3 Step Process to Identifying High Probability Trades - Price Action Made Simple
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- เผยแพร่เมื่อ 11 ต.ค. 2024
- This video highlights one of the best scalping strategies that can be used in day trading. Whether you are trading forex, crypto or indices, this Scalping strategy will work incredibly well. This Scalping Strategy also works on any time frame and can turn into long term position holding.
Price action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.
The only people who know where the market is heading are institutions. They are the ones who make the market move and our job as a retail traders is to follow their footsteps and get the piece of their movement. As a price action trader you need to find the most profitable ways to enter trades. The highest probability setups are 2nd entries at the key entry points.
Date February 17 2023
2000 tick chart
S&P 500 ES Futures
21 bar EMA
If you want more advanced Trading tips, strategies and trading community.
wadetradingaca...
Thank you for this recap Thomas! Love to see how you handle the pressure & your trades play out. Knowing you are doing it daily gives me the confidence that I can do it as well if i stay patient and focused.
Thank you Thomas. Have a great weekend.
I just subscribed.
If I ever joined a trading firm, I'd want a senior trader to coach me exactly the way you are doing in this video. Thanks a lot man, I hope you never stop filming. I'll come back to your videos MULTIPLES of time. Many many thanks to you for teaching me how to fish, showing me where to fish and how to cook the fish!
🔥
I was thinking exactly this just yesterday. If possible someday, is live to meet Thomas to thank him in person for giving me the knowledge and confidence to change my life.
So satisfying to watched trades play out. Nice trade and reads Mr Wade. Have a great weekend
Thanks Professor!
So much info, thanks!
My first investment with Expert Jones trading services gave me a profit of over $4,500 and since then he has never failed to deliver and I can say that he is the most honest broker I have ever met.
Price action is beautiful
good vido
Thanks TW. Have a good long weekend!
🙏
Nice trading Thomas! I learn so much from you! Thank you and God bless! 🙏
anything we make right now is just a bonus is the high probability prhase
thanks sir!i am learning from your price action series for beginners. i have been studying for around a week and today itself made good profit in banknifty option trading. earlier i was failing bcoz most of the times i used to take trade at first entry. now i am following 2ES and 2El and succeed in both trades. plz make a detail video on Entries terms and condtions.
Thank you so much for this great video. I always look forward to the videos. Last part of the video has another short video accidentally got recorded I think. Have a wonderful weekend
Do you mean last part of the video where I say: "I am going to talk to you next time...?"
Hey Thomas, thanks for your great videos! I discovered you after I read Al Brook's books - I wish they were written in that clear and structured way you explain price action!
Some small questions:
- Failed 2nd entries: What is your definition of "failed"? When one of the next candles breaks the extreme of the signal bar? Or the entry bar? Is it also considered to be failed when a scalper's profit was reached? The bar that invalidates the entry is then the signal bar for the failed entry, so I must wait for it to close and be triggered, correct?
- Lower high/lower low confirmation setups: Isn't that technically just a 1st entry with the additional requirement that it is also a local extreme and that it confirms some previous setup? Example: We are in a downtrend, we have a new low, we start counting for short entries. We find a 1st entry (a bar that triggers below the previous one) that at the same time is the highest bar since we started counting, so that is our lower high, right? Do you require the LH/HL confirmation setups to be at a key entry point as well or is it enough that the setup that it confirms was?
- Traps: How do you handle them? Example: You have a tier 1 short signal bar and if it is triggered under the low it would be your 2ES at the key entry point. However it is first triggered above the high to trap longs and then comes back to trigger under the low to become an outside bar. How would you place your stop loss then? Above the entry bar instead of the signal bar makes more sense here, right?
- Trading ranges: In your videos I often see that you take LH/HL confirmation setups to fade failed breakouts. Are there situations when you directly jump in? Like a tier 1 signal bar testing the support/resistance line to the tick? Or a (failed) 2nd entry at the line?
Thanks and keep up the great work!
PS: If you need a developer / computer scientist to help you with automating (parts of) your trading, give me a shout 💜
Failed second entry - We look for failed second entry when the context is good. Meaning context is against the second entry.
We consider it failed second entry when the first bar in the opposite direction appears. You got 2ES and first bull bar(can even be bear bar) after 2ES that has a break above its high is considered failure. It doesn't have to go and stop the second entry. You prefer not to reach a scalp but if it is still at key entry point, even after scalp can be considered failure. Hope these videos will help
th-cam.com/video/gXRXmxEcRx4/w-d-xo.html&ab_channel=ThomasWade
th-cam.com/video/s2ivxFOJl0U/w-d-xo.html&ab_channel=ThomasWade
Higher lows and lower highs are confirmation setups. Meaning they have to confirm something.
