Technical Analysis - Price Action Masterclass

Download this trading checklist and price action manual to guide your daily market analysis, identify market condition and market face, support and resistance, price action patterns, and multi-time frame confirmation.

Explore what technical analysis is and how price action, using historical price data and repeatable patterns, helps traders identify high-probability trade setups and predict future moves, not fundamental analysis.

Leverage technical analysis to gain an edge and profit, regardless of the method. Identify opportunities across markets and timeframes through chart-based entry and exit signals.

Master price charts, especially candlestick charts, with support and resistance to identify high-probability trades through price action patterns and multi-time frame analysis.

Compare technical analysis and fundamental analysis by highlighting price action and charts versus economic data, news, and earnings, and contrast short-to-medium term time frames with long-term investment.

Learning technical analysis is easy for beginners, using charts, patterns, and basic tools to make informed decisions, find entry and exit points, and adapt to any market with risk management.

Identify market condition and market phase to gauge direction and spot trading opportunities, recognizing three market conditions (trending, ranging, choppy) and two market phases (impulsive, corrective).

Identify the market condition to determine market direction and set a directional bias. Recognize three types: trending (uptrend or downtrend), ranging (rotational), and choppy (avoid).

Identify uptrends and downtrends by spotting higher highs and higher lows versus lower highs and lower lows, and learn when to buy in uptrends and sell in downtrends.

Explain pullbacks as counter-trend moves within trends, retracing from higher highs in uptrends and from lower lows in downtrends, and introduce swing high and swing low terminology.

Identify swing highs and swing lows as peaks and troughs in uptrending and downtrending markets, enabling you to interpret price action.

Identify an uptrending market by recognizing higher highs and higher lows and the pullbacks that retrace progress. Observe changes of structure, impulsive breaks, or climactic moves that signal potential reversals.

Identify uptrend entries by buying at swing lows and selling at swing highs, differentiate trend trades from counter trend trades, and execute quick in and out moves to manage momentum.

Identify a downtrending market characterized by lower lows and lower highs, with pullbacks, major and minor moves, and notice the change of structure and climactic moves signaling reversal.

In a downtrend, execute trend trades for longer holds and quick in, quick out counter-trend entries during pullbacks, guided by lower lows and lower highs.

Identify and trade within a ranging market by recognizing price moves between upper and lower extremes, marked by two touches on each extreme and area-based bounds.

Learn to trade in ranging markets by buying at the lower extreme and selling at the upper extreme, using touches and confirmations to optimize risk to reward ratio.

End ranging markets when price breaks the upper or lower extreme; breakouts close above the upper, breakdowns below the lower extreme, with failed moves signaling false breaks.

Identify choppy market conditions where price moves up and down with no clear rhythm, making ranging or trending structures indistinguishable. Avoid trading these indecisive markets.

Avoid trading in choppy market conditions by learning to distinguish between ranging and trending markets; if you cannot identify the market condition, stay out.

Identify market condition as the first step in price chart analysis, recognizing three states: trending, ranging (rotational), and choppy or indecisive; avoid indecision and complete the homework for mastery.

Learn to identify market phase to enter trades at pullbacks with the trend; impulsive phase shows high momentum, while corrective phase shows counter-trend movement with lower momentum.

Identify the impulsive phase as a high momentum move from higher low to higher high in uptrends, or from lower high to lower low in downtrends, marked by larger candlesticks.

Identify corrective phase dynamics in price action, distinguishing simple and complex pullbacks in uptrends and downtrends, with low momentum and mixed bullish and bearish candles.

Explore how uptrends unfold through higher highs and higher lows, with impulsive moves and corrective phases, and how downtrends form via lower highs and lower lows with pullbacks. See real-world examples on USD/JPY, EUR/USD, Bitcoin, and Nasdaq to illustrate simple and complex pullbacks.

Learn to trade with the uptrend by buying at the end of the corrective phase, targeting higher highs and higher lows, and exiting quickly when trading against momentum.

Identify a downtrend and execute trend trades by selling at the end of corrective phases. Use counter-trend buys to anticipate the next impulsive move.

Trade with the trend by buying on weakness in uptrends and selling on strength in downtrends; entries occur at the end of the corrective phase, with simple or complex corrections.

Learn how price acceleration and deceleration reveal market momentum, helping you gauge the right time to enter, manage, or exit trades.

Identify price acceleration as a sign of impulsive momentum and hold existing trades, while avoiding late entries. Anticipate acceleration and position trades before it starts, using breakouts and corrective pullbacks.

Watch how price accelerates after breaking the last lower high, signaling a change of structure with higher highs and higher lows through corrective phases toward the next acceleration.

Deceleration signals a move is losing momentum and may end, with candlesticks shrinking as price approaches support or resistance, signaling end of impulsive or corrective phase and guiding trade management.

Identify deceleration and acceleration in price action across assets and timeframes, noting how deceleration forms a wedge pattern that precedes reversals, with support and resistance discussed later.

Identify acceleration as rising price momentum to hold existing trades, and deceleration as waning momentum signaling trading opportunities or the need to manage positions.

Identify support and resistance as price floors and roofs in price action, and learn how breaks flip levels from support to resistance and back.

Learn how support levels act as floors where buyers defend price, causing rejections and rebounds after tests. See practical examples across multiple pairs and timeframes, plotting and anticipating reactions.

Identify resistance as a base level where selling pressure halts rallies, evidenced by repeated rejections, changes in structure, and shifts between higher highs and lower lows across timeframes.

Identify break and retest patterns where a broken resistance becomes support and a broken support becomes resistance, driving higher highs and higher lows in price action.

Master price behavior around support and resistance, identifying price rejection and sharp moves away to confirm level hold or break, using candlestick signals and price action patterns.

Identify failed breakdown and failed breakout patterns, where price reverses after testing support or resistance, with real-world examples from indices and major currencies.

Identify clear support and resistance using chart tools like trend lines and Fibonacci moving averages, recognizing zones, not specific points, and confirm price action on higher time frames before trading.

Analyze price action and chart patterns derived from price movement to guide trading decisions, including reversal and continuation patterns, invalidation levels, target price, wedges, triangles, flags, and head and shoulders.

Learn to identify wedge and triangle price-action patterns, including falling and rising wedges, ascending and descending triangles, and symmetrical triangles. Follow breakout confirmations, invalidation levels, and measured-move targets.

Identify bull and bear flag price-action patterns in uptrends and downtrends, confirm with breakouts and invalidation levels, and set targets via recent resistance and measured moves.

Learn to identify and trade double top and double bottom reversal patterns in price action, using neck line breaks, invalidation levels, and measured move targets.

Master the head and shoulders reversal patterns, including bearish and bullish forms with flat, upward-sloping, and downward-sloping necklines, and learn confirmation, invalidation, and the 100 percent measured-move target.

Master price action patterns by applying them only in the right context and waiting for confirmation. Always know where the invalidation level is to guide decisions.

Discover candlesticks, their history, and how bullish and bearish candles reveal price action, with opening, closing, high, low, and body alongside upper and lower weeks.

Explain how a five minute candlestick captures a full day of trading, showing opening, lowest, highest, and closing prices, and the intraday up and down moves.

Discover bullish and bearish marubozu candlesticks and how they signal momentum and potential continuation. See examples in the dollar index, gold, and euro USD charts.

Identify lotus bullish reversal candles at support and high test bearish candles at resistance, with invalidation below the lower wick or above the upper wick and precise stop-loss placement.

The doji candlestick signals indecision between buyers and sellers, suggesting a possible change in trend or continuation. With a small body and short wicks, it can be either bullish or bearish, often appearing near support or resistance levels and signaling potential breakouts.

Identify bullish and bearish engulfing candlesticks as key reversals after moves at support or resistance. Apply invalidation rules below or above the pattern to manage trades.

Identify tweezer bottom and tweezer top candlesticks as reversal signals after downside or upside moves, with invalidation below the low or above the high and stops at support or resistance.

Identify morning star and evening star three-candle patterns to spot bullish reversals at support and bearish reversals at resistance, with 50 percent closes and clear invalidation levels.

Understand that a single candlestick has little significance; patterns only power moves after a trend or correction at strong support and resistance levels, with confluence guiding context.

Perform multi time frame analysis by ensuring higher time frame bullish or bearish action aligns with the lower time frame, recognizing the fractal market across monthly, weekly, and daily charts.

Use multi time frame analysis with daily and hourly charts to spot trend changes, bullish reversals, and breakouts, guided by morning star and head and shoulders patterns.

Use multi time frame analysis across monthly, weekly, and daily timeframes to confirm bearish bias in GBPUSD and EURJPY with lower lows, lower highs, and bearish reversal patterns.

Apply multi-timeframe analysis across monthly to intraday timeframes to spot a bullish aud/cad setup, featuring an inverse head and shoulders breakout and a retest.