The M.A.E Trading Formula (A simple Price Action
Trading system anyone can learn)
At this point:
You’ve learned the of Price Action Trading by power of investings (Support & Resistance, Market Structure and Candlestick Patterns).(THE LINK OF PRICE ACTION TRADING ARE GIVEN HERE https://powerofinvestings.com/price-action-trading/ )
Now, let’s use this data to seek out high probability trading setups — consistently and profitably.
Introducing to you, The M.A.E Trading Formula, a high level trading technique I’ve developed to assist traders to get results fast.
Here’s how it works…
- Market structure
- Area useful
- Entry trigger
1: Market structure
Now, i do know it are often overwhelming be watching a blank chart.
Because you don’t know what to try to to .
Should you buy, sell, or stay out?
That’s why the primary thing to try to to is identify the market structure because it tells you what to do.
So ask yourself:
“Is the market in an uptrend, downtrend, or range?”
(In other words, identify the present stage of the market.)
Once you’ll identify the market structure, then you’ll know trade along the trail of least resistance.
If the market is in an uptrend, you look for buy only.
If the market is during a downtrend, you look to sell only.
If the market is during a range, you’ll buy and sell.
2: Valueable Area
Now, identifying the market structure alone isn’t enough.
Because you further more may got to know where to enter your trade.
Now you’re wondering:
“There are numerous places to enter a trade. Which one should I choose?”
Well, you would like to trade from a valueable area so you’ll buy low and sell high.
• Support and Resistance
• Respected Moving Average
3: Entry trigger
At this point:
You know what to try to to (identify market structure) and where to enter (area of value).
Now the ultimate part of the equation is to understand when to enter.
Personally, i prefer to enter when the market has shown signals of reversal — thus confirming my bias.
This can be within the sort of reversal price patterns like:
• Bullish Engulfing Pattern
• Bearish Engulfing pattern
Let me share with you a couple of samples of The M.A.E Formula in action…
GBP/USD Daily: Identify the market structure
Bonus: the way to identify strength and weakness within the markets so you don’t get caught on the incorrect side of the move
Here’s the thing:
The market doesn’t move in one line .
Instead, it goes…
Up and down, up and down, up and down, right? (Something like that)
And you’ll classify this “up and down” pattern into:
• Trending move
• Retracement move
This is important, so let me explain…
A trending move is that the “stronger” leg of the trend.
You’ll notice larger bodied candles that move within the direction of the trend.
A retracement move is that the “weaker leg of the trend.
You’ll notice small bodied candles that move against the trend (otherwise referred to as counter-trend).
You might be wondering:
“Why is that important?”
Because during a healthy trend, you’ll expect to ascertain a trending move followed by a retracement move.
But when the trend is getting weak, the retracement move not has small bodied candles, but larger ones.
This tells you opposing pressure is stepping in.
Here’s what I mean…
And when you combine this with another technique I’m about to show you, you can pinpoint market turning points with deadly accuracy.
Read on, I’ll tell you more…
Bonus: The way to “predict” market turning points with deadly accuracy
Let me ask you…
Would you wish to be ready to “predict” market turning points — and spot trading opportunities with low risk and large returns?
Well, nothing works all the time.
But the technique I’m close to show you works well on behalf of me .
- await the worth/price to succeed in key market structure on the upper/higher timeframe (like Support & Resistance, Trendline, etc.)
- await the trending move to getting “weak” by having smaller bodied candles.
- await the retracement move to getting “strong” by having larger bodied candles.
- Enter on the break of structure
Let me offer you an example…
On the Daily timeframe, the worth/price is at Resistance area and features a confluence of a downward Trendline. The worth/price could reverse lower so let’s search for a shorting opportunity on the lower timeframe.
RELIANCE 5HOURS CHART:
On the selected timeframe , the selling pressure is coming in as you notice the candles of the retracement moves getting bigger (a sign of strength from the sellers).
Also, the buying pressure is getting weak because the candles of the trending move get smaller.
One possible entry technique is to travel short when the worth/price breaks and close below Support.
I know this will be complex for brand spanking new traders, so here’s another example…
RELIANCE DAILY CHART
On the Daily timeframe, the price is at previous Support turned Resistance.
The price could reverse lower so let’s search for a shorting opportunity on the lower timeframe
This is powerful stuff, right?
Congratulations! If you’ve got made it to the present point, you actually have the price action trading spirit in you. I do know I’ve provided you with tons to believe during this guide, but you now have the knowledge to require the knowledge and apply it into your trading. Here are a couple of final thoughts I’d wish to share with you before I land up .
How Much You Succeed is depends on You.
The thing about trading is that it doesn’t care about your educational background.
You can be a first-class honors graduate or a school dropout, but if you fail to follow the rules of the market, it will take your money, regardless of your status and background.
But if you follow the rules of the market, then how much you can make is entirely depends on you. You can trade 1 lot, or 10 lots, and your profits and losses are just a matter of a few more zeros behind.
Trading is like learning a new skill. You need to be willing to put in time and effort to be proficient in it. There are countless lessons to learn from the markets and every mistake you learn is a step closer to profitable trading.
Thanks for support