Reading Price Chart Bar - by - Bar - Price Action Edition

Free Trading Training Content
Important Price Action Rules - rb.gy/eh8w
Simple Guide To Trading - rb.gy/sypf
The Best Trading Pattern - rb.gy/hdkd
How To Count Entries - rb.gy/kptd
Two Legged Master Setup - rb.gy/x6vq
Money Management Rules - rb.gy/lnce
Instagram - / realthomaswade
Twitter - / iamthomaswade
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Date March 15 2024
Time frame - 2000 tick chart
Instrument - S&P 500 ES Futures
Indicator(Supportive) - 21 bar EMA
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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 retail traders is to follow their footsteps and get the piece of their movement. As price action traders we need to find the most profitable ways to enter trades. The highest probability setups are 2nd entries, its variations and confirmations setups at the key entry points.

[@UpGradeTutoringSolutions]

This week was the best one in a long time.

[@darylbaptie5159]

Thanks Thomas! As always very helpful!

[@Archer441]

Thank you. 1-0 today

[@ronnieg2961]

I’d never argue with you Wade as in my eyes you’re the goat but in my experience news doesn’t proceed price. It appears to be the other way around, I noticed and learned that years ago trading strictly supply and demand. I understand your reasoning for not taking trades when news about to occur but if you go back and check your charts you’ll see that most potential setups that’s happen before news plays out even during the news. But again I respect you not wanting to take a trade due to volatility. Thanks for everything 🫡

[@littlehammer87]

I realized that too. You are quite right. BUT for my experience because you have a very precise, systematic and methodical strategy which involves very tight stop, we just can't afford to risk it into the news storms. Especially into these periods of rollover and new highs. It is indeed a very very hard trading during these days. Better extra careful then sorry. ;)

[@ThomasWade]

I see what you are saying. And not that I disagree, but many times the spike in volatility is big and it can whipsaw you and then continue where you thought it was going to go. Also the risk of slippage is quite high. There are going to be many setups each day so why risk trading exactly around news. So I feel it is much better just to not get involved around news:)

[@t3rcx]

​@@ThomasWadeSlippage is a great reason to stay out. Even as liquid as futures are, I've had 3 ticks of slippage during a news event with just 1 contract in play. Setups may work but the risk factor is higher, so better to wait it out.

[@ronnieg2961]

@@ThomasWade can’t argue with any of this from all of you and I completely agree and understand the reasoning, I trade NQ so trust me.. I get it with slippage

[@ronnieg2961]

@@littlehammer87 agreed

[@littlehammer87]

Hi Thomas. My chart today looked quite different. Especially on the second big downtrend. Also I got told from a great Wall Street trader that today was a "first quarter expiry" and it was dangerous to trade. So I paid extra attention but I still managed to get 1 trade. The very first one that you took as well. Too good to miss 😅😊. Thank you As always ❤❤

[@sergiorodriguez6721]

I’m new to trading and was wondering if you could explain how you setup your entry brackets? 4 Limit with a 3-1 split and a 4 stop.

[@slagovic7850]

Could you make a video explaining failed second entries?

[@pawantandon1235]

Good afternoon Thomas. Another question. I f an upward channel has 2 perfect touches on top side as well as bottom side but when it came down for the third touch it broke the channel and closed outside. Does it mean that it was never a channel inspite of 2 perfect touches on either side. What do you do in such a situation

[@littlehammer87]

Hi Thomas. Just a question: how we considered that of at 7.40 a 2EL? Also at min 12. Ok we are in a downtrend and looks like visual 2 legs up but we have 3 minor issues: we dont have a new "high" for the smaller leg up. Signal bar is not tier A. We shoud have resetted the count of the bottom as we technically don't have a new low. Given all this can you safely say that this particular trade was still a "HIGH PROBABILITY TRADE SETUP"? Thanks much appreciated. As always ❤

[@ThomasWade]

7:40 we have micro double top and if we reset the count, there is technical 2EL FBO. At 12 min we have technical 1ES(micro double bottom count reset) but because we have 3 key entry points and visually looks clear 2 legs, we can still consider as high probability setup because context is so clear.

