Master Price Action: 4 Secrets Every Trader Must Know!

00:00 - Hey Trader!!! Welcome to 
another video here at ComLucro! Today, we’re diving into one of the 
most crucial aspects of trading:   price action. If you want to predict whether 
prices will rise, fall, gain momentum, or lose it,   mastering price action is essential. Without it, 
consistent trading success becomes a challenge. Unlike lagging indicators like moving averages, 
MACD, or RSI—tools based on past price data—price  
00:25 - action empowers you to make real-time decisions. 
No delay, no lag—just in-the-moment trading. Now, to be clear, indicators aren’t 
useless. They’re great for making objective,   data-driven decisions, especially when 
paired with price action. But if you aim   to succeed as a trader, understanding 
price action is non-negotiable. It’s   what gives you the confidence to 
execute trades you truly believe in.
00:49 - In this video, I’ll reveal 
four powerful price action   secrets that can transform your trading approach. Don’t forget to check out our other videos and 
free courses, like the Wyckoff Method and Smart   Money Concepts, designed to elevate your trading 
game. Visit our website for even more resources. Let’s get started and take 
your trading to the next level!
01:07 - The first price action secret revolves around 
candlesticks. When most traders look at   candlesticks, their focus is usually on the wicks. 
While the wicks do hold valuable information, the   body of the candlestick tells an equally important 
story—sometimes even more so. Let me explain. Consider this specific type of candle: a 
large green candlestick with no wicks. Its   characteristics are unique. When this candle 
appears, it signals that buyers found the  
01:32 - price so appealing they started purchasing in 
massive volumes. The buying pressure becomes so   intense that the price rises significantly, 
leaving no room for sellers to push back. The buying pressure was so intense 
that the price kept climbing,   while the selling pressure was too weak 
for sellers to hold their ground. This   is precisely why this type of candlestick 
closes so strongly. Whenever you spot a  
01:55 - large green candle like this without wicks, 
it’s an extremely bullish signal and often   serves as an excellent reference point for 
identifying support or resistance levels. One of the fundamental lessons in trading 
is that the past often predicts the future,   and this scenario perfectly illustrates 
that principle. Here’s what happens:   we identify a support level at 
the price point where this big  
02:15 - green candle with no wicks formed, 
signaling strong buyer interest. What follows is remarkable. The price consolidates 
and moves sideways for a while, eventually   revisiting this support level. When it does, it 
bounces off powerfully because buyers are still   eager to buy at this price. After that, there’s no 
looking back—the price surges upward dramatically. Now, let’s move on to the 
second price action secret:  
02:39 - mean reversion. This concept is a straightforward 
yet powerful idea—it simply means that prices   tend to return to their average over 
time. Let me show you how this works. Let me give you an example to illustrate 
this concept. Take a look at the chart   here. At first glance, you’ll notice a series of 
price movements that may seem random. However,   when we overlay a 50-day moving 
average, a clear trend emerges.
03:03 - Whenever the price drops significantly 
below the moving average, it tends   to rebound and move back toward 
the average. The same principle   applies when the price moves too far above the 
average—eventually, it pulls back to the mean. This is a critical concept to keep in mind. When 
you see a significant deviation from the moving   average, there’s a strong likelihood that the 
price will revert to that level. For example,  
03:25 - in this case, the price takes a steep dive 
below the moving average. This creates a   potential buying opportunity because, 
based on the mean reversion principle,   the price is likely to climb back to the 
average—which, as we can see, it eventually does. The next price action secret I 
want to share focuses on momentum,   which is a vital aspect of trading. Momentum 
provides valuable clues about whether a chart is  
03:47 - likely to turn bullish or bearish. Essentially, 
momentum measures how fast the price is moving,   and when momentum builds, it’s often a sign that 
the price is gearing up for a significant move. For example, in this chart, you can see an upward 
trend that begins very gradually and progresses   slowly. Then, after a slight pullback, the 
chart experiences a sharp upward movement.   This is a clear indication that momentum 
is building. Comparing the earlier, slower  
04:12 - movement with the sharper rise, it’s evident that 
more buyers are stepping in and gaining strength.   As momentum increases, the price often makes 
a strong jump upward after minor corrections. Momentum is an incredibly important 
tool in trading and is key to helping   you make better-informed decisions. 
