One-Line Practice: Set Yourself Aside And Follow

In this video, I set up a trading plan and introduce a trend line exercise you can practice in any market and in any time frame. There is no one right way to draw a trend line, it’s a matter of function and what you are trying to see. We will be drawing a trend line off two relative (same size swings). This will identify the footprints of organized volatility on a chart.

This exercise is designed so that you can learn about markets and price flow in your own experience. Its objectives are:

  1. Learn to isolate relative market structures.
  2. Learn to set yourself aside and follow price no matter what price is doing.
  3. Allow the practice and price flow to teach you.

We first need to make some objective swing definitions:

  • Confirmed Swing High/Low: A new high confirms a swing low and a new low confirms a swing high.
  • Balanced/Relative Swing: Same size reaction legs.

One Line Practice Instructions:

  1. Identify two confirmed relative swings
  2. Anchor a trend line at the two lows and make observations (not expectations) about how price interacts with the line.
  3. Always follow the last two relative confirmed swings with the trend line.
  4. Draw a box across the top of each swing and observe how price interacts with the boxes.

By identifying two same-sized swings that confirmed new highs, we have found some organized volatility and behavior. We can then participate in that continued behavior or have a way to know when it changes.