Exploit same price movements

Exploit same price movements

Exploit same price movements 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Being able to read price movements correctly, is one big step for consistent profits.

Luckily, there are trading indicators that read the price action for you and give simple trading signals.

In today’s trade, you will learn how to combine the Bottoms Tops Signal, the RSI Exhaustion, and the Levels and Zones in order to read the price action correctly.

Most traders believe that it’s a “price action vs indicators” alternative, where you need to choose either a naked chart or plenty of indicators.

As we discussed in this article, the best solution is to always use a few quality indicators, like we do here.

In fact, thanks to them we are able to understand that the price will very likely make a second movement identical to the previous one.

This chart pattern is better known as the ABCD pattern where the AB price movement is about the same length of the expected CD movement.

Trade setup – 5 Mar 2018

Exploit same price movements Setup 1

All the key conditions are met on the TradingView chart. In particular:

    1. We have a bottom which is higher than the previous one
    2. The RSI Exhaustion has made a higher low as well (follows the same price movement)
    3. The RSI Exhaustion is bearish exhausted

If that’s not enough, the current retracement will find a hard time moving even lower because we have a major support, displayed by the Levels and Zones, just below.

When we combine all these factors, we can definitely expect an upward movement, at least about the same size as the previous one.

Trade update – 5 Mar 2018

Exploit same price movements Setup 2

The price is moving pretty much sideways but the RSI Exhaustion is moving higher, which indicates that the price should move higher, just like we expect.

Trade update – 6 Mar 2018

Exploit same price movements Setup 3

The RSI Exhaustion is now even higher while the price is just slightly higher.

It’s hard to predict how the price will move but considering all the upward pressure from the RSI Exhaustion, we might get a very quick movement, at least this is a typical signal of such movements.

Trade closed – 6 Mar 2018

Exploit same price movements Setup 4

Within two candles the price accelerated to the upside and reached the target.

Eventually, the price made a very similar movement to the first one forming the ABCD pattern that we were expecting.

So our price action analysis and fx strategy turned out to be once again profitable.

Now we’d like to hear from you.

These ABCD patterns are usually pretty predictable. Do you like them or do you prefer trading trend reversals?

Let us know by leaving a comment on the YouTube video above.