Sembang Kari Traders ROAD FROM ZERO TO HERO SEMINAR – SESI 1 (2023) Property of Sembang Kari Traders PLT
TRADER’S PRICE ACTION MANUAL Property of Sembang Kari Traders PLT
Type of Charts
Type of Charts ➢ Chart analysis is the basis for our technical analysis ➢ There are 2 Axis in chart: ❖ Y-Axis for Price ❖ X-Axis for Time ➢ There are 3 most common charts use to analyze market
Bar Chart ❖ Trading activity is shown with vertical straight line in each timeframe ❖ OPEN price will be in the left side and CLOSE price in the right side
Bar Chart Daily Reversal ❖ Bearish Market: Daily reversal will happen when price making NEW LOW during downtrend but CLOSE HIGHER from yesterday Daily candlestick ❖ Bullish Market: Daily reversal will happen when price making NEW HIGH during uptrend but CLOSE LOWER from yesterday Daily candlestick
Bar Chart Daily Reversal
Line Chart ❖ Only shows closing price without other data at each timeframe ❖ CLOSE PRICE data is more important than Open Price, Low Price and High Price
Candlesticks ❖ Price graph originated from Japan 300 years ago ❖ OHLC data (Open, High, Low, Close) is important to plot each candlestick ❖ Most traders do not understand the meaning of candlestick. They only know Green Candlestick is to BUY and Red Candlestick is to SELL. To understand candlestick each candlestick, we must know the character of candlestick.
Candlesticks History Munehisa Homma is the founder of Japanese Candlestick. Born in 1724 in Sakata, Jepun The Homma family owns a large paddy field and is also involved in the rice trade In 1750, his father died. Munehisa as the youngest son was entrusted to manage the family business. It was at that time that futures market trading (rice futures) appeared in Sakata.
Candlesticks History Homma's fortune reached $10 billion by trading on the Japanese Rice Market. For 15 years, Homma studied the price of rice, the behavior of traders in the market, the psychological and emotional aspects of traders that have an influence on determining the price of rice. Due to his success, Homma was promoted to Honorary Samurai and became the government's financial advisor. Homma has also published a book titled Fountain of Gold – Three Monkey Record of Gold as a result of his 60 years of research.
Checklist 1. Candlesticks (Price Action) – Is there any rejection candlestick at S/R level? 2. Market Condition – Uptrend? Downtrend? Sideway? 3. Market Phase – Impulsive or Corrective? 4. Acceleration & Deceleration – Is price accelerating or decelerating? 5. S/R Level – Is there any confluence? Wait for price to reach S/R level and wait for confirmation. 6. Price Action Patterns – Is there any reversal or continuation pattern forming? 7. Multi Timeframe Confirmation – Is there lower timeframe confirming your bias on the higher timeframe? 8. Strategy – Wait for trade setup in line with your analysis (bias)
High High Open Open Close Close Low Low Body Upper Shadow Lower Shadow The Anatomy of a Candlestick UP DOWN
Levels of Bullishness Most Bullish 2 nd Most Bullish Normal Bullish Neutral Bullish Least Bullish Levels of Bearishness Most Bearish Least Bearish Normal Bearish Neutral Bearish 2 nd Most Bearish
Price Analysis (Quantization Of Price)
Candlestick Price Data : OHLC
Candlestick Activities Based On Timeframe
Hammer & Inverted Hammer Shooting Star & Hanging Man
Support
Resistance
(Hammer) Support
(Inverted Hammer) Support
(Shooting Star) Resistance
(Hanging Man) Resistance
Support
Resistance
Trendline Support
Resistance
Support
Resistance