Price Action Mastery

The Veryfid Trading Philosophy

Master the Center of Gravity. Read the signal, not the noise.
"You are the indicator. The indicators feed you data."

4 Core Lessons
500+ Chart Examples
2yr Of Teachings
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01

Core Philosophy

Strip away complexity. Price action is reality - everything else is interpretation.

You Are The Indicator

"You are the indicator, the indicators feed you data."

When traders fail, it's rarely because they lack indicators. It's because they lack context.

The Chart Is A Signal

"The chart data is a signal that is generated from a device in an exchange. This is a processed signal full of interference like brownian noise."

Price is not random. It is constrained by structure, by support and resistance, by natural mean reversion.

John F. Ehlers

"It all comes from Ehlers. If you don't take my word for it, do yourselves a favour and take Ehlers word for it."

The intellectual foundation: rocket scientist turned trader who applied signal processing to financial markets.

The Uncomfortable Truth

"The bulk of trading happens behind the scenes and mainly consists of large wholesale order blocks getting filled far away from the eyes of retailers. Price action moves between these blocks, what happens between is just fluff and noise."

02

Center of Gravity

The foundation of everything. COG finds the weighted midpoint of price - instantaneous, not lagging.

"EMA lines are very basic and laggy. It only gives you a signal after the fact. XL uses center of gravity oscillator (COG) at its core. This is instantaneous and tracks SR."

Think of price as a mass attached to a flexible cable. Stretch it too far and it snaps back. Compress it and it expands. This is why overextensions fail and mean reversion is inevitable.

Gray SR Line (COG 50)

"The price action moves with the gray line like its spinning around it. Price action can never get too far away from it. Its sort of like a cable for electricity to run on."

This is the spine of price action. Price orbits around it like a planet around a star. Above it = bullish pressure. Below it = bearish pressure. Far from it = instability.

Red SR Line (Dynamic)

"The red line is more dynamic and plays a huge part in the price actions direction and behaviour. Price action bounces off it to change directions."

This is where momentum pauses, pullbacks form, and decisions happen. If price respects it, trend remains intact. If it slices through, structure is weakening.

White Line (Oscillator)

"When the white line is above the gray line it is an up trend when it gets pushed under its a down trend."

This line answers only one question: What side of balance are we on? If you use it for entries, you're already late.

The Three Channels

"There are only 3 types of channels and you should trade accordingly."

Up Channel

Enter longs from channel bottom. Look for breakout setups (HH+HL patterns). Don't short within an up channel.

Down Channel

Enter shorts from channel top. Look for breakdown setups (LL+LH patterns). Don't long within a down channel.

Sideways Channel

Trade both directions from extremes. Wait for the break to determine trend. Hedging strategy possible.

03

School of COG

The four lessons that separate profitable traders from the 90% who lose.

Lesson 1

Continuations

Safest Entries
"A continuation is a confirmation of trend, these are the safest entries. A long continuation is when a pivot low is higher than the previous pivot low."

For Longs (HH + HL)

  • Look for Higher Highs
  • Confirmed by Higher Lows
  • Each pivot higher than the last

For Shorts (LL + LH)

  • Look for Lower Lows
  • Confirmed by Lower Highs
  • Each pivot lower than the last
Key Insight: "It is not so important what direction they are travelling. It is important what kind of pivots they are making."
Lesson 3

Reversals

Dangerous
"Reversals are one of the most risky types of trades. The problem with reversals is that when they go wrong, they go really wrong."

Why Reversals Destroy Accounts

  • They feel smart but account for most blown accounts
  • Trends don't die cleanly
  • "Sometimes it will still push again before reversing"
  • Reversal traders get chopped because they are early by definition
Veryfid's Approach: "I never enter into a reversal so I'm never in trouble."
Lesson 4

Breakouts

The Booms
"Breakouts are some of the most exciting and lucrative trades you will find. This breakout strategy is a favorite of mine for catching booms."

The Critical Principle

"After price breaks the line it will want to pull back and test the line before confirming. This is the best entry. Entering as it breaks will often see you go into red and even get dumped on."

Remember: "Every movement on every chart is a breakout."
04

Multi-Timeframe Analysis

This is what separates profitable traders from the 90% who lose.

"You will always have bad trades if you only trade 1 timeframe. MTF is key to finding the best trades and avoiding the bad ones."

Setup (4hr)

"For the most part I setup a trade on the 4hr and ride the waves on the 1hr."

Execute (1hr)

"1hr gives great signals and entries."

Detail (30min)

"If I need more detail I look at the 30min."

When In Doubt, Zoom Out

"The slower the TF the stronger the signal. A breakout on the 5min chart means nothing if it does not coincide with a slower TF."

05

Pressure & Volume

Reading the force behind price movement.

Pressure Dots

"The pressure dots show when it is testing a support or resistance line. The more dots the more pressure."
1 dot = Hit and bounce
● ● 2 dots = Testing
● ● ● 3+ dots = Breaking pressure

The Ball Analogy

"Think of it like this. If you throw a ball into a wall nice and easy it will bounce off. If you push it into the wall with all your strength it won't."

Support and resistance don't "hold". They fail under force. Your job is to see pressure building.

The Volume Truth

"The Volume data we get on our charts is fictional/made up/synthetic. It is not an accurate representation of actual volume being traded."

Use volume to detect ease of movement, effort vs result, acceleration vs absorption. Dark bars = effort. Light bars = efficiency.

06

The Golden Rules

These are not morals. They are survival constraints.

01

Trade With The Trend

"Just stop shorting in up trends and stop longing in down trends."

02

Wait For The Pullback

"Safest is always to wait for a break and then wait for the pullback after."

03

Avoid Fast Timeframes

"The worst timeframes you can trade are 5 min and under."

04

Never Revenge Trade

"Do not revenge trade. It will not recover your losses."

05

Prepare Both Directions

"There are only 2 choices up or down. Prepare for both."

06

Create A System

"Successful traders have a system and a set of rules. Basic is better."

Entry Checklist

08

Trading Psychology

The part everyone skips. The part that matters most.

On Stop Losses

"Stop loss is really a take loss."

The point: SL doesn't save bad entries. Structure saves bad entries.

On Position Sizing

"Never just drop 20% of your balance into anything."

Position size reflects certainty, not excitement.

On Perfect Entries

"I only care about perfect entries."

Enter at an entry point, exit at an exit point. Simple.

On Patience

"Im still waiting for the clean pullbacks to come, could be weeks."

Waiting IS trading. Not every movement is worth trading.

The 90/90/90 Rule

"90% of traders lose 90% of their money in 90 days."

Learning is the most important part of trading. Otherwise it is just a gamble.

"Learning boom hunter is actually learning to read the charts and price action. While progress may seem slow at times you are learning important fundamentals that can be transferred to any indicator. Honestly once you have learnt price action you don't even need an indicator."

— veryfid

"There is a lot of information to absorb so take your time. It is not a race."

"When the good entries come I will show you how to enter with very little risk."

"Just don't stress."

Recommended Reading

  • John F. Ehlers - Rocket Science for Traders (2001)
  • John F. Ehlers - Cybernetic Analysis for Stocks and Futures (2004)
  • John F. Ehlers - Cycle Analytics for Traders (2013)