Zen Trading Tech

Understanding market context is key to price action trading.

Using Al Brooks’ methodology, here’s my structured approach:

Quick Summary

1. Timeframes: Start with Monthly, Weekly, then Daily.
2. Momentum, Magnets and Measured Moves: Identify direction to key levels.
3. Always In vs. Trading Range: Is the market trending or ranging?
4. Market Cycle: Recognize spikes, channels, trading ranges, and failures.
5. Trend & Channel Lines: Map structure
6. Gaps & Pullback Distance: Measure strength of moves.
7. Market Structures: Identify doubles, triples, and reversals.
8. Tests & Failed Tests: Watch for key level rejections.
9. Breakouts & Failures: Assess breakout strength.
10. Orders: Consider stop/limit entries, targets, and risk.
11. Probability, Risk, & Return: Use the trader’s equation.

This streamlined approach ensures I analyse price action effectively, aligning trades with the market’s context. By refining this process, I improve decision-making and trade execution.