Introduction to price action setups

Price action setups have to be considered more like the triggers to get us into a trade. The levels at which the price action setups form is the most important aspect for us to focus on.

We do need to take our time to really get to grips with each of these price action setups and become comfortable trading each one. Setting up specific criteria to use, to help us validate each one is very important.

We have to remember that the levels we trade price action setups from is paramount. Always looking to trade away from the key levels and not straight into them.

I prefer to use price action setups as REVERSALS from swing points rather than continuation signals and the 4 main price action setups I focus on are:

1. The pin bar(PB).

2. The engulfing bar(EB).

3. The inside bar(IB).

4. The sandwich combo setup(SCS).

The main thing to point out is that all of these setups will be taken from key levels and each will need to be large in size, apart from the inside bar of course.

Take a look at this video which explains why the size of a price action setup is so important.



Module 1: The Basics

Module 2: Market Analysis

Module 3: Price Action Setups

Module 4: Chart Setup

Module 5: Trade Management

Module 6:  Trade Psychology

Module 7: Continue your learning