It’s not enough to just know how to recognize a market structure or memorize a bunch of technical analysis. That’s a start, but then we want to use those things to learn about how price moves and get that feel into our bones. In this video, I look at last week’s USD/JPY and E-Mini S&P mapping these markets using major/minor swings and the frame of the 3 types of trade options to learn about how price moves.
I have shown that there are 3 basic types of trade options related to market structures or lines. This month in our Language of Markets Live Sessions we put our focus on type 2 trades (Expand then continue). This kind of trade is like sitting outside of the crowd observing all the pushing and shoving and urgency, then calmly seeing where it all lands when the crowd gets confused. All of this is expressed in swings, in this post I use a Gold futures tick chart and a weekly NTES to study some of what makes a swing up, to see how the crowd’s urgency and subsequent confusion is expressed in price action.
Last month we mapped and followed an oil and Aussie chart with simple swings and gaps and these are some of the lessons we learned from this: We saw how minor swings can break and expand and into a major leg. I did a recent post on this in “Taking Out the Cheap Seats“. We learned how mapping swings and seeing in swings can take out the intensity of a chart, thus relaxing us and changing our experience of trading.
This month we will map and follow USD/CAD and Gold Futures.
In previous posts, I showed how to identify swings and then taught how to make a further distinction of minor and major swings. With this understanding, we can come up with various ways to trade and read a market. In this video, I will show how to take advantage of a minor swing expanding into a major swing taking out the momentum players, the cheap seats. You can also see this represented by a Median Line set, like in the 90-minute oil chart from the “Following Live: Theory Into Practice” post.