How to Trade Predictive Price Patterns

Have you noticed that there are certain patterns or formations that keep recurring on the charts? And did you notice that these patterns have some sort of predictive value?

For example, the presence of certain patterns tend to tilt the odds of bullishness or bearishness, which means that if you can correctly identify these patterns, they will give you a big edge in your analysis.

These patterns mainly fall into 2 categories – reversal patterns and continuation patterns. In this video, I go through all the different patterns and the significance of each one.

Enjoy the video! 😀

How to Identify Market Trends with Swing Counts

In my last video, I talked about the 3 main market trends that are in the market – uptrend, downtrend, and sideways market. In trading, it is very important to know the trend because trading in the direction of the trend gives you the best odds of profitable trades.

In this video, I share about Swing Counts — one of the most common techniques used by traders (including professionals) to identify the market trend and differentiate between the 3 main market trends.

Knowing this technique is important because it gives you a simple and objective way to not only identify the current trend, but also to spot when the trend is changing direction.

Enjoy the video! 😀

What are the 3 Main Market Trends?

When we look at price charts, we cannot help noticing that prices tend to move in a particular direction for prolonged periods of time, creating trends which we can take advantage of.

Generally, there are 3 main directions which trends take, and specific strategies which give you the edge once you are able to identify which trend the market is currently exhibiting.

Lastly, the video covers one major pitfall that many trend-followers miss out on, and as a result get trapped holding losing positions. This is something you want to avoid.

Enjoy the video! 😀

How to Read Price Charts in 15 Seconds

When looking at a chart, sometimes we have to make snap judgments, as any delay could result in price moving away from your ideal entry point, and resulting in you missing out on a good trade.

If you are using many indicators and complex software, it could take many minutes or even hours just to make a trading decision.

But there are a few simple clues you can look out for to allow you to quickly decide which is the highest probability direction to trade in.

Enjoy the video! 😀

How to Combine Price Action with Multiple Timeframes

One of the simple yet powerful techniques I use to allow me to quickly identify trading opportunities with minimal time and effort (typically 15 minutes a day), is to use this Excel table which combines price action with multiple timeframes.

To create this table, I observe the daily and weekly charts of various products (forex, stocks, cryptocurrencies, commodities, etc), and list down whether I think it is bullish or bearish on each timeframe. For the weekly chart, I only need to update it once a week, and for the daily chart, this takes me a few minutes a day.

Here are some chart examples:

This is the daily chart of the EUR/USD, and you can see that it just completed a pullback and is looking bullish. So under EUR, I mark it as bullish. For most products, I always benchmark them against the USD for easy comparison.

 

This is the weekly chart of the EUR/USD, and you can see that it is also very bullish, and rebounding off a large trendline. With the alignment of both the daily and weekly trends, this make the EUR/USD a very good long trade to be in. And since the GBP is also weak, going long on the EUR/GBP is also a good idea.

 

For the S&P 500, the long-term trend is bullish, but the short-term trend is bearish. In such a scenario, we will pass and wait for more price action. The goal is to take the best trades, not take as many trades as possible. Quality over quantity.