Dynamic Trading Guide Re Edited

DYNAMIC
TRADING
GUIDE
A SMALL BOOK ABOUT SUCCESSFULLY
TRADING THE MARKETS BASED ON
PRICE ACTION AND MARKET BEHAVIOR
www.tradingcoach.co.in
DYNAMIC
TRADING
GUIDE
No part of this book should be reproduced, photocopied, rewritten,
or used in any manner without the expressed written permission of
the Author. For specific permission requests please contact
info@tradingcoach.co.in
All Rights Reserved.

| Copyright @Tradingcoach.co.in |
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Disclaimer
Trading is subjected to market risks. Consider your risk profile carefully. While the author have used
best efforts in preparing this book, they make no representations or warranties with respect to the
accuracy or completeness of the contents of this book and specifically disclaim any implied
warranties of merchantability or fitness for a particular purpose. The author shall not be liable for any
loss of profit or any other commercial damages that arise from acting based on the contents of this
book. The advice and strategies contained herein may not be suitable for your situation. You should
consult with a professional where appropriate.
CONTENTS
1. KINDLY START FROM HERE........................................................01

Why sharing this book?
What’s in this book?
What’s not in this book?
The book is worth your time and effort
A LITTLE BIT ABOUT MYSELF………………………………………………….04
2. A NEW PERSPECTIVE ON TRADING THE MARKETS………….06

Why Small traders fail often?
Markets are driven by Crowd psychology and Orderflow
Crowd psychology creates the Orderflow
Taking advantage of the Market crowd
3. MARKET DYANMICS AND PRICE ACTION………………………….09

What is Price action trading?
Why Price action is a better approach?
4. FALSE BREAKOUTS……………………………………………………………….13
Price action of False breakouts
Dynamics and logic behind False breakouts
Trading False breakouts
Step by step process to trade False breakouts
Key points
5. CLIMAX PATTERNS……………………………………………………………….18
Price action of Climax patterns
Dynamics and logic behind Climax patterns
Trading Climax patterns
Step by step process to trade Climax patterns
Key points
6. PULLBACK FAILURES……………………………………………………………23
Price action of Pullback failures
Dynamics and logic behind Pullback failures
Trading Pullback failures
Step by step process to trade Pullback failures
Key points
©All Rights Reserved. Copyright @ http://www.tradingcoach.co.in

7. TIMEFRAME AND TRADING STYLE…………………………………….28
Selecting Timeframes based on your trading style
Using Multi timeframe analysis
Multi timeframe combination
8. WISDOM OF CONTRARIAN TRADING……………………………….32

What is Contrarian trading?
Examples of Contrarian trading with Market dynamics
Advantages of a Contrarian Mindset
9. PRINCIPLES OF RISK MANAGEMENT…………………………………35

Focus on simple Risk management techniques
Trader’s job is Risk management
10. TRADING PSYCHOLOGY…………………………………………………….39

Have a proper trading routine to avoid Emotional mistakes
An outlined example of my simple trading routine
Create a good trading routine for yourself
11. SOME IMPORTANT PARTING THOUGHTS………………………43

Importance of Patience
It’s necessary to Practice
Implementation is the key
Benefits of a good Mentorship
A NOTE OF THANKS…………………………………………………………………47

Market Dynamics
Risk Management
Price Action
3 PILLARS OF TRADING SUCCESS

My Trading Philosophy
1. KINDLY START FROM HERE
“Even a thousand miles journey begins with the first step”
Thousands of books are written about trading in the markets, every minute
a new book is published. Most of the books are pointless. It’s a bold
statement to make, but that’s what my experience is. I bought so many
trading and investing related books in my earlier days, most of them are
total disappointments.
It doesn’t mean all books are useless, there are few exceptional ones that
changes the way we trade. Some outstanding books written by brilliant
traders have completely redefined my trading approach.
Trading in the zone, Education of a speculator, Studies in tape reading, and

Alchemy of finance – books like these always stand the test of time. Traders
like Richard Wyckoff, Jesse Livermore, Ray dalio and George Soros can’t be
forgotten. Even though I can’t write an epic book like these great minds, I
have tried my best to write a small book that could help the trading
community.
Most of the small scale traders are struggling because they are not getting a
proper direction on how to proceed. I feel a few of them will at least
recognize an edge and design a proper trading approach after reading this
book.
Why sharing this book?

In the initial stages I didn’t understood why some excellent traders write
books and publish it with the trading community. I often asked myself - why
would they spend their precious time and put so much effort to help others?
I couldn’t understand the reason until I was experienced enough.
It's because, there’re 3 major benefits involved in writing and sharing the
book:
1. First of all, sharing methods and trading strategies publicly will have good
benefits. Creative and passionate traders trying the given method might
come up with their own improvements over the existing strategy. These
improvements could increase the probability of the method even further.
01
2. Apart from that, traders using the techniques will give feedback. Such
collective feedbacks will help to gain better insights, improve the
advantages and reduce the drawbacks in the trading approach.
3. Last but not least, by sharing some of the ideas and methods, we could
get in touch with other traders from diverse background. Collaborating with
them can open up new possibilities in our own trading journey.
These are the same reasons why I offer mentorship training for aspiring
traders. It not only helps the participant to succeed as a professional trader
but indirectly improves my own trading process. It’s like a win – win
situation for both. As one of the great thinkers said, “There’s always a value
in sharing the knowledge for both, who knows and who wants to know”
This book is another extension of that.
What’s in this book?

“The Greatest enemy of knowledge is not Ignorance; it’s the illusion of
knowledge.” This book’s objective is to shed some light over those illusions
of knowledge related to trading the markets. Another important objective is
to make the reader think and trade like a professional trader. It shares some
insights and practical ideas that can help aspiring traders to see the right
track.
The book begins by taking a realistic approach on how the markets work,
then covers some important insights and trading strategies based on the
principles of Crowd psychology and finally ends up with giving some practical
guidelines on Risk management and Trading routine.
It shows how to logically understand the market behavior and trade by

recognizing the Price action on charts. A careful understanding of this book
will open your eyes about the “inner workings of market”.
After reading this book I can guarantee one thing, it’ll change the way you
think about the markets and how you trade them.
02
What’s not in this book?
Many books written on trading mostly discusses about candlesticks,
indicators, screeners etc. You won’t find any of these things in this book.
This is not a trading text book and techniques covered in this book are
completely different from traditional technical analysis.
Even though a complete novice trader can make sense of the topics
covered, minimum level of market knowledge is required to understand the
contents in depth.
There are few chart examples and diagrams to illustrate a point. You may
need to understand the core ideas and work on them. I have not touched
many important topics such as money management and skill development,
as these topics are beyond the scope of this small book.
Kindly read the book, it’s worth your time

