5 Price Action Rules EVERY Trader NEEDS To Know

In this video, we're going to talk about price action rules and why it is so important to have an understanding of these rules. Why price action rules work? It's simple; it's because markets reflect human behavior: human greed and fear. And since the core human behavior hasn't changed and most likely will not change, markets will continue to move in the same way and will continue to form the same patterns again and again.

Most retail traders are unaware of the fact how price actually moves on the chart and why is that? It's because the average trader gets first introduced to information that will do the complete opposite of what he should do to educate him. Most traders at first look for systems that will do the work for them, and they will look for indicator-based strategies. But as most traders already know, this is a fool's errand, and indicators don't work; they only show past performance. All these fancy indicators look great at first, but the only thing these indicators do is they clutter your chart. Having all these indicators on a chart will stop you from learning about the true movement of price, and it's going to be next to impossible to get the proper understanding about the price movement. Only when you start to focus on raw, naked price action will you understand how price actually moves.

Since markets are not random and there is a reason to how price action moves, there are rules that will help us to stay on the right side of the market. The first rule is the trend line rule, which says: after a break of a trend line—which means that the candles will close outside of the trend line—a new extreme is going to be formed. And after a new extreme is formed, we expect a correction phase or possibly a straight-up reversal. Now we have a downtrend-looking structure on the chart, so as price action traders, we want to find a pattern because price action is never alone and naked on the chart and is always contained by some form of a pattern. You guys can see we have a nice bearish downtrend working lower, and we have a triple confirmation of this downtrend. So at this point, the structure is bearish, and the trader is only looking for short opportunities.

Notice what price created: there was a break of this channel; there were candles that closed outside of this channel. Most traders will take this information and they will think that the trend is over, and they will start counter-trend trading; they will start looking for buying opportunities. But at this point, according to trend line rules, we know that we cannot go long just yet. This downtrend needs to get a new low; it needs to get a retest of this previous low. Notice what price created: it created a move to a new extreme. And after a new extreme was formed, then we expect a correction or possibly a straight-up reversal, and price, in this instance, straight up reversed, and this is the uptrend. Now when you're safe to be looking for buying opportunities. So this is rule number one: when you're following the trend line, you're only looking for longs after you get a proven trend in the opposite direction. And after you have a break of a channel, you expect a new extreme to be formed. The same thing will apply for the shorter channels as well. Notice, as there's a downtrend working lower, there are short-term uptrends in between, and these uptrends, at the same time, have a break and retest of a new extreme, or at least an attempt to create a new extreme; break a new high. Only in this instance, there's a break; no new extreme formed, but it's because the downtrend is just too strong. But you expect the same thing to happen even on a micro level, even for these corrections. After a break of an uptrend, you expect a new extreme to be formed, and then you know that this uptrend is over. So this is the trend line rule: bullish uptrend working higher, break off the channel, and the trend line rule says that after the break, a new extreme is most likely going to be formed, and price created a new high, and this high is higher than the high inside of this channel. So the trend line rule was fulfilled. After that, price created a shorter downtrend, which also had a break, moved to a new extreme, and then price indicated a correction phase. So after you have a break and a new extreme, and you have a reversal pattern, you can start looking for shorts. But once this downtrend played out, because this was just a shorter pattern, the correction phase for this overall initial uptrend came into play. So this is how you follow the trend line rule: when price breaks the trend line, don't start counter-trend trading just yet; expect a continuation of the previous trend. Counter-trend trading while a trend line is in play is against the price action rules, and most of the time you will get burned. After correction, the trend can resume or reverse, meaning after there's a break of a channel, a new extreme is formed, and there's a correction phase; if the bias is strong enough, there can be a larger pattern, and the trend may resume, or after that correction, the new trend may start in the opposite direction; the trend may reverse.

We have a nicely fitting uptrend working higher; multiple confirmations indicating to me that this channel is valid. So I'm following the trend line rule; I'm only focusing on long opportunities; I'm not looking for shorts, even when I have a break of this channel, just because we have a break of this channel that doesn't indicate a reversal; that's against the trend line rule, and that's against the price action rule. I expect for price to create a new high; price created a new high, formed a double top, which is close enough to be considered as a new high, and after that, price slowly consolidated, and there was eventually a downtrend after that, but only after you get a break and a new high; the trend line rule is fulfilled, and then you can start acting accordingly. Bearish down, working lower; beautifully fitting channel. This is why market geometry is a real thing, and this is how you can understand that the structure is bearish. You don't need any indicator; all you need is the simple naked chart, naked candlesticks, and you can get the understanding of what the price is going to do. Price closed outside of this channel, indicated a break; this is not the time to buy the market just yet. Price created a big move to a new low, to a new extreme, and from this point on, traders are safe to at least play with the idea of possibly buying the market and eventually going long.

