3 Types of Trades

The three basic types of trades framework help you understand what you doing when you take a trade. It also gives you a way to frame the supply/demand dynamics of momentum, expanding or reversing markets. As a principle, we can use this framework with swings, gaps, lines or any other relevant marker sloped or horizontal. In this video of the recent NQ, we see a typical pattern of minor swings pushing and then letting all those people go “Taking Out The Cheap Seats” as it expands into a type 2 major swing. Once understood, you can even specialize in the type that resonates with you learning all its nuances or train in all three.