If you trade multiple contracts, you lock in profit on your first contracts at +4 ticks and immediately move your stop loss on the remaining contract to breakeven (+1 tick to cover commissions). You then let this "runner" ride along the trend channel until price breaks the channel or reaches a major structural target. Common Pitfalls to Avoid

PATs stands for . It is a methodology designed primarily for day trading liquid markets, such as the E-mini S&P 500 futures (ES), though its principles apply to any liquid financial asset.

The standard trade management strategy outlined in the manual includes:

The manual defines strict rules for entry, stop-loss placement, and profit targets.

At its core, is a method of making trading decisions based solely on the raw price movement shown on a stripped‑down “naked” chart. Most price action traders use only a simple moving average (if that) to gauge trend direction, and they look for patterns in the candlesticks – for example, pin bars, inside bars, and engulfing bars – to anticipate the next price move. The core belief is that all necessary information is already reflected in price, so adding dozens of lagging indicators just adds confusion.

Record why a setup failed—was it a bad "count" or a ranging market? Final Thoughts

In this article, we'll take a closer look at the Pats Price Action Trading Manual, exploring its key concepts, strategies, and benefits. Whether you're a seasoned trader or just starting out, this manual is an invaluable resource that can help you improve your trading skills and achieve your financial goals.

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It emphasizes reading market trends, trading ranges, and key structural levels (support and resistance).

Removes indicator clutter (no RSI, MACD, or Stochastics).

When a second-generation setup fails, it triggers massive stop-losses from trapped traders, causing a rapid price spike in the opposite direction.