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.
Andrews Median Lines
Following Live: Theory Into Practice, December 2019
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.
Taking out the Cheap Seats, Minor Expanding Into Major
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.
Do It With Gaps
In the last post “Map Any Market in Any Time Frame” I showed you how to map markets using swings. There are various ways to map a market and in this video, I will show you how to do it with Gaps. Gaps are significant supply/demand events and once we learn how to isolate them on a chart, we can view the market through them eliminating the rest of the noise. This gives us an easy means to map, follow and have various ways to trade this event. See a post I did on ” Trading a Valley in the CAD” for an example. Learn to follow price and price will teach you.