Question for price Action Traders and volume traders

General
1

Hello Traders,

I’m currently developing a new strategy using Price action + Volume Spread Analysis (VSA).

Let say, on 3 min TF (Present Day):

Market was trending up after the opening, and now price is in consolidation phase. Now whenever the breakout or breakdown occurs (reversal or continuation) of this consolidation ,I want to take benifit of it.

But I want to enter before the breakout or breakdown occurs to get high R:R (1:3 or 1:4) and I also don’t want to get trapped in opposite Move as well.

What should we look for as confirmations, that price is going break either side and we take entry before the break actually happens? I know it is a probabilistic thing. I just want to increase my probability of win. So what confirmation you will be looking?

How to avoid traps?
How to take advantage of trapped traders?

Please give your insights…

2

So in price action, whenever a breakout happens, it gives a retest and then gives you proper trade. So to prevent yourself from trap traders, always put stop loss below the breakout candle. This will help in hedging your bet and saving you from trap traders.

3 Likes