EDUCATIONAL THREAD, ENJOY π§π·β
Happy weekend traders, how was your trading week?
No matter what the answer is, next week will be better.
So today we will be talking about βPRICEβ
Price simply means βexchange rateβ.
The up and down moves in market is price.
Happy weekend traders, how was your trading week?
No matter what the answer is, next week will be better.
So today we will be talking about βPRICEβ
Price simply means βexchange rateβ.
The up and down moves in market is price.
PART 1
What can price do in the market?
Price can only do four things but then one thing at a time and then nothing more.
These four things are;
CONSOLIDATION
EXPANSION
RETRACEMENT
REVERSAL
What can price do in the market?
Price can only do four things but then one thing at a time and then nothing more.
These four things are;
CONSOLIDATION
EXPANSION
RETRACEMENT
REVERSAL
PART 2
These four things above are known as ELEMENTS OF PRICE and these elements also have their individual reference points .
Without the understanding of the elements of price and its reference points, a trader will most likely continue to miss out on price movements .
These four things above are known as ELEMENTS OF PRICE and these elements also have their individual reference points .
Without the understanding of the elements of price and its reference points, a trader will most likely continue to miss out on price movements .
PART 3
The first thing to look out for when you get on your chart is βCONSOLIDATIONβ
WHY? Because it shows the interaction between BUYERS and SELLERS
So what then is CONSOLIDATION?
Consolidation is when market is making highs and lows in a range.
The first thing to look out for when you get on your chart is βCONSOLIDATIONβ
WHY? Because it shows the interaction between BUYERS and SELLERS
So what then is CONSOLIDATION?
Consolidation is when market is making highs and lows in a range.
PART 4
It can be single , double or multiple.
Below images represent CONSOLIDATION
It can be single , double or multiple.
Below images represent CONSOLIDATION
PART 5
After consolidation the next thing that follows is EXPANSION.
EXPANSION is when market finally breaks out, now in this case it gives a defined directional movement .
We can then ride along with the market moves .
After consolidation the next thing that follows is EXPANSION.
EXPANSION is when market finally breaks out, now in this case it gives a defined directional movement .
We can then ride along with the market moves .
Note that in a consolidation market no trader can 100% tell where the market is heading to but then after the expansion we can then declare where the market is heading to.
PART 6
The images below shows EXPANSION
The images below shows EXPANSION
PART 7
Now in this section the question is what follows expansion?
Truth be told all we have been trying to do is to build our anticipatory skill, if this is the case, expansion is usually followed by either RETRACEMENT or REVERSAL, so what we do is to anticipate.
Now in this section the question is what follows expansion?
Truth be told all we have been trying to do is to build our anticipatory skill, if this is the case, expansion is usually followed by either RETRACEMENT or REVERSAL, so what we do is to anticipate.
PART 8
What then is RETRACEMENT?
Retracements occur after a significant price move in one direction and involve a temporary pause in that direction.
What then is RETRACEMENT?
Retracements occur after a significant price move in one direction and involve a temporary pause in that direction.
PART 9
Finally we can also have REVERSAL
Reversal refers to a change in the direction of a currency pair's price movement. This means that if a currency pair was previously moving in an uptrend, it may start moving in a downtrend after a reversal occurs and then vice versa.
Finally we can also have REVERSAL
Reversal refers to a change in the direction of a currency pair's price movement. This means that if a currency pair was previously moving in an uptrend, it may start moving in a downtrend after a reversal occurs and then vice versa.
Reversals are significant events in forex trading because they can signal a change in market sentiment and a potential opportunity to enter a new trade in the opposite direction of the previous trend.
PART 10
If we know all the above elements of price and we donβt t know the reference points, there is no way we can execute our trades.
So lets talk about the reference points.
What do we mean by reference points of price elements?
The reference points of price are also known
If we know all the above elements of price and we donβt t know the reference points, there is no way we can execute our trades.
So lets talk about the reference points.
What do we mean by reference points of price elements?
The reference points of price are also known
as POI (POINT OF INTEREST)
These POIs gives us insight of where we should expects price to react to/ from, hence we can then take advantage of these POIs to enter or leave the market
In other words , we can get our entries and exits from the reference point of elements of price
These POIs gives us insight of where we should expects price to react to/ from, hence we can then take advantage of these POIs to enter or leave the market
In other words , we can get our entries and exits from the reference point of elements of price
PART 11
Now lets talk about the reference points for each elements of price.
CONSOLIDATION: the reference point for consolidation is EQUILIBRIUM.
EXPANSION: the reference point for expansion is ORDER BLOCK
RETRACEMENT: the reference point for retracement is FAIR VALUE GAP
Now lets talk about the reference points for each elements of price.
CONSOLIDATION: the reference point for consolidation is EQUILIBRIUM.
EXPANSION: the reference point for expansion is ORDER BLOCK
RETRACEMENT: the reference point for retracement is FAIR VALUE GAP
REVERSAL: the reference point for reversal is LIQUIDITY POOL
Now your work now is to combine what i taught you all about market structure with price.
Go back to your chart and spot out market structure and then see how market reacts from each of the reference i stated here.
Now your work now is to combine what i taught you all about market structure with price.
Go back to your chart and spot out market structure and then see how market reacts from each of the reference i stated here.
NOTE: OB is not what moves price, so erase the mindset of always trying to enter from every OBs you see on your charts, rather work with the elements of price and pick your entries based on what you just learnt.
For now I will stop here and then in our next thread i will show you how to spot out each of these reference of price elements.
@Vee_forex @uncle_temie I don cook and serve weekend food
Goodluck guys, happy trading
#forextrading #forextips #FinancialFreedom #FinancialMarkets
@Vee_forex @uncle_temie I don cook and serve weekend food
Goodluck guys, happy trading
#forextrading #forextips #FinancialFreedom #FinancialMarkets
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