Hello all traders!
In the 3rd Lesson of “Workshop 1: Price Turning Points”, you will learn “How to identify Complex Non-standard Swing Highs & Swing Lows”.
I have already created an animated lesson on this topic and please refer to the following link to view the clip that explains the process in detail:
How to identify Complex Non-standard Swing Highs & Swing Lows
Practice Drills 5: Workshop 1: Price Turning Points - Complex Non-standard Swing Highs & Swing Lows
To practice identifying the Complex Non-standard SH, please watch from the 1.53 min, and for Complex Non-standard SL from 4.25 min of the below video:
How to identify Complex Non-standard Swing Highs & Swing Lows
Practice Drills 6: Workshop 1: Price Turning Points - Complex Non-standard Swing Lows & Swing Highs
To practice Identifying the Complex Non-standard SH/SL, please watch this example of smart drill first:
How To Identify Complex Non-standard SH & SL- Example of Smart Drills
Then forward test with real market data the same concept at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
Workshop 2: Range Concept and Drawing/Updating Range Line in Live Market
Hello all traders,
We have discussed the concept of price turning points and you have practiced how to identify SH/SL on any chart quickly. In this workshop, we discuss the concept of Range, and how to draw/update Range Lines.
I have already created a video on the lessons of this workshop with some example drills that cover the concept of range, how to draw range lines, and how to update range lines in the real market.
Please refer to the following link to view this clip and let me know if you have any questions:
Workshop 2: Range, Drawing Range Line, Identifying/Update Range lines in the live market
Why is the concept of Range important?
In this basic section, we deliberately want to only focus on drawing the range lines and comparing 2 consecutive ones. This skill becomes the basis for advanced Price Action lessons/drills, so please continue and read these sections that show the application of range analysis:
These skills become an important part of Algo 2 Entry Setup, which is the Momentum analysis of the Structure Chart and will be discussed here:
Also, the range concept is applied to the Dynamic Channel Range, which is an important Volatility Filter of our Trading Plan. When the volatility of the market is too high, we do not take the trade as discussed in our Trading Plan filter sections here:
What is the application of Range analysis?
To summarize the range analysis application in the PAAT trading system, it is used as a 2nd entry algorithm condition. When the structure chart pattern is trendy (Algo 1 passed), we apply Momentum Range Analysis (Algo 2) to make sure we are not at the end of a trend. We want to catch the start of an emerging Trend and continue to take its pullbacks till its momentum is gone, indicating that the trend could end anytime or have a major correction. Trading at the End of Trend is dangerous and traps many novice traders and we also reduce our positions and stop trading when we see Algo 2 fails.
Practice Drills 7: Workshop 2: Range Concept and Drawing/Updating Range Line in Live Market
To practice drawing Range Lines, please watch this example of smart drill first:
Then forward test with real market data the same concept for URLs and DRLs at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
Workshop 3: Dynamic Support (DS) & Dynamic Resistance (DR)
We have discussed the concept of range and how to draw a range line by connecting two consecutive price turning points. In this workshop, we discuss the concept of Dynamic Support (DS) and Dynamic Resistance (SR) and how to draw them by connecting 2 consecutive SLs or 2 consecutive SHs.
I have already created a video on this topic with some example drills. Please refer to the following link to view this clip and let me know if you have any questions:
Dynamic Support (DS) & Dynamic Resistance (DR)
Practice Drills 8: Workshop 3: Dynamic Support (DS) & Dynamic Resistance (DR) in Live Market
To practice drawing DS lines, please watch this example of smart drill first:
Practice drawing DS lines
To practice drawing DR lines, please watch this example of smart drill first:
Practice drawing DR lines
Then forward test with real market data the same concept for drawing DS and DR lines at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
Workshop 4: Drawing/Updating Dynamic Channels (DC)
We have discussed and practiced how to draw individually a Dynamic Support (DS) or Dynamic Resistance (SR) line on a price chart. When you draw the latest DS and DR lines on the chart, that defines a Dynamic Channel (DC). Therefore you need the latest 2 consecutive SLs and 2 consecutive SHs to draw a dynamic channel.
I have already created a video on how to draw/update a DC with some example drills. Please refer to the following link to view this clip and let me know if you have any questions:
Practice Drills 9: Workshop 4: Drawing/Updating Dynamic Channels (DC)
To practice drawing/updating DC, please watch this example of smart drill first:
Practice Drawing/Updating DC
Then forward test with real market data the same concept for drawing/updating DC at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
Workshop 5: Patterns
You have learned how to draw a Dynamic Channel (DC), which shows an updated area of support and resistance in a dynamic way on the price chart.
We discuss here the concept of Patterns and how to simply categorize them and recognize the trending patterns.
I have already created a video on this topic with some example drills. Please refer to the following link to view this clip and let me know if you have any questions:
Practice Drills 10: Workshop 5: Patterns
To practice determining the types of Patterns, please watch this example of smart drill first:
Then forward test with real market data the same concept to determine the Types of Patterns at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
Workshop 6: Relationship between a Pattern and Range
In this lesson of Workshop 6, we discuss the relationship between a Pattern and Range. I have already created a video on this topic with some example drills. Please refer to the following link to view this clip and let me know if you have any questions:
Practice Drills 11: Workshop 6: Relationship between a Pattern and Range
To practice updating a Dynamic Channel and see how the Patterns and Range change constantly as new SH/SL is formed, please watch this example of a smart drill first:
Then forward test with real market data the same concept to determine the Types of Patterns at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
We have discussed in the first six workshops all basic price action concepts and now focus on more advanced topics related to the Trend and Sideways interconversion in the next three workshops, so you can apply them effectively in the PAAT technical analysis and trading.
The PAAT is a trend-following system and we should start with the definition of Trend first. But we will intentionally start with the Sideways concept and its breakouts, which may lead to formation of another Sideways pattern or to begin a new Trending pattern.
So let’s start Workshop 7 with the concept of Sideways breakouts.
In this workshop, we discuss the concept of Sideways Channel breakout that often leads to the formation of another Sideways pattern. This helps you to analyze Sideways Channel Breakout to a new emerging pattern and categorize the new pattern on the price charts instantly.
I have already created a video on this topic, so please refer to the following link to view this clip and let me know if you have any questions:
To practice recognizing when a sideways channel breakout happens, which often leads to the formation of another sideways pattern, please watch this example of a smart drill first:
Then forward test with real market data the same concept at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
In this workshop, we discuss the concept of Sideways Channel breakout that leads to the formation of a trending pattern. This helps you to analyze Sideways Channel Breakout to a new emerging trending pattern, so you will not miss the beginning of a trend.
I have already created a video on this topic, so please refer to the following link to view this clip and let me know if you have any questions:
To practice recognizing when a sideways channel breakout leads to the formation of an emerging trend pattern, please watch this example of a smart drill first:
Then forward test with real market data the same concept at least 10 times using any instrument chart. Hope this helps you to master this skill and please let me know if you have any questions.
In this workshop, we discuss the concept of Trend Channel breakout that leads to the continuation of the same trending pattern. This helps you to analyze the Trend Channel Breakout that is temporary and leads often to the continuation of the Trend.
When you update the dynamic channel in an uptrend pattern and see the price breaks the dynamic resistant line, you often see that the new pattern has higher Swing highs and higher swing lows, which indicates the continuation of the uptrend pattern.
When you update the dynamic channel in a downtrend pattern and see the price breaks the dynamic support line, you often see that the new pattern has lower Swing Lows and lower Swing Highs, which indicates the continuation of the downtrend pattern.
I have already created a video on this topic, so please refer to the following link to view this clip and let me know if you have any questions:
