4 WAYS TO TRADE PRICE ACTION

📌 PASS THE PROP TRADING TIPS

Price action is one of the most straightforward and effective ways to trade the markets. Think of it as a way to cut through all the noise and focus on what really matters—the movement of price itself 📉. No need to clutter your charts with tons of indicators; instead, you’re learning to read the market’s story as it unfolds 📖. Ready to dive in? Let’s explore four fun strategies that will get you started: trading the range, trading breakouts after a retrace, trading resistance at swing highs and lows, and running and testing significant levels.

1. Trading the Range 🎯

Picture this: the price is bouncing between two levels, like a ball in a pinball machine 🕹️. Those levels are called support (the floor) and resistance (the ceiling), and your job is to catch the ball at the floor and launch it at the ceiling 🚀. To play this game, you first need to spot these levels by looking for areas where the price keeps reversing 🔄. Once you’ve found your range, it’s go time! Buy near the support level and sell near the resistance level 💰. Just remember to keep your safety net in place—set a stop-loss outside the range to avoid getting caught off guard, and aim to take your profits when the price hits the other side of the range 🎯. This strategy is perfect for those times when the market is just bouncing around, giving you plenty of chances to rack up wins 🏆.

2. Trading the Breakout After a Retrace 🎢

Now, let’s kick it up a notch with breakouts 🚀. But wait, we’re not just chasing any breakout—we’re looking for the ones that come back to test the waters 🌊. Think of it like waiting for a roller coaster to climb up the hill, dip back down a bit, and then take off 🎢. Here’s how you do it: First, mark the level where the price breaks out of a range or hits a key level. Then, hold tight and wait for the price to pull back and give that breakout level a little test 🔍. If it holds, that’s your green light to jump in! Set your stop-loss just below the breakout level for long trades or just above it for short trades, and enjoy the ride 🎢.

3. Trading Resistance at Swing Highs and Lows 🎯

Ready to catch some market reversals? Trading resistance at swing highs and lows is like playing a game of whack-a-mole with price peaks and troughs 🎯. Start by spotting those high points (swing highs) and low points (swing lows) on your chart 📊. The more times these levels get hit, the stronger they become—like a mole that just won’t stay down 🐹! When you see the price hitting these levels again, that’s your cue to take action 🏁. Go short at the swing highs or long at the swing lows, and keep your stop-losses tight to stay in control of the game 🎮.

4. Running For Round Numbers 🎯

Finally, let’s talk about those big, round numbers like 100 or 200—they’re like the finish lines in a race 🏁. These levels can create all kinds of market drama 🎭, as traders react to them like they’re crossing a major milestone 🏅. Mark these levels on your chart and watch how the price behaves when it gets close 👀. Will it blast through or bounce back? Once you see what’s happening, you can decide whether to join the action. Just make sure to keep your stop-loss close by, so you can stay in the game even if things get wild 🎢.

Price action trading is a powerful tool that can help you make smarter, more confident trading decisions 💡. By getting comfortable with these strategies, you’ll be well on your way to navigating the markets like a pro 🏆.