by Price Action Trading with central pivot range (CPR) is taking the trades based on what the price is telling you, not based on what indicators are telling you because ultimately it is the buyers and sellers who take the market up or down.
It’s is not your indicator, it’s not your stochastic, it’s not you, it’s not your super trend, it’s not your RSI, not all this indicator set to decide whether the market is going up or down. It’s all decided by buyers and sellers.
Gujarati said that “BHAW BHAGWAN CHE” means the “Price is God”, price is everything. Same thing applying in trading also.
In trading also the price is everything if you want to become a good trader then you need to learn the price action first. Price moves up and down purely based on Buyers and Sellers.
If buyer’s strong prices will go up & if sellers are strong prices will go down. So it is as simple as this, so to make you understand this I will show you a chart and explain to you a price action of 6th May.
Most retailers think that the bearish market can go down. 90% Percent of the retail traders lose in the market only 10% of retail traders are profitable in the market.
So what you should do is that you need to think like 10% of the profitable retail trader, not like 90% of the retail trader.
Example of Price Action Trading with CPR
Now refer chart where the 15-minute candle is a big bearish candle, but it supports the weekly pivot.
So you need to wait for another 15 minutes whether it will break the support or it may take support on weekly Pivot and bounce back from there.
First 15 minute candles it is clearly seen that the candle is taking support near-weekly pivot and creating a wig which is a clear indication that buyers are activated near the weekly support.
Let us see what happens next whether the weekly support is broken or it gets bounced back from there.
We can clearly see in the chart that the market is taking support near the weekly pivot which indicates that the strength of the buyer is strong as compared to sellers. 90% of the seller who is shorted in the first candle may keep the stop loss above the previous day low.
Why in the chart is there a huge green candle?
This is because above the previous day’s low there is a huge buy order which means there is a stop loss of every trader who is shorted.
A huge green candle comes to hunt the stop loss of every trader who kept the stop loss above the previous day low. This is also known as stop-loss hunting.
So big players are accumulating to hunt the stop loss that’s why there are huge green candle forms in the chart and now the market is trying to move up but there is a central pivot range in between them so let’s see whether it is going to break or respect those levels.
If they break the Price Action Trading with CPR (Central Pivot Range), only we can say that buyers can take the Market up today.
What is Stop Loss in price action trading?
Stop loss is nothing but a buy-order in this case. Stop-loss is a Stop for whatever you have taken trade whether it is on the buying side or selling side. If it’s on the buying side then stop loss is on sell order and vice versa.
What is Stop Loss Hunting?
Stop-loss Hunting is nothing but hunting the stop loss of retail traders by an operator of the market. So if you also want to hunt stop loss of retail traders then you must have to think like an operator that where the retail traders have kept their stop loss.
Does price action trading really work?
The Price Action Trading with CPR helps to predict the future of the market with a very high and reliable degree of accuracy, allowing the traders to develop a profitable trading strategy. In Price Action Trading Strategy, we do not use the indicators such as MACD, Stochastics, etc.
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