With the trend line rule correlates the second price action rule that says: Don't counter-trend trade. A lot of beginner traders, when they're watching a strong trend go, they feel that the trend cannot go any further, and they will start to pick tops and bottoms, and this a lot of times leads to never-ending frustration and to a lot of multiple losing streaks. It doesn't matter how good the signal bar looks, how good the setup looks; if the trend is in play, under any circumstances, you cannot counter-trend trade just yet. You will use the trend line rule to identify the trend, to follow the trend. And if you cannot find the perfect trend line, you will still follow the overall bias. Only when you get a trend developing in the opposite direction, that's when you can start looking for entries in that trend. But under any circumstances, you cannot pick tops, cannot pick bottoms, and you cannot counter-trend. Trend probabilities are just not in your favor, and most traders are losing their money trying to pick tops and bottoms. Markets are designed to make counter-trend entries look favorable, and they are designed to make with-trend pullbacks to look sketchy. For that reason, a lot of traders are attempting to buy the bottom in strong downtrends, but most reversal attempts in trends will fail. These rallies to the upside are just reversal attempts, and most of them will fail; they're against the overall trend. When you are not sure if the trend ended or not, you follow the overall bias, and even if you are struggling to find the proper trend line you are sticking with the overall bias, and you are not counter-trend trading. Don't sell the uptrend, even if long traps occur. Sometimes there can be a good long setup, a good buying opportunity in a bullish structure, in a bullish trend. Behavior may be wrong; the trade may be a little bit congested, which is another rule we're going to talk about; there may be a short-term trend line that is in play that needs to play out. Remember the trend line rule; it goes even for the shorter-term trends as well. You cannot sell the long trap even if you are confident that the buyers are trapped because the trend is still in play, and you're still going against the trend, and the odds are not in your side. You just let these long traps play out, and you're still sticking with the trend; you're still following the trend. Trend is your friend; the saying has been around for a long time; there's a reason why. And this rule goes for shorter channels as well; even if there's a small channel and the structure is not this big, because right now I have an example of a quite a strong bullish uptrend; even if the uptrend is minimal, you still don't want to counter-trend trade unless you have a break of a trend line and a new extreme formed.

