Read on Twitter
Can't get a grasp on the market?
Forget everything you thought you knew about price action,
Here's how to read price action correctly (& what NOT to do):
Forget everything you thought you knew about price action,
Here's how to read price action correctly (& what NOT to do):
1) Realize they're all the same
Whether you trade candlesticks, DOM, indicators, options flow, etc, they're all the same.
One does not have an advantage over the other. There's no secret information.
Don't chase, focus on one. The advantage lies in the trader.
Whether you trade candlesticks, DOM, indicators, options flow, etc, they're all the same.
One does not have an advantage over the other. There's no secret information.
Don't chase, focus on one. The advantage lies in the trader.
2) Gain intuition🧠
Every candle tells a story - to read it, you must become "fluent"
Look at *every* candlestick and note:
1. Where they opened and closed
2. How they reacted to previous support/resistance levels
3. How they compare to the candlesticks before and after them
Every candle tells a story - to read it, you must become "fluent"
Look at *every* candlestick and note:
1. Where they opened and closed
2. How they reacted to previous support/resistance levels
3. How they compare to the candlesticks before and after them
It's a tedious process, but it must be done.
After doing this for a while, you'll realize certain patterns always repeat themselves.
You'll start to "read" the market like a book.
After doing this for a while, you'll realize certain patterns always repeat themselves.
You'll start to "read" the market like a book.
Beginner guides want you to memorize candlestick patterns, but this is wrong
You must start from the inside and move outward
Understand *why* candles move the way they do, and you'll already know all the patterns
You must start from the inside and move outward
Understand *why* candles move the way they do, and you'll already know all the patterns
3) Context 📊
Understand whether we're in an uptrend, downtrend, or range
Bearish patterns won't work in an uptrend and vice versa
This sounds basic, but few actually follow it.
Understand whether we're in an uptrend, downtrend, or range
Bearish patterns won't work in an uptrend and vice versa
This sounds basic, but few actually follow it.
Every trade after this is simple:
"We are in an uptrend and there is no unusual price action. I'll wait for it to drop to my support level and see how price reacts
I will enter once this happens, with my stop under support and my target at the next resistance"
Rinse & repeat
"We are in an uptrend and there is no unusual price action. I'll wait for it to drop to my support level and see how price reacts
I will enter once this happens, with my stop under support and my target at the next resistance"
Rinse & repeat
Reading price action correctly is the first step, it requires a lot of practice and screen time🖥️
Sadly, many will never learn properly and their trading will suffer because of it
Once you've mastered this, the execution will follow easily
That's for my next thread.
Sadly, many will never learn properly and their trading will suffer because of it
Once you've mastered this, the execution will follow easily
That's for my next thread.
If you're interested in learning exactly how I do this, I have an in-depth price action guide in my newsletter:
tradewriter.co/p/price-action…
tradewriter.co/p/price-action…
If you found this useful, like💌 and retweet it below👇
https://twitter.com/1570129579628531716/status/1734645457081467149
• • •
Missing some Tweet in this thread? You can try to
force a refresh
