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AdvancedH1 - Daily

Price Action Trading

Trade based on candlestick patterns and raw price movement without indicators

Expected Win Rate:55-65%

Price action trading focuses on analyzing raw price movements without relying on indicators. Traders read candlestick patterns, chart structures, and market context to make trading decisions.

The Price Action Philosophy

Price action traders believe that price itself contains all the information needed. Indicators are just derivatives of price and can lag.

  • Focus on candlestick patterns
  • Read market structure and context
  • Identify key support and resistance
  • Understand supply and demand zones

Key Candlestick Patterns

Master these essential reversal and continuation patterns:

  • Pin bars (rejection candles)
  • Engulfing patterns
  • Inside bars
  • Fakey (false breakout) patterns

Reading Market Structure

Understanding the bigger picture:

  • Higher highs/higher lows = uptrend
  • Lower highs/lower lows = downtrend
  • Equal highs/lows = ranging market
  • Look for break of structure for reversals

Trading with Confluence

The best setups have multiple factors aligning:

  • Pattern forms at key S/R level
  • Pattern aligns with overall trend
  • Multiple timeframe confirmation
  • Clean, obvious patterns work best

Advantages

  • +Clean charts without indicator clutter
  • +Universal across all markets
  • +Develops deep market understanding
  • +No lag like with indicators

Disadvantages

  • -Steep learning curve
  • -More subjective than indicator systems
  • -Requires significant screen time to master
  • -Easy to see patterns that are not there

Best Suited For

  • Experienced traders seeking deeper understanding
  • Those frustrated with lagging indicators
  • Traders who enjoy chart analysis
Previous Strategy
Swing Trading

Practice This Strategy

Test the Price Action Trading strategy risk-free on a demo account

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