learn to trade price action Trading by Nitesh Lecture 1

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learn to trade price action Trading by Nitesh Lecture 1 Free trading class

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00:00examples here we are discussing in the last video about the value area

00:04i and low has been taken as an additional reference level so let's understand from the charts

00:11okay so i'll just simply we'll take this even day first of all because even day where the markets

00:16were slight volatile but let's take an example of the event day so first of all uh let this is

00:23the value area i and low one day before we are just focusing here initially on the previous days

00:28value area i and low that is on 31st of jan value area i and low i have plotted here 41088 and 4728

00:38levels okay so by the end of this complete course i'll be sharing you the resources where you might

00:43get the free availability of this value area i and low okay tools i'll be sharing it or else obviously

00:50i'll be updating you on probably all trading session of this value area i and low of previous trading

00:56session and weekly value area i and low also okay so coming back to here these are the i and low

01:02which has been marked first of all we need to mark all other zones that is more important before going

01:07on to the what's the thing on the budget so i'll be again using this fixed value area i and low i need

01:15to just understand is there anything area on previous trading session so for the previous trading session

01:21these are the zones which is there this one area where the volume where the highest this area the

01:27volume where the highest and almost equivalent second highest area market has made a upside opening

01:33okay but we don't know where the markets are opening first for the initial stage i'll be doing this

01:38activity okay i'll be just trying to mark these areas

01:42okay so these are the areas which is for the next day trading session but basically if you want don't

01:55want your chart to be very clustered okay what i do is on before the market opening every day morning i

02:01just try to see hgx hgx nifty what is happening is there any major 100 points up or down or a flattish

02:07opening so here sgx was slowing slight upside opening so i have not marked this zone by any chance

02:12price come to this area i will again better definitely mark this zone to not make the chart more

02:17clustered okay with many zones and area do not get confused as not marking this area so let's forget

02:25about this because the opening was on the upside so my focus is to see what is the any other volume

02:34zone okay on the higher levels okay which is untested very very important to understand which is

02:41not majorly tested or not major action has taken place so if you can see this on this day this zone

02:48next day price yes it has tested the activity was happening this area also done tested can you see

02:55this one more volume area it is not so great but still that zone has not been tested

03:01and if you have seen closely what was the activity around this area price was moving down up down

03:09pull back again got rejected so this action around here there's a fight here later on the same area

03:15converted into resistance very very very important point to note this volume activity was more dominated by

03:24the sellers more dominated by the sellers so let me mark these areas once

03:36okay so this is the area let me extend here

03:38okay okay this is the zone here

03:52i plotted in this area okay

03:59so these are the things which is very closely available at this current stage of

04:04information or data which is available to track

04:13okay fine these are marked here so now our main focus is to understand what was the activity here

04:23okay price opened here started doing its action this zone is at this levels and value area high and low is

04:29far away still on the downside so higher level opening to here is no major zones available here only nearest

04:36available zone is this area because beyond that this was just a complete quick aggressive action

04:41very low volume action which has been taken place at this price levels okay if i'm just zooming out there is

04:48aggressive no major zone available on towards my left side so i'll be giving importance to this activity only

04:56that is this one aggression as has been seen from the sellers gap down opening price shooting down

05:01straight away so in and around this area the more activity price is trying to trade here it was more in towards

05:08sellers control and obviously

05:10this zone is more controlled

05:12price aggressively came down was from the

05:16sellers okay very clear point to understand sellers dominated area but try to understand what is the information here this is previous day's eye

05:24see this previous day's eye value area i value area low

05:30of 31st session price clearly opening and trading above the value area i

05:36okay above value area i bulls dominated action can take place chances are more and same exactly trying to

05:44happen this was more the zone which was dominated by sellers now the same area is trying to act as

05:50support earlier earlier it was the same area if i'm just zooming out the chart to show you

05:55this same area which was acting as resistance price came down shoot up again rejection here

06:02the same area now which was acting as resistance is now clearly acting as an support and obviously february

06:11one is a budget day event day markets and probably by 11 30 11 40 the speech of the finance minister got

