The text appears to be a transcript of a video tutorial on price action trading. The speaker discusses a three-step process for trading, which he claims has made price action trading simple and easy for him.
1. **Identify the Trend and Structure Levels**: The first step is to identify the trend and the structure levels that you need to pay attention to in a particular market. In the trend, the speaker looks for a series of highs and lows, and identifies it as either an uptrend or a downtrend. Structure levels are the most recent level that was broken in the trend. The speaker also looks for structure levels that have been tested multiple times, indicating they could be potential resistance or support levels.
2. **Prepare and Predict**: The second step is to prepare and predict what could happen next based on the identified trend and structure levels. If price goes up and stays in the structure zone, the speaker predicts that the price will continue lower, based on the identified downtrend. If price goes down and stays in the structure zone, the speaker predicts that the price will continue higher.
3. **Take Action**: The final step is to take action and enter a possible trade. The speaker mentions that he looks for chart patterns on lower time frames to decide when to enter a trade. He also mentions that he sometimes enters a trade based on selling pressure.
The speaker emphasizes that this three-step process is not a guarantee of success, but it helps to increase the probability of making a winning trade. He also warns against randomly placing trades without a high probability of success, as this can lead to losses.
Throughout the video, the speaker provides several examples of trades he has taken based on this three-step process, and discusses both winning and losing trades. He also provides some tips for identifying trends and structure levels, and warns against trading based on indicators or predictions, as these can be inaccurate.
Finally, the speaker emphasizes that trading is not about predicting the future, but about having a statistical advantage over a long period of time. He suggests that traders aim for a reward-to-risk ratio of 1.4 to 1, and that this advantage will play out over time, leading to increased profits.
Here are the key facts extracted from the text:
- The text is a transcript of a video about price action trading.
- Price action trading is trading based on what you see on the chart with no indicators.
- The video shows a three-step process for price action trading: identify trend and structure, prepare and predict, take action and enter.
- The video gives examples of trades based on this process on different currency pairs.
- The video emphasizes the importance of having a statistical advantage over a long period of time and not expecting every trade to win.