What (NinjaTrader, TradingView, Sierra Chart) do you currently use?
A major reason why the PATs system remains popular is its strict, mathematical approach to trade management.
Trading the PATS manual requires mechanical precision. Here is how a standard trade is executed from identification to exit. Step 1: Establish the Context Pats Price Action Trading Manual.pdf
While the rules in the manual sound straightforward, mastering PATs requires immense discipline. Beginners often fail due to three distinct mistakes:
To understand the manual, you must master its unique terminology and structural building blocks. 1. Two-Legged Moves Here is how a standard trade is executed
The Price Action Trading System (PATs) is a rules-based scalping and day trading strategy designed primarily for high-liquidity markets like the E-mini S&P 500 futures ($ES). The entire system rests on the philosophy that .
A forum discussion notes: "Mack is pretty clear that he is showing a simplified method and refers to Al Brooks for those who want a deeper dive." In a clear uptrend
Traditionally 1 to 4 ticks/points depending on the instrument (e.g., 4 ticks or 1 point on the ES futures).
Your entry order is placed as a stop order one tick above (for longs) or below (for shorts) the Signal Bar . The Signal Bar must have a strong closing bias. For a long, it must close near its absolute top. For a short, it must close near its absolute bottom.
The manual explains how to use the 21 EMA as a dynamic trend filter. In a clear uptrend, price tends to stay above the 21 EMA, while in a downtrend it remains below it. Pullbacks to the EMA often represent high‑probability entry points for trades in the direction of the dominant trend.
A pin bar forming in the middle of "nowhere" (no confluence) is often ignored, while a pin bar forming at a major trend line during a pullback is a high-probability trade.