How and When to Buy a Deep Market Correction, Part II:

In How and When To Buy a Deep Market Correction Part I. I showed a simple and objective balanced swing technique to find a Change in Behavior (CIB) in the deep pullback. In this lesson, we ground the teaching by doing step-by-step practice in stocks, currencies, futures, and Bitcoin. We finish with lining up live examples in some weekly stocks.
Practicing this simple technique will teach you to follow a deep pullback rather than trying to predict it. Make your own observations and discoveries about ways Change In Behavior can be applied.

How and When to Buy a Deep Market Correction, Part I

I use this technique for any deep pullback in any market and especially when the stock market has gone into a recession. It allows me to follow and wait patiently to take part in the next growth cycle while everybody else speculates about nonsense.

When a market is in the process of doing a deep and prolonged pullback, we need some simple and objective techniques to show us when the market is turning back up so that we stay out of bottom-picking trouble. We want to be able to follow a deep market correction patiently through its change, so we are going to use the principle of Change In Behavior (CIB). We will use 2 confirmed balance swings in a deep pullback as our Continued Behavior so that we can determine when price flow has a Change in Behavior. This allows us to wait patiently for volatility to organize itself and show us what needs to change for the deep pullback to be over.

Seeing In Swings

We want to learn to see and experience the market in swings. This gives us a clean and consistent look without all the baggage we add to markets. Swings have a process and components that make up that process. These are the building blocks we used to design methods and setups that will become part of a consistent trading plan. In this video, I teach you how to map any market with swings and to identify the process and components that make up the swing. This is foundational and is always our first step when looking at a market.

Method, Money Management, Mindset

Applying both a reliable method and money management strategy (that fits with that method) in a consistent manner will set you up for the proper mindset to execute that method in the first place. The mindset that is most effective is a relaxed mind. One of the biggest mistakes we make as traders is to think that there is something wrong with us when we keep making emotionally driven trading decisions that get us into trouble. Much of that is due to having no structure from which to make trading decisions, using predictive methods that rely on hope and belief, or thinking we should be able to jump in or out at every turn. In this video, I try to get across how method, money management, and mindset come together for me when I’m doing it all properly.

What Is A Trading Setup?

A trading setup is a set of conditions that come together in a particular way, indicating a probability of one thing happening over another. It’s like a weather event that happens when certain conditions come together in the atmosphere. First, we must define the conditions within price flow so that we can recognize them coming together and follow their process. The conditions we will use will be 2 of the market structure components that make up a swing. In this video, you will learn about the gap impulse and the shelf and how we can lean on it after certain conditions are met.

Design Your Own Trading Methods: Part 4

In part 4 of “Design Your Own trading Methods”, we design a couple of setups based on what we have learned in the previous videos about the process of a swing cycle and its components. We will work with a range setup or a wash & rinse setup that has a powerful impulse and is in the pressure cooker zone or the clean air zone of a swing cycle. In the video, I show how to understand and identify the zones and the setups. Any setup needs your full understanding of it, so practice by studying hundreds of them.

Design Your Own Trading Methods: Part 3

Design Your Own trading part 1 was about understanding the swing cycle and its process. Part 2 was learning some definitions and making some distinctions so we can map. In Part 3 we explore the 3 basic ways there are to trade, range trading, breakout trading, and swing trading. When talking about methods or setups, it’s important to approach the subject in an effective manner. No setup works in a vacuum and no setup has statistical probabilities. The only edge you have is your understanding of the market at the time of the setup. This understanding comes from learning the language of price and being able to map your market and the personal experience you develop from this frame of reference.

Truth Dispels Fear – 11/29 Live Session Clip

This is a clip from our Language of Markets Live Session on 11/29/21, while the markets were looking relatively scary. In this piece, I show how to ground ourselves to see what is true in the market structure when emotions are heightened. I also talk about using simple Median Line tools to develop an understanding of the push and pull rhythms of a market.

Design Your Own Trading Methods: Part 2

In Design Your Own Trading Methods: Part 1, we developed an understanding of the different phases of a swing cycle and how it moves in contraction/expansion so we can develop tactics for various parts of the cycle. In this next step, I go over some of the principles of price flow and define the components, and process of a swing so we have an objective frame of reference. With just this step of mapping, you never have to ask anybody what they think about a particular market, you just look for yourself and see what is true.

Design Your Own Trading Methods

This is the first part of a series on how to design your own trading methods. These methods can be from what you have observed in price flow, or they can be methods you have learned and want to adapt to your needs the way you see. It’s beneficial for us to participate in the authorship of the trading methods we use, and to make them ours.

Whatever we design will have to adhere to the principles of price flow. For example, everything moves in contraction/expansion and all market structure is a derivative of gaps and swings. From this observation, we can start to build on solid foundations and come up with numerous methods.

In this video, I want us to get a solid understanding of how price moves in a swing cycle. A swing moves in process and each part of the process has its own components and characteristics. If we understand this, we can design methods and tactics for various parts of that cycle.

Shane