The Price Action Manual, One Day at a Time will be to show you the various trading setups that arise several or more times a day in many cases and explain the conditions that you need to witness to make them viable at the time.
The basic premise we start with is that all markets move along in up and down spurts negotiating price levels which are referred to as SUPPORT & RESISTANCE.
In futures markets we have an equal amount of buyers and sellers holding an opposing view. The direction in which price moves is dictated by the strength of either side at anyone time. If there are more buyers than sellers the price will rise. If there are more sellers than buyers the price will go down. It is that simple.
When the market is perceived to be at a value that dictates SUPPORT buyers will appear and so long as they outnumber the current ladder of sellers present the market will reverse direction and turn up.
The extent to which it will rise will be dependent on an increasing number of buyers participating in the new change of direction. Often a move upwards will gain momentum as the existing sellers already holding short positions are forced to cover by buying back their shorts. This has the effect of fueling any upward move in progress until such time as the buying dries up.
Price will generally continue to rise until such time as it is perceived to reach a level of RESISTANCE and new sellers start entering the market again. This process continues ad infinitum, day in and day out.
All we need to understand to be successful in trading is to read which side is in control of the direction and act on it.
- The basic approach
- My office set up
- A few simple things to start with
- How to stay on the right side of the market
- Implied Market RESISTANCE LEVELS
- Implied Market SUPPORT LEVELS
- Geometric Levels – highs/lows/61.8/50/38.2
- 1:1 Market Geometry Theory
- Basic BUY PATTERN set ups
- Basic SELL PATTERN set ups
- Price Action Trading
- Swing Charts – 2 & 3 day balance points
- Floor Trader Pivot Levels
- Overbought & Oversold indicators
- Volume, Volume spikes, OBV
- News Events, Reports and Bloomberg
- Elliott Wave Basics
- Gann theory basics
- XABCD theory
- Patterns & Candlesticks
- The 1:1 double drive reversal trade
- The 1:1 re-entry trade
- The 61.8% retracement trade
- The 50% retracement trade
- The double top Breakout or Reversal trade
- The double bottom Breakout or Reversal trade
- The Break Back Sell trade
- The Break Back Buy trade
- The Distribution breakout trade
- The Accumulation breakout trade
- The Opening Price hook trade
- The Globex High / Low and GAP factors
- Daily Trading Patterns
- The OEX “blue chips” factor
- The DJIA “Industrial blue chips” factor
- The CASH SPX (S&P500) factor
- The Winning Approach
- Weekly & Monthly charts