This one is a big one: the trading range rule. The most important thing to understand about the trading range rule is that most breakouts of trading ranges will fail. But we see it all on the internet; beginner traders are trading breakouts; the majority of traders are trying to trade breakouts, and they keep losing money because most breakouts of trading ranges will fail, at least temporarily. There can be a pullback, and the breakout may succeed eventually, but if you are trading the breakout, you want to take it on the breakout pullback setup; you don't want to trade the breakout in its breakout phase because most breakouts of trading ranges will pull back into the trading range, and the breakout will fail. These breakouts are working just enough to keep the majority of traders trying, but in the long term, this is not a proven strategy to approach the market, and it's against the price action rule. Now when we are watching a trading range, we're observing the health of a trading range; we want to see if there is a bullish imbalance or bearish imbalance. Now the trading range rule also says: not only will most breakouts fail, but we want to buy low, and we want to sell high. You want to do the opposite of what common sense is telling you. Congestion is just a small pattern of a trading range, and you want to avoid trading these congestions; that's a price action rule, a trading range rule, because congestion is just a micro trading range, and the price gets too indecisive there, and you want to stay away from these trades. Price is swinging up and down, up and down. We, as price action traders, need to identify the support, identify the resistance. Trends are never alone on the chart; there's always some form of a pattern. Remember, price action reflects human behavior, and this behavior always results in price action patterns. Price formed a double top, and we have a break below support, but notice the breakout ended up failing. Why? Because most breakouts of trading ranges will fail. Price broke above the resistance, and what ended up happening? The breakout failed again, and price pulled back into a trading range. This is how you approach trading ranges, and this is the trading range rule that you want to follow: you're looking for opportunities off the bottom, off the top, and you're trying to fade the breakout; you're trading them against the direction of a breakout. If a breakout breaks to the downside, you want to look for a buy, and if a breakout breaks to the upside, you want to look for a sell. Another trading range structure; a huge breakout to the upside that is looking very bullish. A lot of traders rely on momentum, but the breakout snapped back into the trading range. Another breakout right here; price pulled back into the range; another breakout, and price pulled back into the range again. Most breakouts of trading ranges will fail. Most beginner traders trade breakouts; they like the momentum; they see so many bullish bars breaking up because a lot of times trading ranges are boring markets; they're slow, and traders just cannot deal with this; they're too anxious to take the trade. Once they see price breaking out, they will start buying, but what they don't realize is they're just taking the other side of the professional orders which they're trying to sell. Because if I want to sell, I want to sell as high as I can, so I want to sell; I need somebody to take the other side of my order. People are buying; I'm selling; it will result in the market pulling back into the trading range like this. Another beautiful failed breakout scenario because price will just pull back into the trading range after the breakout. 90% of these breakouts will fail; some will eventually work; there's no denying that, but you cannot try to look for the one that will eventually work. And there are instances included in price action that will help you understand which breakout is going to work and which will fail, such as bullish or bearish imbalance. Most breakouts will fail, even in small TR trading ranges. This right here, this small little consolidation is a trading range structure, just like we saw in the examples earlier, just on a smaller micro timeframe. There's a support; there is a resistance; there's just indecision; there's no clear direction. Price broke to the downside strongly; this is a failed breakout, and price pulled back into the trading range. Notice we traded up into this trading range, so you expect for price to eventually break to the upside. And even when there was a breakout to the upside, notice price pulled back first because the first breakout will fail, at least temporarily, and this is the breakout pullback. When now you know that you want to go long after price pullback, and now you're safe to look for longs. But most breakouts will fail even from these tiny consolidations, and you want to stay away from trading in the middle of these tiny little consolidations; that's against the rule.

We just talked about three price action rules that mainly have to do with the structure and the bias of the market, but is there a rule that will help us identify the proper place to enter? Yes, there is, and it's called the high-probability setup rule. When you train your eyes to see the price movement, you will realize that the market moves in pairs of twos. The market is not just pointing straight up or straight down; no, these would be W-shaped reversals, and they are not common; there are small pullbacks in between, and these are two-legged pullbacks. Remember, price reflects human behavior. What the high-probability setup rule does, it will tell us when to enter and when we put the odds on our side that the trade has a high likelihood of succeeding. So what is a high-probability setup? A high-probability setup is a second entry at a key entry point with the direction of a trend; it is a failed second entry that goes against the current trend; failed breakouts or higher lows, lower highs confirmation setups. Now these setups don't mean anything on their own; if we want to take a high-probability setup, we need to combine it with a key entry point. This is the place on the chart where a high-probability setup can appear. Now a key entry is a trend line, support or resistance line, and an exponential moving average. Now I'm aware the exponential moving average is an indicator, but we use this indicator only as a supportive tool; we are not relying on this blindly. This is a very useful tool that can help you identify the proper key entry point and can tell you information about the structure. This is what the high-probability setups look like. Notice we have a bearish structure, so what we have to do, we have to draw the channel; we have a trend line working lower. Notice we have a break and a new extreme, perfectly following the trend line rule. I mentioned that price likes to move in pairs of twos, and this is what it looks like: we have a first-leg correction, a second leg, and this is the key entry point. You guys can see the trend line, support or resistance line, or this blue line, 21-bar exponential moving average. This is the two-legged pullback. So we have a downtrend working lower; price is working to the upside; we have a short uptrend that had a break, a new extreme. Remember the TRL; you keep drawing it even for the short-term corrections, so you know that the uptrend played out, and price created a first attempt to sell, a second bullish leg up, and the second attempt to sell; it is off the two key entry points, not only the trend line but the 21-bar exponential moving average as well, and this is the place where the odds of this trade succeeding are highly in your favor. So as you guys can see, a two-legged pullback, a second entry short at the key entry point. Uptrend working higher, break and new extreme; first trend line break; you're following the trend line rule; you expect to get a new extreme, so you're still thinking about selling; you're not counter-trend trading at this point. This is a two-legged pullback; a second entry short and resulted in a big move to a new extreme. This time you're below the EMA; you're at the exponential moving average; even though you're not coming off the trend line, you're still following the rule because you're combining the trend line rule with the high-probability setup rule. I also talked about a failed second entry that goes against the trend, but it's fairly simple: when we have a bullish structure working to the upside, we're not counter-trending; we're following the trend line rule; we're looking for second-entry longs, two-legged pullbacks at the key entry points, but we can also take a failed two-legged pullback to the downside; a failed second entry short because the trend is to the upside; it's not to the downside. So any second entry short means nothing and it means that it's going to most likely fail. And we have a second entry short right here; a new low; first entry short; second entry short; and we have a second entry short failure; this is the failed second short against the overall trend. Your stop loss goes one below this signal bar and would have resulted in a winning trade. Same scenario right here; price created a new low; first entry short; pullback; second entry short. So this is a failed second entry short; also at the same time, it is a second entry long; first-leg pullback; second leg; first entry long; second entry long. So the high-probability setup rule says that you're only taking these setups that have a higher chance of succeeding; you're not interested in taking setups that are not confirming the key entry points; they're far away from the EMA, from the trend line, and they are not variations over two-legged pullbacks. We have a bunch of entries right here, but you're not interested in taking these entries, chasing the market; you're not interested in selling the market. A high-probability setup is when price pulls back to key entry points. This is where a lot of smaller traders are starting to buy on high-probability setups.

The fifth price action rule that you need to follow is the signal bar rule, which means you only want to take longs above bullish bars, and you only want to take shorts below bearish bars. You only want to enter with the proper signal bar; the signal bar must confirm the direction and the momentum of the market. These are a few examples of good bullish bars that you want to go long above, and these are just a few examples of good bearish bars that you want to sell below. You never want to sell below these bars, and you never want to buy above these bars. You need to combine the high-probability setup rule with the signal bar rule so you can maximize the probabilities of the trade succeeding. Of course, the stronger the context, the signal bar is less important; sometimes the context may be just so strong where you can afford to take a slightly less ideal signal bar, and you're still following the rules, but for the most part, you want to stick to this rule; you want to follow a good signal bar.

Let's now take a look at how to use these rules in markets. Let's talk about price action rules in trading range structures. When I'm trading trading ranges, there are a couple of key points that I have to go through in my mind when I'm trying to identify high-probability setups, and these are just the few points that quickly flash through my mind: number one, I try to identify the structure; is it an uptrend, is it a downtrend, or is it a trading range? I want to locate key levels; if I know that it is a trading range, I want to find support and resistance lines because the market likes to oscillate in between these lines. And if I want to follow the trading range rule, which means I want to buy low, sell high, and fade the breakouts, I need to identify my support and resistance correctly. I also want to locate trend lines; I want to locate the shorter trend lines because there are trends working even inside of a trading range; trend line rules still apply even inside of the trading range. For the most part, I'm careful trading in a low trading range; I want to stay away from congestion; that's a very important rule. I want to look for setups to fade the breakout, following the trading range rule: buy low, sell high. I want to be patient; I don't want to chase entries. In case I miss the trade, if I miss the trade, I need to wait for another high-probability setup to appear; I cannot just jump the gun and risk taking an entry that does not have a high probability. I cannot trade a breakout; I cannot take first entries; I cannot counter-trend; that will not result in long-term consistent success. I'm looking for entries at the exponential moving average; I'm looking for good signal bars if I'm about to enter, and I'm looking for second entries with the trend and failed second entries against the trend because, like I said, there are trends working even inside of trading ranges. So when I'm looking at the trading range like this, what I have to do, I need to identify my key levels, and I need to identify my shorter trend lines because you guys can see there's an uptrend, break, two legs to a new extreme; downtrend, break, new low; and you guys can see the trend line playing out perfectly. After each new break, there's a new extreme, and then a reversal. Up, working higher; a little break; new extreme. So at this point, I expect for price to go down, but at this point, we are in the middle of a trading range, so I'm just sitting patiently; I'm not doing anything. Notice price created a last leg to a new extreme and eventually traded down. So I keep drawing my shorter channels; I keep following the trend line rule; we have a break; a new extreme formed, which tells me that the downtrend played out, and notice we broke below the trading range, and most breakouts of trading ranges will fail. So I'm looking for an opportunity to trade back into the trading range. I'm following the trend line rule; I'm following the trading range rule; I'm following the high-probability setup rule, but I don't have a great signal bar, so I'm just waiting patiently. Price indeed pulled back into the trading range. I need to draw the shorter channels. At this point, I have a strong bullish uptrend, and I'm waiting if I get a good setup at the exponential moving average, at the key entry point, because I'm most likely not going to get good entries off of this channel because it is too tight and it will be too far away from the exponential moving average. Notice price is strongly continuing to the upside; we bounce off the resistance, but I'm not selling just yet; that would be against the trend; I don't want to counter-trend just yet. We have 20 bullish bars consecutively working higher; the only bearish bar was this one right here, but you can classify this as a bullish bar as well because it has a gigantic bullish stem at the bottom. So I expect, according to the trend line rule, to get a new extreme. I notice price created a new high; first entry long; pullback; a second entry long is about to form where at the important key entry point; even though the signal bar is not the greatest, the context is so strong that after 20 consecutive bullish bars, I'm going to get a new extreme, and this is a second entry long, and then price created a new low; first entry short; failed second entry short; this is a failed second entry short that goes against the overall trend; it is once again off the key entry point; the signal bar is great, and I still need to get a new extreme; I'm not counter-trending just yet. And if I miss the second entry long, I cannot go long all the way up to here; now my scalp was already made, and I need to wait for a proper pullback again. Failed second entry short worked; a new high was formed, and according to the trend line rule, we now expect a correction or a straight-up reversal, but I'm going to combine the trend line rule with the trading range...

Rule and most breakouts will fail, so I can take this fail breakout as a high probability setup. I can expect price to pull back into the training range at the same time, still following the short-term trend line rule. So these are the rules that are going through my mind when I'm trading in a trading range: identifying key levels, sticking to shorter channels for the most part, avoiding trading in the middle, avoiding congestions. I'm still following the trend line rule with the key entry point setups with the high probability setups, and I'm trying to fade the breakouts. Price action rules for the uptrend: I still need to identify what the structure is. I'm still trying to follow the trend; I'm not looking into counter-trend just yet, following the trend line rule, identifying the key entry points, identifying the high-probability setups, not trying to jump the gun in case I miss a trade. I'm not entering at the very highs of the move; I want to take the pullbacks. I'm trying to stay away from congestions. I'm drawing my short and trend lines for bearish corrections because I want to see the bearish corrections play out so I can take long opportunities.

I try to identify a good signal bar after a new high is reached; buying is on hold for a short period of time until we get more confirmation. And if price keeps creating multiple new extremes, that's the indication that there is probably a new bigger channel in play, which is typical for strong uptrends. So when I'm looking at the structure like this—I have a break, but I see price created a new extreme, another new extreme, and another new extreme—we just keep pushing higher. Price is failing to close below the EMA; this is indicating to me that we are still in a bullish bias structure. So I'm still looking for long opportunities; I cannot sell just yet. I would need to see a reversal pattern below the EMA or a proven downtrend for me to sell. I'm staying away from these congestions.

So at this point on, I'm still thinking long, but I cannot just buy at the top of the move like that; it's far away from the EMA, and price can pull back. I want to see price pulling back; this is where smart traders are buying. This is time for me to capitalize on a discount in the market, and price created a new high. First entry long. I'm not interested in taking a long entry here because it's just a first entry, and price created a tickle over here and created a second entry long. We have a little inside bar here, but this is the proper second entry long right here. So this is a two-leg pullback at the key entry point under bullish structure; great signal bar. This is a high-probability setup, and this is the entry that I want to take. After I take this entry, I can hold the runner, but I cannot take entries at these highs; we're now far away from the key entry point.

And at this point on, since price is pushing higher, there's probably a different pattern; there's a spike in a channel pattern, which is typical when the first leg is steep and then the channel flattens—the second leg flattens. Now we have a B channel pattern, and notice price created a newly formed first entry short, second entry short, but I'm not taking this trade because it is far away from the EMA and it's far away from the trend line. I'm still patient here, and I'm just watching the market go without me. Preferably, I'm still holding the runner and letting this portion of the market run so I can capitalize and lock profits without me getting anxious that I am missing a big move. Price is finally pulling back to my key entry point to the EMA in the form of a new high. First in long, second in long with a two-leg pullback; big bullish bar following the signal bar rule. Second in long in a strong bullish structure; all rules apply. The short and down trend had to break a new extreme, so this is a high-probability setup followed by a high-low confirmation of a two-leg pullback. A new low formed; first entry short, second entry short that goes against the trend; failure off two key entry points; great signal bar. Still sticking with the trend, and at this point on, once again I'm not chasing entries up here; I'm only interested in high-probability setups.

