A great way to learn to read price action is to review your historical price charts, with a focus on the price action at key structural locations.
Find and review anything which fits these categories.
- tests of significant levels
- breaks of significant levels
- traps
- transitions between trends and ranges
- transitions from volatility contraction to expansion
- and in fact anything else that stands out on the chart
Each day, identify a key price sequence.
Study it and learn.
It only takes a minute.
Let’s look at an example in which Crude Oil breaks higher in Monday’s session, into layered levels of range resistance, before falling back into the range.
And a similar scenario in the emini Russell on Tuesday, in which price also broke and rejected prior session resistance. This time though the rejection was much quicker.
Each day, identify a key price sequence.
Study it and learn.
It only takes a minute.
(See here if you need more info on the above analysis)
Happy trading,
Lance Beggs