3 Step Price Action Strategy

3 Step Price Action Strategy

Today, Iā€™m excited to share a simple yet effective 3-step trading strategy using candlestick patterns and price action.

This strategy is designed to enhance your trading skills and help you make informed decisions.

Step 1: Find the Trend
The first step involves identifying the current market trend. For instance, if the market shows a downtrend, this is your cue to focus on sell trades.

Understanding the trend is crucial as it sets the stage for your trading approach.

Step 2: Identify Key Levels
In the second step, focus on identifying significant levels, especially in a downtrend. These levels are usually formed around strong candlestick patterns.

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Use This Strategy to Pass a Prop Test:

For example, a large candle may indicate a potential support level, guiding where to make your trades.

Step 3: Find the Candlestick Pattern
The final step is to spot a specific candlestick pattern, like a bearish engulfing candle, which occurs when a candle fully engulfs the previous one.

This pattern is a strong indicator of a potential downward price movement, aligning with the overall trend.

Here is a live trade I Just took yesterday using this strategy.

USDJPY Daily up +55 pips

Video Explaining how I trade it:

Remember, consistency in applying these steps is key to success. Don't hesitate to reach out if you have any questions or need further clarification.

To Your Trading Success,
Casey Stubbs