Understanding and leveraging momentum   can give you a significant edge in the markets.
04:33 - Now, let’s move to the fourth 
and final price action secret:   pullbacks. This is another 
crucial concept to grasp. When a chart moves up or down, it rarely 
does so in a straight line. Instead,   it has pullbacks—those temporary price 
corrections that create the jagged,   zigzag appearance on the chart. Pullbacks 
occur when traders take profits, and the size  
04:52 - of a pullback can provide critical insights into 
what might happen next. By analyzing pullbacks,   you can better anticipate whether 
the trend will continue or reverse. If the chart is in an uptrend and shows a 
weak pullback, it means fewer traders are   exiting, often leading to a strong upward 
continuation. However, a strong pullback,   where more traders exit, suggests the price 
may move sideways or reverse direction.
05:14 - Now, you might be wondering, how can you 
determine if a specific pullback is weak   or strong? Let me show you. We’ll 
use the Fibonacci retracement tool,   a powerful method for analyzing pullbacks. 
To get started, open TradingView or your   preferred charting platform and select the 
Fibonacci retracement tool from the menu. By default, Fibonacci will display multiple 
levels, which can clutter your chart. To simplify,  
05:37 - adjust the settings to keep only 
the key levels: 0.382, 0.5, 0.618,   and 1. These levels provide the most 
actionable insights into pullbacks. Here’s how to apply it correctly. If the chart is 
in an uptrend, place the Fibonacci tool from the   lowest low (the start of the upward move) to 
the highest high (the peak of the move). For   a downtrend, reverse the process, starting 
from the highest high to the lowest low.
06:02 - When analyzing pullbacks for 
a long trade in an uptrend,   a weak pullback occurs when the price retraces 
only slightly, staying above the 0.382 level.   This indicates that buyers remain strong, 
and the trend is likely to continue upward. A moderate pullback happens when the 
price retraces to the 0.5 level. This   signals that selling pressure has increased 
slightly, but the trend is still intact,  
06:25 - and the pullback may present a buying opportunity. A strong pullback is when the price 
retraces to the 0.618 level. At this point,   selling pressure is significant, and while 
the trend might still recover, it’s a sign   that momentum has weakened considerably. If the 
price holds at the 0.618 level and rebounds,   it could still provide an entry point, 
but the trade carries a higher risk.
06:46 - If the retracement moves below the 0.618 level,   this typically signals that selling pressure 
has overwhelmed the trend. In such cases,   the likelihood of a reversal or 
prolonged sideways movement increases. In conclusion, understanding and applying 
Fibonacci retracements to analyze pullbacks   is a powerful way to refine your trading 
strategy. By correctly identifying weak,  
07:08 - moderate, and strong pullbacks, you can make 
more informed decisions and improve your   ability to anticipate market movements. 
Pairing this tool with other strategies   and indicators enhances its effectiveness, 
giving you an edge in any trading scenario. Don’t miss the opportunity to deepen your 
knowledge with the free resources available   on our channel. Whether it’s mastering 
price action in our Wyckoff Method Course,  
07:29 - strengthening your fundamentals in the 
Technical Analysis for Day Traders Course,   or gaining insights into institutional 
strategies in the Smart Money Concepts   Course, we’ve got the tools you need 
to take your trading to the next level. Wishing you success in your trading journey, 
and as always, best of luck in your trades! I hope you enjoyed today's video. If 
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08:13 - helping you make more informed decisions in the 
markets. Thank you for watching and good trading!