No, this is the point where price is creating these big moves up, and without the knowledge of price action, you're wondering why price is turning up from these points—what's so magical about these points? The price will always bounce here. Well, it's because there's a key entry point; it's because there's a two-leg pullback, and it's because all other price action rules are being met. Price action rules for downtrend are the same as for uptrend, just vice versa. I'm still following the same rule, but I'm looking for short opportunities. I see a somewhat range-like structure but with a bearish bias. Highs are still lower than the previous highs, and the lows are still also lower and lower. So we have a range structure right here, but with a bearish bias. So at this point on, I'm not particularly looking for longs; I'm just waiting patiently for a good opportunity to appear. Notice what is happening next; price is continuing working sideways, price forming a new low and created a two-leg pullback. First entry short pullback; second entry short. Can I take this entry? Well, I don't really want to take this entry; why? Because it's getting a little bit stacked; we have multiple bars just working next to each other showing indecision. This is not showing me any momentum, and we close above the EMA. If I want to go short, I preferably want to sell below the EMA, and we are in the middle of this trading range as well, so this is not particularly the perfect area I want to sell. However, I can still see the low being lower than this and than this; there's a possible down trend working lower.

Notice what's next; there was a lower high confirmation setup of this second entry short. Not only that, price now confirmed momentum and pushed below the EMA. So now this is a better entry; lower high after second entry short, below EMA confirmation setup, and it's according to rules. Price is failing to reach the resistance; it's staying below, and the possible downtrend is now coming into duration. It can also be treated as a small breakout pullback of the micro congestion right here because these bars are just small little congestions working next to each other. At this point on, the structure is clear; bearish downtrend. I can identify the stronger downtrend; it fits nicely off the lows, and as the price is pushing lower, we have multiple setups, either first entries or whatever setups—they're just far away from the exponential moving average. I'm not interested; I'm not interested in buying the market; it seems the price moved too far down; we're way overdone. It's time to pick a nice signal bar to pull back. That is not how you're going to maximize the probabilities on your side; you only want to stick with the direction of a trend, and this trend line is still in play. There was a newly formed first entry short, second entry short, two-leg pullback, but the signal bar is dodgy; horrible. I'm waiting patiently. Price created another second entry short. Why am I calling this another second entry short? Because we have here what looks like almost to be a micro double bottom, and micro double bottoms reset the count, so technically I can treat it as a first leg, second leg, first entry short, second entry short. This right here, right now, now has a much better signal bar; it is at the key entry point, and this is the proper entry price. A lower high confirmed the two-leg pullback, but the signal bar is horrible. So even though the context is perfect here and I can take it, the signal bar is not great. Lower highs are supposed to have good signal bars; they're confirmation setups. So this is how you're using price action rules; you're still sticking with the trend, and you want to see price pull back to the key entry point. Another new low formed; another two-leg pullback where I trim; play with a breaking new high. The EMA keeps holding price; key entry point; second entry short; great signal bar; high probability setup; the scalp was made; price pushed higher; confirmed the key entry point. So you're still inside this channel; price formed a lower high of this key entry point; you can actually consider taking this entry off the trend line, but if you want to wait for a sure entry to get the confirmation, you can wait for a lower high that will confirm this bounce off the key entry point, and it's actually first entry short, second entry short. So this is a great entry as well, and price not only formed a lower high, it formed even a failed second entry long below the EMA in a strong downtrend. You're coming off the trend line, and a second entry long that goes against the trend is a still high-probability setup. After that, notice price is losing momentum; first break of a channel; you expect a new extreme, and these are the rules for a high-probability setup. If the signal bar is bad, like on this entry right here, I'm not interested; this is a horrible doji. I really want to see a great signal bar. If the context is good, I can have a signal bar that is not perfect, but the signal bar still has to be somewhat decent, and this pseudo-doji is not what I want to sell below. These are the price action rules that you need to know, and these rules will keep you on the right side of the market. Good luck.