Beginners Guide To Reading A Price Chart (Price Action Trading)

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 price action 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 June 21 2022
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[@Graldaddy]

This guy is the real deal. If you learn and follow the rules, you will make money. He is super generous to make a video daily and even more generous to answer my emails when I have questions. The way he teaches is stellar, super clear and makes you win trades. Truly a person of quality.

[@marshkid1]

Wade trading academy has a ton of in depth videos too.

[@ThomasWade]

You are too kind, thank you for such a nice feedback! Comments like this show that it is all worth it. Keep grinding!

[@larryresterhouse9019]

He reminds me of Al Brooks who is also a great teacher.

[@trelstudios3068]

@@ThomasWade hi Thomas thanks for all your videos. I am learning the price action techniques. My question is do you wait till the key entry point bar closes before you get the confirmation and then buy on the next bar on the two leg strategy?

[@ThomasWade]

@@trelstudios3068 Yes you do. Because bar momentum can change during last couple of seconds. We want to see the bar to finish and see that it is confirming the key entry point.

[@SaavedraAntonio]

I have asked a million questions and he answered me every time.. A very generous person and great at explanations

[@forexmastermindsecrets2067]

Ultimate lesson man. i wanna ask you when we should we use this set up at which time frame i mean (5M, 15M, 30M, 1H, 4H, D, W)

[@ThomasWade]

1-5 min are great. I use 2000 tick chart.

[@sanjibdas-nr1yt]

This is gold. Nobody explained PA as he did...thanks so much for making your videos...

[@natalyaisakova9289]

Many people looking for a way to make an additional money, but they don't know about trading... It's a really great stuff for every guy who want money!

[@natandotan9950]

You are by far the best price Action instructor out there... Great explanation, great reading... Highly recommended

[@ThomasWade]

🙏

[@Zoempie]

Beautiful simple overview of the most important aspects of chart reading for someone already familiar with all the terms and concepts! I particularly like that you (1) reveal the chart candle by candle and go through your thinking process as if it's printing in realtime, (2) you also draw channels/support/resistance in realtime and don't start with a pre-drawn chart, (3) you show different examples of similar setups in the recent past and (4) you keep it real by not shying away from making a case for a perfectly good setup even when it turned out a losing trade (even in your live trading videos). 'Certain' people pretend every losing trade, even after a textbook perfect setup, is a case of improper chart reading :rollingeyes: and don't wanna talk about it / show it / admit it. Love the great video's! Big thanks!! Don't forget to diversify your video's a bit for both more(!), and less(!) experienced traders to maximize your (channel's) potential. I still think there's no proper, clean and complete video series on YT to take someone from 0 to 60 in an efficient, effective and enjoyable way, step by step (think brilliant/skillshare/masterclass type content). Thumbs up!

[@ThomasWade]

🙏

[@olivierrun8364]

Totally agree, great work ! Thx Thomas

[@forexmastermindsecrets2067]

And with following the shown strategies how many pips can we plan or expect MAX

[@ThomasWade]

I mainly focus on scalping. Scalping 2 points. You can see it in my live trading videos.

[@ASAD3250]

Very well explained!

[@prashaantmalhotra]

Love you bro for all your insightful videos.. Watched the first video and became a huge fan of your price action explanations. Thanks 🙏🏼

[@BuckeyeTrader]

Man you are a godsend! Thanks for all the great videos 🤘🏽

[@hamzaoulmouden3411]

Dear Thomas, thank you for the explanation and for the training in general. I have a question, please : When counting the entries, do you base your count on the wicks to determine if a candle is higher or lower than the previous one ? Or do you look at the body of the candle only ? Sorry if it's supposed to be a clear thing, but it's something that confuses me at the moment.

[@ThomasWade]

Wicks. You reset the count when new high,low is made by the wick. Also the signal bar gets a break by a wick, that is enough.

[@vateyogi2565]

Very well explained in a simple manner for a regular layman to understand. Thank you for passing ON your wealth of knowledge.

[@joshnelson9571]

Thank you for all your videos! This is the 5th one I'm watching and plan to watch as many as possible. Are you using 1 minute candles?

[@ThomasWade]

2000 tick chart, similar to 1 minute.

[@romyfonda4280]

Great price action instruction video! Makes me remember of Al Brooks the master price action instructor also. Thanks for the great video Thomas! 👍🙏

[@srinuamuloju]

Hi Thomas , appreciate your efforts for creating these videos for viewers.Never seen anyone explain price action in detail bar by bar and psychology behind each bar than you did. Your videos are truly amazing. By the way is this rules applicable for Indian stock markets as well ??