One thing for sure - The time you’ll spend on this book will be worth it.
Information given in this book will make you re-think about the markets.
You might find it a bit overwhelming to grasp the ideas at first glance. If
that’s the case, kindly re–read it again and understand the core ideas first.
Later you can test and practice what you’ve learned through some demo
trades.
Just like in any business, Experience is more important in trading. So I

recommend applying the techniques and do some paper trading for a while.
Once you find some consistency then you can apply these strategies in live
market with some small capital.
But as I mentioned before, this book is not about a set of strategies. The
main objective of the book is to make you see the markets like a
professional trader. So as a humble advice, please don’t just download this
book and keep it in your computer, kindly read and practice what’s given in
this! I sincerely believe it’s worth your time and effort.
If you find something useful in this book you can always do me a favor –
“Please forward this to your friends and relatives” After all the success of a
book depends on its readers.
03
A LITTLE BIT ABOUT MYSELF
I am Balaji, a full time trader and Investor with decades of experience in the
markets. I usually trade in stocks, commodities, futures and options. Being a
technical trader, my premise is that “Price discounts everything”. I follow a
discretionary trading approach.
My bread and butter trading strategies are based on price action and the
principles of “Market dynamics”. If the terminology doesn’t make sense,
don’t worry, you’ll get an idea once you go through the book.
Trading strategies and insights covered in this book are based on my own
trading experience. I believe that my experience would provide some value
on your path to become a successful trader. Throughout my life I have
learned many good lessons.
One of that important lesson is sharing the Knowledge - That’s what I am

trying to do by sharing this book. My trading analysis and ideas are regularly
updated through blog posts and articles in my site www.tradingcoach.co.in.
Apart from trading, Investing and blogging I also provide mentorship

training for aspiring traders and Investors. I trade from the comfort of my
small office in Bangalore. In case of any queries or feedbacks, you can reach
me through info@tradingcoach.co.in.
04
Combining Experience of
Discretionary
Systematic
Strategies Just 12 Years
TRADING, INVESTING, BLOGGING

I trade from the comfort of my small setup
2. A NEW PERSPECTIVE ON TRADING THE MARKETS
“See distant things closely and view close things from distance”
Market in its true nature is like ocean. Proper navigation tools and right
knowledge is necessary to understand the markets. There are millions of
investors, traders and speculators bet in the markets. All have their own
style, approach and strategies ranging from simple technical systems to
complex mathematical models. To succeed in trading it's necessary to
understand the markets in depth.
Why Small traders fail very often?

Majority of the small traders fail, because they do not understand the reality
of the markets. Most of them are not even playing the right game. Materials
available over the net such as books and videos simply teach about technical
analysis and fundamental analysis. After going through these resources
many traders and investors come to an assumption that “it’s all they need to
succeed”. But soon they’ll realize it’s not the case.
Whenever you trade you’re indirectly competing with other well informed
market players such as financial Institutions, investment banks, prop
traders, algorithmic machines etc. Do you think you can pick the best stocks
ahead of large institutions by using fundamental analysis? Can you compete
with the speed of HFT’s and advanced algorithms by using a set of technical
indicators?
It’s a field that attracts some of the best and brightest minds in the world.
How can you become successful if you’re a small fish competing against
whales and sharks?
Don’t misunderstand - All these factors don’t mean small traders can’t make
money. Instead it emphasis on the fact they can’t succeed by using a set of
predefined tools and out dated techniques. Small traders should be
opportunistic in their own way. Rather than competing directly, play a
different game and take an alternate route. As Sun tzu wrote in Art of war,
“Avoid what is strong and strike at what is weak.”
To become truly successful, small traders should understand why the

markets move, how they work, and what mechanism drives them. Then take
advantage of those mechanisms.
06
MOST OF THE SMALL TRADERS FAIL | WHY ?
Knowledge Gaps Lack of Clarity Competition
Can you compete with HFT computers,

Advanced algorithms and large institutions ?
Markets are driven by Crowd psychology and Orderflow
Crowd psychology is a very old phenomena, it’s encoded in all creatures
especially in humans. We tend to feel comfortable when we do something
together. Everywhere you look you can see this in play; a flock of birds flying
together, a pack of wolves hunting together, a group of likeminded people
protesting for a cause etc.
2.1 Group of people acting like a single mind – Crowd psychology
The same process takes place in the markets as well. In fact market itself is
nothing but Crowd psychology. Whether you use Technical analysis or
Fundamental analysis, it’s necessary to understand the principles of crowd
psychology to succeed.
Crowd psychology creates the Orderflow

Market prices are driven by order flow. If the net order flow is on the buy
side, market will go up. If net order flow is on the sell side, market will go
down. But order flow itself is created by different groups of people (or their
algorithms) acting in the market by feeding their orders.
When majority of the market crowd buys an asset - order flow on the buy
side increases - prices will move up. When the same crowd sells an asset -
order flow on the sell side increases - prices will move down. It’s the action
of the crowd that creates the order flow which in turn drives the market
prices.
In conclusion, it’s the buying and selling activity of the Market crowd
determines the price.
07
Taking advantage of the Market crowd
When do you think large price movements take place in a particular stock?
It’s when the market crowd becomes emotional. So if large group of traders
become pessimistic and doubtful, prices will decline - If they become
optimistic and cheerful, prices will shoot up. So it all comes down to the
emotions of market crowd or simply refer it as Market dynamics.
Fear and greed are the most powerful emotions which drives the market
crowd. No matter how good a stock is, if market participants are fearful
they’re likely to sell it and prices will decline. Likewise no matter how bad a
stock is, if the market participants are greedy they’re likely to buy it and
prices will shoot up. If you find a way to recognize the emotions of the
crowd and take advantage of it, you’ll succeed as a trader.
It doesn’t matter what strategies or techniques you use, all you need to do is
find opportunities when large enough group of traders give into Fear and
Greed. Then acting with or before they act, allowing their order flow to take
our positions to profit.
Trading is nothing but understanding the Market crowd then taking

advantage of their emotions. There are many ways to do it, but in my
experience the most effective way is to look at Price action.
08
Pressure
(Institutional)
CPR
(Algorithm)
FBO
(Manipulation)
MARKET DYNAMICS
Using Price Action to find market manipulation,
insider trading and institutional trading behavior
3. MARKET DYNAMICS AND PRICE ACTION
“Strategy requires thought, Tactics require observation”
Most of the short term traders use indicators to make trading decisions.
Long term traders combine fundamental analysis with technical analysis to
spot potential opportunities. All these different kind of approaches may or
may not have advantage, depending on the person applying it. My edge
comes from trading the behavior of market crowd reflected in price action.
In my perspective, trading price action means trading the Market dynamics;

Prices are driven by the rational and irrational behavior of the crowd. These
behavioral ebbs and flows are visible on the chart as specific patterns,
formations and structures. Recognizing and trading these behavior patterns
can give a significant advantage for a trader.
What is Price action trading?

