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

    Uploaded by

    kalelenikhl
    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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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

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

    Uploaded by

    kalelenikhl
    102 views29 pages
    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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    Price Action Madness, Part 2 -2-15-17

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    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.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    102 views29 pages

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

    Uploaded by

    kalelenikhl
    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.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 29
    At a glance
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    The document discusses defining trends and identifying the current trend state based on price action.

    The three trend states are uptrend, downtrend, and chop/trendless.

    An uptrend is defined as a series of consecutive higher highs and higher lows.

    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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