[@ThomasWade]

Yes price action is universal.

[@simonpaa9086]

I have another question, at 9:21 I don't understand why you mark F2ES at the ema. Isn't 2ES already triggered two bars before that, when you have low 1tick below the previous bars low? I hope you understand what I mean. Thanks

[@ThomasWade]

2ES made the scalpers profit so I know what you mean. It already pushed couple of bars. If context is good we can still consider this a failure. But it is more aggressive because it moved quite far from the count point.

[@ReelgramJams-vm3ug]

can you please tell me in which video i could learn failed second entries??

[@ThomasWade]

Hello, here are the two videos kzbin.info/www/bejne/nYm1iaCuesiFrpY&ab_channel=ThomasWade kzbin.info/www/bejne/qWPMp6t8hK-fZrc&ab_channel=ThomasWade

[@pramodyadav-kt2tl]

Hi.... could u please explain key entry point in swing trading ....that is on daily and weekly chart

[@ThomasWade]

You use the same price action. Look at EMA, trendline and key levels. Problem with big timeframes is that you may wait long time for high probability setup to form. For this reason I trade smaller markets.

[@danimalcrackers1224]

Thanks for sharing. Just found your channel and enjoy your teaching style. I need to be reminded to not deviate from pa and ta. Will def share man

[@ThomasWade]

🙏

[@5EsHyfdt]

First, thank you for making these videos, they are amazing and have really helped me understand PA in a way other teachers could not. One thing I find a bit confusing in this video is where you are marking some of your entries, the leg has not yet been broken. For example at 10:30 you have marked a 2EL on the latest bar shown, but the previous high did not yet break. In fact it looks like on most of the entries you marked, the high did not break until the next bar. If you were trading real-time, wouldn't you wait for the break of the previous high?

[@ThomasWade]

I mark signal bars. Only if the signal bars that signal potential entry get a trigger, we can take it as second entry. It may happen the bar will not trigger when you are watching it live, in that case, there is no entry and you wait. For 2EL to trigger, signal bar needs to have a break above its high. The signal bar it self doesn't need to break above previous bar. I recommend checking my community posts.

[@5EsHyfdt]

@@ThomasWade Ahh I think I get it now. So you don't just sit on your thumbs until a break occurs to signal the 2EL, you are sort of anticipating it when you see what looks like it might be a good signal bar forming. Then when the signal bar closes, you place your limit order above the high and if it triggers you've already caught the 2EL. Thank you very much for the reply, this makes more sense now. Maybe I haven't gotten far enough along the video series yet, but if you made a video about what you look for in signal bars, I bet that would be very helpful for many people.

[@ThomasWade]

@@5EsHyfdt Remember to wait for trigger first though. I don't place order unless the signal bar gets a trigger. I use limit orders. If you use stop orders, then that is of course different.

[@5EsHyfdt]

@@ThomasWade Ok I've gotten to some of your live recaps now and although it happens fast I think I see it now. So it seems like you're waiting for the signal bar to have its high/low broken, then placing your order expecting a retrace back to that level. Really interesting approach! Thank you again so much for taking the time to share your knowledge, it's extremely valuable for struggling beginners like myself. Much respect.

[@ThomasWade]

@@5EsHyfdt So it seems like you're waiting for the signal bar to have its high/low broken, then placing your order expecting a retrace back to that level. - Exactly correct

[@graerindley6312]

Hi Thomas you say that the high probability set up is the the 2 legged pull back looking for the trend continuation. That's all very well but I think you should say the 2 legged pull back and entering only on a good signal bar, in the direction of the trend. With respect.

[@ThomasWade]

Hi Grade, you are 100% right. We need a good signal bar, in fact that is one of our rules, I mentioned that in 5 price action rules video. There are lot of things to talk about I sometimes shorten it because the video would be too long and I would keep repeating myself :) But you are right, good signal bar is very important for us.

[@EARTH_WONDERS24]

That was an amazing session, which leading indicators can we use like the pivot points ? Ema is a lagging indicator sir

[@ThomasWade]

I don't use pivot points. I use only EMA and Chart Enhancer.

