Part 1 -
Price action strategies on TRADING: https://bitcointalk.org/index.php?topic=5493168.msg63955493#msg63955493 1. Key resistance levels
2. Key support levels
3. Supply and Demand + Multiple Reversals of Price
Extreme Swing Highs and Swing Lows In relation to the trading period, these are the lowest support levels, which indicate a very cheap price level, and the greatest resistance levels, which indicate a very costly price level..
This reversal point in between the swing high the low are the traditional high key levels
And the absolute higher resistance levels here is the extreme high swing level and the absolute lower support level here is the swing low key level.
Price action Psychology behind extreme swing highs - Short trade set-ups off swing highs are off higher quality, because there is a higher percentage chance of price reversing off the level as price is deemed "VERY" expensive within that time frame.
Higher Time Frame Key Levels Because they take longer to build, these critical levels are of extremely high quality and are apparent and visually evident on the higher time frames, such as the weekly and monthly.
Price thus responds to them frequently.
** Many of the major levels found on the lesser time frames are invisible when using the weekly or monthly time period.
** The levels that are visible and visually obvious on the weekly and monthly(higher tf) as known as
"Major key levels"** The
Major Key Levels, are levels where there is a higher probability of price reversing off of them, but not just as slight bounce but a true reversal
that will often move a greater distance.
These are the monthly time frame, this level here that are visible known as your major key level. Because this level are slower to form, they become very key levels
as these are the ones where slower moving large institutions look to unload positions or take on new positions.
Your resistance level as you can see in the image above formed in 2008, still valid at 2010, 2012 and 2018. Now you don't trade in the higher time frames,
But there is a technique... and you can see the technique at the image below,
Label the levels as monthly level, But then again you are mostly spend time on your monthly timeframe.
Long Wick Candlesticks It is where the wick is sticking out, paired with key levels of supports and resistance is one of the best ways to identify high quality price action trade set-ups for killer trade reversal entries.In an UPTREND illustration image below:
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Now in an opposite direction " DOWNTREND "
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Reference:
What is Long wick candlestick?
https://primexbt.com/for-traders/what-are-long-wick-candles/How to identify extreme swing highs and swing lows?
https://tradingstrategyguides.com/how-to-identifying-swing-high-swing-low/TO BE CONTINUED>>>>>>>>
