Every month I will pick a futures market and a currency market for us to follow. At the end of each month, I will review these markets to see what we can learn and pick 2 more to follow for the next month. This is where we take theory and ground it into practice. This month’s charts will be Oil Futures and AUS/USD. I had done some previous posts: Map Any Market in Any Time Frame and Do It With Gaps, so we will use these basic methods for structuring our markets.
How you approach this or any exercise determines what you will get out of it. My objectives for this exercise are: to train in isolating relative structures, learn to set myself aside and follow price, learn to change with change as the market flows, learn to learn from price flow itself. I will put this Following Live segment into our newsletter every month, so subscribe if you’re not already on the list and want updates on these posts.
Gaps
Mapping the JPY With Swings and Gaps
In this post, I combine gaps and swings to map and trade the 20-minute JPY. You will see how I use gaps and swings to isolate a Change in Behavior and to also see the direction of price. I use them again to show me the trade entry where I am willing to risk my stop.
The key thing to learn is this, how to use our tools and not be used by them.
The Uncertainty of Gaps, The Space Between What Was and What’sTo Be
In the last post, “Mapping Markets With Gaps” I showed you how to structure a market with Gaps and finished the video by marking out a few markets live. In this video Im going to follow up those charts and see what we can learn from what happened when price interacted with those levels. These are the kinds of things we do in the Language of Markets Live sessions in order to take what we are learning into practice and application. In the video, I also go over the three types of trade options related to gaps. You can see a video on the Three Types of Trades in the “Principles of Trading” section of the home page. Gaps show us an area of supply/demand imbalance that we can take trade advantage of in many ways once we understand them.