PRICE ACTION Trading Made Simple (Full Course)

Summary

The course presents price action as the close-up study of how current and recent candles react to market levels. It distinguishes price action (micro-level behavior) from market structure (macro-level trends, swings, pullbacks, and major support and resistance).

Its central theme is to combine candle signals with market structure and volume rather than trade any single signal in isolation.

Candlestick patterns and interpretation

• Hammer: A potential bullish reversal after a downtrend, especially near support. It has a small real body, a lower wick at least twice the body’s size (preferably three to four times), and little or no upper wick. The body can be either color.
• Shooting star: A potential bearish reversal after an uptrend, especially near resistance. It has a small body, an upper wick at least twice the body’s size (preferably three to four times), and little or no lower wick. A similar-looking candle without a preceding uptrend does not meet the presenter’s definition of a true shooting star.
• Engulfing patterns: Two-candle reversal setups:
  • Bullish engulfing: After a downtrend, a green candle opens at or below the prior red candle’s close and closes above its open.
  • Bearish engulfing: After an uptrend, a red candle opens at or above the prior green candle’s close and closes below its open.
  • The presenter considers these patterns more compelling at meaningful support or resistance levels. They can fail, particularly without supporting market structure.
• Doji: The open and close are nearly equal, suggesting uncertainty or a balance between buyers and sellers. Long-legged, dragonfly, and gravestone doji variations can indicate differing directional pressure. A four-price doji is described as rare and generally uninformative.
• Impulse candle: A candle whose real body is more than twice the size of recent bodies—ideally three or four times as large. It can signal strong directional control and possible momentum continuation, though this is not guaranteed.

Support, resistance, and breakouts

Support and resistance are treated as potential reversal areas, not guaranteed barriers.

• Potentially stronger levels: Forceful moves into and away from a level, sharp reactions, and repeated bounces suggest the level may matter.
• Potentially weakening support: Lower highs as price approaches support suggest buyers are losing strength. Repeated compression can precede a downside break.
• Potentially weakening resistance: Higher lows as price approaches resistance suggest buying pressure is building and a break may become more likely.

Good-breakout checklist

1. Momentum increases as price crosses the level.
2. A strong candle closes clearly beyond the level—not merely a brief move or wick through it.
3. Volume rises relative to recent bars.
4. The level is clear and widely visible on the chart.
5. Price action confirms the move, preferably by continuing after the breakout.

Failed-breakout warning signs include little or declining momentum, a weak close or long wick through the level, no notable volume increase, an unclear level, or lack of follow-through. The presenter cautions that one warning sign is not conclusive; several together make failure more plausible.

Volume

Volume represents the amount of an asset traded during a candle’s time period—for example, one day on a daily chart or one hour on an hourly chart.

The course uses higher relative volume as a sign that more market activity supports a price move, including breakouts. It also contrasts rising volume during an uptrend with declining volume, which it presents as a potential sign of weaker participation. Volume is supporting evidence, not a stand-alone signal.

Indicators and practical use

The presenter demonstrates several TradingView tools and advises combining them with price action and market structure rather than relying on indicators alone.

• All Candlestick Patterns: Automatically identifies patterns. Suggested beginner selections include engulfing patterns, hammers, and shooting stars. The trend filter defaults to SMA 50; the presenter recommends keeping it on to reduce false signals, while noting that SMA 50 combined with SMA 200 may filter too heavily.
• Chart Prime “Channels with Patterns”: Detects trend channels and channel breakouts. Settings can use candle bodies or wicks. Using highs and lows is described as more conservative, while candle-close confirmation can appear earlier. The presenter advises testing presets and settings.
• Lux Algo “Range Detector”: Identifies sideways trading ranges and marks upside or downside breaks. The default minimum range length is 20. Setting it to 30 may require more data and produce stronger ranges, while reducing it to 10 may generate more false ranges. The presenter generally recommends leaving range width at one.
• TradingView “All Chart Patterns”: A Premium tool that identifies chart patterns, breakouts, and potential target levels. Users can select which reversal or continuation patterns to display and whether to show in-progress patterns.

Examples and key figures

• Bitcoin (BTC), daily chart: A breakout above approximately $19,700, described as the 2017 all-time high, is presented as an example featuring a conspicuous level, a large momentum candle, a close above resistance, unusually high volume, and subsequent upward continuation.
• Gold: The course examines attempts around $2,070, described as the prior all-time-high area, with reactions noted in August 2020, March 2022, and May 2023. One attempt illustrates rejection: price moved above the level intrabar but failed to close above it and reversed with a large wick.
• Tesla (TSLA): Used on a daily chart to demonstrate automatic candlestick-pattern identification.
• The course also uses hypothetical volume bars of 100,000 versus 100 to explain stronger versus weaker participation. These are examples, not reported market readings.

Cautions and disclosures

• Patterns and breakouts can fail, and not every breakout will show all favorable signs.
• Candlestick patterns are presented as more meaningful when supported by levels, structure, volume, or follow-through.
• No explicit “not financial advice” disclaimer is stated in the subtitles. The material is presented as trading education and does not provide quantified strategy performance or risk-adjusted results.

Assets, instruments, and sources

• Stocks/equities: Tesla (TSLA)
• Cryptocurrency: Bitcoin (BTC); cryptocurrencies generally
• Commodities: Gold
• Markets and instruments generally: Stocks, cryptocurrency, and forex/currency pairs
• Technical-analysis tools: Volume, SMA 50, SMA 200, support and resistance, trading ranges, channels, and chart and candlestick patterns

Presenter and sources: The video is from Mind Math Money; the presenter is not named in the subtitles. Indicator sources named are Chart Prime, Lux Algo, and TradingView.