Price moves in swing cycles that contract and expand as they go through their process. By understanding this process, we understand the principles of price flow and can then make trade decisions anywhere along the way.
Median Lines teach us about price flow and price flow teaches us about median lines. You don’t have one without the other. So we deconstruct a Median Line in order to understand its process. We then use the process of a median line to look at the 3 basic types of trade options. The more we understand the process, the more effective our trade decisions. These are some of the underlying principles upon which all trade setups and techniques are founded. When we understand them we are free to create and it really doesn’t matter which technique or method we use.
In order to map a market, we need to be able to define and isolate distinctions within price flow. This is market structure and it relates to Median Lines and trading. We are structuring price flow and mapping markets.
These are some of the elements that we learn at Language of Markets and that i go over in the video. We incorporate them into our training and into our trade practice so that they become second nature and in order to learn to read real-time price flow.
- Relative structure – major, minor, and bar level
We structure a market by making distinctions within price flow and the process it follows. In this way we can see what is being communicated via the language of price.
Real trading has to do with simple observation and seizing opportunities, however they might present. I use the CAD to illustrate this by looking at the structure and process of a valley structure and its components, like gaps and coils, which express the principle of contraction and expansion. I then take you through possible trade opportunities along this process. This is what I do when I trade.
If we want to learn about price flow and trading, it’s best to go directly to price flow itself. By using a simple line we can make observations about how price interacts with that line and allow price to teach us.
This is one of several One Line practices. It’s meant to enable personal insight and real learning. From this learning you will start to see many ways in which this line can be made functional for your trading. It also teaches you about the dynamics of Median Lines and Action/Reaction.
The instructions are simple: Follow the last 2 relative confirmed swings with a line and make observations as to how price interacts with that line. By isolating the last 2 relative swings, you identify organized behavior in the seemingly chaotic flow of price. It’s an established rhythm. Now you have a way to see if price continues that behavior or if it changes that behavior. In this video I explain this further and practice with a few different markets.
In Part 1 of Reading The GBP, we learned how to read the story that price was telling by mapping simple relative swings. In Part two’s clip from our live session, we take that same market and include more data. The thing to remember is, no matter how much data you have on the chart, you can always structure a market to see the story that price is telling you. We do this by mapping minor and major swings.
This is a clip from one of our Language of Markets Live sessions. It’s is an exercise where we describe the story that the GBP is telling. We take what looks like a chaotic market and structure it with simple swings to see it clearly, taking some of the crazy out. Once mapped with simple relative swings, you can read price, design your own trading plan and make intelligent trade decisions.
Here’s how simple price action frameworks are immediately applicable to live markets. This is a clip from a live session where we are using these frameworks. We take the E-Mini S&P and easily structure price action to find possible trade ideas.
At Language of Markets you learn simple and objective price action frameworks that allow you to structure markets and orient yourself to price flow in order to trade effectively. This video of a live session provides a comprehensive outline of what you’ll learn. This is what we do.
In About Us, Part 2, we show how these frameworks are applied.