[@EARTH_WONDERS24]

@@ThomasWade oh oky sir

[@gauravjangra777]

Love from India💝 This is crazy stuff🔥🔥🔥🔥🔥😵😵😵😵😵

[@MOUTHonesixtyseven]

what about the macro trends? or are you only focused on what any given trend is doing based on daily price action?

[@ThomasWade]

Since I am scalping 2000 tick chart I only focus on the current day price action. I observe macro trend for investing but not for day tading.

[@cyberfam996]

So you only take the previous day for trend info?

[@ThomasWade]

I watch only the current day.

[@indragunawansilalahi8496]

Thank you once again Thomas. In this video what timeframe you use? 30 minute, 1 hour or 4 hour?

[@ThomasWade]

I use 2000 tick chart. Which is similar to 1-5 minute charts.

[@frank-gf3pf]

Hi Thomas, I would like to ask you something. When the news are: USD Fed Chair Powell Testifies, do you trade during that hours? Thanks!

[@ThomasWade]

I don't trade right around that time, but couple minutes after I continue to trade. It is not like a one time big news so we can trade after that. Always watch the volatility, if it starts to get spikey and too fast, just wait for it to subside.

[@herexcellency2541]

Hi, I find your video very interesting and supereb. However, I have a question. Is tick trading an app like mt4 or what must I have on my phone or computer to start trading it? And does it work with any broker?

[@ThomasWade]

Tick charts are not an app. It is just a different timeframe. Instead of bars being printed after certain amount of time, one candle is printed after 2000 transactions go through ( 2000 tick chart) So you can put tick chart inside of MT4 platform. Just a different timeframe.

[@kendarjan6523]

Is this on a 1 minute timeframe? and how do I make my moving average bar on 21? THanks!

[@ThomasWade]

This is 2000 tick chart. Similar to 1 minute. Exponential moving average 21.

[@samkublitskyi5531]

Thomas, thanks for your videos! I have a question for everyone who knows the answers! I have already watched the first 7 videos from the playlist for beginners and didn’t really understand how to close a position according to the PA strategy. Thank you for any tips!

[@ThomasWade]

Taking profits is more subjective. Each trader prefers slightly different target profit. Most traders including me scalp for 8 - 10 ticks. So that is my TP. Because I am mainly scalping. Leaving one contract as a runner. You can see my live trading videos to see how to manage a trade.

[@samkublitskyi5531]

@@ThomasWade It’s incredible that you saw my comment! Thank you very much for your response! This is surprising to me at the moment because I used to only use levels and indicators, but this strategy didn't work. I definitely need to watch your live video

[@jimmyn1357]

Great work, thanks Tom.

[@zenoo514]

Thanks for the video Thomas, do you always consider the previous day price action or only in that case ( maybe because it was a holiday ??) ??? EDIT:ok i just say that you didn"t start you trend line from the previous day ( it is possible to do it if the trend line fits well ? )

[@ThomasWade]

Most of the time I just focus on current day price action. However I can use little bit from previous day to help me onfirm the structure. So I use small portion after the close of previous day. I generally don't draw trends from previous day so I don't think it is the best way to do it. Always better to focus on new day and current price action in my opinion.

[@coryyu1669]

hey Thomas, what's the psychology behind when trendline breaks, that it reaches new extreme and possible reversal? is there reason why it's happening?

[@ThomasWade]

I am not exactly sure what causes trends to get new extreme based on psychology. All I know it works and this is how price action moves so we take advantage of that.

[@ActiveTrader31]

Thank you for the videos Tom you’re so detailed it really helps to understand the entire process !

[@davidshere2438]

Mr Wade thank you for your work producing these trading videos. Great concepts we all can understand and profit from. I'm looking forward to see new trading content soon. Keep up the great work and thanks again.

[@3pierre91]

absolute gold.Thank you

[@Maks45678]

damn good job man. The gurus who charge XXXX dollars won't even go indepth explanation on price action like this

[@tushanbenz6314]

i think we should take top down approach - first seen monthly chart then draw trendsline then see weekly then day then 1 hours is i am wrong or right ?

[@ThomasWade]

This is not a bad approach but for different style of trading. Probably swing trading. This is mainly for scalping, we are interested in very small portion and quick scalp. We don't really need to watch timeframes like that. Multiple timeframes can confuse you as well.

[@cookieman2684]

at 5:18 there is 2 entry long(on that doji bar) but you ignore it. Why ?

[@ThomasWade]

I don't understand. I marked that setup with green arrow.