06:19completed till that markets was more into sideways action only but information is very clear that this

06:26area which was more dominated by sellers now it is trying to act as an support so pure resistance turning support

06:35area which is clearly action which is clearly action which has been seen are in the charts now try to

06:41understand what's the action here because before the even the markets were pretty silent but only

06:46information bulls are trying to come price above previous days i price above value area i in the seller's

06:52area price is trying to more sellers are not being allowed much the sub resistance is now turning into support

06:59so so far all the things is more in favor of bulls okay as higher level sellers are there still because

07:07it's not everything is much favor in favor of bulls but these aggression which has been shown by the

07:12sellers we have to see first of all what's the action from the sellers again because as the price

07:18this main area the resistance is now turning into support only thing the point to be noted is what is the activity

07:25around this area around the sellers area more to be checked because if the more price is stable

07:32above the vwap then the sellers will be under pressure buyers can dominate in pushing the price towards

07:38upside very clear action or same thing was doing on the free live sessions also so here what is happening

07:44bulls has been defending the portions price trying to move up okay look at this price quickly trying to come down

07:50what is happening here by looking at this green green green color candle price breaking the day's eye

07:55super excited bulls who are jumping in to take the bullish position without much having the knowledge

08:03that higher levels this is more sellers dominated area aggressive candle formation sellers dominated area

08:10trying to understand sellers dominated is an opposite area because price is trying to come from the downside

08:16sellers dominated area the zone is there this zone was not much given any much respect from the sellers

08:26because it has converted into support next area is there the candle the bearish candle which we are seeing

08:30here try to understand first thing higher level sellers lower level buyers so both are coming very tight

08:37either there will be a consolidation or very high chance there will be a trap very high chance this is from

08:44my experience okay you will be experiencing same thing on the live market when opposite players are there on

08:51the higher levels price is trying to come from the downside very important point to focus first of all

08:56there is a chance price can go into sideways no point just by showing few green color candle don't get

09:02or don't get so influenced in chasing the price try to understand don't get so much influenced by

09:09to chase the price okay because opposite area opposite sellers is there they might try to come in for a

09:18different i repeat again from my experience i have done the same mistake as the price is moving up i was

09:25pre-predicting myself these sellers might not come or they will not come okay by that doing i'm just going

09:31and chasing the price the end result is a trap price aggressively trying to reverse back up i have done the same

09:38mistake in my trading by pre-predicting those sellers will not come because we know these sellers are

09:45there this is not just a time pass sellers try to understand one day before also the market was

09:52aggressively trending down okay and the next day price follow-up straightforward price opening below the

09:58previous day slow straight away dragging down pullback rejection and a clean down sided day so never ever

10:04underestimate these opening sellers were so strong price try to understand one more very very important

10:12factor this opening sellers were so strong price was clearly moving down slowly and steadily okay

10:19price not even came inside the first five minute range after this pullback rejected price slowly came

10:25down not even came inside this even this wide range five minute candle no interest not allowed the bulls

10:32to even come here so you can understand how strong these sellers are these were no stronger the price

10:37would have reversed back came again to the vwap done some sideways action but no there was nothing

10:42happening here aggressive dominated day so try to understand this aggression which has been clearly seen

10:49so don't do the mistake if this if there's aggressive sellers or aggressive bulls opposite side if the price is

10:56approaching those areas first wait see whether price is going sideways or what is happening or minimum a trap

11:03is very much high possibility of trap to come in so if there is any chance you are confused better look for

11:11the trap activity here the price was not sideways slowly moving up there was some sideways action here for 10-15

11:17minutes straight back drop down price going above the first five minutes high showing some action here

11:24okay but candle closing above it but there was no follow-through reversal price coming below vwap

11:30straight back all these late bulls are being thrown out of the market just see the volumes here

11:36volumes were pretty flat okay normal volumes and there was many low small small volume candle formations

11:43clear trap action now try to understand what and how to understand whether it is a real trap and prices

11:50again continuing in the same direction very simple sir for example prices aggressively dropping down for

11:56a stop loss hunting trap price in next few minutes will start reversing back price will in next few

