In Steve Nison’s well-known work, Japanese Candlestick Charting Techniques, he included a section on using candlesticks with oscillators including stochastics, RSI, and moving average oscillator. Crucially, he observed that oscillators are objective and augment the more subjective candlestick patterns. This review will focus on trading candlestick patterns with Welles Wilder’s Relative Strength Index (RSI). This popular […]
Improved Three Bar Pullback Pattern
Trading pullbacks are very popular among price action traders. However, while pullback trading is a simple concept, you’ll find many different strategies due to the myriad ways to qualify trends and pullbacks. This article will examine one of the simplest methods to identify a pullback using only price action: the three-bar pullback. In the Futures […]
How To Trade Reversals By Spotting The Big Players With Volume Spikes
If you’re reading this, you’re likely to be a minor player in the market. For small retail traders, one way to succeed in the market is to observe demand and supply. And the best way to do so is to follow the big players. Who are the big players? The banks? The hedge funds? The […]
A Plain and Simple Trend Line Channel Trading Strategy
Trend line channel – it is a simple tool based on plain ol’ price action. However, with some practice, you can boost your market analysis with this elegant and powerful tool – a pair of lines that highlights the market trend, trade entry, and exit. What more can a minimalist trader ask for? Or what […]
Swing Trading with the Outside Bar Failure
You have seen many Outside Bars as you scrutinize price action. So you know first-hand how it could smash the expectations of committed traders. But you might not be sure how to take advantage of this unique bar formation. If so, this method offers a solid option by focusing on the pattern’s failure. Before we […]
Three-Bar Inside Bar Pattern
Price patterns have endless possibilities. Once you grasp the fundamental concepts of price action trading, a natural progression is to re-interpret classic bar patterns. That’s precisely what Johnan Prathap did in the Technical Analysis of Stocks and Commodities (March 2012 issue) by introducing the three-bar inside bar pattern. Introducing The Patterns Since this approach seeks […]
