Simple Day Trading Market Cycle Drills #3: Lightning Bolt Crossover
  1. Intro
  2. Goal
  3. Drill Instructions
  4. Conclusion

Intro

  • This is part of a series on learning the MARKET CYCLE. Many traders contacted me asking for ways to improve this part of their price action reading.
  • The market moves in two legs.
  • Often it is not clear whether this is a two-legged move down or up.
  • Traders are able to trade in either direction as long as they DO NOT trade it like a BREAKOUT.

Goal

  • Identify trading ranges as areas where opposite 2-legged moves exist.

Drill Instructions

  • Follow the previous drills for lightning bolts
  • Where there are TWO POSSIBLE 2 legged moves in the same space – now draw a trading range box.
  • There are areas where traders can be long or short. Notice where they occur:
    • Far from the MA
    • After 3+ legs
    • Top Sell Climax / Bottom of a Buy Climax
https://www.tradingview.com/x/n9LhzCFc/
https://www.tradingview.com/x/mX0MaAfH/
  • If you have NO IDEA how to draw the arrows = TRADING RANGE
  • If the market looks like this – assume disappointment, so you won’t feel disappointed.
https://www.tradingview.com/x/znPn6t7m/

Conclusion

  • Use your confusion as a radar to trade it like a trading range

I hope you enjoyed that drill! Please let me know in the comments if you found that valuable.

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I’m Tim

Welcome to Zen Trading Tech.

I’m a Aussie day trader and I post trading tips, practice drills, and indicators that helped my trading get to a professional level.

Everything here is to help train the eyes and hands to trade better. If it helped me I’ll post it for others. Hope you enjoy!