12:03minutes will start reversing back and either it will go sideways or it will straight back reverse towards

12:09upside so this is what very important to understand this is where the midpoint rule comes into play

12:15for this entire down move which was happening here what is the midpoint midpoint is probably somewhere

12:20coming around here let me exactly pinpointly take this level i 41 590 low 41 225

12:293 65 points divide by 2 minus the i 41 590 41 4 0 7

12:49where the 41 4 0 7 levels are coming as i just focus here very very important price

12:56we're moving down all trapping this bulls because higher level sellers are there either either it will

13:01fight first because aggressive sellers higher level they will also try to come for different lower

13:05level buyers that means a sideways action is possible or a trap price was showing green green green

13:11color candles breaking the five minute eye closing above it making more exciting the bulls to participate

13:18straight back down trap stop loss hunted and immediately reversing back okay straight back exactly

13:25closing at the midpoint and next activity started more above the what areas are more above the

13:32midpoint that means it's a pure trap as the days goes from the experience i was very clean to say

13:39here itself it was a trap but as the day goes you will also understand how trap and how the move is

13:44coming in and also what is this zone sir resistance turning support area same same zone price again trying to

13:53find as support already the confirmation is there price above value area i price above previous days

13:59i resistance turning into support price more staying above evap bulls bulls bulls bulls bulls

14:07everywhere the action is telling us that the bulls are trying to come here the trap has also happened at

14:12the seller's area price was trap activity and then immediate reversing back from the exact same zone same

14:19support area so all the intimation is showing us what sir bulls bulls bulls and bulls because here

14:25the price was continuously moving down i need to give respect to the sellers also it's not like blind shot

14:32trap is happening jumping for the trade no because these sellers are there they have came up with some

14:38volumes because it's not like from the start it is a trap so those attempts from the sellers probably retail

14:45traders have an activity of placing stop loss this pullback and rejection below this stop loss below

14:51the vwap stop loss different layer below is the vwap stop loss so this area the stop loss would have

14:56happened but here there was some sellers that is the reason price came down because retailers were buying

15:02here 5 10 points everyone will not play stop loss you will be placing here few below this pullback

15:07low or a few below vwap and different levels they will be placing so major activity of trap is somewhere

15:14here not at this eye level so this sellers are somewhere there especially those sellers the

15:20aggressive sellers who initiated the move and then the trap came in right so i need to see price is

15:26exactly closing at the midpoint of this down move in the year price is reversing back again sellers

15:32coming in or price stable above the midpoint that is my next plan of action my next plan of focus i'll be

15:38more interested to see and also what's the activity of this seller whether this eye is easily clearing off

15:44or not that is more important to track more the eye is clearing off better the chance of this

15:50further bullish action if the price was rejecting and clearly closing above midpoint i'll be more

15:55happy to just go and take my bullish position above the candle line with SL placing below the

16:00candle low as it was closing exactly at the midpoint i need to see this seller's action what was happening sir

16:08for next few minutes price was sideways this is where very important how calm you are just by

16:13looking at two three green color candle don't get super excited because the candle range are not so

16:19big not so great okay straight away no point in getting excited by green green color candles wait and

16:25see what's the activity around here price is going sideways and then a breakout i'll be more happy to

16:31execute my trades exactly same thing i have done it price was going into sideways okay big formations

16:38was happening again one more big formations was also happening right price was doing all sort of

16:44sideways activity with drop in volumes but remember one thing again here one more attempt from the

16:50sellers these sellers but price not even ready to go below the midpoint this time this is the where

16:55i get more clarity and confirmation that fine enough great to see above this levels i'll be more

17:02comfortable to take my bullish position with SL placed below this candle low because this is more

17:09weak formation this is the area somewhere around here i'll be more comfortable to place my stop loss

17:16and remember one thing as it was a even day i was more comfortable with one more than 1 is to 1.5 i'm

17:22getting i'm more happy with it i will tell you why as it is an even day we need to take care of those

17:28event action also that is more and more and more important okay by one more thing what i generally do

17:36is initial plan was to place a stop loss around here but looking at the speed the price was crossing

17:41aggressively beyond this shoot up price straight away what i personally do is i even more happy to place

17:47SL below this because now the aggressiveness is seen price respecting midpoint from morning it was

17:53taking this resistance turning support price more stable above evap it was a trap and rejection

17:59price above value area high price above previous day i almost five to six confirmation is there bulls

18:04are making an attempt and your sellers one more attempt candle formations are not so great

18:10percy rejecting from midpoint the sixth confirmation six confirmation in a day is just i will say the

18:16aggression is getting ready the scene here the quick aggression which is visible here i'll be not

18:21even ready to hear play stop loss i'm more happy below this candle itself to place my stop loss to see

18:27what's the real action and simple as it was even day my focus was to capture 1 is to 1.5 or 1 is to 2

18:36maximum risk reward i was more comfortable okay to be practically honest on the live session i have

18:43booked profit somewhere in this area in this levels around this candle high it's coming around 1 is to

18:481.8 risk reward i'm more happy with it because i tell you this is more than 200 points reward

18:55straightforward in front of us 41 560 to 41 7 entry more than 200 210 points captured i'm more happy on the

19:02even day because even day because even day is there even day may i generally look for 1 is to 1.5 to 1 is

19:082 to risk reward more comfortably it is what i have done it so this is where i book my profits here i can

19:16see price moving up no regrets even day even day may playing slight safe is also not wrong on the

19:24even day so as more clean enough to play slightly safe 1 is to 1.8 1 is to 2 risk reward area that is

19:32what i was managed to capture trying to understand what i'm doing here i'm trying to connecting all

19:37the dots understanding what's the more activity happening because in this example price was more

19:44stable above the v value area high so i'm not here focusing anything much on towards value area high

19:50some resistance turning support vwap trap sellers were not so much comfortable here these sellers are

19:57also price consolidating but not able to go below the midpoint of the down move price rejecting more

20:02happy to take my bullish question above this consolidation i or few points buffer above this

20:09candle i this candle is the consolidation i giving few points buffer i'm more comfortable to execute my

20:15trades as the move was faster i'm more enough to place my sl below this candle low itself and get that

20:21one is to one point eight to one is to took a risk reward as it was an even day even damage generally

20:28movement will be faster no point in get more profits don't be more greedy that is what i have

20:34learned from my experience on the even day and this opportunity i have already discussed in earlier videos

20:40also the support the midpoint which was acting as a support area which was as this aggressive down move

20:47this same from this zone same from this v value area price was trying a support here but not

20:53aggressively rejected here from the resistance support turning resistance zone because this level

20:59already action taken place more action this zone might be no longer giving any more value here because

21:05multiple action already taken place here right this is the support area converted into resistance

21:11aggressively reversing back these sellers are aggressively coming in this i have shown

21:16already in the one this example same example i have already spoken in one of the video already itself

21:23okay this is how to understand more even day what i am doing here try to understand as i am getting

21:28multiple clues in my favor before executing my trade because more clues in my favor more clues in the side

21:35of bulls my main focus is to follow those bulls because what happens high probability trades how it comes is when

21:42more clues are favored once i am more executing my trades in next few minutes price will be giving me a better

21:49reward that is an advantage of focusing on high probability trades high probability trades generally what happens the

21:57waiting time before the trade is more the reward time during the trade is in a quick span we are getting the reward that is more important

22:06important because what happens is human mind if you are waiting after executing a trade a lot probably

22:13more than 45 minute one hour i have experienced on my personal trading more we are waiting my our human nature will

22:21start thinking whether the price will move in my favor or will reverse back down what will happen this will happen that will happen

22:27all this thought process will automatically make your confidence down so better take more clues in your

22:35favor and just execute the trade and just take the reward with the help of this aggressive fast movement

22:43okay that is more advantage of focusing on high probability opportunities in the upcoming video i will be discussing

22:50more examples okay more examples probably more examples on reaction around the value area

22:55zones now this is i will tell you one thing here price aggressively rejecting on the videos

23:02initially i was explaining the support turning resistance concept now as this value area levels is also

23:08closed now very important i am executing my trades here sl above this on the video you would have seen it already