In order to understand what price action is, we need to clear some
misconception about price action trading. There are many traders who
believe that price action is something mysterious that cannot be
understood. Some traders think trading price action means trading
candlestick patterns and chart patterns without the addition of indicators.
None of these statements truly capture the essence of Price action trading.
3.1 Price action trading relies on both intuition and logic
To be clear, Price action studies the behavior of market participants as a

crowd, based on patterns and structures displayed on the price chart. When
we see the chart we don’t just see random price movements instead we
look at the activity of market crowd.
Price movements reflect buying and selling activity of the market crowd. By
understanding price movements we can find potential trading opportunities
and setups. It requires a trader to use both his logical and intuitive mind.
09
3.2 A Simple illustration of Price action analysis
Price action traders trade without the help of indicators or any other tools
because most of them are lagging and doesn’t give any edge for small
traders. Indicators themselves are derivative of price, they’re just effect.
Hence we use Price movement, volume, open interest and other important
data we get from the market which helps to understand the Market crowd
and spot behavior patterns.
Why Price action is a better approach?

Price chart is a representation of all market activities. Price action reveals all
types of activity and market behavior, ranging from minor fluctuations to
large scale trend reversals. Even subtle activities like market manipulation,
insider trading and institutional trading movements can be recognized by
skilled Price action traders.
10
PRICE ACTION
Its an Effective way to study Crowd Psychology
As a Trader, its important to understand the principles
of crowd psychology to succeed...
Price action is a practical trading approach. It's widely used by large-scale
prop traders and portfolio management firms. Every successful and
experienced retail traders will use price action to some extent.
Even floor traders and algorithmic traders use price action as a foundation
to build their automated trading model. Understanding price action can give
you a significant edge over other traders and makes you an “Informed
trader”. The trading decisions you take will be clear and logical.
Anyone can be a successful price action trader, given that they learn and
practice from right sources. Price action trading is a skill which can be
learned and mastered. It’s one of the paths you can choose to be a
successful trader.
11
BECOMING THE PROFESSIONAL TRADER
PRICE ACTION MASTERCLASS - EDITION 1
This book is a supplementary reading for
Price Action Masterclass
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4. FALSE BREAKOUTS
Breakout is a popular trading method most of the technical analysis books
recommend to novice traders. Often the reason for trading breakouts goes
like this “If you can get into a breakout that turns into a trend, you could
effectively profit by trading the entire trend” As soon as you start trading
the breakouts you’ll realize that most of the breakouts fail.
Even if the breakouts somehow become successful, it never turns into a new
trend as proclaimed! In my experience it’s far better to trade against the
breakouts.
4.1 Expectation & reality of breakouts - Breakouts often turn into false moves
A False breakout happens when price action temporarily breaks above or

below a key support or resistance zone from the range and later reverses
back to the range. This is a worst case scenario for a breakout trader who
enters a trade as soon as prices breakout from the range.
False breakouts occur all the time and most of the traders experience them,
but hardly give any thought on that. If you trade in lower time frame, there’s
a high possibility you might have experienced or even got trapped at least
once by false breakouts
13
Price Action of False Breakouts
4.2 Bearish False Breakout formation
4.3 Bullish False Breakout formation
14
Dynamics and logic behind False Breakouts
False breakouts are indication of institutional trading activity. Uninformed
traders often trade in the direction of the breakout which will be targeted
by institutional traders as they mostly trade against the breakouts to fill
their large orders at favourable price. The larger trading volumes of
institutional traders often require high liquidity in the market. To overcome
the liquidity issues they take counter positions against the Breakout.
So when uninformed traders trade the breakout they literally end up buying
or selling against the orders of these large players. False breakout patterns
frequently occur in range bound markets. It’s also called as “operator
breakouts”, back in the days when operators and market makers would
create false breakouts around strong support and resistance zones.
Trading False Breakouts

False breakouts occur in all market conditions, but it’s better to look for
them specifically in range bound or sideways market. You’re going to trade
false breakouts based on the assumption that “most of the breakouts will
fail” but this doesn’t mean breakouts will not succeed. In some
circumstances, prices breakout from the range and turns into a new trend. A
proper trading strategy should allow you to trade false breakouts without
getting wrong sided if price moves in the opposite direction.
4.4 Model of taking entries and exits in False Breakouts
15
Step by step process to trade False Breakouts
Step 1: Look for False breakouts in ranging or sideways market
The first step starts with observing and recognizing breakouts in the range
bound or sideways market. Once you identify the breakout pattern, you
need to closely observe the following price action. When price briefly breaks
above or below a key support or resistance zone and later quickly reverses
back to the range - it’s an indication of smart institutional players taking
counter positions against the breakout.
Step 2: Wait for the confirmation of False breakout
Breakouts will fail when there’s a strong order flow of institutional players in
the opposite direction. In such circumstances, uninformed traders will be
trapped and price action quickly reverses back to the range. If you notice a
sharp price movement in the opposite direction of the Breakout, you can
consider it as a confirmation of False Breakout.
Like given in the diagram 4.4, you can initiate positions once the breakout
fails and when price reverses back into the range.
Step 3: Determine entries, exits and trading plan
Trading false breakouts are relatively simple compared to other setups.

