Since I started as a price action only trader around eight nine years ago, I got to see what price action only strategies actually work and which ones are complete trash.
So I decided to rank the best price action strategies in a tier list so you can directly use the best ones.
Strategies I’m going to put near the top of the list are good, and ones near the bottom are not that good.
Number 5.
One of the first things I learned as a price action trader was how to identify the trend direction by looking at the price.
Like if the price is making a higher swing high, higher swing low pattern, it’s an uptrend.
If it’s a lower swing high, lower swing low pattern, it’s a downtrend.
But there is also an entry strategy around this, and it’s one of the best strategies I have used.
Basically, the price has a higher probability of moving in the trend direction.
But buying anywhere in the uptrend is not that efficient.
But you see, the swing highs of the uptrend act as support areas.
Swing highs and lows are usually not strong support or resistance in my experience.
So I usually don’t extend them forever.
But when the price makes a higher swing high in an uptrend and then the price comes back to the previous swing high support, it makes a really good price action setup.
I have taken long entries at setups like this one and set the stop-loss on the other side of the support.
I will put this price action only setup in the A tier.
Number 4.
You have probably heard about the head and shoulders and other chart patterns.
But here’s the thing.
In my entire eight nine years of trading journey, there were only a few chart patterns that worked reliably.
Most chart patterns are like an illusion your mind makes up when you stare at the chart for too long.
I will make a separate ranking video to show the best and worst chart patterns I have used.
But for now, most chart patterns will probably not make you a profitable trader compared to other things I’m going to rank in this video.
So I will put chart patterns in the D tier.
Number 3.
Like most traders, one of the first charts I used was a candlestick chart.
And one of the first things you learn on this chart is the candlestick patterns.
However, I have done tests where candlestick patterns on their own were not that great.
I mean, they got a profitable win rate mainly because of the trend or something like that.
But I have used candlestick patterns as a consistent entry point near support, resistance, and other things.
And I still do to this day.
They are great for analyzing the really short-term price movement and seeing if buyers and sellers are strong.
But similar to chart patterns, a candlestick pattern strategy on its own is probably not going to make you a profitable trader.
I know candlestick and chart patterns are better used with other confirmations.
But compared to the swing high-low trend strategy I ranked earlier, which is a standalone strategy, candlestick and chart patterns on their own are low-probability strategies.
I will put candlestick patterns in the C tier.
Remember that candlestick patterns can be used as an extra confirmation or as a consistent entry point with other strategies, just not on their own.
Number 2.
There are different types of breakouts.
The breakouts in the direction of the trend are good because the price moves in the trend direction.
But it also depends on how you take the entry and set the stop-loss.
Because in my previous testing video, setting wider stop-losses or taking late entries at a trend breakout setup didn’t make money.
Furthermore, range breakouts are better traded after a retest.
Like when the price gives a breakout and then comes back to that breakout support or resistance.
Taking entry after a retest like that is better according to the data.
If you take range breakout trades immediately, then you will have to face more false breakouts.
We literally have tested data saying this.
Out of all breakouts, I like the trend pullback breakout the most.
But compared to the other things I’m ranking in this video, breakout strategies on their own will not have that high a probability of making you a profitable trader.
So I will put it in the D tier.
Number 1.
One of my favorite price action only strategies that has stuck with me since the start of my trading journey, and also worked around 60% of the time during testing, is the horizontal support-resistance trading strategy.
I’m counting all clearly visible horizontal support and resistance in this, including the extreme edge support and resistance.
Remember that I’m only talking about the support and resistance where the price has reversed strongly from.
These reversal points have to be visible on multiple timeframes.
I’m not talking about the swing high-low support and resistance. Those are weaker in comparison.
I have a tutorial and testing video on how I draw support and resistance that gets around a 60% win rate.
Check it out if you want.
I take reversal trades from these horizontal areas and set the stop-loss on the other side of it.
I will put this in the S tier.
It’s one of the best price action strategies I have used, and I still use it to this day.
Thanks for watching!