Hey welcome to this video on trading price action patterns this is going to cover price action patterns for the stock market forex price action e-mini is pretty much any market that you can lock down a chart so here we go this is something that i don’t see Todd a lot and it’s very very powerful so i’m going to use a tool that’s a ninja trader you don’t need this tool to do what is called the ruler but just makes it easier for us so we’re going to do is we’re going to go from a high to a low and we’re gonna measure two things number one how many bars is that impulse move down so by the way one way to do this is if you get to equal Louis here you always go to the second one so the last one in the impulse move down that’s the rule ok so this goes down 16 bars now you can just sit there and count them if you want to but it’s kind of nice we have this tool that counts them for us so 16 bars down that means that the market spent 16 bars this happens to be a three minute chart so 3 times 16 ended up spending that amount of time going down that’s the amount of time it went down then we can go from that low to this high and we can see that it’s spent eight bars going up in other words half is much time going up as it went down so that’s our first clue how much time is the market spending going one direction as opposed to the other and that is one clue of the dominant energy that’s what this is really all about measuring the dominant energy of the market so as you can see before this the market had been going up right so we had our highs here higher highs here so our first clue that this thing might be turning around is that we still need a higher low but we spent more time coming down then we did going back up so time and price are the two factors that we’re looking for the components of time and prices WD Gann says all right so then the fact x factor is price so let’s go over here and let’s choose our one way to do this you can do this several different ways but easy way to do it but not too retracements so as we go from here to here all right oh there’s kind of squished up there but basically the market came somewhere between 38 and fifty will call it 50 about half of the way back up but it didn’t make it more than half of the way back up to the beginning of the move and so therefore influence of time and prices spent more time going down then spend time going up and it covered more price going down price range then it going back up it spent the same amount of it traveled the same amount of price going up to back up to one hundred percent here all the way back to this high so those two things indicate that ok the dominant energy has shifted now and now the dominant energy is to the wet short side and sure enough BAM America really takes off and crunches down I so let’s take a look at another example by the way one last thing on this this is called in cycle analysis this is called rate translation so we haven’t heard the word great translation that means we can do this another way to graphic with the little rectangle Hyrum there to there ok so basically what r a translation means if you were to draw a line well what the heck let’s do it there’s a horizontal or vertical line here so let’s tap up there will say i’m just going to eyeball it for now so that’s about half and mystified maybe a bar so where does the low come in if it comes into the right of the halfway mark which it does that’s where the low occurs and that’s right translation if the low occurred to the left of the midmark between the high LOL then it’s called left translation and what you really want the ideal scenario is to have right translation because again that’s just another kind of fancy way of saying that the market spent more time going the dominant direction of the tribe and that’s true whether you’re going down or up ok let’s look at another example a quick note before we continue with this video i’m offering a free cycle indicator this is the one using my treating every single game makes it a lot easier just send your request to my email address Barry at top dog training .
Com alright so let’s look at a an example of left translation so if we go from this high to that from this load of that high to this low by the way I bring up my cross hairs here remember we always go to the last low so if you’ll notice might not have been obvious that the lower this bar is the same as the lowest of these two bars in my crosshairs across you can see that so therefore we use this bar as our low alright so let’s do our little ruler here and same here by the way we go to the last local equal lowes they’re all right and we have your label down here so six bars going up now obviously it spends less price coming down it comes down as far as it went up but we’re how many bars does it take to do that how much time it takes 10 so it went up on six powers and spends 10 bars and these are three minute bars they believe the difference of 18 bars going up in three bars coming down for 30 minutes I three minutes so the point to it that is the underlying market participants how encouraged are they that this is really a bullish market because if they’re pretty encouraged they’re pretty bullish sentiment is very very bullish then they’re going to want to get on board this but if they’re waiting a long time to get on board that means there’s uncertainty if there’s uncertainty there’s probably going to be fewer people jumping on board so it does make a higher high but that’s the end that’s the end this is not a very big rewards you’re gonna take that trade we want that we want a nice reward to risk ratio want to make a lot more money then we’re risking and you’re not going to get that on a trade like this so this would be then a trade oh it’s okay this is and this is an example of left translation by the way so if we go back to our rectangle and we draw from here to here again just a different way of showing the exact same thing by the way and where is the middle here it could count them out to be eight bars 12345678 ok so it’s that far now we’re being exact you can see that the high comes into the left of the middle between that low in that low and that’s your cycle cycles are measured from low too low and then your high comes to the left of it and these are just two different ways of measuring the same thing so and then you can see when it goes down well then you can really just eyeball it we don’t have to really do these numbers here but boom spend more time going down last time coming up right more time coming down last time coming up more time going down and sometimes it’s about the same size is not too much more work for ok and now this is a really let me just finish with this so that’s a money clear all this out of here sometimes I dropped too much i’m not starting to get a little messy but this is the kind of pattern that we really like right here where the market as we talked about before the retrace in price how far is going to retrace the price is also important so if it in makes an impulse move down and makes ace very shallow retrace that’s generally good means there’s not a lot of buyers coming in if we’re short so we somewhat profit-taking be okay a few retail buyers coming in that’s ok but we don’t want professional money going long yeah I’m going along here if we’re short and that will be indicated by time in how much price is covered on the retrace so the best scenario is to get something like this we got a nice and pulse move down and then look there’s really no retrace the market just goes sideways so yeah there’s probably a little bit of profit-taking there but there’s no major buying at all and that means that the bearish energy is still very dominant in this market and if you’re short that’s exactly what you want to see if you like this video please understand it’s not free well yeah technically it is free but if you liked it then you have an obligation to pay it forward by sharing with your friends your family and your people in social media so please click on one of the shirt buttons below in addition you’re watching this on youtube also click the thumbs up icon below and leave a comment because that really encourages me to create more free tutorials for you also giving away one of my favorite trade strategies called the rubberband trade has a very very high win loss ratio is very simple you can learn about 26 short minutes so get the video explaining that treat strategy absolutely free by clicking on the image in the top left corner or if you’re on a mobile device then click on the little I with a circle around it in the top right corner of this video and if you’re not watching on YouTube then there’s probably a link below the video or an update form of the side once you do that i’ll personally emailed the video to you along with the rubber band .
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