Price action

 Price action is the movement of price plotted over time.

 Price action forms the basis for all technical analysis.

 Price action generally refers to the up and down movement of price when it is plotted over time.
How does price move

 Trending Market
 A trending market is one in which price moves in one particular direction over a period of time.
Examples
How does price move

 Ranging Market
 A ranging market is one in which price is confined to a specific region: price will move up
and down within that region.
Examples
 SUPPORT & RESISTANCE

• Support is a level in which price that has been falling finds “support” (floor) meaning that the price
does not fall beyond that level.
• Resistance is a level in which price that has been rising finds “resistance” (ceiling) meaning that it
can not push beyond that level.

• Support And Resistance lines

can be horizontal or diagonal
depending of how price has
been moving.
Trend-lines

 Support and Resistance levels can be drawn using Trend lines.

RULES FOR DRAWING TRENDLINES
 A trend line should touch 2 or more points.
 Trend lines should NEVER cut through candles.
Channels

 A channel is formed when price is confined to a region between Support and Resistance in
which the Support and Resistance Lines are parallel.

Types of Channels
Drawing Channels
 TYPES OF PATTERNS

There are 2 types of patterns

I. CONTINUATION
 Continuation patterns indicate that price is about to move in the direction of the direction of the previous move.

II. REVERSAL
 Reversal Patterns indicate that price is about to move in the apposite direction of the current market direction.
CONTINUATION PATTERNS

TYPES OF CONTINUATION PATTERNS

 Bullish & Bearish Flags

 Symmetrical Triangle
 Broadening wedges
 FLAGS

 A Flag is a continuation pattern that gets its name from its

appearance: It looks like a flag.
 Components of a flag pattern:
 1. Flag Pole: this is a sharp move of price representing a trend
 2. Flag: representing a period of consolidation
Bullish FLAGS

CASE STUDY
USDCAD, h4 timeframe, 1st of February 2019
 Bearish FLAGS

CASE STUDY
CADCHF, H4 timeframe, 26 February 2019
 Bearish FLAGS

CASE STUDY
EURGBP, h4 timeframe, 10 October 2018
 Bearish FLAGS

CASE STUDY
EURNZD, H4 timeframe, 26 October 2018
 SYMMETRICAL TRIANGLE

 The Symmetrical Triangle pattern Shows in

decision in the market.
 The support and resistance lines converge forming
asymmetrical Triangle.
 This pattern shows indecision in the market.
 *With this pattern actually the price can either break
the resistance going up or the support going down
 SYMMETRICAL TRIANGLE

CASE STUDY
USDJPY, D1 timeframe, 18 December 2018
 SYMMETRICAL TRIANGLE

CASE STUDY
H1 timeframe, CHFJPY, 5 March 2019
 SYMMETRICAL TRIANGLE

CASE STUDY
EURUSD, D1 timeframe, 16 February 2018
REVERSAL PATTERNS

TYPES OF REVERSAL PATTERNS

 Head and shoulders

 Rising and falling wedges
 Double tops and Double bottoms
Head and shoulders

Distance From the top of the head to neckline

=100 pips

Distance From neckline to TP

=100 pips
Head and shoulders
Head and shoulders

 Case study
 CADJPY, D1 timeframe, 16 September 2017
 Inverted Head and Shoulders

CASE STUDY
EURNZD, H4 timeframe, 14 February 2019 (valentines)
 RISING AND FALLING WEDGES

RISING WEDGE

Distance from
Break of Support to TP
80 pips

Length of Base
80 pips
 Falling wedge

Length of Base
80 pips
Distance from
Break of Support to TP
80 pips
 RISING AND FALLING WEDGES

CASE STUDY
USDZAR, H4 timeframe, 4 December 2018
 RISING AND FALLING WEDGES

CASE STUDY
EURUSD, H4 timeframe, 28 February 2019
 RISING AND FALLING WEDGES

CASE STUDY
NZDJPY, H4 timeframe, 2 February 2019
DOUBLE TOP AND DOUBLE BOTTOM

 The Double Top formation is also called the M formation because of its appearance.

RESISTANCE

TP 1

TP 2
 DOUBLE TOP AND DOUBLE BOTTOM

EURGBP, D1 timeframe, 3 January 2019

 DOUBLE TOP AND DOUBLE BOTTOM

CASE STUDY
XAUUSD, D1 timeframe, 25 January – 11 April 2018