Beginner's Guide to Price Action Trading: Trends & Consolidation Explained

All right. In today's video, um I'm going to start a whole simple price action course on YouTube for free for

you to understand what trading is. Um first of all, trading to basically help you make it as simple as possible.

Trading is where you buy at a certain price or sell. You can buy or sell at a certain price. And if price goes up, so

let's say if you get into a buy. So let's say you get into this buy. We're going to mark this

as buy. Make this bigger for you for all my newbies. And it's okay to be a newbie.

We was all there once once in our loves. But um let's say you're in a buy and this is price. So this is price you're

going to see fluctuating. These are called candlesticks, by the way. So, these are candlesticks. You're going to

see these a lot. Trust me, every single day, you're going to see these. And these candlesticks will go up and down

constantly. Now, depending on the time frame that you're on, and we're going to talk about time frames later on, but

depending on the time frame that you are on, this will fluctuate either fast or slow. Now, this is very important. Write

this down. Depending on what time frame you're on, this will move either fast or slow. So once again, depending on what

time frame you are on, these will move fast or slow. Now, with this being said, if you

are in a buy, so if you place a buy, there's going to be most likely a blue button. If you place a buy, this price

has to go above this level, above the price that you said it was going to buy above. It has to go above this level in

order for you to make money, right? So that's just the plain and simple way. And then vice versa. So if you think

it's going to sell, right? If you think it's going to sell, this price has to go under that level that

you said price is going to sell under. So if you said it's going to sell under this this level, it has to go under this

level and then you make money, right? So that's just what trading is. I'm not going to get into like you can go chat

GBT and Google the rest. But that's the basic dummy version of what trading is. If you pick a point and you say price is

going to go above it, then you make money if it goes above it. If you say it's going to go under it, then you make

money if it goes under it. Now, this is not gambling. Your moms, your dads, your

aunties are going to look at trading as gambling. People are going to tell you that trading is gambling. But I am going

to show you that trading is not gambling. And you can have a strategic

logical reason and analysis of why you think price is either going to go up or down. And throughout this course, I'm

going to show you time and time and time again that it happens over and over and over. And no, I'm not always right. So,

no, I'm not always right, but I've been doing this for four years. I've made over $14 million from trading. I haven't

sold a course. I don't sell any courses. I don't sell any signals. Um, I don't do any of that. I'm just here to show you

that trading is possible. Trading is something that you can take and learn and you can do it for the rest of your

life. Like I think if I started with zero dollars, I would pick back up my phone, probably get a job, make like a

100red, 200 bucks, and put it into a trading account and try my best to make money from it. So, right now, I don't

know if I can show you. Um I don't know if you will see it this way, but right now,

um I can't see my screen, so I don't know if you can see my screen, but right now, I am floating $2,000.

It is 10:30 a.m. and I am just trading, right? I think price is going to go up. So, I don't know if you can see my

screen, but I think price is going to go up. As you can see, I have a buy in. Once again, I'm not sure if you can

really see my screen, but I'm in a buy right now. I think price is going to go up and it is making me money. $2,000. As

you can see, it fluctuate. And over time, you'll have emotions, have all these things going in your head as

you're making money. But later down the course, I will explain. I don't know how many videos this is going to be, but

every time I make a video, excuse me, every time I make a video, I'm going just throw it in there if it is, you

know, seems fit. So, with this being said, since you already know a little bit about trading, you already should um

feel a little bit comfortable. you don't know exactly what you're getting to into, but I'm going to show you. So,

first and foremost, you are going to need a Forex broker. You're going to need Trading

View, and you're going to need a uh just Wi-Fi in general, right? You're just going to need those things. I have a

broker link down below that you can use. You don't have to use mine. It's okay. I don't care. Or and you can use Trading

View as well. Trading View, you need This is what we're on right now. Trading View, you need this. All right, so those

things you need, get out the way. And make sure you also get a crypto brokerage as well. I personally use

Coinbase. I've been using Coinbase for a while now. I've also used Kraken. Um, you can use that too as well, but I I

like Coinbase now because they have instant withdrawals, so it's pretty good. But this is how you're going to

deposit and withdraw your money into your bank account and out of your bank account, vice versa. So, if you want to

deposit, you're going to buy Bitcoin. Once you buy the Bitcoin, you're going to deposit into your broker. And then

when you're ready to withdraw after you've made money from trading, you'll withdraw from your broker into your

crypto portfolio and then into your bank account. So, with all that being said, you're probably asking yourself, okay,

how do I trade? Right? So, I'm going to start off with the basics, the fundamentals. And this video is very

very important because the fundamentals are very very important. It's like dribbling a basketball. Like you have to

know how to dribble before you start doing the crossovers and the and the hizzys and the and the and the shazams

and all that, right? I don't know anything about basketball. I don't care. Um but you need the fundamentals. You

