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
Demand Zone (Base):- 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:
- Strong departure from zone
- Fresh (untested)
- Clear imbalance candles
- 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
Higher Timeframe (HTF):- Determine overall bias
- Identify major S&R
- Find precise entries
- Manage trades
The Power of 3
- Accumulation
- Manipulation (stop hunt)
- Distribution/Trend
Professional Concepts
- Displacement: Strong impulsive move
- Inducement: Liquidity grab before reversal
- Mitigation: Returning to unfilled orders