Last month we followed the Nasdaq E-Mini futures and NZD/USD into historic volatility and crazy. We mapped and followed them calmly with simple swings the same way we always do, the only difference is that the swings were bigger. This is an important time to stabilize our practice of seeing markets calmly and objectively. I emphasize the word “follow” because there is a big difference between predicting and following. This Month we will follow the Dow E-Mini futures and EUR/USD.
We all see things differently and mostly experience markets through past personal experiences which distorts what is going on. We especially get our buttons pushed during times of high volatility and uncertainty. Mapping markets simply and objectively always needs to be the starting point, to orient ourselves to “What Is” rather than what we want or don’t want. It’s not a trader’s job to predict markets, it’s our job to follow and join them no matter what they are doing. In this video, I map out the E-Mini S&P weekly chart along with a few stocks, AAPL, VRTX, AVGO, SQ, BAC, and GILD.
Changes in price flow are signaled when swings are broken—when a downswing is broken to the upside, for example. Seeing and making these distinctions intimately connects us to the rhythm of a market and offers the trader greater flexibility in trade options. In this last part of our three-part series on mapping markets in any time frame, we look at the anatomy minor swings and Last Swing Broke.
Summing up the series, we learned how to use swings to map any market in any time frame. This is a practical tool that can be readily applied by a trader at any level.
This is the second of our three-part series on Mapping Any Market in Any Time Frame. In Part I, we learned how to structure markets using only swings. Simple enough, but markets are not static. They are dynamic systems. This means any effort at mapping market structure has to also be dynamic. This is price flow. So we follow and, in following, we develop a connection to a market’s rhythms and learn to change with change. This is fundamentally one of the most important lessons in a trader’s education.
In this video, I introduce the practice of following live markets and highlight the basic tools for developing this practice.
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.