Once you spot a breakout failure in ranging market, enter when price
reverses back into the range just like mentioned in the diagram 4.4. Take an
entry only when price retraces back into the range.
Keeping stop losses are very straightforward in false breakout setup, just
place them around the reversal point (refer the diagram 4.4). Always leave
some space between the reversal point and the stop loss, don’t keep them
too tight.
Profit targets should be kept at previous support or resistance zone of the

range (see the diagram 4.4). It’s good to look for false breakout setups with
1: 3 R: R, but from a practical point of view, you can trade them even if you
get 1:2 R: R.
16
TRADING FALSE BREAKOUTS

Step 1: Look for False breakouts in sideways market
Step 2: Wait for the confirmation of False breakout
Operator Breakouts
Back in the days when operators and
market makers created false breakouts
to trap uninformed traders
Key Points
False breakout reflects institutional trading activity. They’re widely known as
“operator breakouts” back in the days when operators and market makers
created false breakouts to trap uninformed traders. Even though they occur
in all market conditions, you need to look for them specifically in ranging
markets.
Compared to other setups trading false breakouts are quite simple, you
need to identify the breakout failure in ranging markets and just initiate
positions when price retraces back into the range. It’s an excellent setup
which can be traded on all timeframes.
17
5. CLIMAX PATTERNS
Climax pattern is characterized by high trading activity and sharp price
movement at the end of a trend. If often indicates an end to the bull or bear
market cycle of an asset, hence many professional traders refer it by the
name Trend Reversal climaxes. In my trading experience it’s one of the high
probability patterns to recognize and trade trend reversals.
5.1 Climax patterns are sharp price swings in the direction of the trend
Climaxes are usually preceded by extreme sentiment readings such as

euphoria at market peaks and pessimism at market bottoms. Typically,
climax patterns are extremely strong price swings in the direction of the
trend without any counter price action moves such as corrections or
retracements. If you’re an experienced trader, you could’ve noticed or
perhaps got trapped by these type of wild price swings.
Climax formations are a result of supply and demand factors. They occur
due to aggressive investors and traders buying impulsively into rising prices
or selling impulsively into declining prices on the respective trend. In both
situations, formation of climax pattern usually indicate end of the trend.
Think of climax pattern as overbought or oversold conditions that are
reflected in price action. They are nothing more than emotional extremes.
18
Price Action of Climax patterns
5.2 Bearish Climax formation
5.3 Bullish Climax formation

19
Dynamics and logic behind Climax patterns
Climax patterns often trap uninformed traders due to immediate trend
reversal and unexpected change in market sentiment; hence by nature it’s a
contrarian trading setup. You can recognize the mania or panic of the crowd
as price moves in response to market sentiment during climax patterns. One
of my friend and mentor used to say “Not paying attention to Climax can
cause climax in trader’s account!”
Apart from extreme sentiment readings, volume and volatility will also be
higher in climax patterns. In his book studies in tape reading, Richard
Wyckoff has pointed out that major bull and bear market cycles often end
with climax formations.
Trading Climax patterns

To trade climax Patterns it’s necessary to spot them in the proper context.
Even though we can find sharp price swings at random locations on chart,
you need to specifically look for them in the trending markets. In the initial
stages, it’s better to observe few historical formations before trading them
in real time. Another important factor is they’re trend reversal patterns
hence volatility will be quite higher when trading climax patterns; you need
to consider it while placing the stop loss.
5.4 Model of taking entries and exits in Climax pattern

20
Step by step process to trade Climax patterns
Step 1: Recognize the context of the trend
Context means market conditions that preceding the pattern. You need to
look for climax patterns only in specific type of trends. The trend must be
clearly visible on the chart with noticeable highs and lows. Such type of clear
and matured trends gets lot of public attention and response, any sharp
movement in the direction of the trend will attract uninformed traders and
reverse within short time.
To keep it simple, if you spot a trend and if majority of the participants can
see the same trend, there’s a high possibility of trend reversal. Fade any
sharp moves in the direction of such trends.
Step 2: Look to trade against Climax formations
Sharp moves in the direction of matured trend indicate aggressive buying or

selling activity of uninformed traders. This aggressive activity is what we
consider as a climax formation or climax pattern. Such climax formations
will reverse within short period of time, so you can utilize the opportunity to
initiate trades against such movements at a favorable Risk to reward ratio.
Once you recognize the climax pattern, you can structure your entries and
exits as shown in the diagram 5.4. Generally you must wait for the price
action to reverse after climax formation and then look to enter within the
minor retracements.
You can place the stop loss slightly above or below the turning point just like
in the diagram 5.4, but make sure to consider market volatility. Higher
volatility means slightly larger space between stop loss and entry point, like
wise lower volatility means you can keep a tighter stop loss.
The target should be placed around previous support or resistance (Look at

the diagram 5.4). Since this is a trend reversal formation, better look for 1:2
or 1:3 risk – reward on the setup.
21
TRADING CLIMAX PATTERNS

Step 1: Recognize the context of the trend
Step 2: Look to trade against Climax formations
Trend Reversal Climax

Climaxes are usually caused by extreme
sentiment change, hence many professional
traders call it as Trend Reversal climaxes.
Key Points
Climax pattern is a counter trend setup. It’s based on the logic that sharp
price swings in the trend occur due to uninformed traders buying
impulsively into rising prices or selling impulsively into declining prices. Such
aggressive moves will reverse within short period of time and lead to trend
reversals. As a trader you need to recognize the climax pattern and look to
trade against the climax formation at a favorable risk – reward ratio.
22
6. PULLBACK FAILURES
A pullback is a short-term move in the opposite direction of the trend. It will
help you to trade the trend without chasing the price movement. In a simple
sense, pullback will help traders to buy low and sell high within the trend.
Most of the trend trading methods and principles are based on the concept
of pullbacks. The most commonly used indicators such as moving average,
super trend and Bollinger band are derived from pullback based strategies.
It’s a common trend trading pattern. But when a trend is matured or
extended most of the pullbacks fail.
6.1 Pullbacks are common trend trading pattern, but they fail in matured trend
Most of the trend trading methods doesn’t work in a matured trend and the
same could be said for pullbacks. When there are more than 2 - 3 successful
pullbacks in a trend then next pullback is likely to be a failure. Failed pullback
creates a strong movement in the opposite direction of the trend.
When price action fails after a pullback, reversal will be quite sharp and
uninformed traders get trapped by the sudden changes in market condition.
If you observe some major trends in higher time frame, most of them end
with pullback failures. Such type of Pullback failures can be an excellent
setup to trade against the trend.
23
Price Action of Pullback failures
6.2 Bearish Pullback failure formation
6.3 Bullish Pullback failure formation
24
Dynamics and logic behind Pullback failure
In Pullback failure pattern, prices move against the expectations of many
uninformed traders. When a trend is over extended price reverts back to the
mean value, this concept is known as “Mean reversion”. Often smart
Institutional players and professionals bet against the overextended trend
by considering mean reversion. Hence pullbacks that occur in such mean
reversion conditions have a high probability of failure.
Traders and market participants who position themselves in pullback by

expecting further trend continuation will be forced to liquidate when
pullback fails. Aggressive liquidation of these market participants will cause
sharp price movement against the trend.
Trading Pullback failures

