aeore pine coadthemarkat comida to-roure te Fail toRown-FTR FTIR 4. introduction Botore sohing the puzzle of price action and before being able to rad it successfully, one must discover and understand the inciual pieces the puzzle is made of. Aer al, every eye-catching bulsing ie made of incvdual Bricks and stones. For most of us at RTM, the beauty of price action i just as stunning a structure as the cathedral of Chaves or Sagrada Famia in Barcelona. “The only ference is that bricks and stones of real buildings are represented by price caps, FTRS, engulfs, fakeouts, quasimedos, dlaonds ete. Of the bulling blocks ofthe price structure nothing ls more important than engulfs and FTRs! Im my artiete am going to explain one ofthe two most important places of price action ~ FTR. Together we wil explore what is looks tk, where it can be found and what i it role in the structure of pice action, FIR must be leased propery belore one can advance futher. Please take your time, dont rush; leaming price ation isan amazing joumey, 80 enoy it 2. What is TR? So, what actually is FTR? FTR moans. why on earth do thay fai? ure to Retum’, But walt... Who wants to retum? Where do they want to retum’? Ang “These thes important questions must be answered, so let's do les a wellknown fact that price, once it reaches a certain baer, either bounces of itor breaks it, Once it breaks I, two possible scenarios occur it either retums back belowabove the barer and goes on in the direction against the break or fils to return and keeps going in the draction ofthe break. Inthe later scenario, a FTR is made, ALWAYS! Ane itis of ial importance tobe able to identity it ‘Why? Well, there is such 2 strong buying or seling pressure aka supply / demand atthe FTR thatthe price just cannot return, ‘must go on inthe direction af the broak Hint the selling / buying pressure alvays remains at FTR afer pice has lef. Can you see the implication? J Now lot's take a look atthe anatomy of FIR. 1aeore rips reathemarin comreexohatalto-roture te Fail toRown-FTR Inthe fllowing piture you can see a iagram showing some basic variations of FTRS. Look at ther carefully, you wil see that they may look a bit ferent but remember: they are absolutely the same in tems ofthe structure. “The redline (a) represents a bare. Ktcan be a SUPPORT RESISTANCE, a FTR in opposite direction (wil be explained late) or limit ofa PAZ (Price Action Zone). Price action breaks the baer (1) and retraces (2). It's Ireloant whether price action crosses the barrier again o nt (as in ‘examples (i and iv above). At the extreme of the retrace a base Is very often made (). Then, price action continues in the direction ofthe break (3. FTR is contrmed ar price action breaks the high / low (c) which foemed ater the break ofthe barre. Only afer the break of c) we can say that price action indeed fled to retum, Now, whon the FTAs confirmed, we draw a rectangle at the base (2) and protract ito the right 28aeore pine coadthemarkat comida to-roure te Fail toRown-FTR Hint 2: or intrmation how to draw the blue rectangles see the article Caps on Price at RTM Marketp Now that we have studied the diagrams abow, we can look at rea life examples of FTR. 0 rf" Cc) 1 readthemarket com Lo Ba 182 peak ie rncronert. con, A i) at 5 ae ellis: a 3. FTR after the break of SUPPORT / RESISTANCE FIRS afer the break of suppor resistance are very common. They are simply everywhere in the chart and you wil eam to spot them, ‘You certainly know that there are major support resistance lines as well as minor ones... the more important the SIR line is, the ‘more signifcance we must assign tothe FTR that follows. Major SiR ti x, let's start withthe major ones. | assume that you already know how to cstingush a major SR from minor SR 38aeore hnipshwwe ceathomarket comnexphatal-o-return te Fall to Retrn-FTR, In the fllowing chart you can see the brown RESISTANCE line. The RESISTANCE is a major one, It has been respected many times in the past (not just those two touches seen inthe picture). Suddenly, the Rline is broken. Is it usta fakeout or genuine break? How will we know i? Yes, right! We will wait fora FTR tobe formed. ‘And vila, a spectacular FTR is mad The price then shes away ffom the R tine. Now i's gong to be intresting! Such FTR Is ‘an amazing place to trade onthe frst visit. Te fst visit occured in approximately one week. Ard look atthe reaction! Th frst ‘sit to an FTR is called FTB (First Time Back) pol A Sw . Nod een : y Hint 3: Upon rtum to the FTR the price is fling ina fee ‘all, everyone is happily jumping into trend because “i's going to goon ‘ard on." but beware, predators are patiently wating in FTR level, and so should you... For your convenience, there ae two more examples 49aeore Fall to Retrn-FTR, ye "Now open your trading platforn or Forex Tester and see for yourself how often this works! Minor SiR tine I's important to know thatthe FTRS in the above toe charts are actualy not the only FTRS that can be spotted. Far fom it Everytime price breaks a minor supporttesistanc, falls to rtum and goes on, a now FTR is mado! hnipshwwe ceathomarket comnexphatal-o-return teaeore Fall to Retrn-FTR, 1 price engulfs blue resistance and makes FIR 2- price engulfs green resistance and makes FIR '3- price engulfs red resistance and makes FIR 4- price engulfs purple resistance and makes FIR In roa le, however, the chat seldom looks 89 neat and clean asin the above dlagram. Inthe flowing chat you ean goe the above principle ina oat chart in a down tend). SEES i om Please take your time and study the above chart, you may notice that | havent marked absolutely ALL FTRs becau would bo wry messy. the chart hnipshwwe ceathomarket comnexphatal-o-return teaeore Fail toRown-FTR (Open a char in your platform and mark all FTRS. Practise! Mark a swing highlow, find whore It was engulfed, then find the FTR Repeat with next hightow. Remember, the purpose ofthe article's not to tell you that each and every FTR i tradable bt to teach you haw to spet FTRS and how to mark them. Let me repeat: itis of paramount importance! ALFTRattor the reak of a FTRin opposite direction FTRs are formed after enguling ofa barr. We already know this. One of such bates is an FTR in opposite direction. Leak at the diagram below, |thin tie sel-explanatory FIR is engutfed and FTR 1 is made, and so on rips reathemarin comreexohatalto-roture te 78aeore hnipshwwe ceathomarket comnexphatal-o-return te Fall to Retrn-FTR, di Hint 4: FTR + isa great confirmation ofa reversal. For more information on this sae my journal starting with past 204 on page 12 (swoot FT) 5, FTR after the break of a PAZ limit ‘he mit of a PAZis another barr, the break of which results in extremely important FTRS! This i, howowr, rather advanced and it goes beyond the scope ofthis aticle on the FTR basics. aoaeore More Information + About + Registration + Contact us + Terms of Use + Risk Warning + Privacy Policy + About Cookies hnipshwwe ceathomarket comnexphatal-o-return te Fall to Retrn-FTR, 6 Conclusion In my article | Wied to introduce a wry important building block of price structure FTR, We have leamed that FTRS are formed ater the break ofa price barter. tis important to realise that FTR ae places where institutional traders open lose thelr postions. This makes them Ideal places for looking for trade setups or targets. Howowr, ‘engulfing being the most important one. ‘must be stressed that FTRS on ther own are not enough for tracing, one must master other important building blocks, Les_Paut YOUR PRIVACY: This web ste uses cookies to store @ small amount of infarmation on your computer, as pat ofthe functioning of the sia, Cookies used forthe operation ofthe site have already been sel. 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