Zen Trading Tech

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.
• Like nature, the market rarely moves straight lines – whether vertical or horizontal.
• In the first drill we used simple shapes to define the market as moving or still.
• Now we add more detail with angles which will change how we enter.

Goal

• See rarity of breakouts.
• See how common channels are – so therefore how important it is to trade channels correctly.

Drill Instructions

1. Colour spikes up and down (Down red, Up green for example)
2. Now add channels – try a different colour for bull and bear channels
3. Where there is a BULL channel and a BEAR channel – then change that part into a trading range bow.

• Notice how the LEAST COMMON structure is a BREAKOUT
• Notice how the MOST COMMON structure is a CHANNEL

Conclusion

• Try adjusting your entries this week.
• When you think it is a BREAKOUT, trade it like a channel.
• When you think it is a channel, trade it like a trading range.

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