Gaps
Following Live: Theory Into Practice. July- August 2020
In reviewing the USD/CAD and the E-Mini Russel we learned that markets can go sideways for a while not swinging much. I also introduce a percentage measure to test out how far price might go past a balanced swing and confirm a change. This month we will follow Silver futures and CHF/USD. Mapping swings is a simple way to frame and understand any market. One of the lessons I touch on is a video about approaching mapping swings or any method without expectations to get the most out of it.
Two Trades, Same Process, and Essence
I show two trades in this video, one by me in the USD/CAD 20 minute and one by a student in the E-mini S&P 2 minute. Both look a bit different but have the same understanding that comes from learning about the process of market structure and the essence of each structure. Sustained trading is not about pattern recognition, its a personal understanding of the whole read and structure that develops from practice. In the video, I show how you can see the structure no matter what time frame it shows up in or its shape. You can see this same structure and understanding in a post I did a year ago, “Trading The Valley In The CAD”.
Following Live: Theory Into Practice. May 2020
Last month we followed the Dow E-mini futures and EUR/USD and learned about contracting swings in the Dow and about rapid change in the EUR/USD. This month we will track Copper futures and the AUD/JPY. Keep in mind that these tools have the main function of enabling us to learn from price.
Learning To Read Price Action Part 1
Learning to read price action is easy. Its a matter of the relationship between buyers and sellers which is expressed in the bars. You don’t have to memorize complicated bar patterns with funny names or dozens of dead mechanical rules and formulas. In this video, I will show how to define a few significant bars, how to mark them out, and then talk about the essence of these price bars and how they relate to price flow. They show you where the controlling areas of buyers/sellers are and filter out the noise in the same manner swings do. In the next post, I will talk about reading a chart with price action.
Where going to study: (WRB stands for wide range bar and is defined as a bar bigger than the previous 3 bars).
•WRB Hard-up/Hard down
•WRB Gaps
•WRB Tails
•WRB Outside bars
•WRB Mirror bars