Simple Price Action Theory

I am trading strictly price, based on a theory of my own analysis, that the OPEN PRICE, holds the key to Buy and Sell levels.

THEORY

In essence, if the market is, as we say, trending downwards, what is happening is that SELLERS open high, drag price lower, and close lower. This SELLER dominance will be maintained until, the trend bends.

Conversely, if the market is trending upwards, BUYERS open low, push price higher and close higher. This BUYER dominance will be maintained until the trend bends.

TREND BENDING KEY

Since in a downward trend BEARS are in total control of the open price, what we will look out for is an OPEN PRICE by BULLS, which bears are unable to drag further. This will result in a bullish reversal or push. The lowest bullish open price on a swing low which BEARS are unable to drag lower, forms support and will result in buying. The converse applies in upward trending markets.

BUY AND SELL POINTS

The strongest buy points will therefore be the highest bullish open price at a swing high, the lowest bullish open price at a swing low, every bullish open price on the previous down swing.

The strongest sell points will therefore be the highest bearish open price at a swing high, the lowest bearish open price at a swing low, every bearish open price on the previous up swing.

The most recent swing points are the strongest.

We will follow through this theory with live trade examples.

MOVING FORWARD FROM POST#4, I WILL USE A RECTANGLE TO HIGHLIGHT THE BAR WHOSE SIGNIFICANT OPEN PRICE IS BEING USED FOR RESISTANCE OR SUPPORT.

Current trade plan:
Short AUD/JPY at highest bearish open prices that bulls cannot push higher.

Current trade plan on EURJPY: To wait for the current bar to close and confirm the resistance level now be challenged and short if it holds.

Current trade plan on EURUSD: Short at tested resistance level

Short NZDUSD

Almost missed this short setup on the EURJPY...now short.

interesting. There are many high/low. how do u select which low or high to use?

Great thread, subscribed!

RuAc,

didn't you complicate a bit with your explanation?

I would say:
after price break support/resistance level, wait for it to come back to test that breakout point then enter trade in the direction of the breakout.

(please correct me if I am wrong)

Please to be continued ... very interesting ... I want to know more about this topic ... ... subscribe

Come on, this is BS, you're chart is full of lines. You will always find a level of some kind. It's meaningless.

SELLERS open high, drag price lower, and close lower.
BUYERS open low, push price higher and close higher.

Actually:

==>

SELLERS open low, drag price higher (Stop Losses), and close higher. (loss)
BUYERS open high, push price lower (Stop Losses) and close lower. (loss)

GM Everyone!

Trades went and going well...

AUDJPY filled and reached target 1

NZDUSD reached targets 1 &2 almost at 3

EURJPY stopped out

Hi Knez,

I think it better explains what I look for, however if you are able to simplify, then that is most welcome.

I am currently short the NZDJPY at the highest open price of the two swing highs price just closed below and tested. Target levels shown on chart below.

Short EURJPY

EURJPY stopped, NZDJPY closed

Good morning.

Buy limit on EURGBP 4HOUR

Long EURJPY 4HOUR