The trading methodology that I practice I learned during my time as a member in the Price Action Trading Institute (PATI).  See the Resources Page for a link to join PATI and Coupon Code to get 10% off your first month’s membership.

PATI is a membership training and support group run by Kim Krompass. She teaches a very simple approach to trading based solely on short term price action.

Here is a glossary of terms that I sometimes use in my descriptions of my trades. These are mostly the terms that are commonly used in the PATI trade planning sessions and training.

(Coming Soon)

CDM – an acronym for “clear directional move”, i.e. a chart pattern where the price movement is clearly in one direction or the other.

YL – designation for an entry criteria in which the price pulls back to the high or low (high in a CDM short, low in a CDM long) of the previous candle. So called after the practice of drawing a short “yellow line” at the high or low as a visual reminder of where the intended entry is.

level – price levels bear an importance in the PATI trading methodology. The levels are the “big number” – ’00, ’20’, ’50, and ’80, and then, of course back to ’00 100 pips higher. Levels are used in exit criteria (“taking profit at the next level”), and in re-entry criteria after a loss (“re-entered at the next level”).

RBO – an entry criteria that is triggered in a range-bound market when the price breaks through the range limit. Acronym for “range breakout”