Anatomy of a Winning Intraday Price Action Trade Plan
Tom Winterstein, ChartPros founder here...
One of my favorite things to do besides actually trading is teaching others how to trade price action technical analysis.
Several reasons really, like the opportunity to make extra money from trading the markets but also because time has demonstrated to me that the more I teach the better I perform as a trader.
That's probably one of the biggest reasons that I ask our Price Action Mastery Certified Traders to "ride shotgun" with me during our courses and bootcamps so that they too can experience the same benefit of becoming a better trader by helping to teach others.
It also fits nicely within my "Pay It Forward" approach in doing what I do.
The last 25 years of my professional career have been invested in teaching others primarily by leading and developing online training systems for adult learners.
Training systems for highly skilled workforces - Workforce Development some call it.
I call it making a difference in someone's life.
I wanted to share with you a real scenario that happened just this past week. Thursday morning before market open to be exact.
I was working 1:1 with one of our newly certified price action traders in applying what he learned during the last 3 months.
We set out to come up with an intraday trade plan for the S&P 500 (ticker /ES).
After going through a pre-trade routine that included marking up the chart we went through the bigger market pictures to "listen in on the story" that the market was sharing.
Here are the bi-directional levels of interest we identified.
Now there may seem like a lot is going on here with this chart, but once you understand the principles behind price action trading then it no longer will look like lines and confusion on your chart.
It was clear to the new trader that the green zone was the plan to get long and the red zone was the plan to get short.
Not to make a short story long, here is what actually happened:
Price ultimately went up another 40 points from this screen shot! Needless to say we both were very pleased with the outcome.
One must realize though this is not an exercise in "predicting" what will happen... rather, it is simply "anticipating what could happen" and then reacting accordingly.
As traders, we should never label ourselves as "bulls or bears" because so long as the market is moving we can read and react to price action in either direction.
I believe the best approach is learning how to trade based on your own skills and knowledge.
Earlier in my trading career I belonged to multiple different "trading rooms", you know the type I'm sure where they try to sell you indicators, alerts, systems, etc. None of those worked for me in the long run so while it was not an easy process I learned price action and attended a year long boot camp taught Michael Perrigo.
Today, I simply trade price action technical analysis using only 5 tools native to every charting software out there.
1. Support/Resistance
2. Trend
3. Fibonacci
4. Supply/Demand zones
5. Change control zones
Occasionally I'll use a momentum study.
And that's it, nothing else. You can review all my posts and you won't see a single indicator, study, secret alert, etc.
My philosophy is give a trader a signal and they’ll profit for a day; teach a trader Price Action and Risk Management and they can profit for a lifetime…
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