In this post, we are going to make the distinction of what side of a pivot we are entering and understand the pros and cons related to each type. Left side entry is like having a limit order waiting as price is coming into your area and right side entry is like waiting for a turn or confirmation. It’s good to make the distinction and practice getting the experience of each one to see what might fit you personally and in what situation. It’s not that one is better than the other, its the motivation behind the decision that matters. Left-sided entries can be motivated by an out of control impulsiveness and right-sided entries can be motivated by an attempt to avoid risk. Both these motivations are fear-based and will cause trouble. If you haven’t already, check out the “Map Any Market At Time Frame” series that sets the foundations for many of these posts.
In part 3 we’re going to use our price action bars to come up with some pivot requirements which can be used as a confirmation technique for entering into a swing. It’s about using these significant bars to see buyers or sellers making effort and getting that effort reversed. In the video, you will how the price bars are related to swings and Median Lines and how they can be used to see a pivot created.
First, we review last month’s Copper futures and the AUD/JPY to see what we can learn. Keep in mind that I set these up as a vehicle so others can learn in their own experience from price flow as it unfolds. You start with the instructions for mapping swings and then learn to see beyond the instructions how swings swing and how you can read and trade them. This month we will follow the Russel Futures and USD/CAD.
All Median Line sets describe the process of a swing cycle. The Reverse Median Line set starts where this swing cycle process ends. In this video, I show how to draw it and the main 2 purposes for drawing it, to capture the “try” trade, or to use it as a center-line.
In the previous Andrews Median Line post I described the various types of Median Line sets and the principles behind them. In this post, I will go over the 5 basic rules Andrews gave as to how price can interact with a Medina Line set. The rules apply to any Median Line set, in any instrument, and in any timeframe. It’s easy to get glazed over and get confused when looking at the original Andrews material but Iets look with some simple common sense and in the light of what buyers/sellers are doing.
There is a high probability that:
- Prices will reach the latest ML
- Prices will either reverse on meeting the ML or gap through it
- When prices pass through the ML, they will pull back to it
- When prices reverse before reaching the ML, leaving a “space”, they will move more in the opposite direction than when prices were rising toward the ML.
- Prices reverse at any ML or extension of a prior ML.
I’m going to do a basic series on the Andrews Median Line tools we use. We will start with the standard Median Line set and then make the distinction for a pullback Median line set. Our objective is to see what Allan Andrews saw, not mimic him. We want to use our tools and not be used by them. Everything is about zoom retest, price going out to an extreme eliciting trader’s impulses, and then coming back eliciting trader’s impulses the other way. This is why most traders throughout history are on the wrong side of the market most of the time.
In the previous post to “Mapping The S&P E-Mini Weekly. It’s About Them, Not You“. We calmly mapped the weekly S&P E-Mini with swings right into the apex of the storm. In this video, we follow up on that along with the weekly stocks mapped (AAPL, VRTX, AVGO, SQ, BAC, and GILD). I used 2 simple techniques, swings, and where price came from. It’s not the method that’s important, its the presence clarity it can bring to our trade decisions.
Last month we followed the Dow E-mini futures and EUR/USD and learned about contracting swings in the Dow and about rapid change in the EUR/USD. This month we will track Copper futures and the AUD/JPY. Keep in mind that these tools have the main function of enabling us to learn from price.
In part 2 of this series I do some review on the price bars we are using and then I add the distinctions of major, minor, and relative in the same way we do with swings. Then we do some price reading practice with recent currency, futures, and equity markets. Reading price action like this spreads things out and eliminates much of the noise, so we just relate significant buyers and sellers to other significant buyers and sellers. I finished the video by looking at a qualified tail in a weekly Spotify chart (SPOT) that we can follow live.
Learning to read price action is easy. Its a matter of the relationship between buyers and sellers which is expressed in the bars. You don’t have to memorize complicated bar patterns with funny names or dozens of dead mechanical rules and formulas. In this video, I will show how to define a few significant bars, how to mark them out, and then talk about the essence of these price bars and how they relate to price flow. They show you where the controlling areas of buyers/sellers are and filter out the noise in the same manner swings do. In the next post, I will talk about reading a chart with price action.
Where going to study: (WRB stands for wide range bar and is defined as a bar bigger than the previous 3 bars).
•WRB Hard-up/Hard down
•WRB Outside bars
•WRB Mirror bars