Pullback failures can be recognized and traded in all prominent timeframes.
The setup takes advantage of trapped trend traders so it’s better to look for
these patterns after 2 to 3 successful pullbacks within the trend. They’re
formed just like any normal pullbacks but instead lead to a sharp movement
in the opposite direction of the trend. Some pullback failures can turn into
strong trend reversals hence you need to have flexible - systematic strategy
to trade them.
6.4 Model of taking entries and exits in Pullback failure
25
Step by step process to trade Pullback failures
Step 1: Recognize the Pullback failure setup
First step is to recognize the pattern in the right context. You need to look
for pullback failure formations specifically in matured trends. When a trend
is matured or overextended, there’s a high chance of pullbacks failing. Even
though the concept of “Matured trend” sounds a bit subjective, practically
it’s quite simple to identify them.
Look for a clear trend that already has 2- 3 successful pullbacks in a row and
observe the price action of the next pullback. If you notice sharp price
movement against the existing trend right after the recent pullback, it’s an
indication of Pullback failure.
Step 2: Look for proper confirmation
Pullback failures are counter trend setups, so it’s wise to trade them only
after a proper confirmation. Before taking any trades you need to make sure
that pullback has indeed failed - we can know that by observing the price
action. Strong price movement in the opposite direction of the trend right
after a pullback is a sign that pullback has failed. Look to initiate trades
based on such confirmation.
The entry on the setup is based on discretion. Once you recognize a pullback
in a matured or overextended trend, observe the price action and look for
signs of failure. When price starts to move sharply in the opposite direction
of the trend, take an entry (check the diagram 6.4).
Place the stop loss simply around the pattern as mentioned in the diagram
6.4. Always leave some space between pattern and the stop loss because
when volatility is higher, prices might hit the stop loss and then move in your
intended direction. To avoid such unwanted stop outs it’s better to leave
some breathing space in your position.
Profit targets must be placed around support/resistance levels of the

previous trend. Since it’s a counter trend setup you need to look for 1:2 risk –
reward on a trade.
26
TRADING PULLBACK FAILURES

Step 1: Recognize the Pullback failure setup
Step 2: Look for proper confirmation
Mean Reversion
Over extended trend reverts back to the mean
value, It’s called as Mean Reversion. Often
smart Institutional players trade with it.
Key Points
Pullback failure takes advantage of trapped trend traders. When pullback
fails, market participants who positioned themselves with the trend will be
trapped and forced to exit at an unfavorable price. To trade pullback failure
setup successfully, you need to recognize the patterns in the right context.
Look for these patterns specifically in matured trend. It’s a discretionary
setup hence you need to trade them using proper and systematic trading
plan.
27
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7. TIMEFRAME AND TRADING STYLE
Many traders often come up with queries like “which time frame should I
apply these techniques on?” “What trading style is best for Price action?”
“Should I do intraday or positional Trading?” All these questions are based
on a common theme - Choosing a good trading style and time frame.
The trading ideas and price action setups we have covered so far can be
applied to any time frame, whether you’re an intraday trader, swing trader
or positional trader. Because price action and market dynamics is almost
same on all time frames.
As a matter of fact markets don’t have any time frames. Markets produce a
continuous stream of price data from open to close. As we cannot process
this raw data in real time, we break it into different parts and refer it as
different time frames. The data is same for all time frame traders. The
difference is only in your perception. Being said that, choosing a proper time
frame is necessary for long-term success as a professional trader because it
helps you to develop a systematic trading routine.
Selecting Time frames based on your Trading style

As you might already know there are four different types of trading style -
Day trading, Short-term trading, Swing trading and Positional trading. The
difference between each style is based on the holding period, or how long
you hold a particular trade. The time frame you choose should be relative to
your holding period. The diagram 7.1 given below shows ideal time frame
depending on specific trading style.
7.1 Ideal combination

of Time frame and
Trading style
28
There is no magic in this combination of time-frames. Usually the above
mentioned time-frames provide a sense of flexibility for traders. Reason for
this kind of allocation is to make sure it fits trader’s personality and his
trading style. For example, a trader who has a full time job might choose to
do swing trading; In that case she/he can selectively look for price action
setups in either 4h or 1D Chart.
Using Multi time frame analysis

Many books are written on the advantages of combining multiple time
frames. Multi time frame chart reading can give good advantage and tell us
about more about a pattern than just looking at a single time frame. But it’s
necessary to apply multi time analysis in a proper systematic way or else it
could lead to “Analysis – paralysis”.
The best approach is to divide timeframes into 2 different parts. Primary

time frame or focus time frame called as TTF (Trading time frame) to spot
trading setups. Then LTF (Lower time frame) that can help us to fine tune
our entry and exit points. Apart from that, you can also use HTF (Higher time
frame) to get a big picture perspective. Take a look at diagram 7.2.
7.2 Example of Multi time frame combination - 1h chart (TTF) and 15 min chart (LTF)
29
MULTI TIME FRAME COMBINATIONS

Trading Style TTF LTF HTF
Intraday Trading 15 Min 5 Min 30 Min
Short term Trading 1 Hr 30 Min 2 Hr
Swing Trading 4 Hr 2 Hr 1W
Positional Trading 1W 1D 1M
Ideal to reduce risk and increase probability

Multi time frame combination
Incase if you wish to choose a multi time frame combination, make sure
they’re related to each other by 1: 3: 5 criteria.
For instance, if a trader is trading in 30 min time frame then 10 min chart
could help him to fine tune entry and exit points and 2h time frame could
provide a big picture view on the price action. The idea behind such an
approach is to get good insight on the setup.
Multiple time frames, if used in a proper way, can improve your over
performance and trading returns significantly.
30
8. WISDOM OF CONTRARIAN TRADING
“The only way to stay ahead of the game is by thinking ahead”
The word Contrarian means – A person who thinks independently and

rejects popular opinions. Being a contrarian is a priceless skill for a trader. In
simple sense, Contrarian means going against the crowd. As the name
suggests, a contrarian trader thinks and acts for himself and doesn’t
hesitate to trade against the market crowd or prevailing sentiment.
Some of the most successful traders are contrarians and some of the
greatest and most famous trades in history were the result of taking big
bets against the prevailing market sentiment and crowd behaviour.
Baron Rothschild, 18th century British nobleman and banker once said “Buy
when there is blood in the streets, Sell when everyone is rich”. This quote
gives an excellent insight into the tactics of contrarian trading. Being a
contrarian trader is simple but not easy and the advantage of this Mindset is
overwhelming.
What is Contrarian Trading?

