The price then turns back down, creating a lower swing low.
This is a unique differentiator. Most retail traders use 5-minute or 15-minute charts. The Pats method often utilizes (e.g., 500-tick or 1000-tick charts for futures like the ES or NQ). Pats Price Action Trading Manualpdf
This is the undisputed core of the PATs system. Mack teaches that the market likes to move in pairs or "two-legged pullbacks". Rather than chasing the first breakout (which is often a trap), the PATs method waits for a pullback and then the second signal bar (or second test of a level) to enter. The price then turns back down, creating a lower swing low
It should ideally be "rejection" style (a long wick) showing that the counter-trend move has failed. 🛠️ The PATS Setup Checklist The Pats method often utilizes (e
No trading manual is complete without a section on capital preservation. Pat’s guide advocates for a conservative approach to risk:
The upward move stalls quickly, and the price turns down again, breaking a previous bar's low.