Best Price Action Trading Strategy That Will Change The Way You Trade

hey guys in this video i will show you a price action trading strategy that will change the way you trade now the core of the strategy relies on the concept of momentum loss shown through candle sizes and shapes which is a very powerful price action technique here we have the kiwi dollar so if you've watched our other videos we always want to identify key levels first and as you can see we have a level of support here where price hit and reverse from and now we are back here again now here is a very key

point you need to know in order to spot high probability reversal trades we want to see candles getting smaller and smaller as they approach a level of support or resistance because it shows that price is losing momentum very key point you want price to be losing momentum and slowing down as it approaches key levels now as price approaches this level of support look at how the candles behave as you can see we have a big candle followed by a smaller candle followed by an even smaller candle another smaller candle and then a smaller long wick

candle rejecting support and then finally an even smaller green candle that is also a doji and also an inside bar which is a reversal candle and this results in a bounce upwards so i'll show you this again on another pair here we have the aussie dollar this is a key level of support as you can see from when price got here last it hit and reversed upwards so as price approaches this level again we have a big candle then a smaller candle an even smaller candle which is also rejecting support and then we have this

beautiful green long wick candle rejecting support and then followed by another great inside bar candle rejecting support as well and as you can see price bounced upwards which would have presented a great trade opportunity through the intraday time frames so when approaching support what these smaller and smaller candles show is that the sellers and people shorting the market are losing steam meaning some sellers might be taking profit as they notice this level of support which causes these smaller candles so let's jump to another example here's the kiwi yen as you can see we have a

double top here before price tank down making this a key level of resistance now as price approaches this level of resistance again look at how the candles start acting we have a big candle followed by a smaller candle followed by a smaller red hanging candle another hanging candle and then a candle where the wick is rejecting this level of resistance before dropping down which was another great trade opportunity here's the cat swiss again we have three rejections of this level before it reversed downwards which makes this a key level of resistance as price approaches this

level again we have a big green candle a smaller green candle where the wick is also rejecting resistance and then an even smaller candle which is a red bearish candle and as you can see price reversed downwards now here's a pro tip look for a candle color change at support or resistance which can signal a possible trend change i'll show you what i mean so as price is moving upwards notice all the green candles green candles represent bullish price action as you can see there is eight green candles in a row before finally a red

bearish candle appears and the most important part is that it occurs right at resistance and as you can see price then reverses so if you want to learn more in depth how to identify these key levels of support and resistance head on over to our website at wisetrade.com where you can learn this for free now in the following examples i'll show you price action you want to avoid here's the aussie kiwi as we look to the left this is a clear level of resistance now look what happens when price approaches this area again we have

a small candle but then the following candle is a large candle which shows a gain of momentum you do not want to see momentum gaining as it approaches these key levels because if price doesn't slow down there's a high chance it will break right through these levels as you can see there was no price action that signaled a reversal so i'll show you this again on another pair here we have the dollar cad as you can see here we have a double top and then price reversed giving us resistance now look at what happens as

price comes up here again we have a small candle and then a massive engulfing candle which shows that price is picking up speed and momentum as it approaches this level showing that buyers are in control now this next kennel here shows that people tried entering short but that failed and price blew right through which is a mistake that most beginner traders would make as they would have seen this long wig candle and thought oh this is a great short be very careful when you see large candles approaching support or resistance levels so let's jump to

another example here's the dollar yen you can see we have a double top here making this resistance as price comes up and approaches this level we have a big candle followed by a smaller candle that is rejecting this resistance another candle rejecting resistance and then finally a red candle also rejecting resistance before price reverses downwards now here is a perfect example of momentum loss not occurring as it approaches this next level of support so we look left and see two rejections of this level making it a good level of support but now look at what

happens when price approaches this level we have a massive bearish bread candle showing that momentum is picking up and that sellers are still in control here is another mistake beginner traders make as they see the small green candle which is just some sellers taking profit but it is then followed by another bearish candle before breaking right through meaning that there was no buy opportunity at this level of support look at the difference between what a good reversal looks like with good price action versus what bad price action looks like so i'll do a few more

examples to drive the point home also if you guys like what you see and are enjoying the content please leave some comments below and hit the thumbs up as this goes a long way for us here's the dollar swiss we look left and we had a double bottom and then price went up making this support and as you can obviously see there was no trade here because price makes a massive bearish engulfing candle and blows right through support in contrast look at what happens at the top we have a level of resistance here to the

left and as price approaches this level again we have a big candle a smaller candle an even smaller candle that is also a doji and also rejecting resistance then finally a red bearish candle that is also rejecting resistance which then caused a reversal and then we entered a trade through the intraday time frame here is the aussie cad we look left and have a clear level of support here as price comes down here again we have a big candle a smaller green candle a candle showing the upwards buying pressure and then a beautiful long wick

smaller candle rejecting support before price took off upwards this occurs again once price comes back down to this area we have a big candle and then a smaller long wick candle rejecting support another perfect long way candle rejecting support and then a perfect green inside bar long wick candle rejecting support and then price reverses upwards trading should not be hard if you know what you're looking for let's do one more example here is the pound aussie we have a double top here at resistance as price comes up here we have a big candle a smaller

candle an even smaller candle a red doji candle rejecting resistance an inside bar and then a reversal some traders might have noticed this level of resistance here but look at what happens when price comes to this area we have an engulfing candle and price broke right through and there was no price action for a trade here along the bottom we have a level of support here through this rejection now again as price approaches this level look at all the small candles as price approaches this level which shows no bearish momentum price then finishes with three

candles where the wicks are rejecting support and then price took off upwards trading involves zero guessing you look for price action and act on what you see happening that is what technical analysis is in a nutshell so if you want to learn more about this concept in depth and about actual trade entries head on over to our website and get the five keys that will instantly improve your trading performance for free again if you like the video please leave some comments below and let us know what you think and to give this video a thumbs

up so thanks for watching and i'll see you in the next episode [Music] you