The signal bar must be a strong bullish bar (closing near its top).
is a highly disciplined, pure price action methodology focused on reading raw charts without the clutter of lagging indicators . Developed by trading veteran Bob Volman and popularized by Al Brooks and Mack at Price Action Trading System (PATS), this approach teaches traders to read the market candle-by-candle.
Look at the overall market direction on the day.
If you are looking for the , this comprehensive guide serves as your definitive roadmap to understanding the core rules, setups, and strategies outlined in that foundational material. What is PATs Price Action Trading?
In the Pats system, the 21 EMA acts as a visual baseline for value. Pats Price Action Trading Manualpdf
To master PATs, you must look at charts through a specific structural lens. The system relies on four fundamental pillars. 1. Two-Legged Moves (The Rule of Two)
Every trade in PATs is triggered by a specific candlestick called the .
This correction almost always happens in or waves.
Characterized by Lower Highs (LH) and Lower Lows (LL). The signal bar must be a strong bullish
If three or more bars are overlapping with wicks on both sides, the market is congested. Counting H2/L2 setups inside tight congestion will result in getting chopped up.
In the E-mini S&P 500, the classic PATS scalp target is 4 ticks (1 point) . The system is designed so that a high-quality second entry will naturally push far enough to give you 4 ticks of profit with a very high statistical probability.
Spend hours watching live or historical charts simply counting 1CH, 2CH, 1CL, and 2CL setups. Do not trade yet; learn to see the rhythm of the two-legged corrections.
Entering a trade with the goal of securing a quick, highly reliable profit target (historically 1 to 4 ticks/points depending on the instrument volatility) to cover trading costs and build account equity. Look at the overall market direction on the day
I can tailor a specific chart-reading breakdown for your style. Share public link
The PATs website and YouTube channel offer hundreds of free video lessons and daily chart reviews. Mack posts a daily mid-morning chart in the Premium Members Area, allowing students to see exactly what an experienced professional trader is seeing in real-time. The Premium Members Area also includes a trading support forum, proprietary NinjaTrader charting tools, and deeper video content. Importantly, anyone who buys the manual can receive a $25 discount on the membership fee.
The reason PATs boasts a remarkably high win rate when executed properly is because it exploits .
Do you plan to trade , forex , or stocks ?
The market moves in waves. Human psychology dictates that profit-taking or counter-trend attempts usually happen in two distinct waves (or legs). PATS looks to enter the market precisely when a counter-trend correction has completed its second leg, trapping counter-trend traders and fueling the resumption of the main trend. The Core PATS Trading Setups
In a strong uptrend, short-sellers will try to pick a top using a Second Entry Short. If the market breaks above that setup, the shorts must buy back their positions to close them. This buying pressure fuels a fast move upward, offering a high-probability long entry. Rules of Risk Management in PATs