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.