eBook Author

Filtering The Markets

  1. Is the current trend bullish or bearish?

2. Is the main trend bullish or bearish on selected timeframe?

3. Where is price now? where are the keylevels?

4. Are there any Price Action?

5. Are there any failed Price Action?

6. Is there evidence that the market is getting rid of buyers or sellers?

💰“The Power of the Trends”

Quotes:

  1. “Let Price Tell the Story.”

  2. “Price Never Lies – Everything Else Might.”

  3. “Trade What You See, Not What You Think.”

  4. “Candles Speak Louder Than Indicators.”

  5. “The Truth is in the Candles.”
 

 

                1. “Filtering The Markets Reading”

In the dynamic world of financial trading, key levels are the unsung heroes of technical analysis. Think of them as crucial lines in the sand on a price chart – specific price points where an asset’s value has historically shown significant reaction. Whether acting as support (a floor preventing further falls) or resistance (a ceiling preventing further rises), these levels are where supply and demand typically battle it out. Understanding them is fundamental, as they offer traders powerful insights into potential price reversals, continuations, and strategic points for entering or exiting trades.

   2.“Filtering The Markets Chart”

In the dynamic world of financial trading, key levels are the unsung heroes of technical analysis. Think of them as crucial lines in the sand on a price chart – specific price points where an asset’s value has historically shown significant reaction. Whether acting as support (a floor preventing further falls) or resistance (a ceiling preventing further rises), these levels are where supply and demand typically battle it out. Understanding them is fundamental, as they offer traders powerful insights into potential price reversals, continuations, and strategic points for entering or exiting trades.

      5. “Videos: Closed Candle in Action

In the dynamic world of financial trading, key levels are the unsung heroes of technical analysis. Think of them as crucial lines in the sand on a price chart – specific price points where an asset’s value has historically shown significant reaction. Whether acting as support (a floor preventing further falls) or resistance (a ceiling preventing further rises), these levels are where supply and demand typically battle it out. Understanding them is fundamental, as they offer traders powerful insights into potential price reversals, continuations, and strategic points for entering or exiting trades.

   2.“The Story of Filtering the Markets”

In the dynamic world of financial trading, key levels are the unsung heroes of technical analysis. Think of them as crucial lines in the sand on a price chart – specific price points where an asset’s value has historically shown significant reaction. Whether acting as support (a floor preventing further falls) or resistance (a ceiling preventing further rises), these levels are where supply and demand typically battle it out. Understanding them is fundamental, as they offer traders powerful insights into potential price reversals, continuations, and strategic points for entering or exiting trades.

Conclusion/Sammanfattning

 The Overall Market Condition 

Understanding the overall market condition is one of the most important aspects of successful trading. Before entering any trade, you must first ask:

What kind of market am I in?
Trend? Range? Volatile? Calm?

🧭 Types of Market Conditions:

1. Trending Market

 

  • Price is moving consistently in one direction (up or down).

  • Higher highs & higher lows = uptrend

  • Lower highs & lower lows = downtrend

  • 📌 Best for trend-following strategies (e.g. pullbacks to EMA, breakouts)

🔹 2. Ranging (Sideways) Market

  • Price moves between support and resistance with no clear direction.

  • Often found after a trend or before news events.

  • 📌 Best for range trading (buy low/sell high with confirmation)

🔹 3. Choppy/Uncertain Market

  • Price is erratic, full of wicks, no clean structure.

  • Hard to trade — low-quality signals.

  • 📌 Best action: stay out or wait for clarity.

🔹4. Volatile Market

  • Large, fast price movements — often driven by news or uncertainty.

  • 📌 Best for experienced traders, scalpers, or those who can handle quick moves.

🔹4. Volatile Market

📊 Why Market Condition Matters:

  • It determines your strategy — a good setup in a bad market is still a bad trade.

  • It helps you filter trades and stay aligned with high-probability environments.

  • It keeps you from overtrading during poor conditions.

✅ How to Assess Market Condition:

  • Look at higher timeframes (4H, Daily) for structure.

  • Use EMAs (like 8/23) to guide trend strength.

  • Identify key support/resistance levels — are they holding or breaking?

  • Look at price action behavior — trending cleanly or wicking all over?

  • Check economic calendar — is news causing volatility?

🧠 Pro Insight:

Pros always trade with the market, not against it.
They know when to push, when to wait, and when to stand aside.

Entry With RSI

Here’s a simplified and focused guide on how to filter the market for the easiest trading setups – ideal if you want clarity and fewer distractions.


How to Filter Markets for the Easiest Setups

1. Stick to Trending Markets

  • Only trade in the direction of the trend.

  • Avoid sideways and messy price action.

  • Use EMAs (like 8 & 23) to guide the trend.

If price is above both EMAs and EMAs are pointing up → look for buys only.


2. Focus on Clean Price Action

Look for:

  • Smooth swing highs & lows

  • Big impulsive candles, not wicks

  • Clear pullbacks (not choppy)

Clean charts = easier setups.


3. Use Key Levels Only

Trade setups that occur at:

  • Support/Resistance

  • Previous highs/lows

  • Round numbers

  • Gap or event areas

Price reacts at key levels. No level = no trade.


4. Filter with Confluence

Only take a trade when you have at least 2–3 confluences, like:

  • Trend + support level + bullish pin bar

  • Downtrend + 50% retrace + false break

More confluence = higher probability = easier decision.


5. Choose High-Quality Candlestick Signals

Look for:

  • Pin bars

  • Inside bars

  • Engulfing bars

  • False breaks / Hikkake patterns

Only take setups that are obvious – not forced.


6. Avoid Overtrading

Only take trades that match your exact plan. If it doesn’t match:

  • Skip it

  • Set alert and wait

Patience filters out 80% of bad trades.


7. Check Risk/Reward

Only trade setups that offer minimum 1:2 R/R.

Easier setups have clean entry + space for profit.


Example Filter Checklist ✅

FilterYes/No
Is the market trending?
Is there a key level nearby?
Is there a price action signal?
Is there confluence (2+ factors)?
Is R/R at least 1:2?
Does the chart look clean?

If most answers are YES → it’s an easy setup.


 

Would you like an image or printable checklist of this process?

💰Summary Checklist – Easiest Setup Filter

Filter Step✅ Pass
Trend is clear
Setup forms at a key level
Clean price action signal present
Pullback entry
2–3 confluences
Minimum 1:2 R/R
 

💡 If most are ✅ → it’s likely an easy, high-probability setup.

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