Many people think that contrarian trading is simply betting against the
trend, that’s not right. Simple statements like “betting against the trend”
don’t capture the true essence of contrarian trading. In fact it misleads
traders.
Contrarian trader needs to understand the market sentiment and Crowd

psychology. Contrarian trading strategies are all about recognizing the
market sentiment and taking trades according to changing market
sentiment.
A true contrarian trader will recognize the market sentiment that drives the
price action and trades with or against the market sentiment depending on
circumstances. They know when to bet with the crowd and when to bet
against the crowd.
The strategies we have covered so far are a part of contrarian approach. If

you examine a little bit, you would know that core principles of these
trading strategies are contrarian in nature. Take a look at the following
diagrams 8.1 and 8.2 to get an idea.
32
Examples of Contrarian Trading with Market dynamics
8.1 Contrarian Trading in Trending markets with Pullbacks and Pullback failure
8.2 Contrarian Trading in Range bound markets with False Breakout
33
1. False Breakout – Many uninformed traders, trade in direction of the
breakout based on popular opinion “Breakouts will help to catch the trend”.
You trade against this popular opinion by knowing the fact, most of the
breakouts will fail due to institutional activity.
2. Climax – Most of the traders misread climax patterns as a sign of trend

continuation and get trapped when the trend reverses. You fade the market
sentiment at extremes, trade against the aggressive climax movements.
3. Pullback Failure – When a trend is overextended, majority of the traders

expect trend to continue and take trades in direction of the pullback. But in
a Matured Trend most of the pullbacks turn into failures. You recognize
these signs and trade against the crowd by using Pullback failures.
As you can see, all these strategies go against popular opinion or bet against
market sentiment at the right time. Trading these setups requires us to take
a contrarian approach towards the market.
Advantages of a Contrarian Mindset

Contrarian traders have the potential to be highly successful, provided that
they remember the proper definition of contrarian trading – “Knowing when
to go with the crowd and when to go against the crowd”. You must keep in
mind that trends are where the money is and it’s not about mindlessly
betting against the Trend!
Trading is all about encashing the fear and greed of other market players.
Having a Contrarian Mindset helps us to identify price action setups in which
large number of market participants succumb to their emotions, allowing
their mistakes and order flow to take our positions to profit.
In my Mentorship training, I always stress the importance of developing a

Contrarian Mindset for aspiring traders. Becoming a contrarian is the key to
trading success.
34
CONTRARIAN TRADING
Bet against the
Sentiment
Bet with the

Sentiment
Trading is all about using the fear and greed

of other market players...
9. PRINCIPLES OF RISK MANAGEMENT
Trading is all about probability. All types of trading strategies and algorithms
are built on probabilities. A trader can only increase his probability of
winning through proper analysis, but even the best analysis can never
produce risk free returns. In trading or investing you cannot expect better
returns without a certain degree of risk. To make consistent returns we
must focus on managing the risk and that’s why Risk management is very
important.
Every trader will experience losing trades at certain point in their trading
journey. One important trait that separates successful traders from rest of
the market crowd is how they handle their risks in the face of uncertainty.
Good traders respect and manage their risks. Following a proper risk
management technique helps you to handle the risk and protect your
trading capital in uncertain market conditions.
In my premium mentorship program, I often emphasize aspiring traders to

focus more on risk management in the initial stages of their trading career,
because it can make a huge difference in the long run.
Focus on Simple Risk management techniques

There are various types of risk management techniques, ranging from
simple criteria to complex mathematical models. It’s not necessary to learn
them all. Just focus on the most simple and effective risk management
principles and apply them with proper discipline. Here are 3 Important Risk
management principles to consider:
1. Choose trades that has good Risk to Reward Ratio
The Risk to Reward ratio or R:R is a great tool for minimising the risk. It’s a
simple measure of distance between your stop loss and profit target. For
example, in a single trade if your stop loss is 10 points and if your profit
target is 30 points then your risk to reward is 1:3.
If the trade becomes successful, you would end up with +30 points reward
and if the trade fails, losses will be limited to just -10 points. A better R:R
means you’ll have a better payoff in the trade. Selectively choosing trades
with good Risk to Reward gives a mathematical advantage in the long run.
35
9.1 In my opinion, it’s better to look for setups with at least 1:2 R:R ratio.
Many traders forget about measuring the R:R ratio once they spot a good
trading setup. If you are not measuring risk/reward ratio while trading, you
may end taking trades that doesn’t have a good payoff. For example, it’s
wise to avoid a trade when your stop loss is 20 points and your profit target
is just 5 points.
However, remember not to tighten the stop loss or widen the target only to
achieve good Risk to Reward ratio. Both stop loss and profit target must be
based on proper analysis and trading setup.
2. Keep a proper and flexible Stop loss on every trade
Stop-loss orders are widely used by professional traders to limit potential

losses. The purpose of stop loss is to effectively minimize the losses and
protect the profits; hence it’s wise to be flexible while placing the stop loss.
I keep a proper stop loss on every trade. But I don’t treat them as a fixed
value; instead I readjust them according to price action. Many experienced
traders prefer to use Trailing stop loss. It’s more flexible than a general stop
loss order and has a better advantage of self-adjusting according to a given
input.
With trailing stop loss we can do both, cut the losses and protect the profits.
36
3. Use Fixed fractional position sizing approach
Traders are often advised to take 2-3% risk per trade. But many traders don’t
clearly understand the idea behind such an advice. It’s basically known as
Fixed fractional position sizing. In my experience, many traders
misunderstand this complete idea and take same risk on every trade
regardless of their trading capital.
For example, after hearing the term 2-3% risk, a novice trader with a starting
capital of 1, 00,000 takes fixed amount of 2000 – 3000 risk on every trade
regardless of what happens to his trading capital. Well, that’s a wrong way
of applying it.
The logic is to risk a fixed percentage (2% - 3 %) of your existing trading capital
on each trade. This means after each trade your trading capital will change,
so you need to recalculate the amount of risk per trade. Have a look at the
diagram to get a better idea
9.2 A simple demonstration of Fixed fractional position sizing
Remember the purpose of position sizing is to limit the risk and protect the
returns. That’s how you stay in the game. Professional traders know that if
you need to trade better than other traders, the most important thing is to
manage the position size.
37
3 RISK MANAGEMENT PRINCIPLES

1. Choose trades that has good Risk to Reward Ratio
2. Keep a proper and flexible Stop loss on every trade
3. Use Fixed fractional position sizing approach
Remember Trader’s Job

