You wait for price to make a new high or low, pull back, test it, and fail (or succeed) on the second attempt.
Price action trading has become a popular strategy among traders in recent years, and for good reason. By focusing on the price movements of a security, traders can make informed decisions about when to buy or sell, without relying on complex technical indicators or lagging data. One of the most well-known and respected resources for price action trading is the PATs Price Action Trading Manual, a comprehensive guide that has been widely praised for its clear and concise approach to this powerful trading strategy.
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Whether you're a new trader just starting out or an experienced trader looking to refine your skills, the PATs Price Action Trading Manual is an invaluable resource that can help you achieve your trading goals.
Price action trading is a method of trading that involves analyzing and making decisions based on the price movements of a security, without relying on technical indicators. This approach focuses on understanding market dynamics and identifying patterns in price movements to predict future price movements. You wait for price to make a new
: Determine the trend (bullish, bearish, or ranging) by drawing trend channels and observing price relation to the 21 EMA .
: Price continues upward, stretching away from the trend value. One of the most well-known and respected resources
If you are looking for a straightforward, rule-based approach to day trading E-mini futures, and you have the patience to master the "second entry" setup, the PATs method is widely considered a highly effective, legitimate system in 2026.
Unlike traditional indicators that lag behind current market conditions, PATs utilizes a , incorporating only two technical assets on a screen: raw price bars and a 21-period Exponential Moving Average (EMA) .
: The candle that triggers the trade must have a specific "look"—for a long, it should close near its high; for a short, near its low. Manual Structure & Content
PATs simplifies two-legged corrections into a strict counting mechanism: