3 SIMPLE Price Action Patterns That Will CHANGE Your Trading

3 SIMPLE Price Action Patterns That Will CHANGE Your Trading
- 2nd entry at Key entry point with the trend
- failed 2nd entry against the trend
- failed breakouts
This video highlights one of the best scalping strategies that can be used in day trading. Whether you are trading forex, crypto or indices, this Scalping strategy will work incredibly well. This Scalping Strategy also works on any time frame and can turn into long term position holding.
Price action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.
The only people who know where the market is heading are institutions. They are the ones who make the market move and our job as a retail traders is to follow their footsteps and get the piece of their movement. As a priceaction traders we need to find the most profitable ways to enter trades. The highest probability setups are 2nd entries at the key entry points.
Date December 3 2021
If you want more advanced Trading tips, strategies
wadetradingacademy.com/
#Futures #Stocks #Forex

[@davidkvists9228]

This is the best trading education video on KZbin. This is all you need to know about the trading in just short 25 min lesson. Of course, to be successful you need experience to be able to analyze the market context, draw the trendlines, and mental readiness. Great job, Thomas!

[@DeltaScalper]

Many will be disappointed when Thomas said 1-2 years. It is easy to see all these setups after market closes but takes alot of live screen time to spot them live , not only to spot them but analyze the context , make a decision and place the trade in different market environments and speed .

[@ThomasWade]

1-2 years of studying price action could produce 60-70% win rate which could easily create good income. Problem is as you stated with the experience part, mainly the mental aspect. Our minds will constantly force us into bad trades or force us to not take the setup. Trading is not that complicated but mastering emotions is what takes the most time.

[@DeltaScalper]

@@ThomasWade I now have a trading partner, we are on voice only , remind each other to draw stt lines , not force trades, and snap out of the tunnel vision , which seems to be the biggest problem. What I noticed is, when you are relaxed time passes by very slow you breath normal and things are under control, when tunnel vision happens, you lose sense of time , probably forget to breathe and only concentrate on individual ticks . Having a live voice only trading partner helped me a lot , this way there are no distractions.

[@ray2228]

Not really I watched charts from lots of forex screen time, grasping it in a few weeks.

[@danielle8622]

100% agreed. It's a skill that needs time to master. I often find myself marking trades after the fact but I have to catch myself and say, I probably would not have recognized that in real time because there wasn't enough info available at the time to notice the trendline yet.

[@chuydodoubleg5394]

​@@ThomasWade I've been a crypto holder for 2 years and I thought day trading wouldn't b so hard but it's a whole different ball game Lol I'm 6 months in on my day trading experience Im hoping to make this my last year working for somebody else

[@shaunehatton4348]

You right , I've notice if I've made one losing trade I'm so scared to pull the trigger even when I see that perfect 2nd entry... and today chart had so may. Right out the gate I took a perfect 2nd entry. BUT YOUR MIND CAN PLAY TRICKS ON YOU, constant mind games. But I'm loving the trading lots to learn. Thanks again for your guidance.

[@ThomasWade]

Your last trade and your next trade has no connection what so ever. We are pattern seeking creatures. We look for repeat patterns and therefore if we have a losing trade we think the next one will be loser as well. Very common. We look at trading as a probability game. Like a casino, this bet has no correlation to the next bet, we just take trades and numbers will eventually work in our favor. Try focusing on series of trades rather then the next trade.

[@yur.vsaibo9187]

We will always support you Thomas.

[@yur.vsaibo9187]

With the marks on the graph, it is much better to understand thank you, friend.

[@rdd1943]

Thank you thank you - you give the clearest explanations!!

[@hardikstricksandhacks9910]

One of the best trading education KZbin channel I ever come across... Thank you sir!

[@yur.vsaibo9187]

Great job, Thomas! Thank you, friend.

[@ray2228]

Great channel and info, getting better entries watching your videos!

[@williamrickard6388]

You make it look easy and sound easy thanks BR

[@Ainoras]

Awesome content. Thank You.

[@user-bl1ok8sp6m]

Thomas, thank you for your teaching... You have helped me so much I cant even put it into words... So thank you is the best I can do! By far the best price action explanation out here!!!! Fire Bro

[@tradingtime300]

You have improved my trading. Thanks Thomas!

[@jayjay-br3xv]

I love your videos, this is great! Big signal bars scare me, but I will be patient. Thanks

[@meditationisamedicine8905]

Really you are best because your teaching process is very genuine and I never seen like this educational video on KZbin.

[@igorlovato4363]

Excellent! Thank You🙏

[@ukulelebatz]

Nice explanation. Thx 😎

[@md.sazzadulislam7189]

22:13 Loved the interpretation, worth being with you here.great job, thanks ❤

[@farhanmohammed1189]

You are a legend bro ! Thank you so much

[@yur.vsaibo9187]

Cool video, very useful and informative. The video is one of the best.

[@FundedFuturesTrader]

I've become a more profitable trader thanks to Thomas Wade explanations.

[@ThomasWade]

Awesome! That is the goal here.

[@emr9411]

Great video Thomas This explanation of F2E will be game changer for traders paying attention All the Best MRGolf

[@ThomasWade]

Thanks man. Hopefully you are killing. Your last results were great!

[@mahalagbaba1685]

I saw most of those setups as well but took only two. Was afraid of big signal bar. Always more then 2 points. But still 2-0 for today 😉. Thomas, what's your thoughts on those big singal bars? When should one take it?

[@romanterentiev7683]

Yes, a video showing how to manage volatility would be very helpful.

[@ThomasWade]

Volatility seems high even today. I will make a video about it.

[@ThePremier6969]

OMG... Thank you! Been watching and learning for years and your content is so powerful. You have truly blessed me.

[@ThomasWade]

🙏

[@SR-hd2rk]

Great Content

[@ianbuckley7274]

I have really started to understand and appreciate your content and I thank you for your time and explanations. I would really like to see more of a backtrading style approach where you explain your process candle by candle without seeing any other candle to the right, I believe it would be beneficial to hear your thoughts and trading analysis candle by candle. I hope this is something you would consider producing, thanks again for being so giving with your time and information

[@ThomasWade]

I have been doing bar by bar style lately more and more.

[@winningleader7911]

Great content

[@richterbelmont9751]

gracias thomas, este es un gran video, siempre aprendo con su contenido, nos ayudas a ser mejores traders. aprecio su dedicación

[@ThomasWade]

De nada. No sabía que eres espaňol.

[@ramanparashar1]

Bro your channel is the best I have found on KZbin for chart reading and price action ... It is helping me a lot in understanding the markets and charts .. I trade in derivatives ... Lots of love !!

[@ThomasWade]

🙏

[@jasonmitchell6773]

I am new, and thus confused. Around 15:30 you mark an i-i setup a 2ES, but according to everything I've read, the next bar would be your signal bar because the second entry doesn't trigger until the next bar (third bear bar), when it breaks below the prior bar. All of your other examples have been marked when it breaks above or below the prior bar. Why is this particular one different?

[@ThomasWade]

Great question. You are 100% correct here. Technically I was supposed to mark the inside bar one bar later. I just marked the first bearish bar as that was the signal that 2ES may come. You are expecting to get a break below it and enter, it just took a while and one more inside bar formed.

[@recstormTV]

Top!

[@bobmarslek15]

Why do you take the Inside Signal Bars?

[@ThomasWade]

I like inside bar as they allow us to make our SL smaller and we have more room to hit the target profit.

[@bobmarslek15]

@@ThomasWade Do you place the SL one tick above an Inside SB or on the high of the swing?

[@ThomasWade]

@@bobmarslek15 The high of the swing, always. If you put it above inside bar you can get stopped out on the noise.

[@danielle8622]

Thomas, I love your videos. I look forward to every one, thank you for providing such useful info and recaps and for free at that. I'm curious about your trading hours. I believe you're not US-based, right? Do you trade only the active US hours? For example the first trade you marked here occurred at around 4:30 am EST. Just curious if you are actively trading at that time, or do you wait for closer to market open times in US.

[@ThomasWade]

Hey, I am in central europian timezone. I generally start trading hour and a half before the regular US hours market open. After that I like to be done within few hours. I try to mark more trades because some traders start trading much earlier or later...

[@C0D380145]

Pure gold. Are you only focusing on one index per tradingday or are you monitoring multiple to look for high probability setups? How many different indexes are you monitoring at the same time?

[@ThomasWade]

I focus only on ES. I watch NQ and CL on the side because price action works perfectly there as well but simply don't have the capacity. Depends what fits you. Some traders trade many instruments, some trade few.

[@rahulkhandelwal8030]

Very good Mr Thomas , Great explanation.. But i have confusion about Time frame in Day trading or scalping.. Plz clear it.. which time frame should be used?? Plz reply

[@ThomasWade]

I use 2000 tick chart. You can also use 1-5 min charts.

[@samchan9616]

Great explaination. Does tradingview have these indicators

[@ThomasWade]

What indicators? I only use EMA.

[@chrisparker8557]

Hi Thomas. Thanks again for a great video. Question: When do we know a move to a new extreme after a break is over? a new extreme could be a tick or it could be 10 points. What do we look for to indicate the extreme move is over? A lower high or higher low? Thanks

[@ThomasWade]

Good question. After new extreme is made, we pay attention to the EMA. If EMA keeps holding price that indicates that we can make few more pushes to a new extreme. If we push through the EMA it looks like trend is reversing and we look for reversal pattern.

[@chrisparker8557]

@@ThomasWade Thanks. That makes sense. The second entry after the interaction with the EMA should be clear as to direction right? As long as the signal bar is good..

[@ahmedgalal9507]

Hey Thomas, will these techniques work in higher time frames or just 1min scalping? The higher time frames will give some time to think for beginners

[@ThomasWade]

It works in higher timeframes as well but you might be waiting a long time for a setup. So this is why smaller timeframes are better.

[@DeltaScalper]

Thanks again Thomas , 16:00 2ES is off the double bottom, so it's technically 1ES, am I wrong ? To be honest that was the reason I didn't take that trade , even though it looked good .

[@ThomasWade]

You are talking about video time? The 2ES is not coming from double bottom.

[@JayKay4347]

Hey Thomas, Thank you so much for making these videos they help so much. I do have a question? As an example let's just say all conditions are met for instance, you've identified the trend bias, located the key entry point, identified a high probability setup, an have a good signal bar. if all of that is true, would you say that a F2E against the trend is just as good of a signal as a 2E with the trend, to take a position with the trend. I just can't wrap my head around if they are equally as good as each other for success

[@ThomasWade]

Yes they are both good trades. If you have uptrend, good key entry point. 2EL with trend at key entry point is as reliable as F2ES at key entry point with trend. When trend is up we just look for high probability setups to go long. There are more than just 1 high probability setup, second entry. We have failures, Higher Lows, Double Traps or Triple Test. Triple Test is more advanced and mainly supportive pattern. But to conclude, 2EL and F2ES under great conditions, both are equally good. I would say plain second entries are easier for beignners to spot.

[@JayKay4347]

@@ThomasWade Thank you so much for taking the time to confirm that for me, I've been really enjoying learning from your (training tutorial for beginners) series, it's amazing how these charts make so much more sense with good guidance. Thanks again

[@goldensphinx3535]

Is there any type of difference between a 2EL and a F2ES? I feel like they both accomplish the same things and have the same meanings right?

[@ThomasWade]

Yes they are both long setups. But they are counted differently.

[@abhisheksoni2455]

Hey, at chart time 15:37, there is a break of the uptrend. As you said, when that happens, anticipate a new extreme. In this case, no new extreme came to the upside. Could you please help me understand?

[@ThomasWade]

There is small break and new high for that correction though.

[@vikrang]

New High or New Low would mean higher or lower than the earlier swing ? At hindsight , we can spot the highs and lows and analyze retrospectively. But when we are trading live, (without being able to see the right side !) how do you deternine new low or new high ? Whatis the reference point to determine this? . Also sometimes before forming a new high the 21 period EMA is broken on the reverse again . In this case, should we look for a new low or wait for a new high to give effect to the first break?

[@ThomasWade]

When we are talking about new low for example of the channel as a new extreme we mean low that is lower outside of the channel, after break than the lowest low inside of the channel prior break. When we are talking about new high to reset the count to count for short setup F2EL , we generally count when significant event in the market happens. Meaning if you have two legged pullback for example. That is a good swing high to reset the count. Or pullback to the EMA is is significant event. I have a video about how to count entries. kzbin.info/www/bejne/hH_ddJidpNiLq5o&ab_channel=ThomasWade

[@vikrang]

@@ThomasWade Thanks Thomas!

[@user-ii6wz7ei7i]

For mt5 set up on phone?

[@mazharali8445]

Hi Thomas, at 16:13 you didn't take the short because a new low is formed. But we also have a new low at 16:00 and 16:08 but you took those two short trades. Can you please help me understand?

[@ThomasWade]

I assume you are talking about time on the chart. 16:13 is the new low for the major green downtrend. The blue tighter channel kept constantly making new lows and that indicates that there may be bigger pattern in play.

[@traoher9724]

I want to see a live analysis.

[@yur.vsaibo9187]

13m-10s. Can you name a 2ES trap? Input down (down) as 3ES and 4ES (down). 4ES as LH ?

[@ThomasWade]

I don't understand, name what? There was 2ES trap but since the trend was down so strong and we were waiting for a new extreme you don't want to go long there.

[@user-ii6wz7ei7i]

What kind of moving average are you using sir?

[@ThomasWade]

I am using 21 bar EMA.

[@yur.vsaibo9187]

24m - 00s. We have a new minimum, and we have 1ES, but it's not interesting. Because we overcame the minimum (extreme) with the first short entry.

[@ThomasWade]

By the time 1ES setup there is no new extreme but since we want to take 2ES, this is why the 1ES is not interesting.

[@girishh2491]

👌👍

[@yur.vsaibo9187]

11 m-45 s. we need to stop the weakening of breakouts. Don't understand what this means? I probably got it. Breakouts can be traded in small and medium-sized trading ranges. In large trading ranges and with a strong trend, they need to be skipped.

[@ThomasWade]

Correct. When the range is big that there are trends within, large trends, we don't fade the breakouts.

[@user-fu4ri8sl9t]

what time frame we should use plzz reply

[@ThomasWade]

I trade 2000 tick chart. 1-5 min are also good.

[@ajnambiar7932]

What timeframe are you using?

[@ThomasWade]

I use 2000 tick chart.

[@yur.vsaibo9187]

7m-45s. Have you considered 2EL or F2EL? I don't understand why this is a bad deal. Trap 2EL? We are under the EMA. There are entry conditions for going down (down) - this is a 2EL trap, and we are also under the EMA.Maybe there is no entry because the trend line is close to go down. I'll say it differently, probably it will be more correct. We have an F2EL trap and we are under the EMA. Input down as F2EL. Why is this a bad deal?

[@ThomasWade]

Because we would sell directly into that trendline. At that point it looked like the uptrend is still in play.

[@holand7111]

what EMA are you using & time frame ? EMA50 5min?

[@ThomasWade]

I trade 2000 tick chart, 21 bar EMA.

[@holand7111]

Oo tqvm

[@josserramirez4226]

How is your ema setup?

[@ThomasWade]

21 bar EMA.

[@EARTH_WONDERS24]

many traders use 9 and 15 ema in Indian markets does it make any difference sir?

[@ThomasWade]

I personally use 21. The best fit for me.

[@EARTH_WONDERS24]

@@ThomasWade oh oky thanks a lot for the reply sir. You are a great mentor ❤

[@salaimyoe4579]

can use 4hr time frame?

[@ThomasWade]

I wouldn't recommend.

[@user-bq5jr8qh6n]

🌺🌺🌺

[@nicdav100]

These are awesome videos but I don’t see how you’re able to maintain any viable R/R ratio. Almost every setup you’ve marked has at least a 2/1 R/R. Successful maybe with such a strong downtrend not long term

[@ThomasWade]

That is what scalping is. You have to remember that when you are scalping, it is easier for you to maintain high win rate. Because you are interested only in small price move. Sometimes you may even be wrong on the direction but still get your scalp before market turns. So it is much easier to keep high win rate once you learn price action. Traders have different personalities and use different TP though, some use 1:1, some swing more, it depends. Some traders also only scalp for 4 ticks. Depends on what fits your personality the most.

[@nicdav100]

@@ThomasWade Thanks for replying and explaining more. I am a huge fan of your videos and have watched many multiple times. I am just starting to paper trade and realizing how difficult it can actually be. I know you are busy so thanks again for the encouragement

[@kend109]

I miss the old days when you started out using the crappy microphone and would have those porno movies playing on the TV in the background. I'm sure you missed this joke too. But remember, other people will see this comment and realize they have to go back to your older videos to see the porno's, your views will increase. All joking aside, I have not commented on your video's in a very long time. I wanted to tell you that I appreciate the effort you put into drawing up all the geometry for your chart review. If you put a nice intro on this video so it was a full 30 minutes long, you could probably sell it for a few hundred dollars and people like me would buy it. I'm not sure why you do this work but thanks. This is the best content out there. Best Regards .. Ken

[@ThomasWade]

Haha :) Good ol times Glad you like the work.