Zen Trading Tech

Intro

• This is an important foundation for trading and for successfully trading both trends and trading ranges.
• Without this understanding, losing money in trading ranges is basically guaranteed.

Video

• I made a video on this here:

1. Intro
2. Video
3. Indicator
   1. Instructions
4. Drill 1: Find the entries
5. Drill 2: Look at different market structures
6. Drill 3: Add in the swing stops
7. Drill 4: Find Where Swing Stop Breaks
8. Drill 5: Swing stop broken, Sell above, Buy Below
9. Next Video

Indicator

• Here is a free indicator to research stop entries
• Link below:
• https://zentradingtech.com/2024/09/29/unlock-breakout-potential-with-an-indicator-for-stop-order-entries/

Instructions

• A stop-entry long is placed one tick above the high of a bull bar
• A stop-entry short is placed one tick below the low of a bear bar

Drill 1: Find the entries

Instructions

• Mark up all the stop entries that triggered on the next bar (or use an indicator)
• Ignore any that did not get triggered

Drill 2: Look at different market structures

• Look at how stop entries work in the following:
  • Small pullback bull trend
  • Bull channel
  • Small pullback bear trend
  • Bear channel
  • Trading Range

Drill 3: Add in the swing stops

Instructions

Here are possible places for it on the way down and upDrill 3: Add in the swing stops until it is broken

The swing stop for a long is one tick below the low of the higher low

The swing stop for a short is one tick above the high of a lower high

Instructions

• The swing stop for a long is one tick below the low of the higher low
• The swing stop for a short is one tick above the high of a lower high
• Here are possible places for it on the way down and up

Drill 4: Find Where Swing Stop Breaks

Instructions

• Draw a circle around where the swing stop was broken
• This is important to see who has control
• Everything before the break is trend
• Look at the counter-trend entries – no matter how good – why did they fail?

Drill 5: Swing stop broken, Sell above, Buy Below

Instructions

• Notice what happens when the swing stop is broken – traders started selling above highs and buying below lows

Next Video

• I will discuss how this applies to trading ranges in more detail