Price Action Market Traps PDF: A practical guide for traders to understand market psychology

More Information About Book:

Name of BookPrice Action Market Traps PDF
Name of AuthorRay Wang
Language of BookEnglish
Size of Book2 MB
Total pages in Ebook85
Category of BookTechnical
Source Archive

“Price Action Market Traps” by Ray Wang is a practical guide designed to help traders understand market psychology and exploit price action traps in their everyday trading. The author shares his personal experiences and insights gained from years of trading, highlighting the importance of analyzing market behavior and the psychological factors that influence price action.

The book is divided into two parts, with the first part focusing on the fundamentals of price action and the author’s interpretations of key concepts. The second part delves into the concept of traps in detail, using examples from the Crude Oil Future (CL) market.

Wang emphasizes the need for traders to develop their own strategies and avoid becoming overly reliant on pre-existing methods and strategies. The book concludes with a discussion on the importance of consistency in trading and offers practical tips for achieving it.

Table of Contents:

  • Part I
  • Chapter 1 – Market is a battlefield
  • Chapter 2 – Price Action: The unique language of Market
  • Chapter 3 – Trend and Range
  • Chapter 4 – Reversal
  • Chapter 5 – Importance of confirmation
  • Chapter 6 – Support & Resistance
  • Chapter 7 – Gap
  • Chapter 8 – Contraction & Expansion Theory

  • Part II
  • Chapter 1 – Common Trap
  • Chapter 2 – The “Stop-Loss” Trap
  • Chapter 3 – “The Giant” Trap
  • Chapter 4 – “Failed Breakout” Trap
  • Chapter 5 – “Back to Back” Trap (Double-Trap)
  • Chapter 6 – News
  • Chapter 7 – Morning Specials

Final thoughts

In the prologue, the author shares his journey as a trader and his realization that none of the trading ideas he had come across worked consistently for him. He highlights the importance of individual thinking and the need to find methods and strategies that align with one’s own mindset. The author acknowledges that English is not his first language and apologizes for any grammar mistakes in the book.

Part I of the book focuses on the fundamentals of price action and the author’s personal interpretations of various concepts. It covers topics such as understanding the market as a battlefield, the unique language of price action, identifying trends and ranges, recognizing reversals, the importance of confirmation, and the significance of support and resistance levels. The chapter on gaps explores their impact on price action, while the Contraction & Expansion Theory delves into the dynamics of market volatility.

Part II delves into the concept of traps in detail, using the Crude Oil Future (CL) market as an example. The author explains common traps that traders often fall into, such as the “Stop-Loss” trap, “The Giant” trap, “Failed Breakout” trap, and the “Back to Back” trap (Double-Trap). The chapters on news and morning specials discuss the influence of external factors on price action and how traders can navigate these situations.

The book concludes with the author’s final thoughts on consistency in trading. He emphasizes the importance of pre-defining risk, maintaining a favorable risk/reward ratio, taking partial profits, setting daily maximum loss limits, exercising patience, and avoiding excessive trading. The author also acknowledges that certain methods and strategies only work in specific conditions and highlights the need for traders to wait for the right setups. He concludes by emphasizing the importance of continuous learning and adapting to the ever-changing market dynamics.

“Price Action Market Traps” provides traders with valuable insights into market psychology and offers practical strategies for exploiting price action traps. It is written in simple language to ensure accessibility for all traders, regardless of their level of experience.

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Chapter 1 – Market is a battlefield

Market is a battlefield. This war zone is filled with traders from all different kinds of background. But no matter who you are, whether you are a buyer or seller, the moment market fills your order, you are in this war for one reason only: profit. Although we may not meet our opponent, the cold hard math is: your lost is somebody’s gain.

The competition is fierce between major trading firms, Wall Street elites, investors, hedge fund managers and the public. Yes, the enormous yet poor, powerless and hopeful mass, built by individuals who wish to trade their ways to success. Well, sorry to burst that bubble. Majority of public traders fail and don’t even last over a year.

Most quit after tremendous financial loss, blaming bad luck or randomness of the market. Theyacclaim trading is extremely difficult and individual trader can’t profit. Well, trading is like everything else, the skill to trade successfully develops over time. First, you need to learn the basic knowledge of the market and price movement. Then devoting yourself into thousands of hours of practicing. Lastly, developing a positive attitude of emotion-free and consistency. These steps are the essential journey of becoming a successful trader.

Wall Street and major firms thrive on public’s generous contribution. Imagine how bloody difficult trading would be, if it only permits trading elites to make money from each other, on the battle of wits, without the public’s participation.

They would shake their head: “No thanks. We like the public, because they almost always bring a knife to a gun fight!” The conventional knowledge which public traders possess are essential to themselves because they link what they learned to explain what’s happening on the chart.

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