Delete every indicator. Yes, every single one. Your chart should have candles and horizontal lines only. (Some Pats purists allow a 20-period EMA for trend context, but the raw manual prefers naked).
What (NinjaTrader, TradingView, Sierra Chart) are you planning to use to set up your tick charts? Share public link
In essence, the second entry works like this: Pats Price Action Trading Manual.pdf
| Concept | Action | |--------|--------| | | 21 EMA (or 50-period SMA) – trade only in its direction | | Levels | Mark nearest swing highs/lows – these are your triggers | | Entry | 2-bar reversal OR first pullback after a strong directional bar | | Stop | Below the 2-bar pattern low (long) or above its high (short) | | Target | Previous swing high/low OR 2x risk | | Invalidation | If price breaks the pattern without reversal – get out. |
Disclaimer: Trading futures, Forex, and stocks carries a high level of risk. This article is for educational purposes regarding a specific trading methodology (Pats Price Action) and does not constitute financial advice. Always consult with a licensed financial advisor before trading. Delete every indicator
To become a successful price action trader, it's essential to follow best practices, including:
Markets rarely move in a straight line; they move in waves. A standard pullback within a trend usually consists of two distinct legs. PATS seeks to enter the market at the exact moment the second leg completes and the primary trend resumes. (Some Pats purists allow a 20-period EMA for
By stripping away the noise and focusing on pure candlestick mechanics and level-to-level trading, the Pats method offers a path to consistency that is rare in the "influencer" age of trading.
take a different approach. They strip away the noise to look directly at raw price bars.
Every candlestick must be interpreted within the context of preceding bars. PATS categorizes the market into two primary states:
In a bearish context, a corrective peak that fails to reach the previous peak confirms that sellers are stepping in lower, signaling an imminent drop. Step-by-Step Execution Guide