need to know how to dribble. So I'm going to show you how to dribble. Right? So two things uptrends downtrends and

three things actually up uptrends downtrends consolidation know the three know when these three are happening this

will save you from a lot and this is what this video is going to be about uptrends downtrends consolidation how to

identify right so first uptrends or downtrends we're going to start with first right

downtrends now we are going to Look at this and we're going to tell ourselves this is a downtrend. Say this to

yourself right now. This is a downtrend. You say it to yourself. Whatever I'm looking at, so I'm you

right now. Whatever I'm looking at, I'm going to see this as a downtrend. So repeat that to yourself. Whatever I'm

looking at, I see this and it is a downtrend. That's first and foremost. Now answer the question, why do I see

this as a downtrend? Right? This is where you start to learn. Now a downtrend consists of lower lows and

lower highs. So in this case, this is a lower high and this is a

lower low, right? Why do we call this a lower low and a lower high? Now first you need to remember there is highs and

there is lows. Right? Right. These are two two things that I I look at. Lows highs highs lows.

Right. You start off with these and this is what will determine if a you get a lower high or a low lower low. So let's

say we have a low in this situation. This will be a low, right? So, this is our low. Let's just say this is our

low. Why is this our low? So, we're going to backtrack and we're going to show you this. I'm going to show you

like this. This is our low. Why is this our low? Because price got to a certain point. It got to a

certain certain decline, decrease, and it pivoted. So, this is the lowest point we can be low, right?

This is the lowest point we can be also with the high. This is our highest point that we can be.

Right? This is the highest point that we can be. Now, this is where you can identify trends. This is where you start

to be able to identify trends. Right? So, with this low and with this high, we can now say, okay, price has reached a

certain level and this is our low, this is our high. Now how we can determine what a trend is is because we'll get

this but then what comes next will determine the trend. So if we have this low and we have this high if price

breaks the low right if price breaks the low this now becomes our lower low. Lower low. This is lower than the

previous low. Common sense lower than our previous low. So this would make our lower low right. Same thing with lower

highs. So if our high is made and it is lower than the previous high, then this would be our lower high. Right? This is

our lower high. Now from this point on, this is where the downtrend continues or this is where

everything will play into part. Later on, I'm going to get into ICC, which is the way that I trade. It's a three-step

process that basically shows you how I enter, exit, and use a stop-loss. All these terms will be learned later on

down the line. But I'm just going to show you the fundamentals of a trend because you need to know this first. You

need to learn how to dribble the ball before you can start doing crossovers, shimmies, layups, and [ __ ]

three-point shots, right? So, this is what you need to know first. So, with this being said, we're going to

have our lower high and then we're going to have another lower low, lower high, lower low. So, take your time to look at

this. Um, let me go back. Take your time to look at this and say this is a trend. This is a

downtrend. Now, before I start showing you candles and stuff, we'll probably make that into

another video. But before I start showing you candles, this is a downtrend. So, go

ahead and classify this as a downtrend, right? Downtrends. And this same way can be

used. So, we can take this, we can copy it over And I'm pretty sure if I

press Oh, it just does that. But if we take this and we rotate it, I'm pretty sure I could do that with just this, but

I guess it's not wanting to do it. I think it's just rotating the whole thing. But with this, I we'll just start

over. The same way will be an uptrend, right? So remember, there's lows and highs into the market, right? There's

lows and highs in the market. So this is our highest point. So this is our high, right? Before all of this

happened. So we're going to put this here. We're going to put this here. We're going to drag this here. Before

all this happened, we had a high, right? This is the highest point we can get in our life.

High. Highest point. It's like it's like smoking smoking drugs or like smoking weed, right? you you you smoke weed and

it's like you smoke weed and you're like, "Yo, this is the highest I can get, right? This is the highest I can

get." And then you start doing other drugs and you're like, "Dang, this is" You start [ __ ] I don't know, doing

cocaine and then you're like, "Dang, this is the highest I can get." Like life just gets higher and higher,

right? So the same way with price, this is the highest you think price can get and then price ends up making a higher

high, right? price ends up making a higher high and once price has a higher high it ends up

making a higher low. So now we have a higher high and then with that higher high we

have to come back down and then price is going to make that higher low. So I forgot to mark this part. So higher

low and this is oh this is our high this is our low and then this is a higher high than the previous one. So this one

is higher than the previous or this one is higher than the previous one. This low is higher than the previous

low. Right? So we have higher low because it's higher than the previous low. Now, with this being

said, what you're seeing right now, hold on, let me mark this as uptrend,

right? What you are seeing right now, I want you to put this and drill this into the back of your

head. Price will not break these levels on purpose on the higher time frame. And

we're going to get into time frames later. I trade the higher time frame because it's strong. You get more you

get more money because I was going to say points, but you don't even know what [ __ ] points are yet. Um, but you make

more money by staying on that higher time frame. There's people that trade on the smaller time frames, but that comes

with experience. I am trying to teach you the fastest way, not guaranteed, but the fastest way to start making some

kind of money fast, right? But with that being said, price will not break this structure. Price will not break an

uptrend or downtrend unless it's intended to reverse or it is consolidating. Now you're probably

asking what the [ __ ] is a consolidation, right? So now I want you to remember uptrend

downtrend. Remember that you got the high, the low, the higher high, the higher low, lower high, lower low, low

and high. Right? So remember that uptrend downtrend. Now, what is consolidation? Consolidation is

basically when a high and a low is being, I guess you could say, broken back and forth. So, you will see a high

and then you expect a higher low, but instead you have a low being broken and it is just sideways. So, it's not going

in any direction. It is normally breaking higher highs, higher low. It's breaking everything. It has no rules.

And one thing about trading is everything has to follow a rule. You have to follow the rules. Charts

normally have to follow rules. Fundamentals follow rules. Technical analysis follow rules. Everything

follows the rules. You need a plan. You need it. You need all this. Everything has rules. Life has rules. You have

rules. Trading has rules. So if consolidation is breaking the rules, you do not want to put yourself around

something that is breaking the rules. It's it's like common sense. Trading always for me relates back to life

because it is exactly it it's exactly what um like trading and life mirrors each other. You

wouldn't put yourself around criminal friends. You wouldn't put yourself around criminals because you know they

break the rules. So in trading, why would you put yourself around people or why would you put yourself around a

price or a market where it constantly breaks the rules? You want to find something that follows the rules. I

trade NASDAQ. I've been trading it for four years. I've made over millions of dollars on it and it breaks rules

sometimes and that's when you stay away from the markets and then when it doesn't break rules, you're always

making money. So, with this being said, always put yourself in a predicament where you

are with a trend that is following the rules. You don't want to be in consolidation. I'm not going to explain

more about consolidation, but this you do not want to trade. Consolidation, don't trade it. I'm telling you now,

don't trade it. How can you identify it? Identify it by when price is, you know, you're looking for that uptrend, you

start to see your high and you start to see your low, and then you see your higher high, but then you start seeing

it break down to the downside, then get away from it. Stay away from it because then that is probably showing you it is

consolidating or it's breaking rules. You don't want to be around trends that are breaking rules. You want trends to

follow the structure that I have shown you. It's going to be complex. It's not going to look as pretty as what I'm

showing you. But with these um with these in mind, I think this will pretty much help you along the way and help you

overall as a beginner. But this is episode one and I'm going to continue to keep making these videos. So with that

being said, take this into consideration and overall look at this and say, "Hey, I

understand what an uptrend and downtrend is and I know what consolidation is." So consolidation for you for you people.

Consolidation. Consolidation. Boom. Right. So, next time next time we're going to talk about or I might as well

just show you an example of what uptrends and downtrends look like, right? So, take a picture of this, take

a screenshot of this, whatever you need to do as a beginner. Um, take whatever notes you need to take. I'm going to

keep this up for like two more seconds. Waiting on you. All right, you're good. Um, we're going to remove

this and we're going to take this. Now, what you are looking at might seem a little crazy, but I kid you not, over

time it's going to make sense. So, a sneak peek, I like to use the one one hour time frame. Um, in this situation,

I think we should use the let's say 4our time frame. Let's see if we can find something that makes super sense to you.

Um, we're going to use this for example, right? Super cent price is going to have let's say let's say this is our high

here, right? We have our high and then we have our low. As you can see, price has our high has our low. As we can also

see price comes up a little bit, makes a new high, but this high is lower than the previous high. So now we have a

lower high right here. Right? We can say HL and then we have our low right here. Right? Our

low and then we have our high up here. Right? So now we have our LH price goes

down and we create a low. Well, how do you know that's a low? Because price reaches a certain point before it starts

to make a shift in another direction. So we have our lower high once again because this high is lower than the

previous one. So we have our LH and then we have our lower low. So lower than a previous low which is right here, right?

Or you can even use this one down here, whichever one fits for you. But this one is a support and we're going to talk

about that later. But we have a lower low, a lower high. And then we have a new low, which means this low is lower

than the previous one. So that is a another lower low. And then we have another lower high because this high, as

you can see, it was going up high, but it didn't go higher than this one. And vice versa, we can literally track this

all the way down, right? We can track this all the way down. Um, but those that that's just basic fundamentals. As

we go more in depth, you will start to understand what you can mark, what you can't mark, what to look at, what not to

look at, when to trade, when not to trade. Just continue to watch the videos that I put out. Um,

but if you have any questions on the basic trends or the basic fundamentals of finding a trend, let me know. Comment

down below. But this is the basics of finding a trend.