23:14now as the reference level the value area level is there where it is try it might act as a support

23:21here now need to understand last time it has done it here now need to understand my only focus will be

23:28whether price is crossing the zone and closing below it very easily in a single candle when i say easy in a

23:35single candle if price is easily crossing closing below this value area i easily on a single candle that

23:42tells the aggression of more sellers same applies on the bullish side also value very high or low price easily

23:50crossing and closing above it on a single candle that tells the aggression of the bulls here the

23:55aggression of the bears now my only focus candle closing below it i'll be more happy to stay on

24:00the trade to see what's the further action because reference level is there stay on the trade to see

24:06further action what is the further actions now price should not spend more time above value area i because

24:12price is clearly crossed in one candle closed below it now this time if the sellers who are really

24:19stronger interested to push the price down they will now not waste time above the value area i more

24:25going sideways either they will reject or consolidate below the value area i if they are rejecting more

24:31happy consolidating below value area i still more happy because sellers are still more participating the

24:37down move is still there this is where once i'm in the trade these kind of data points gives me more

24:44confidence additional confidence additional clarity to more confidently stay on the trade because my

24:51one problem with most traders nowadays phase is taking the trade price going in a favor but the confidence

25:01after few points in the favor traders jump in for booking their profits rather than jumping in for

25:07booking the profits in few points better see the action

25:14what is happening levels around the levels price easily crossing the levels value area i easily been

25:20crossed means this is not an easy joke that the bulls can come and this tells the aggression from the

25:26sellers i'll be seeing the price is rejecting here or staying below it two cases i'll be more happy once i'm in

25:33the trade because if more staying above this zone then i'll be three thinking to replace my trialing

25:39sl at cost because here if price more stable above value area i after even aggressive download close

25:45below the value area i then that is a chance of reversal is also there in this case i'll be trialing

25:52sl but yeah next candle price was forming a low confidence but still the close is below price is trying to reject here

25:59okay because on the closing basis bulls who are attempting not able to close above it till that

26:05i'll be more relaxed to see the further downside action okay in the next video i'll be getting more

26:12examples more various ways where i'll be using this reference level more keenly with difference examples

26:18here i have already started combining zones and reference level so now it's more keen important to understand

26:25this these are all the various techniques i'm getting more clues when i care about strategies

26:30there is no fixed way from this happened i'll be jumping in this level crossed i'll be jumping these

26:35are old style technique whatever i'm speaking of what i'm getting all clues in my favor executing my trade

26:42this is called strategy and technique to execute trades with all the clues midpoint respecting

26:47more comfortably enough to be on this consolidation take this as my bullish opportunity this SL placed here

26:54and just try to make that profitable trade with all clues in my favor this is how i personally execute

27:02my trade around reference level around zones around levels support turning resistance rejecting zones has

27:08been cleared off very easily levels has been cleared off very easily gaining more confidence to sit on the

27:15trade these are all very very very very important aspect this is what real strategy and real technique it's

27:22not like two three levels has been drawn price closing the level and closing it's bullish price closing

27:27level below it's bearish no these are all old school technique okay now upgrade yourself on the intraday

27:34trading with getting all clues from the chart from the zones from the levels and then with confidence

27:40executing the trade is the real trading which is practical live market scenario that is what happened then only

27:48you can make your decisions that is where it will create you more confident trader okay because more

27:55problem traders face once they are in the trade they are not confidence before executing the trade they

28:01have a fear factor they are not confidence because blind rule applies causing the level closing above it

28:06means i'll be jumping in for a bullish trade means this is rule here you don't have confident but here all the

28:12clues are in favor your confidence now executing the trade above this more clarity everything in two of

28:20bulls there is no single clue clue for beer sellers then what is the fear here there is zero fear here more

28:27confidence 100 percent confident and zero fear fear because all the clues everything is in favor of bulls

28:34get that reward this trade these kind of opportunities called the real strategy and real technique where you'll be getting

28:41more rewards will be next video we'll be discussing more examples various aspects how the reaction was there

28:48what was the real scenario which was getting developed okay

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