Important task for a trader is to manage the risk.
Success in trading is not making outstanding
returns, it’s about managing the risk.
Trader’s Job is Risk management
In my training, very often participants ask – What is a Trader’s Job? I always
respond, Trader’s job is risk management. The most important task for any
trader is to properly manage the risk. Take calculated risk; Profits will take
care of themselves. Success in trading is not making outstanding returns; it’s
about managing the risk and staying in the game.
38
10. TRADING PSYCHOLOGY
Even though many characteristics and skills are necessary for traders to
succeed in trading, nothing is important as having a balanced state of mind.
That’s the reason successful traders spend more time in improving their
trading psychology.
Trading psychology refers to emotions and mental states that can influence
your trading decisions. Your emotions and mental states can have big
impact on your trading performance. Greed and Fear are the two most
commonly known emotions associated with trading. Other emotions such
as hope, regret and confidence can also play a major role in your trading.
10.1 Excellent image that shows how Emotions impact a Trader’s decisions
Have a Proper Trading routine to avoid Emotional mistakes

Suggestions “like cut your losses short, let your profits run” may sound
simple but it’s hard to apply without emotional mistakes. As long as we are
humans, we need to deal with emotions. The best way to manage your
emotions in trading is by implementing a proper trading routine. A good
Trading routine reduces emotional mistakes and helps to develop a
Professional trader’s Mindset.
39
TRADING ROUTINE
The best way to manage your
emotions in trading is by having
a proper trading routine.
A good trading routine reduces

emotional mistakes and helps to
develop a Professional trader’s
Mindset.
Many professional traders follow an effective routine that gives them clarity
to trade the markets with a peace of mind. The method and procedure could
be different among traders, but the sole objective of all trading routine is to
create a disciplined and systematic approach in their trading process.
An Outlined example of my simple Trading Routine

1. Start the day with 10 minute Meditation
My day always starts with a simple 10-minute meditation practice. It helps

me to keep a calm and balanced state of mind while trading. Practicing
meditation on a regular basis gives a great mental edge for a trader. It
improves focus and clarity.
Many people often say they don’t have time for meditation, well I ask to
differ. You don’t have to spend hours, just dedicating 5 – 10 Minutes every
day is enough. Some of the top traders such as Ray dalio and Paul Tudor
jones meditate on a regular basis. It’s a large contributor to my success, not
just in trading but also in other activities.
2. Scan for potential Trading opportunities
As a first thing in the morning, I look for potential price action setups.
Generally I analyse and shortlist the trading scripts during weekends. So
when I scan through my watch list, it takes less than 10 to 15 minutes to find
trading opportunities. Once I find some trading setups, it’s just a matter of
executing trades and monitoring them.
It’s necessary to have a good short listing or script selection technique,

especially when you’re trading in stocks. There’s a separate session
dedicated to stock selection in my premium mentorship program. Without a
proper list of stocks or scripts, it can be time consuming to find good trading
setups.
3. Monitor the Charts at a regular interval
Even though my trading strategies can be applied on any time frames, I

prefer to look for short term trading setups. As a short term trader, my
average holding period is 1 – 5 days. My approach gives me a sense of
flexibility to do both intraday and swing trading. Once I get into a trade, I
monitor the market activity every 2 -3 hours once.
40
Many traders often have difficulties in monitoring their open positions,
especially if they’re trading part-time. Contrary to what many people think,
it’s not necessary to spend a lot of time in analysing the markets or tracking
positions. Just spend few hours a day to look at the charts and analyse the
markets.
4. Journal trading experience and Insights post market hours
Right after market hours, I write down my trading experience and thoughts
in a Journal. Whatever experience I had during the day, I usually write them
down in a detailed manner. Then I review my trading journal at least twice a
week, mostly on weekends. This entire process helps me to contemplate on
my own experience and improve my trading performance.
Maintaining a Trading journal gives a structured approach to your trading

routine. By documenting your insights and thoughts in a journal you will
have a powerful source of information that can be utilized to learn from
your own experience. Reviewing the journal on a regular basis will improve
your trading performance in the long run.
5. Be Grateful at the end of the day
At the end of each trading day, I will thank and be grateful for - what
markets have taught me so far, the trading experience I had and for the
knowledge I gained from my previous mentors. Thanking and being grateful
at the end of the day helps to preserve my mental peace. It’s one of the best
practices that keep me motivated in my Trading journey.
Being grateful makes you less scared of losing money and makes it easier to
stick with your trading plan. Most of the traders let results determine their
mental states; they often get excited by profits and depressed by losses. To
have a peace of mind, it’s necessary to be detached from your trading
results. The most effective way to accomplish it is by practicing gratefulness.
Create a Good trading routine for yourself

The Trading routine, like the one outlined above not only simplifies
important things like analysing the charts and looking for setups, but also
creates a systematic approach in your trading. It eliminates emotional errors
that can impact your trading performance and helps to identify your
mistakes, thereby giving you an opportunity to learn from them.
41
Every trader should strive to create a good trading routine for themselves.
With a routine like this, following a trading plan becomes more natural and
easier. To think and trade like a Professional Trader, create a good Trading
routine.
42
11. SOME IMPORTANT PARTING THOUGHTS
“Knowledge is the beginning, experience is the result”
Aspiring traders come to the markets with hope and ambition to become
successful. But most of them don’t understand an important truth –
Trading is just like any other business. You need to dedicate time and
practice to get better in this business. There are no overnight miracles or
magic pills that can bring immediate results. In my training sessions, I often
give an example of triangle as an analogy for successful trading.
11.1 Successful trading rests on 3 pillars - Risk management, Trading strategy and Discipline
Foundation of successful trading is built on 3 important factors
1. Trading strategy that has an edge
2. Disciplined approach towards the market
3. Solid Risk management to cut the losses
Trading Edge + Discipline + Risk Management = Consistency in Returns
To become a successful trader, all you need to do is follow this simple

equation. Find a Trading strategy that has an edge; apply it with proper
Discipline and Risk management.
Surprisingly many traders do know this but still find it hard to succeed. Why?
They miss two important elements - Patience and Practice.
43
Importance of Patience
In trading, Success is not a one-step door way, it’s a process. There’s a
learning curve involved in the process and it takes time to go through that
learning curve. Most of the traders want to see results within a short period
of time. If they don’t get to see the intended results in a short time span,
either they get discouraged or quit trading altogether.
They lack the Patience that’s required to go through the learning curve. No
matter what strategy you apply or how good you’re at risk management, a
lot of patience is required to succeed as a trader.
It’s necessary to Practice

Another important element is Practice. Like any other skill, trading is
something you learn by doing. Experience is more important than just
knowing. Most of the traders know the equation to become successful, but
they hardly apply or practice what they know.
It is the application of knowledge that makes the whole difference. Most

people will never put the effort or time to apply that knowledge or practice
it in their everyday trading process.
Implementation is the key

