7 Day Trading Challenge for Beginners : Price Action Challenge

Listen to our podcast explainingMonday: Launch of the Challenge

Today's mission: Understanding Price Action
Today, we're going to familiarize ourselves with the Price ActionPrice Action is a method of analyzing past price movements to predict future ones. Price Action relies on direct observation of candlesticks, patterns and key market levels to spot trading opportunities.

Tasks to be performed :

• Playback and Video :
  • Read a detailed article on Price Action and its main concepts: support, resistance, candle patterns, and trend formation.
  • Listen to our podcast which explains the basics of Price Action, how to interpret candles and spot market structures (such as channels and ranges).

Recommended resources :

• Article : "A complete guide to Price Action

• Podcast: "The basics of Price Action trading

• Configuring your chart :

  • Choose a chart with no technical indicators, just candlesticks (e.g. Japanese candlesticks).
  • Select two assets for analysis (for example, EUR/USD and DAX 30).
  • Use different time horizons to observe short-, medium- and long-term trends (H1, H4, D1).

• Observation:

  • Analyze price movements on your two assets, identify clear support and resistance levels, and note significant candle configurations (e.g. reversal candles such as hammers, morning stars, etc.).

Tuesday to Thursday: Analysis and Strategy

Three-day mission: Develop and test your Price Action strategy

Tuesday: Identify support and resistance zones

Today, we're going to focus on identifying support and resistance levels, which are crucial to any Price Action strategy.

Tasks to be performed :

• Identify horizontal support and resistance levels on your charts. These are areas where the price tends to reverse or stagnate.
• Note how the price reacts when it reaches these levels: does it bounce, cross over or remain stagnant?

Wednesday: Analyzing candle patterns

Today, we're going to focus on interpreting candle patterns that signal trend reversals or trend continuations.

Tasks to be performed :

• Look for prominent candle formations, such as marubozu, doji, pin bars, or engulfing.
• Try to spot trading signals in these candle patterns that indicate a possible market entry or exit.

Thursday: Strategy and Backtesting

Use supports and resistances, as well as candle patterns, to develop a trading strategy.

Tasks to be performed :

• Create a strategy based solely on Price Action observation: enter a pullback after a bounce off a key level or after a reversal signal (such as a doji or engulfing).
• Backtest your chosen assets to check the effectiveness of this strategy. Adjust your criteria according to the results.

Friday: Practice

Today's mission: Execute your trades with Price Action
Today, we're going to take action and execute trades based solely on Price Action.

Tasks to be performed :

• Place your real trades or demo trades according to the Price Action configurations you've identified.

• Use stop-loss levels based on the support and resistance zones you've identified, and set your take-profit targets at similar levels.

• Trading Journal :

  • Make a note of every trade you execute, including the reason for entry and exit, stop-loss and take-profit levels, and the results at the end of the day.
  • Analyze the reasons why certain trades were winners or losers, and note any necessary adjustments.

Saturday: Review and Adjustments

Today's mission: Analyze results and adjust your strategy
After executing your trades, it's important to review your performance and see where you can improve.

Tasks to be performed :

• Review your Friday trades and identify the elements that worked well or that can be improved.
• Adjust your strategy according to Friday's results: modify your entry or exit criteria, or fine-tune your risk management.

Sunday: Taking stock and sharing

Today's mission: Take stock and share your results
To round off this challenge, we're going to take stock of your week and share your results with the community.

Tasks to be performed :

• Summary :

  • Write a detailed report on your trading week. What objectives did you achieve? What lessons did you learn from this experience?
  • Think about what you can improve for future challenges and how you can integrate Price Action into your long-term strategy.

• Share :

  • Share your results and thoughts on social networks. Use the hashtag #xenesy and identify @xenesy_project in your publications.
  • Encourage other participants to share their experiences to create a dynamic, interactive community.

Conclusion

Price Action is a powerful method that lets you trade by focusing solely on price movement, without the aid of external indicators. It helps you to directly understand the behavior of buyers and sellers in the market. This challenge has enabled you to test this method in real-life conditions and improve your trading skills.

Good luck to you all, and see you soon on the markets!Listen to our podcast which explains