How to Identify and Follow the Trend Like a Pro (Trading Strategy Secret), Price Action Trading
Hello everybody. Welcome to this video. My name is Arash. In this video I'm going to teach you how to identify trend and follow the trend. I recommend you to watch this video carefully and till the end because this video might help you to take the wise decision in financial market. Let's begin.
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And let's begin. In order to find a trend in financial market we need to find a potential support and resistance area. For example, if we have a potential support area on monthly time frame we can move to the one day time frame and trade it. If we have a potential support area on weekly timeframe we can move to the 4 hour time frame to trade it.
And if we have a daily potential support and resistance area we can move to the 1 hour time frame and trade it. I recommend you to write down this tips because we are going to use this tips in this video. And if you are having a level for 4 hour time frame you can trade it on 15 minute time frame. And if you are having 1 hour time frame level you can trade it on 5 minute time frame. And if you are having a level from 15 minute time frame you can trade it on 1 minute time frame too and you can actually live trade it.
I'm going to give you some examples in this video which is going to be really really useful and beneficial in order to find a time frame of a level. For example, here we are having a potential support area for GBP USD on this level. In order to find a time frame of this level we can move to the higher time frames. For example, right now we are on the daily time frame.
This level is completely visible with the eyes. We can see this level if we move to the weekly time frame we can still see this level Completely visible at this time frame too. So this level is for weekly time frame or even higher. Let's go to the monthly time frame. If you check this level on the monthly time frame, this level is still completely visible to us.
So we have a monthly time frame level. Because we don't have a higher time frame than monthly. We are not going to check three months or twelve months time frame. This level is for monthly time frame. When you are having a monthly time frame level. You can trade it on the daily time frame. Okay.
If you check daily time frame you can see that at this level. We started a big bullish trend. Actually to the upside, this is how you can identify the trends and how you can actually follow the trend. I'm going to give you more example how to follow it. In order to following the trend you need two indicators.
You can check and load KK4x SMA which is going to be here. You can change the setting from this area. I'm going to use ten and 20 moving average and I'm going to turn off the rest. Two moving averages are enough. As you can see, as long as we are above these ten moving average we can keep our buy position, our long position. After that we can actually exit our long position here.
So this is how you can actually determine the trend and find trends. I'm going to give you some more examples and I'm going to tell you the exact target of this movement to the upside. How can we set targets in this strategy? In order to set targets we can use the indicator which is going to be ATR or average true range. You can load this indicator from up here ATR; average true range. And right now ATR of GBP USD on daily time frame is 77 points or 77 pips.
And when you are in the lower time frames your potential target from this potential support area is going to be three ATRs. For example, right here we have 77 pips. So 77 pips.
Let's calculate here three. If it's 70, it's going to be 210, something like 210 pips. From this level we can move up for 210 pips. For example, this is the first target that you can actually achieve at this time frame.
And after that next target can be five ATR which is going to be even higher. It's going to be 350 pips. You can see that the second target and the third target is going to be seven ATR which is going to be 490 pips. Let me find it. 490 pips is going to be here. Up here.
As you can see most of targets has been triggered. So this is actually how you can trade in financial markets, how to find trends, how to determine targets, how to actually follow the trend. I'm going to cover everything in this video with more examples. For example we can use BTC USD chart and in BTC USD chart on the four hour time frame or daily time frame. Yeah, on the daily time frame we are having this potential support area at this level I'm going to turn off everything you can see that's a potential support area.
On daily time frame we can move to the higher time frames. For example, weekly time frame. You can see that this level is still visible at this time frame too. You can see this support area.
It's completely clear. Candles support and resistance shadows. Everything is clear. But in the monthly time frame we cannot really see the level here.
I doubt it but I think it's for weekly time frame. And when you have a weekly time frame level or even monthly time frame level. It doesn't matter. It can be a weekly or monthly time frame level. Let's think that. Let's imagine that this level is for monthly time frame.
When you doubt it, I recommend you to use higher time frames. For example, right now I am not really sure that this level is for monthly or weekly time frame. This level in the monthly time frame is a little bit visible right here. I'm going to consider this level for the monthly time frame in this video. Maybe on other videos I have considered this level as a weekly time frame. But let's consider this level as a monthly time frame level.
If you have a monthly time frame level on the daily time frame we can wait for down here and I can enter buy position at down here somewhere like $30,000 and my potential take profit is going to be 3 ATR which is going to be right now ATR on daily time frame is $2,357. So the target can be three ATR which is going to be $6,000. Here the first target, second target can be five ATR which is going to be $10,000 which is going to be $40,000 area. I think the second target is going to be touched and we can use moving averages right now. If you use them, you can see that we are in the bearish trend right now. We can wait for the price to move down.
After that, we can wait for some consolidation of the price here. And after that we can actually wait for this cross in the moving averages. Whenever these ten crosses up 20, we can actually enter buy position or we can even set buy limit order without any kind of confirmation at this level too. And we can keep the position as long as price is above ten moving average. This is my strategy. This is how I determine trend in financial markets and right now this is what I'm going to do.
Everything you see and hear in this video is not a financial advice. This whole video is made with educational purposes. Don't forget about that. And if we move to the monthly time frame, we had a potential resistance area up here. And as you can see, these levels are working properly. I recommend you in order to find trend and in order to follow the trends, use higher time frames.
My favorite trading strategy is finding monthly, weekly and daily levels and trading them on the For example, daily, four hour or 1 hour time frame. This is what I do and some people are live trading in financial markets. In order to live trade you need 15 minutes time frame level. Let's see if we have one. You cannot see any kind of a specific level on the 15 minutes time frame.
