In Price Action Trading Strategy

Just got done speaking for an hour re: a wide range of trading strategy concepts, this is one I wanted to post to bring in some immediate clarity.

For backward hits, using inner trendlines. In both examples, the outer (peripheral) trendline (the one most people normally draw) the backward hit was sacrificed for the inner trendline.   These are just two simple examples, but the concept is global.

In both examples, the number of hits on the inner trendline outweighs the hits on the outer trendline, thus adding the “weight” to the line itself. The same is true for horizontal support and resistance.

 

Chart Source: https://www.tradingview.com/u/nobrainertrades/

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Showing 3 comments
  • David
    Reply

    Hey Steve,

    Maybe you can add the presentation you did: http://www.youtube.com/watch?v=xivxOgCfiNY&feature=player_embedded

  • thomas
    Reply

    hi steve, where are the inner trendlines in these charts ?? regards

    • Steve W.
      Reply

      Hi Thomas, Just in the second to last example. The main point I am trying to drive home is clear confluence in that trendline. Rereading it though I can see the confusion a bit. I was mainly illustrating that to say that it basically doesn’t matter, so long as it’s clear as a bell.

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