Zen Trading Tech

1. Intro
2. Concept
3. How to trade:
4. Example:

Intro

In a previous post I have covered the same principle from a different angle.

My intention is that it will support the selection of higher probability (higher %) trade selection.

See: Trader Skills #4: Two Attempts

Concept

– Market cycle -> Breakout -> Tight Channel.

– Next market structure = Broad Channel (Deep pullbacks)

– Stop Order bulls BTC, BTM – buying high wide stop

– Limit Order bulls unable to get in below bars

– Stop placement either very tight (below bar, scalp below bar) or very side (TR lows)

– Scale in at logical / mathematical areas (50%, 65%, breakout points / breakout gap midpoints)

How to trade:

– If early in leg count there is a high probability of scaling below and getting breakeven ~80%. And about 60% chance of $

– When it fails, it is either late in leg count or a big surprise.

– That big surprise creates at least 2 trades (often 3): O

– One in direction of surprise (leg 2)

– One back to the trap price (good place for limit order)

– One again in the surprise direction

Example: