That is the art of the naked chart. Disclaimer: This content is for informational and educational purposes only and does not constitute financial advice. Trading forex, stocks, or futures involves substantial risk of loss.
Pat’s rule: "If you cannot draw a clear horizontal line that has been touched at least twice, you do not have permission to trade." Pats Price Action Trading Manualpdf
Most traders feel they must be in the market. Itchy trigger fingers. Pat argues that 80% of the time, the market is in chop (random noise). During chop, price action lies. It fakes breakouts. It hunts stops. That is the art of the naked chart
But here is the specific "Pat" twist: "Don't look for the bounce; look for the reaction to the bounce." Pat differentiates between a "test" and a "break." Most traders see price touch a support level and instantly buy. Pat waits. He watches the closing price relative to that level. He looks for "rejection candles" (long wicks) or "engulfing patterns." Pat’s rule: "If you cannot draw a clear