5 Things To Look For Before You Place A Trade (Price Action Trading Strategy)

value area, so this one not yet, so once we get out if we're wrong, we know that if we have an entry trigger to go short, we want to be out of the

trade

, right? the

price

you know reaches around this

price

of 79 dollars because it can, if it can reach the price of 79 dollars, then clearly this resistance area is well broken and we want to exit the

trade

, okay, so we will exit if we are wrong , but what about the output? If we are right, how are we going to handle this? Maybe this time you want to write a trend that is great, so what we can do is use the price structure to write the trend, maybe the price will go up.

If we get rejected, we go short and continue to hold the trade correctly as long as the price makes a series of lower highs and lower lows, that's fine, that's how formula one applies May, the last example, all good, sounds okay, copper, so let's

look

at one. final example, so when you

look

at this chart again, you are confused right now, I don't know if I should sell or buy, oh Rainer said look for a higher time frame, so let's do it right now. Look at the weekly time frame and you'll see that, well, copper is actually in a long-term downtrend, this is simply a pullback against this long-term downtrend, that's great, so if you look at the time frame diary, okay, we could look at potential business opportunities, but you know.

What we are going to go down even a lower time frame and look for a breakout of the structure sounds good so right now you can clearly see that the buyers are still in control if you just take out your trend line okay you can see that the price is still above this trend line, so what you are looking for is a breakout of the structure, so the existing structure right now in this market is a series of higher highs and higher lows, so you will see the price break below this correct price structure, if it can go lower, we test and break at this point, it has a lower high and lower low and its trend line and its ascending trend line as well break out, so now you have a structure breakout and this broken trendline, so it could be an entry trigger to go short right when the price forms are highest and lowest here, so now you know that The market structure in this case is a little more advanced because you are using multiple time frame analysis but you are seeing that yes, overall the trend is still down.

Your value area is in this area of ​​our resistance here, which I think you can't see, but if you look at the higher time frame you said it's resistance your entry trigger is a breakout of the structure what about the stop loss? on this high here or number two, this one here, depending on how aggressive or conservative you want to be, so let's say you're more aggressive and you're willing to use a tighter stop-loss. You can reference these highs here so that your stop-loss can be somewhere around here because if you think about this, if the price breaks down and then retraces back up, then clearly it is true that this stop-loss line trend is not broken it is just a false breakout and you are wrong and you should exit the trade ok so this is an electronic exit if you are wrong what about the exit if you are right?

Well, let's say if you want to catch a swing, you know that this is a possible area right where potential buying pressure could come in. and this swing over here you can look to talk look for targets right in this value area that this swing over here then it could come out if you're right does that make sense? Well, then these are the five

things

you should pay attention to before you.

place

a trade hope you have a deeper understanding of how this works and do a quick summary number one look at the market structure number two look at the value area look for the value area number three look for a valid entry trigger to enter the trade number four, look to know where to get out if you're wrong, get out right if you're wrong and number five, you should also know where to get out if you're wrong, okay, that being said, I hope you got value. outside of this training, if you want to learn more, what you can do is just go to my website here

trading

withrainer.com, this link here and just download this guide, the ultimate guide to price

action

trading

, to learn more on price

action

. in the markets or if you want a little more about candlestick patterns then this guide is really useful and would really complement what you just learned today.

That said, I've reached the end of this training if you enjoyed it, hit the like button, subscribe to the channel and I'll talk to you soon.