Price Action Trading Strategy Extended Crash Course

Summary

The presenter explains how to combine price action with indicators for short-term momentum trading, scalping, and day trading. Price action is described as the pattern and rhythm of price movements. The central principle is to check the larger-timeframe trend before trading an intraday setup and to manage risk and emotions as carefully as entries.

Framework and Trading Concepts

• Start with the broader trend: Review the daily chart before using 5-, 2-, or 1-minute charts. In a downtrend, characterized by lower highs and lower lows, the presenter cautions against buying breakouts and views rallies into resistance as potential short setups. In an uptrend, higher lows and price above the 200-day simple moving average (SMA) can support a buy-the-dip approach.
• Read candlestick wicks and key levels:
  • Upper wicks near resistance suggest sellers are rejecting higher prices.
  • Lower wicks near support suggest buyers are stepping in.
  • Treat these as approximate zones rather than exact prices.
• Watch for failed breakouts and breakdowns: A move briefly through resistance or support that quickly reverses can signal a false breakout or breakdown. The presenter says false breakouts may offer short opportunities, while false breakdowns followed by a reclaim and strong volume may indicate underlying demand and warn short sellers of a squeeze.
• “Golden reversal” setup: For a potential intraday long reversal, look for a large-cap stock with no company-specific bearish news, a strong daily uptrend, and a selloff that appears to track the broader market. Then watch for a 5-minute consolidation break and higher lows, often around 10:30–11:00 a.m. market time. The presenter favors 5- or 15-minute charts for this setup rather than 1- or 2-minute charts.
• Distinguish the frontside from the backside of a move:
  • A frontside move is still making higher lows and reclaiming important levels; the presenter cautions against shorting into it.
  • A backside move has lost key support and stays below it, potentially turning former support into resistance. The presenter looks for short entries on pops in that context.
  • VWAP is used as an intraday guide, particularly for short setups in lower-float stocks.
• Track trading psychology: Keep a journal of entries, exits, gains and losses, and emotional state. Look for patterns between decisions and emotional conditions, and build consistent routines.

Examples, Instruments, and Key Numbers

• First Republic Bank (FRC): Presented as a severe downtrend example, with lower highs and lower lows. The video cites a break below daily support around $20, followed by a decline toward $12; rallies below the broken level are described as potential short setups. The presenter cautions against attempting a reversal long in a fundamentally weak stock.
• Advanced Micro Devices (AMD): Used as an uptrend and reversal example. The daily chart is described as recovering above the 200-day SMA, after a low around $62 and a higher low near $72. In the intraday example, AMD fell from roughly $96.80 to a low of $93.29 around 10:40 a.m., then reversed and closed near $96.60. The presenter identifies a break above a 5-minute consolidation around 11:00 a.m. and subsequent higher lows as confirmation.
• Coinbase (COIN): Resistance is illustrated around $83–$85, where repeated upper wicks and failed breakouts appeared. Lower-wick support zones are discussed around $52 and $57. A brief breakdown below roughly $57 and a reclaim—with higher volume—preceded a move toward $60. The presenter also describes a failed breakout through about $85.40 to $88 as a possible short setup.
• Nvidia (NVDA): A break below support near $225 to about $222 is described as a false breakdown, followed by buying and several green sessions. The presenter points to the company’s strong earnings on February 22 as context for demand, not as a general prediction.
• Tesla (TSLA) and Meta Platforms (META): Mentioned in connection with whether stocks meet the criteria for the reversal-long setup; no detailed price levels are provided.
• ANBI (ticker as transcribed): Presented as a low-float small-cap stock in the industrial/waste-management area. The video cites a float of about 2.18 million shares and market capitalization around $126 million. It rose from about $8.50 to $13 in roughly 30 minutes. The presenter discusses a VWAP-based short idea but says a reclaim of the $11 daily level and VWAP would invalidate the backside thesis; a short would need to be stopped out rather than held against that move.

Risk, Performance, and Caveats

• The presenter emphasizes risk management and warns that false signals can trap traders, especially short sellers caught in a reclaim or squeeze.
• Technical setups are not guarantees; the presenter stresses waiting for confirmation from price action, key levels, volume, and the broader trend.
• The presenter says technical analysis is “10%” of trading and emotional control and discipline are the other “90%”—a personal characterization, not a measured performance statistic.
• No specific account returns, verified win rate, or formal “not financial advice” disclaimer appear in the subtitles.

Presenter and Sources

The presenter is Humbled Trader, who says she has traded full-time for more than eight years. Books recommended in the video include Trade the Trader by Quint Tatro, Trading in the Zone by Mark Douglas, and Atomic Habits by James Clear.