Summary of "ULTIMATE PRICE ACTION COURSE 馃敟 - 3 Hours Non-stop 馃搱 | Trade with Purab"
Summary of "ULTIMATE PRICE ACTION COURSE 馃敟 - 3 Hours Non-stop 馃搱 | Trade with Purab"
This extensive course by Purab covers foundational and advanced concepts of Price Action Trading, focusing on practical market strategies, Technical Analysis, and trading psychology. The content is designed primarily for beginners but is also useful for intermediate traders. The teaching style is straightforward, using simple language and relatable examples.
Main Financial Strategies and Concepts Presented
- Types of Market Analysis:
- Technical Analysis: Use of charts, indicators (moving averages, Bollinger Bands, stochastic, fractals), and price patterns to predict market movements.
- Fundamental Analysis: Studying company financials, management, profits, and reputation for long-term investing.
- Quantitative Analysis: Statistical and numerical analysis of market data.
- Price Action Analysis: Focus of the course; studying price movement patterns, candlesticks, supply-demand zones without relying heavily on lagging indicators.
- Trading Styles:
- Scalping: Very short-term trades lasting minutes.
- Day Trading: Buying and selling within the same day.
- Swing Trading: Holding trades from days to weeks.
- Positional Trading: Holding trades for months to years.
- Investment: Long-term holding based on fundamentals.
- BTST (Buy Today Sell Tomorrow): Short-term trades held overnight.
- Price Action Basics:
- Price is considered the "king" in trading decisions.
- Study of price movement on charts, primarily candlestick charts.
- Candlestick components: Open, High, Low, Close (OHLC).
- Candlestick colors: Green (price up), Red (price down).
- Importance of clean charts over cluttered indicator-heavy charts.
- Market Structure & Trends:
- Uptrend: Higher highs and higher lows.
- Downtrend: Lower highs and lower lows.
- Sideways trend: Price moves within a range without clear direction.
- Market phases: Accumulation (buying), Markup (price rise), Distribution (selling), Markdown (price fall).
- Demand and Supply:
- Price rises when demand exceeds supply.
- Price falls when supply exceeds demand.
- Illustrated with a watermelon market analogy.
- Support and Resistance (SNR):
- Support: Price level where buying interest prevents further decline.
- Resistance: Price level where selling interest prevents further rise.
- SNR zones rather than exact lines are more practical.
- Angled support/resistance lines can occur (not just horizontal).
- Price Patterns and Strategies:
- Retracement: Short-term pullbacks against the main trend.
- Reversal: Change in trend direction.
- Breakouts: Price moves beyond resistance or support, signaling continuation.
- Breakdowns: Price falls below support, signaling continuation down.
- Inside Bar: A smaller candle within the range of the previous larger candle, indicating consolidation.
- Trend Trading: Trading in the direction of the prevailing trend.
- Candlestick Patterns:
- Marubozu: Strong bullish or bearish candles with little/no wicks.
- Hammer: Potential bullish reversal pattern after a downtrend.
- Inverted Hammer: Similar to hammer but with long upper wick.
- Hanging Man: Bearish reversal pattern after an uptrend.
- Shooting Star: Bearish reversal with a long upper wick.
- Doji: Small body candle indicating indecision.
- Volume Analysis:
- Volume = number of shares/contracts traded.
- Volume confirms price movement strength.
- Price increase + volume increase = strong bullish signal.
- Price increase + volume decrease = weak or doubtful trend.
- Price decrease + volume increase = strong bearish signal.
- Price decrease + volume decrease = weak bearish trend.
- Volume spikes often precede big price moves.
- False Breakouts:
- Occur when price briefly crosses support/resistance but reverses back.
- Avoid by waiting for candle close confirmation (1-2 candles).
- Smart money (institutional investors) can cause false breakouts to trap retail traders.
- Retests:
- After breakout, price often returns to test the old resistance as new support (or old support as new resistance).
- Retests provide safer entry points.
- Failure of retest signals fake breakout.
- Price Gaps:
- Occur due to aggressive buying/selling, news, market sessions, or institutional activity.
- Types: Bullish gap (gap up), Bearish gap (gap down).
- Gaps represent sudden shifts in supply-demand balance.
- Trading gaps requires understanding the cause and confirmation.
Category
Business and Finance