[@littlehammer87]

@@ThomasWade Thomas you don't know how much I appreciate your answer on your break time! Hehehe. :) thank you very very much 😊 As always ❤️

[@slagovic7850]

Bars while trading live are way to different then when you whatch is afterwards

[@casualverse]

Hey thomas, is there a reason you start at Bodies for trendline over starting at wicks? and would making trendzones help over using trendlines? I'm new to your trading style and been struggling to adapt to it despite how simple it is. I'm sinking lol. I've watched a ton of your videos too. taken notes and everything. 20+ pages of notes.

[@ronnieg2961]

He’s trying to keep the channel tight regardless of body or wick. Just make the channel and if it makes sense it’ll automatically fit as market geometry IS real. I hope this helps

[@ThomasWade]

The first swing generally starts from the wick, then you want the trendline to be tight so we prefer connect bodies. But no problem tweak it a bit to find the best fit.

[@amitgupta-vy3ct]

Hi Thomas, Have been watching your videos and getting some insight. Could you please please help me understand that why did you not take the 2EL at 10:36. We are still in the bullish channel. The context is bullish. bears are trapped on the bearish bar before. Signal bar is perfect. Then why did we decide to not take this 2EL. You mention that its depletion, but never heard you telling this concept in any other videos, so could not really understand

[@ThomasWade]

Hi, I mentioned all the reasons in the video. Bullish depletion, Not fully at the EMA, at the Resistance, uptrend reached a new high(the correct channel), Measured Move reached perfectly. Very common to get at the end of the move massive bull or bear spike, big bar. Depletion and profit taking. It happened right at the MM and resistance so we wait with longs.

[@amitgupta-vy3ct]

@@ThomasWade Thanks a ton Thomas. Thanks a lot for your reply. I understand it now

[@TheNandopro]

Hey Thomas, Always I write how much i love your videos, even those i still have trouble following sometime. Actually i had a quiestion for you, Iv spoke to u you about it before, It was regarding the tick amount per candle stick, correct me if i am wrong but you use a 2000 tic chart? im intending to follow along with you in thease videos daily, I actually gave up on the indever because i couldn't find a trading platform that i currently have that offers tic data, So i had been meaning to ask you what platform you use as well, And last quiestion, if that's was ok , I wondering if you are familiar with T.O.S, reason being, I noticed think or swim has a tab labeled tics in the time options menu on a chart, is this the same as you use, thank you boss, keep up the awesome work.

[@harrisonprocter8947]

He uses ninjatrader

[@ThomasWade]

Hi, Yes I use 2000 tick chart. I use Ninjatrader platform but there are other brokers who offer tick charts. AMP Futures for example or you can use prop firm account. I haven't used TOS so I cannot say. There should be tutorials though. It should be all at the same settings - chart settings where you select your time frames. 1-5 min time frames are also good. Where do you live?

[@TheNandopro]

California my friend, @@ThomasWade

[@ThomasWade]

@@TheNandopro Ohh, so you are in US, perfect then. You have wide variety of brokers to choose from that offer tick charts. You can also use prop firm account and get access and data to NT for small fee.

[@TheNandopro]

Thank you my friend @@ThomasWade

[@stevesharer5758]

Wondering how many trades you average a day?

[@ThomasWade]

I would say around 2 trades per day normally

[@ravimehra8860]

In which situation can we say that the market is overbought? When the market breaks the trendline channel in a downtrend. Which means, Overshoot. But when it breaks the trendline channel upwards in an uptrend, even then you consider it as Overshot. Sir, when does overbought happen, please explain in a video. You are a good price action trader, who observes the market very closely. 🙏🙏 thanks.