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Price Action Patterns That Work (Guest Post)

Price Action Patterns That Work (Guest Post)

When it comes to price action patterns, most traders will think of…

“Hammer”

“Shooting star”

“Engulfing pattern”

Now, these are easy patterns to learn for beginners.

But, if you want to take your price action trading skill to the next level, then you must master new price action patterns.

That’s why in today’s post, you’ll discover 5 price action patterns that work—so you can develop sniper trading entries to trade market reversals, trend continuation, and even breakouts.

Ready?

Then let’s begin…

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 617 followers.

Price action pattern #1: False break

The false break is a reversal price action pattern that allows you to buy low and sell high.

Here’s why it works:

 

Imagine, the price makes a strong bullish move into resistance—and breaks out higher.

At this point, many traders have this thought process…

“The market is so bullish”

“Look at how big those green candles are!”

“It’s time to buy!”

So, this group of traders buy as the price breaks above resistance and their stop loss is likely below the previous candle low, below support, etc.

This means if the market makes a sudden reversal, you can agree that these cluster of stop loss will be triggered which puts selling pressure in the market.

Plus, if bearish traders step into the market and sell near the highs of resistance, you can expect the market to collapse lower and erode the gains it made earlier—that’s the power of the false break price action pattern.

Now that you’ve understood the logic behind the false break price action pattern, then here’s how to trade it…

Read More Read More

Monday 18 May 12PM: LIVE Market Commentary with Terence Wong from Azure Capital

Monday 18 May 12PM: LIVE Market Commentary with Terence Wong from Azure Capital

Key Market Updates: Get a better sense of the market from a professional fund manager’s point of view.

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Watch & hear Azure Capital’s CEO Terence Wong in this market commentary webinar during lunchtime, as he will be sharing his updates & views on the current stock market conditions as an investment professional.

Ask him anything on the Singapore market, from the largest blue chips to the smallest caps.

Venue: Attend online anywhere

Limited slots only.

Register for this webinar now:

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Watch the previous webinars here:
May 4: https://youtu.be/Pt5xYa6s3b0
Apr 20: https://www.youtube.com/watch?v=oc47JTU2wwo&t=760s
Mar 30: https://www.youtube.com/watch?v=9BuhdzhZdRY&t=438s
Mar 16: https://www.youtube.com/watch?v=zD9VXxDGNZU&t=1575s


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