Advanced Price Action Analysis

Price action trading relies purely on price movement without indicators. It's the purest form of technical analysis.

Order Flow Concepts


Market Structure

• Break of Structure (BOS): Trend continuation signal
• Change of Character (ChoCH): Potential reversal signal
• Liquidity: Areas where stops are clustered

Supply and Demand Zones



• Area where aggressive buying caused rapid price increase
• Price often returns to "fill orders"

• Area where aggressive selling caused rapid price drop
• Institutions look to sell here again

Identifying Quality Zones:

1. Strong departure from zone
2. Fresh (untested)
3. Clear imbalance candles
4. Located at higher timeframe structure

Advanced Candlestick Analysis

Imbalance/Fair Value Gaps

• Gaps between candle wicks
• Price often returns to fill these
• High probability trading areas

Order Blocks

• Last opposing candle before strong move
• Institutional entry points
• Use for entry in direction of move

Multi-Timeframe Analysis

• Determine overall bias
• Identify major S&R

• Find precise entries
• Manage trades

The Power of 3

1. Accumulation
2. Manipulation (stop hunt)
3. Distribution/Trend

Professional Concepts

• Displacement: Strong impulsive move
• Inducement: Liquidity grab before reversal
• Mitigation: Returning to unfilled orders