Zen Trading Tech

Intro

• Higher time frame and lower time frame analysis is very important in staying relaxed in trading
• In the first post and video I explained the exercise
• But this was only for channels.
• It can be used on every pattern
• Here is part of my homework from this morning

Video

• I made a video on this here:

Links

Link to first post:

Effective Trading Techniques: Higher vs. Lower Time Frames (Part 1)

Link to first video:

• Different strengths in channels
• https://www.brookstradingcourse.com/

Drill Instructions:

Instructions

• Start at highest timeframe (Monthly and work down)
• Focus on the HTF and HOW it impacts the LTF (Don’t zoom in to much just yet)
• Sequence:
  • Monthly -> Weekly
  • Weekly -> Daily
  • Daily -> 60m
  • 60m -> 15m
  • 15m -> 5m

Examples

Monthly -> Weekly

1. Pullback MM
2. Test breakout point (BOP)
3. 1R targets weekly buy signal bar

Weekly -> Daily

1. Test of BOP
2. 50% pb weekly
   buy signal bar
3. MIG – 50%

Daily-> 60m

• Use ETH if many gaps
• Test BOP
• Big body gap – did not close
• Bull channel, broke below and test midpoint
• Micro Wedge Bottom to MA
• Test Daily MA looking for a buy signal

60m-> 15m

• Switch back to RTH
• Bull channel, Bear breakout, test midpoint
• Broke below higher low and MM down
• Wedge bottom to the MA, BO and PB entry

15m-> 5m

• Bull breakout STRONG – but too high to buy without a pullback
• Short for gap close
• Short again – 2 legs
• Long for LOD wedge bottom
• Long again

Conclusion

• When confused, go up timeframes until your confusion disappears!
• Practice on all patterns until you can zoom in and out with little stress
• If stress is there, either practice hasn’t been completed or very strong trading range!