VASSIL BANOV - The Talking Chart

Uncover

The Secret Message

Behind Price Action

VASSIL BANOV

www.talkingchart.com

The Talking Chart:

Uncover The Secret Message Behind Price Action

Copyright 2020 Vassil Banov

All rights reserved. No part of this publication may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the author.

The author has taken all reasonable steps to provide accurate information in this publication. However, no representation or warranty is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. Over time, the statements made in this publication may no longer be accurate, true, or otherwise correct. Over time, the author's opinion as articulated in this publication may change. This publication should not be relied on for investment, accounting, legal, or other professional advice. Nothing in this publication should be construed as recommendations to buy, sell, or hold any security, including mutual funds, futures contracts, exchange-traded funds, or any other financial instruments.

Published by: New Era Investments, Ltd.

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Acknowledgements

A S I AM FINISHING THIS book, the world is in the middle of something unseen for a century. The coronavirus pandemic. The world is witnessing first-hand how fragile everything is that for so many years we took for granted.

Above all, this is a time to be grateful for what we have and to the people who helped us.

My trading journey would have never happened if my father didnt discover that bizarre Forex trading platform. Or my mother, who gave me her own trading account where I made my first trades.

Or the legendary Larry Williams to whom I owe great gratitude. Without sharing his deep market understanding and the constant guidance through the years, I wouldnt be where I am now.

All those people who helped me on different occasions during my life have my gratitude. They didn't ask for anything in return. They just helped me out of the pureness of their heart and with the belief and something good would come out of me someday. I hope I am fulfilling that.

And last but certainly not least, a huge thank you goes to my lovely wife and my wonderful kids who share my trading passion in their own way.

Who is this book for?

T HIS BOOK IS INTENDED to be useful for many categories of traders.

What do you trade?

It doesn't matter if its Stocks, Bonds, Currencies, Commodities, Cryptocurrencies or something else. The rules described inside apply for all asset classes. The only requirement is that the asset has a chart.

Newbies or Pros?

Traders with basic knowledge of how to operate a trading platform, who know what a bar and candlestick chart are, will gain knowledge and develop skills which are essential for their future development as traders.

More skilful and experienced traders who want to improve their weak spots would also like this book. Such improvement might be the ability to better read the intentions of large players. This will help them to enter and exit with larger size positions.

Scalpers, Short-term or Swing traders?

A short-term trader will learn a proven way to increase the profit side of their trades. This will improve the risk-reward ratio. Such a way to improve exits will also work for swing traders. Although not recommended by the author, the techniques described in the book can be used intraday.

Algo or Discretionary?

Discretionary traders would enjoy the adaptability of the described techniques as they will provide insight into all kinds of market situations. Algo traders would definitely like the fact that everything mentioned inside the books is backed with test results. They will also find it interesting how the mentioned patterns can be improved.

Above all, if things like price action trading, Japanese candlesticks, and chart reading are close to your heart, this is exactly the book for you.

Introduction

S OME TIME AGO, BEFORE the Great Recession of 2008, I was a young student searching for a way to cheat the system. I did not want to do normal work, to have a boss, to have employees, to work with clients. No! I wanted to succeed in a place where only my personal efforts, hard work, and discipline mattered. I wanted to succeed in trading.

But how to do it? How to succeed in a space where more than 98% fail in the long-term, a place where only a few people really achieve success?

All I had were questions. But then it came to me like a lightning strike.

Is it possible that all those who succeeded did it in a completely different way from the others?

Even if there were only two successful traders, it is possible to have two different ways to succeed in trading. When we count all the legends, the proven fund managers and their trades, there must be so many more than just two, though.

But can there be 30 or 50 different ways to beat the markets? Highly unlikely. That would mean that some of the tricks of the successful traders overlap. Some part of their success is due to doing the same things.

After that revelation, it became clear to me that if I wanted to reach that success, I needed to find those similar things that most of the trading legends did.

I started reading books, articles, analysis, bought courses (a lot of them) and at some moment along the way I started to see it. I was right in my assumption: while all trading legends have differences in the way they approach the market, all of them have some things in common.

And one of those things was price action trading. One way or the other, all of them were trying to guess others intentions by literally reading the chart, minute by minute, hour by hour, day by day.

My biggest inspiration in price action trading came from Larry Williams the best trader Ive ever seen. Back in 2004, his book, Long-Term Secrets to Short-Term Trading , opened my eyes to the fact that price action can be a very powerful tool in my trading arsenal.

And this is how it all began. I started reading and then back-testing everything that I could find about price action trading. Somehow, along with my father, we were able to develop a winning strategy. It was so simple, and looking back at it from now I can say it was also so stupid. But it was making money. Back then we didnt realise that without knowing it we had touched, only briefly, a letter a singular letter of the language of charts.