This chart shows a simple way to trade using price action. The market was going down, making Lower Highs (LH) and Lower Lows (LL). Then, a double bottom formed at the lowest point (swing low), which means the price may go up. After that, a new lower high failed to form, showing that sellers are getting weak. The price broke above the trendline โ this is called a breakout. When the price came back to test the breakout area (retest), it gave a good chance to enter a buy trade. The goal is to earn 4 times more than the risk (1:4 RR).
๐Important key (Price Action Strategy):๐
1. **Downtrend**
The market was going down by making lower highs (LH) and lower lows (LL).
2. **Double Bottom**
Price touched the same low two times, which means the downtrend might be ending.
3. **Failed Lower High**
The price tried to go lower again but couldnโt, showing that sellers are getting weak.
4. **Trendline Break**
Price broke above the sloping line (trendline), which means the trend might go up now.
5. Retest Entry
After the breakout, the price came back to the same level. This is a good place to enter a trade.
6. **1:4 Risk-Reward**
For every 1 part risk, there is a chance to make 4 parts profit. This is a good setup.
7. **Simple Trading**
No need for indicators. Just read the chart with price action.๐