Eddu

[Steve Burns @SJosephBurns]

4 Price Action Rules EVERY Trader NEEDS To Know:

There are four primary dynamics in price action trading:

•An entry signal based on a breakout, breakdown, trading range, or chart pattern.

•A stop loss set at the price level a trade should not go if it is going to work out.

•A trailing stop that moves up a stop loss to lock in profits if a winning trade reverses.

•A profit target on where a maximum reward will be locked in if the price level is reached.
Price action trading rules create a framework and context for a trader’s actions to keep them safe from ruin while pursuing profits.
Here are five of the most important price action trading rules that every trader should know.

1. Trendline Rules

Trend lines are the identifiers and connectors of resistance and support in chart patterns.

Trend lines are identifiers of the trend in your trading time frame.
Vertical trend lines must be drawn from left to right to identify one of the following:

A trend of higher highs signaling an uptrend.

A trend of higher lows for support in an uptrend.

A trend of lower lows signaling a downtrend.

A trend of lower highs for resistance in a downtrend.

•Trendlines show the path of least resistance.

•After a trendline break a new extreme is created. 

•Trendline breaks can signal a reversal in the current directional bias of a move. 

•Trendline breaks can also signal a correction of the current move or that a new trend has begun. 

2. Trading Range Rules

A range bound chart has a defined level of support where buyers come in at that price so it does not go lower there multiple times. A range bound chart also a defined level of resistance where there are no buyers above that price so it does not go higher there multiple times.

A range bound chart starts to convert to a trend after price breaks above resistance or below support and starts to move away from the established price range. Buying support and selling resistance is rewarded on a range bound chart.


•Price action ranges show congestion between buyers and sellers.

•Most breakouts fail the first few times.

•Most breakouts pullback to the previous range before continuing in the direction of the breakout. 

•Buy low sell high. 


3. High Probability Setup Rules

A high probability entry point for taking a new position is simply when their is a higher probability of one thing happening over another next based on a signal.

Examples of these are buying dips in uptrends or rallies in downtrends. Entering a failed breakout of a range that fades back inside the previous resistance or support. Extreme oversold or overbought levels that move to extremes in deviations from the mean of the 20-day moving average. Finally, a breakout of a range and a new trend signaled by a new high or low over a specific time frame.

•Second chance entry points in the direction of the primary trend. 

•Failed breakouts against the trend. 

•Failed extreme moves at peaks and valleys. 

•Confirmed higher highs or lower lows signaling a trend has begun. 

4. Don’t Fight The Trend

The most dangerous rule any trader can break is the rule to not fight the trend. Huge losses happen when a trader finds their self in a position on the wrong side of a trend and doesn’t take their stop loss and the small loss turns into a huge loss. Profitable traders stay with the path of least resistance, if they do take a counter trend trade after an extreme oversold or overbought level their position size is small enough and their stop loss is tight enough to exit with a managed loss when wrong.

•The market doesn’t have to reverse, it can keep trending. 

•Picking tops and bottoms is a high risk low probability trading strategy. 

•Trendlines show you the current trend regardless of your opinions or predictions. 

•In bull markets thing long, in bear markets, think short.

[Eddu @EdduSmilez]

@pechacek_amy @memdotai mem it

[Lauren Johnston 江诗伦 🫏 @lajohnstondr]

#China & #USA competing for Kenyan spaceports: "There are only a handful of places on Earth where equator bisects an east-facing coastline. Kenya’s seaboard, lying just south of equator, represents prime spaceport real estate." https://t.co/4VjzjaRmaq @alykhansatchu @IEAKwame

[SpurgeonBooks @SpurgeonBooks]

"Prayer is the master-weapon.
We should be greatly wise if we used it more."

— Charles Spurgeon

[Lupita Nyong'o @Lupita_Nyongo]

Also on #EarthDay, you must watch #OurGreatNationalParks narrated by President @barackobama on @Netflix. From Monterey Bay to Kenya's Tsavo National Park and the Chilean Patagonia, it showcases the world's most iconic national parks & why preserving them for the future is a must.

[Carol Radull @CarolRadull]

Samuel Eto’o is the new Cameroon Football Federation (FECAFOOT) president.
Is there something that we can learn as a country as a result?
#TheGamePlan

[Value Investor Journal ® @VJ_Rabindranath]

If investing is entertaining, if you are having fun, you're probably not making any money. Good investing is terribly boring.

-- George Soros

[Pope Francis – ARCHIVE @Pontifex266Arch]

What is the secret of a blessed life, a happy life? Recognizing Jesus as the living God. For it is not important to know that Jesus was great in history. What matters is the place I give him in my life.

[Pope Francis – ARCHIVE @Pontifex266Arch]

Faith is the ardent desire for God, a bold effort to change, the courage to love, constant progress.

[PLO Lumumba @ProfPLOLumumba]

I salute the Majority in the Kenyan Court of Appeal for affirming without equivocation that when egotism and megalomania mount a Trojan Horse and masquerade as patriotism they will be handed a jurisprudential coup de gracè.

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👋 @EliudKipchoge
💙❤️ #GoBarça

[Hakainde Hichilema @HHichilema]

We are not masters of the people, we are their servants.

[Pope Francis – ARCHIVE @Pontifex266Arch]

Prayer is vital for life: just as we cannot live without breathing, so we cannot be Christians without praying.

[Ferdinand Omurwa OMANYALA M.B.S,O.G.W @Ferdiomanyala]

Waaaat!!!!
Somebody tell me am not dreaming!!!!!!
This will sink in years later.
Thank you to my management @fitnessfromafrica
Thank you @odibetskenya
Thank you @usnkenya
Thank you Andorf, Austria
On to the next
See u in a bit Helsinki, Finland
Cheers to second chances 👌👌👌

[Pope Francis – ARCHIVE @Pontifex266Arch]

With the help of young people and their innovative spirit, we can make the dream come true of a world where bread, water, medicine and work flow abundantly and reach those most in need first. #YouthDay

[PLO Lumumba @ProfPLOLumumba]

The war in Ethiopia, the Headquarters of the AFRICAN UNION is raging and the AU and African Countries are silent during the declared decade of silencing guns. Africans of goodwill should speak out.
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[Pope Francis – ARCHIVE @Pontifex266Arch]

Even death trembles when a Christian prays, because it knows that everyone who prays has an ally who is stronger than it: the Risen Lord. #Prayer #Easter

[Pope Francis – ARCHIVE @Pontifex266Arch]

Today is the day to ask, “Am I, who have so often received God’s mercy, merciful to others?” Let us not live a one-way faith, a faith that receives but does not give. Having received mercy, let us now become merciful. #DivineMercy