The concepts and methods covered in this book do have an edge. But
having a good method with an edge alone is not going to make you a better
trader. Implementation is what matters. You should have the ability to find
opportunities in real time and trade them by taking calculated risks. That’s
only possible through Practice and Experience.
In the initial stages, take some time to understand the principles and
strategies covered in this book. Then practice the strategies and gain some
experience. With adequate practice and experience, applying the strategy in
real time becomes a routine. Once it becomes a routine, your trading
performance will improve.
44
Benefits of a good Mentorship
Many traders often take a self-learning approach in their trading journey.
But having an experienced mentor who can guide you in the right track is
much beneficial than going through a trial and error approach.
There’s a common misconception in the trading community about

mentorship. “Those who can’t trade will teach others” this adage often
makes aspiring traders not to seek any mentorship and misleads them to
take a self-learning route.
The opinion that successful traders don’t teach others is wrong. Many great
traders were also excellent mentors. To name a few we can say, Richard
Wyckoff, Victor Sperandeo, Ed Sekyota, Paul Wilmot etc. are great teachers,
as well as traders.
Ask any successful traders, most of them would’ve had mentors who guided
them in their Trading journey. Even today we can see some traders offer
value to trading community by guiding other aspiring traders. In my earlier
days, I luckily had some brilliant traders as my mentors. Without their
guidance, I wouldn’t have made this far. Even now, I remind about their
lessons while trading.
Compared to self-learning, there are 3 major benefits you’ll get by having a

good trading mentor.
1. Having an experienced mentor beside you can reduce your learning curve.
A good mentor will save your time by assisting you to focus on the
important concepts, lessons, and principles instead of self-studying
everything you find online.
2. With the help of a mentor, it’s easy to find a right strategy. Every trader is
different and therefore their trading style and environment will be different
too. A trading mentor can help you to find a right trading strategy that suits
your circumstances and personality.
3. Having a good mentor will build your confidence and improve your
performance. Your mentor will prepare you to be confident when trading
alone. Trades that are opened and closed can be validated with the help of a
mentor. Such validation will help you to increase your confidence level and
improve your performance.
45
WHY HAVE A MENTOR ?
A good trading mentor

Reduce your Helps to save Builds your
learning curve your time confidence can add great value to
your trading success..
Need Mentorship ? Click Here ...

Overall, a good trading mentor can add great value to your foundation and
trading success. If you feel you need a mentor, make sure to choose one.
This is your trading journey, don’t let the opinions and judgements of others
impact your decisions.
If you’re passionate to succeed as a trader and if you need someone to

guide you in your trading journey – Feel free to check out my Premium
Mentorship Training Program. I will be more than happy to assist you.
All the best in your Trading Journey..
46
A NOTE OF THANKS
I personally thank everyone who assisted me in writing this book. Your
constructive criticisms and comments helped me a lot in the beginning
stages of this book. I wouldn’t have written this book without the
encouragement of Abhinesh, His advice, to “write a book for the greater
good” has guided my actions at every step.
There have been many others along the way who helped me to improve my
trading edge either directly or indirectly. Mark Fisher, Victor Niederhoffer,
Rajesh (Some snippets and sentences I took from his valuable book), Jack D
Schwager (Market wizard book series is a timeless manifesto) and Richard
Wyckoff. All their valuable ideas opened my mind to new possibilities.
Last but not least,
Thank you very much for sparing your precious time to go through this small
book. Hope the insights and strategies covered in this book encouraged you
to think from a different perspective. Do let me know your feedbacks and
suggestions. If you find the book informative, kindly share this with your
friends and relatives. After all, the success of a book is its wide readership.
I regularly post market updates and trading insights on my website

www.tradingcoach.co.in. There are lot of articles and contents related to
Price action, Market dynamics and Trading setups. Please do visit the site
and post your valuable comments.
47
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1. KINDLY START FROM HERE........................................................01

A LITTLE BIT ABOUT MYSELF………………………………………………….04

2. A NEW PERSPECTIVE ON TRADING THE MARKETS………….06

3. MARKET DYANMICS AND PRICE ACTION………………………….09

©All Rights Reserved. Copyright @ http://www.tradingcoach.co.in

8. WISDOM OF CONTRARIAN TRADING……………………………….32

9. PRINCIPLES OF RISK MANAGEMENT…………………………………35

10. TRADING PSYCHOLOGY…………………………………………………….39

11. SOME IMPORTANT PARTING THOUGHTS………………………43

©All Rights Reserved. Copyright @ http://www.tradingcoach.co.in

3 PILLARS OF TRADING SUCCESS

Trading in the zone, Education of a speculator, Studies in tape reading, and

Why sharing this book?

This book is another extension of that.

What’s in this book?

It shows how to logically understand the market behavior and trade by

Kindly read the book, it’s worth your time

Just like in any business, Experience is more important in trading. So I

One of that important lesson is sharing the Knowledge - That’s what I am

Apart from trading, Investing and blogging I also provide mentorship

TRADING, INVESTING, BLOGGING

Why Small traders fail very often?

To become truly successful, small traders should understand why the

MOST OF THE SMALL TRADERS FAIL | WHY ?

Knowledge Gaps Lack of Clarity Competition

Can you compete with HFT computers,

2.1 Group of people acting like a single mind – Crowd psychology

Crowd psychology creates the Orderflow

Trading is nothing but understanding the Market crowd then taking

In my perspective, trading price action means trading the Market dynamics;

What is Price action trading?

3.1 Price action trading relies on both intuition and logic

To be clear, Price action studies the behavior of market participants as a

Why Price action is a better approach?

Checkout the Program to learn in a more

Learn in a structured Learn more Get Access to

Just copy and paste it in your browser

It might help you to become a better trader...

A False breakout happens when price action temporarily breaks above or

4.2 Bearish False Breakout formation

4.3 Bullish False Breakout formation

Trading False Breakouts

4.4 Model of taking entries and exits in False Breakouts

Step 2: Wait for the confirmation of False breakout

Step 3: Determine entries, exits and trading plan

Trading false breakouts are relatively simple compared to other setups.

Profit targets should be kept at previous support or resistance zone of the

TRADING FALSE BREAKOUTS

Climaxes are usually preceded by extreme sentiment readings such as

5.2 Bearish Climax formation

5.3 Bullish Climax formation

Trading Climax patterns

5.4 Model of taking entries and exits in Climax pattern

Step 2: Look to trade against Climax formations

Sharp moves in the direction of matured trend indicate aggressive buying or

Step 3: Determine entries, exits and trading plan

The target should be placed around previous support or resistance (Look at

TRADING CLIMAX PATTERNS

Trend Reversal Climax

6.2 Bearish Pullback failure formation

6.3 Bullish Pullback failure formation

Traders and market participants who position themselves in pullback by