[@zenoo514]

Hello Thomas , how did you count the 2EL at 14:57 i don't see where the seconde pullback happened ( i mean tick lower then the previous bar) Thanks

[@ThomasWade]

Hello Zeno, you are correct, it is not 2EL on this chart. Because I reloaded the data. But I tried to explain why I took that trade when I was watching it live and before reloading the data it looked different with 2EL. Sorry for the confusion there.

[@zenoo514]

@@ThomasWade No problem Thomas Thank you for your work

[@taraishot100]

What timeframe did you use

[@ThomasWade]

2000 tick chart.

[@namnguyen-ci6xg]

thank you so much!

[@Algoframe]

What time frame have you selected?

[@Juiciyy]

Hey thomas, what is your ema inputs?

[@ThomasWade]

Hi, it is 21 bar EMA. Dodger blue colour.

[@jayeshsavaliya4443]

Which time this is

[@ThomasWade]

2000 tick chart.

[@ganavida5031]

Great😇😃

[@businessfunda7504]

Where to start if I am.new in price action trading ?

[@ThomasWade]

I would recommend my beginner playlist.

[@felixkwok843]

Thank you Thomas!

[@rorr7968]

what time frame works best

[@ThomasWade]

I trade 2000 tick chart. You can use 1 min chart. Between 1-5 are great for scalping.

[@samchan9616]

Thx for sharing

[@interior_conceptsforyou]

Which timeframe you use?

[@ThomasWade]

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

[@interior_conceptsforyou]

@@ThomasWadesadly there is no tick chart present for indian market

[@ThomasWade]

@@interior_conceptsforyou 1-5 min are good.

[@interior_conceptsforyou]

@@ThomasWade happy new year buddy ❤️

[@ryuxfx52]

Do you find this works across markets like FX?

[@ThomasWade]

Price action works in all markets but I wouldn't recommend trading forex personally.

[@ryuxfx52]

@@ThomasWade Why not? Been trading for a few years now.

[@peterchin6759]

At 2:46....you said "at OVERSHOOT leads to a break of a trend line and possibly stright up REVERSAL" In your video "INTRODUCTION TO PRICE ACTION TRADING", at 1:03, you said "OVERSHOOT...we can expect momentum in the opposite direction" and at 1:13, you said "HOWEVER, you still expect the prices to retest the new low of this downtrend" My question is how we know if the price will REVERSE or retest the NEW EXTREME/ NEW LOW (i.e. continue with the downtrend)

[@peterchin6759]

You have explained the rational of the price movement in one of your other videos "Trendline Mastery - How To Identify Momentum Change"

[@ThomasWade]

@@peterchin6759 So did the video answer your questions or you want me to still response your first question?

[@DrOigk]

How i must count insidebars?

[@ThomasWade]

You can treat them as regular entry.

[@tomharton152]

what length EMA?

[@ThomasWade]

21 EMA.

[@MaryamRezapour-t2t]

Very Nice

[@leveragefx]

Great video thanks! Two things sometimes cumulative delta works especially on strong trend days. When you have a trading range after a pullback in an uptrend I think you should buy at the low when short breakout FAILS. Very small risk, most trading range breakouts fail especially short ones during up day!!

[@ThomasWade]

Good observation. I agree.

[@aminbaseri6741]

Thanks 🙏👍

[@nocturnalsky9733]

What's an overshoot?

[@ThomasWade]

My last video talks about overshoot. Please check it out.

[@phoenixgaming7937]

jesus my brain is literally blowing up, very difficult concept to understand... some 2EL the candle did not break previous candle highs... so confused

[@ThomasWade]

2EL doesn't have to break the previous bar. The 2EL itself needs to have a break above its own high. You can see on my community tab post about this.

[@sendlocation8476]

This is not first time friendly. And drawing channels many people can draw this wrong so what then

[@ThomasWade]

You must be new here, but that is ok. Drawing channels have objective rules, with enough time you are able to draw them correctly. I have more beginner friendly videos in my playlist, try the most popular.

[@jaitechpowerprojectpvtltd6261]

WHAT IS THE TIME FRAME OF YOUR STRATEGIES

[@ThomasWade]

2000 tick chart. Similar to one minute chart.

[@santoshsubramaniam9120]

@thomaswade I love you man! Awesome explanation and generous to give out the knowledge in sharing for betterment of others and not only this but wants others to grow financially along with you. Keep up the good work.