1) Second entry
2) Failed breakout
3) Failed second entry
4) Support and resistance bounce
HL and LH are additional confirmations. Sometimes when we are not sure about the second entry or failed breakout we can wait for the market to confirm the momentum and enter after confirmation.
HL and LH should form close to EMA preferably, once they move too far we generally tend to wait unless the trend is healthy and strong. Signal bars should be good.
I would say that we don't look for HL LH at first, only when second entry for example is not forming so great and it looks sketchy, we can wait and see if HL LH will confirm it and give better entry.
Hope it helps
Other questions to be answered are too complex to just answer via comments.
Thanks man , for explaining such a chaotic market in such a simple manner, watching your videos it seems, trading is easy, you just have to wait for your set up to form. Amazing videos man, keep educating us, love from India 🇮🇳. Thanks again man
It takes time to learn to read price action. It is not that hard, what is harder is to follow the mental aspect, you cannot make mental errors.
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Thank you for these recaps, Thomas. This was my first day trading live after lurking for a long time and studying charts, I got 2 winning trades following your setup rules.
From your accent as well as the date on the chart saying 17.úno, it is a high probability for you to have come from Czech Republic, am I right?
Good job on your trades. That is correct, I am from Czech Republic.
Thomas can u add and explain any one Indian stock chart in ur videos? Most of them moves in tight range. Can't get second entries. 🙏
What about nifty 50? Btw you can trade other instruments in India?
Hi Thomas, it is very hard to find 2 legged pullback in india nifty, please put a video on nifty fifty once. thank you
im hearing impaired and watch this with captioning and its nice to know you use the 2000 dick chart lol, had me rolling
haha
today was a patience training day
Great content! Thank you. I noticed you took 10tick target for your scalp, was it just momentum for the day or you increased your scalp target?
I do 8-10 depending on the volatility. I did it this time because my risk was quite big because I didn't catch thy scalp right away.
Thomas. Love your content. If I could ask, why not take some of these solid second entry trades? Do you find that you are more conservative by waiting for 2 or 3 other conditional/context rules to line up vs. taking the quick scalps?
There are lot of factors that influence me when I record my session. Trading while recording is much harder so I am more careful during my recorded sessions. I passed some good setups but overall I like to take those clean and easy ones.
thanks Thomas. always great content. Just a clarification. The bars you are using are formed with 21 ticks right ? cause 2000 ticks bar are so slow. could you confirm that ?
I use 2000 tick chart and 21 bar EMA.
hi trader thomas, i wanted to ask you what is really the mathematical expectation of winning with the pats strategy, since its discretionary part with the FES AND FSEL would generate many biases in the reality of the mathematical expectation? which is vital in a system to have confidence to win.
Your win rate will depend on your ability to read the price action and more importantly to execute without mental errors. Some traders even have around 90% win rate but that doesn't mean everyone can achieve it. I would say 70% at least is very doable because you can learn to read price action fairly quickly. The mental part is the hardest part you need to master.
Thanks for the video! Just wanted to ask though, how did you determine that this was a trading range instead of larger uptrend as you mentioned at 3:38 of the video? thanks again
Because you traded down and channel at the very left needed new low. Also the uptrend would be too wide and overall structure resembled trading range more. When channel covers the entire trading range it shows you it is most likely invalid and structure is range instead.
@@ThomasWade Many thanks for your explanation!
Hi. What's your timezone? I'm trying to see what you are doing on my chart, but I cannot figure out when you are executing...
Time of the chart is USA CST timezone.
Is there any book on second entry trading..?
2000 ticks is equivalent to which period timeframe? 5m?
1 minute more these days
How do I join the trade room?
Can somebofy help me with how to backtest in Ninja Trader. I downloaded the market replay data but it doest work , i only see the historical data is playing. What should i do ?
Also for the chart setup i cannot squeeze the price to get an overview .
Thank you for helping !!!
I would recommend browsing the NT forum or just asking there. They reply fairly quickly. They will help you out if you have issues with the platform. If you want to squeeze the chart, just drag the price axis on the right side of the chart. Same for the time axis.
What broker/platform do you use?
Ninjatrader, AMP Futures.
Make a learning Video about , EMA Cross indicator and 200 Sma . 🙏
He doesn't trade using indicators other than a supportive 21EMA I would watch more of his videos if I were you.
I only use 21 bar EMA and there is a video about it in beginner playlist.
@@ThomasWade , Thank You again 🙏
Which Time frame this one.... 1-3-5 min
2000 tick chart, similar to one minut chart.