased speed on each of these legs, indicating a
reduction in bullish momentum. Weakness is appearing on the bullish side.

Clearly shows upward momentum decreasing

Now putting the same chart with only downward momentum

Compare the slope of upswings (B) (D)(F) and (H). Note the increasing speed on each of these legs, indicating an
increase in bearish momentum. bearish price swings are showing signs of strength.

BY COMPARING THE SWING IT indicating an increase in bearish momentum. bearish price swings are showing signs
of strength. The price movement is more likely to continue in the direction of strength and against the direction of
weakness.

2) Compare the momentum of the current price swing with the momentum of the previous price swing in the opposite
direction?

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That is, comparing the current bullish swing with the previous bearish swing; or comparing the current bearish swing
with the previous bullish swing. Note the slope of (a) is quite steep compared with the slope of (b). The latest upswing
(b) has shown weakness compared with the previous downswing (a). Strength is still in the bearish direction.

Bullish upswing (d) shows an increase in speed compared with the last downswing (c). While the strength is now to the
bullish side. The shallow angle of downward momentum compared with the steep rise of upward momentum indicate
Strength is now clearly on the bullish side.

The price movement is expected in the direction of strength and against the direction of weakness.

3) Is the current price accelerating or decelerating? What does that mean?

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The deceleration in this example is evidence of bullish momentum gradually weakening as bearish pressure overcomes
any bullish pressure.

In the next article, I am going to discuss Thrust Pullback and Measuring Move Analysis in Trading. Here, in this
article, I try to explain the Advanced Price Action Analysis in Trading. I hope you enjoy this article and understand the
Advanced Price Action Analysis concept. Please join my Telegram Channel to learn more and clear your
doubts. https://t.me/tradingwithsmartmoney.

← Previous Lesson Next Lesson →


Price Action Analysis Thrust Pullback and Measuring Move
Analysis

8 thoughts on “Advanced Price Action Analysis”

MURALI
JANUARY 29, 2020 AT 12:58 PM

Simply Awesome, please allow me to share your tutorials to others too..

Reply

BIKASH
FEBRUARY 4, 2020 AT 9:15 AM

sure you can

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12/18/2020 Advanced Price Action Analysis - Trading with Smart Money

Reply

ANIL
MARCH 9, 2020 AT 7:53 PM

more move& more time + less move & less time = strong trend
how ??? plz rply

Reply

JAMES SINGH
MAY 25, 2020 AT 12:11 AM

Brother….God bless you abundantly…for sharing such vast knowledge in trading…


I am also an aspiring day trader learning everyday….and I love intraday trading very much….
I have not read a more comprehensive book than your website…

Thank you once again!!!


James Singh
Bhubaneswar
Odisha

Reply

KANNAN SIVARAMAN
JUNE 7, 2020 AT 12:31 AM

Excellent article.

Thanks

Reply

REDDY
JULY 6, 2020 AT 9:22 PM

excelent

Reply

SHREYANS
JULY 9, 2020 AT 12:20 AM

Dude..where did you get this kind of knowledge..simply awesome!

Reply

SATISH JAGDHANE
OCTOBER 18, 2020 AT 9:12 PM

Never seen such excellent training whether paid course or free. Kudos to Teacher

Reply

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