All language subtitles for 3. BASICS OF PRICE ACTION TRADING

Hello, traders, welcome to the first lecture of prosection lecture series, and this session will

be discussing about the basics of prosection trading.

First, let's see the definition of price action trading.

Price action trading is a trading technique which helps us to analyze the swings or the momentum in

the stock market without the help of any indicators.

This is a chart with indicators and this is the same chart without any indicators.

Can you see the different?

Can you see how clean this chart does, this simple chart has all the necessary information that is

required for us to find trading opportunities by the end of this course will be showing you how to read

charts without any indicators and find trading opportunities in the stock market.

The stock always moves and swings.

For example, let us say that as a stock named ABC Private Ltd and the opening price of the stock is

one hundred dollars and the closing price of the stock is one fifty dollars.

Most of the time, the price of the stock does not reach its target directly like this.

The stock moves in zigzag or it always makes something like this before it reaches its target.

Traders, these are the swings I'm talking about, can you see the stock making a swing like this?

Another swing like this.

And another thing like this, there were a lot of buying and selling opportunities here, once you learn

price action, reading and analyzing these rings will be very easy.

You can easily find buying and selling opportunities with the strategies which will teach you.

Before we discuss about the strategies of price action, we need to discuss about the rules.

I call them the golden rules of price action trading.

Do not worry, these rules are very simple and easy to understand.

At the same time, they are very effective.

These are the three golden rules of price action trading.

First rule, Hielo, plus higher high is equal to about.

Rule number two, Louhi plus Lobolo is equal to Dungen, rule number three, reste everything is sideways

or consolidation.

Let us understand these rules one by one with an example so that it's easy for you to understand.

OK, let's start off with rule number one.

Hailo plus high is equal to option.

Let us see the market open today at ten dollars, we will call this low.

Now, let's say the stock reached thirty five dollars.

We will call it height.

The stock again went down to twenty dollars, let us call it Hielo.

And finally, the market went up and closed at fifty dollars.

We will call this higher, higher.

Now, we call this Hielo, because this law is higher than this law and we call this area high because

this high is higher than the previous high.

That is an important not for corruption.

We need to start from law.

When this is visible in the chat, we call it as uptrend.

It is important that Halo and III has to be formed for us to consider that as an option.

If Halo and High is not fun, then we cannot consider this as an option as the rule is not complete.

As soon as you see the stock is making higher and higher, it is a confirmation that the stock is making

an uptrend and we need to look for buying opportunities.

Now, let us discuss about rule number two.

Rule number two is Louhi.

Plus, Lobello is equal to Dungen.

Now, let's see how to use this rule to identify downtrend.

In this example, the current price of a particular stock is fifty dollars at the fifty dollars we will

Marki.

Now, let's say the price of the stock decreased and went down to thirty five dollars.

We will market as low.

And slowly, the price of the stock went up and reached forty dollars.

We will market us, Louhi.

And finally, the stock price became twenty dollars, we call this as low value.

Now, we call this low because this low is lower than the previous low and we call this low high because

this high is lower than the previous high.

As soon as you see the stock is making low, high and low value, it is a confirmation that the stock

is making a downtrend.

And we need to look for shorting opportunities, traders, trust me, once you start using these rules

and identify uptrend and downtrend, you will find so many opportunities to enter a trade trend.

Identification is the most important part of technical analysis.

Consider that you have won 50 percent of the battle.

If you identify the trend properly, these rules can be applied when you're trading with stocks, commodity,

future currency, ETF and cryptocurrency.

Also, these rules can be used in all time frame.

That means these rules can be used when you're trading in intraday and swing trading traders.

I hope you understood the concept of uptrend and downtrend.

Now, before we discuss about the third rule, we need to understand that we are price action traders.

We make use of the swings that happen in the market to identify trading opportunities.

What do I mean by this?

Let us see that now in the labor market, the stock can make only three types of movement.

The stock can go up like this, the stock can go down like this.

All this talk and moving sideways like this, you can pick any chances and see you will notice that

the stock is making any one of these three moves.

If the stock is going up, we will say that the stock is an uptrend.

If the stock is going down, then we call it as downtrend.

If the stock is moving sideways, then we call it sideways or consolidation as prosection traders,

we will trade only when the stock is an uptrend or downtrend during uptrend.

We will look for a buying opportunity during downtrend.

We will look for shorting opportunity.

But if the market is in consolidation, we should not enter the trade.

Now let us understand why we should not trade during consolidation.

If the stock is in consolidation, it means that the stock is moving within the range.

And it is unable to break the support level or the resistance level if the buyers, when the stock will

break the resistance level and go up during this time, we can look for a buying opportunity.

If the sellers when the stock will break the support level and go down during this time, we can look

for shorting opportunities.

If the stock is within the range, then we should not enter the trade.

If they enter a trade during consolidation that are high chances for the market to go against you and

also the duration they can to achieve a target during consolidation is very high.

So this is the third rule, we should not enter the market when it is sideways or consolidation, until

now we have discussed all the rules with drawings so that you can understand this in a simple manner.

But in the labor market, everything happens in charts, in the next lecture will be showing how to

find trends in the labor market, how to find trading opportunity in the labor market.

And also we'll be discussing the price action strategies traders.

That's all for this lecture.

I'll see you in the next one.