Trendline Mastery - How To Identify Momentum Change

Trendlines are a tool that help a trader to find a high probability setup. According to price action rules, after price breaks the trendline, attempt to create a new extreme in the previous trend's direction.
Overshoot happens in the direction of a trend. Overshoot indicates oversold or overbought market condition. During this stage price will most often than not break the trendline or even reverse the entire trend. Therefore traders should avoid taking trades of trendline as it may be just a trap in the middle of reversal.

This video highlights one of the best scalping strategies that can be used in day trading. Whether you are trading forex, crypto or indices, this Scalping strategy will work incredibly well. This Scalping Strategy also works on any time frame and can turn into long term position holding.

Price action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.

The only people who know where the market is heading are institutions. They are the ones who make the market move and our job as a retail traders is to follow their footsteps and get the piece of their movement. As a price action traders we need to find the most profitable ways to enter trades. The highest probability setups are 2nd entries at the key entry points.

2000 tick chart
S&P 500 ES Futures
21 bar EMA

Date August 5 2022

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[williamsm]

You have no idea how much I appreciate your videos. After 2 years trading and loosing money, watching your videos, have just lighted me up about what is actually going on 🌹❤️

[DeltaScalper]

I don't remember what I had for lunch yesterday and you remember trades from weeks ago, impressive .

[tomaszfiejtek]

Hey, my name is Thomas....THANK YOU SO MUCH for spending so much time going through charts candle by candle and explaining some things. YOU are the only person I´ve stumbled upon till now who explains it so clearly

[tonyt]

Good explanation of the Overshooting concept. Overshoot has bothered me for some times. Thank you for clearing the mystery .

[animax]

All of the yt channel I watched about trading this is the only CHANNEL that i learned a LOT!!!! THANKS A LOT to you WADE THOMAS YOUR A

[dante]

I don't know how many times I will write this! But I will write it again mate;Thank you so much! Especially for releasing me from chackles indicators.Which bloured my eyes so many years! Good bless you bro..

[daryadil]

Best channel on price action. Thank you very much.

[gabrieltroisgros]

Today tesla and eurusd have been very good examples of what you explain on this video....

[traderchick]

Thanks so much Thomas. I did a chart review for a friend of mine (trying to get her to go the price action route) and figured some of that information on overshoots but your in-depth analysis is way better and helps me lock the information in my head!

[ChompskyChompChomp]

Nice! That was fast! Thanks for posting this!

[marshkid]

Tricky day. Thanks for explaining the overshoot to reversal possibilities.

[ajaychoudhary]

thomas greetings from india . your videos are pure gold . extremely helpful . thanks a lot . please keep sharing your knowledge

[joelmattsson-boze]

Great video on overshoots. Very helpful

[arunmrajan]

I am trying to study the price action technique by viewing the videos again and again...Thanks a lot....😊

[bobbysinks]

Excellent presentation you have a new subscriber you

[JW-keed]

Thomas Wade, thank you for so generously sharing your price action knowledge. Do you have a video explaining in more detail the High/Low (HL) and Low/High (LH) markers on your entry points? Thanks again!

[kennylim]

thank you for sharing your thoughts on overshoot structure. i was also thinking about this after seeing live how the market moved. To avoid hindsight bias i would set more objective rules to decide whether it's a genuine overshoot or not during live. (genuine meaning price will tend not to break & make new extreme). Rules around: i) drawing trendline (3-point confirmation), labelled "0% line", ii) drawing trend channel (highest/lowest point between 1st and 3rd point), labelled "100% line"; iii) drawing the "200% line", another channel line with equal channel width (to that between 0% line and 100% line); So far i've seen genuine overshoots when price hit the 200% line or more. thank you

[derrickjoul]

Thanks Thomas I think you just became a hero in my Forex comic book I had been making quite a few losses but after watching and rewatching your videos for a while I dub u legendary, thanks alot. Am definately going to refer u to my friends... Cheers

[ASAD]

Very valuable information! I really appreciate your effort in this regard. One question, does this 2 legged pullback set up exactly work for higher time frame like 1 hr or 4 hr?

[andyj]

Thank you for the great detail chart review on Friday