Let's check 30 minutes time frame. Let's turn off moving averages. Let's check 1 hour time frame, in the 1 hour time frame. We have this potential support area for BTC USDT. This is the potential resistance after the breakout. Right now it's going to work as a potential support.
Let's check 1 hour time frame. This level is still visible at this time frame. So right now if price moves down to this level we can trade it on 15 minutes time frame this is not a live trade.
And we can move to the trigger time which is going to be 15 minutes time frame. We can set buy limit order at this level. We can set stop loss below this long shadow or below this shadow here. And we can set target which is going to be the ATR is $230.
We can set target for three ATR which is going to be $1,000, not $1,000. It's going to be $600 and the next target is going to be $1,000. I think if price moves down we can expect some bounces like this.
This video is a full trading strategy video. You can actually combine these levels together. You can use moving averages. You have everything you need.
The stop loss is clear. The take profit is clear. The ATR, the moving averages. Everything is clear in this trading strategy. If you like this trading strategy and if you like this video up to now, I recommend you to give me some thumbs up and share this video with your friends and let's go for more example.
The final example as you can see, the final example is going to be Ethereum USDT. We have a potential support area at this level. This level is completely visible on daily time frame. Let's check weekly. I think it's going to be visible on weekly time frame too. Yeah, it's completely visible this area.
Let's check monthly time frame in the monthly time frame it's not visible anymore. This level is for weekly time frame. Let's move back in the weekly time frame. We have a potential support area for Ethereum. We can trade this level on four hour time frame. We can set some buy limit order in this area which is going to be $1,700 up to $1,900.
We can set this buy limit order in this area. The stop loss is going to be below this level and the potential take profit can be five ATR again which is going to be $500 for Ethereum. So from this area $1,777 we can move up for $500 which is going to be somewhere like here, 28% profit. And I think we are going to see some even stronger bounces from this level.
Maybe even seven ATR for $700 which is going to be 41% profit. So this is actually how you can trade in financial markets. How to identify trends. You have to find potential support and resistance areas on monthly, weekly or daily time frame. You can trade them on lower time frames.
You can use stop losses below these potential support areas and you can set your take profit for three, five and seven ATRs. On the lower time frames, you have to use moving averages. If you want to follow the trend without any kind of target, you can use moving averages. You can keep your positions as long as your price is above ten moving average. Okay. This is another technique that you can actually use. I was thinking that Ethereum is going to be my final example, but I think I am not done yet.
I think we are going to need more examples right now. We can take a look at crude oil chart. We have this trend line on the monthly timeframe and also in the monthly time frame we have this potential resistance area. This area is really strong. It was a support here, another support here, another support here. And when you have a monthly time frame level, you can trade it on daily time frame.
Let's check. You can see this big dump here, this big Brother, this big dump here. And it has happened from this level. And you can see that this technical analysis strategy is working properly and you just need to be patient in order to make profit from this strategy.
And we can't expect the price to move down for five ATRs here. The ATR was $2. on daily time frame which is going to be five ATR is going to be $10. And as you can see from 84, price moved down to the 74 here. After that, we had a pull back because some people are taking profits and they are setting their target for five ATR. But price has moved down for even $20.
And as you can see, this is how you can identify trends in financial markets. This strategy is working properly right now. I'm not going to trade this short position anymore because we had one, two pullbacks from this level. Right now I'm just going to observe this level. I'm just going to see what's going to happen from this red trend line up here. We might see another rejection because we are still in the daily time frame level and we have some news about crude oil.
But I am not really sure about it right now. Not going to do anything special. And yeah, I'm still waiting because I'm not really confirmed about another short position. We can check weekly timeframe candles and see what's going on in the weekly time frame. You can see that price moves up, price moves down, price moves up, price moves down.
So we might have another short position from up there. But I'm going to wait for some confirmations in the future. I'm not going to set sell limit up here anymore because it's going to be too risky. We had a bunch of pullbacks to this level. And when price pulls back to the level too much, it's a sign that we might have a breakout from this level.
So right now I'm not going to do anything and I'm going to give you another example, the real final example because I think you have learnt everything you needed to know and for example you can see that price is making higher lows here. We had a low here. We had higher low here.
We had another higher low here and price is making higher lows in the upcoming days. If price moves down we can enter buy position on 1 hour time frame at this level. This level is for daily time frame. Yes.
Right now we are having this potential support area for crude oil chart and I think if price moves down in the upcoming days we are going to see another bounce from this potential support area again and we can actually trade this level on the 1 hour time frame. In the 1 hour time frame we can set buy limit around this level. As you can see we have a big spike to the upside when you have a big spike from the upside.
The base of this movement which is going to be this area is going to be too important because from this level we might see another bounce, traders are going to enter buy position dramatically again because the previous time we had a big bounce to the upside. So right now if price moves down to this level again we can expect some bullish trends from 71.83 up to 72.58. From this area we can expect the price to move up. We can check the ATR is 0.58 and the five ATR is going to be $2.50, $2.50 is going to
be here and we can even move up for $3 it's going to be a big trend to the upside. $3 movement is going to be pretty high. on the 1 hour time frame. It's a nice target actually and you can achieve these targets from checking the chart in the multiple time frames. I hope you enjoyed this video.
If it was useful for you I recommend you to give me some thumbs up. I recommend you to check my previous videos about multiple time frame analysis. I had bunch of videos about how to trade on multiple time frames and I recommend you to smash that subscribe button because we are going to have some live trades together and I'm going to see you later.
2022-01-30 07:07
