: The system exploits the mistakes of trapped counter-trend traders. Key Concepts in the PATS Manual
Forcing Second Entries inside a tight, overlapping sideways trading range.
As described above, these are the bread-and-butter trades of the system. The highest probability second entries occur when the price tests the 21 EMA from a pullback and rejects it, moving back in the direction of the dominant trend. 2. Failed Second Entries (Traps)
These are confirmation setups. If the market bounces off the EMA, a subsequent Higher Low (for longs) confirms that buyers have seized control, offering a safe entry point. Trend Line Breaks and Reversals Pats Price Action Trading Manual.pdf
Patience is required to wait for the specific setups.
The protective stop loss is placed exactly 1 tick past the opposite side of the signal bar. This keeps risk remarkably tight (often only 4 to 8 ticks).
Understanding the manual requires grasping several foundational concepts that Mack uses to build his trading system. : The system exploits the mistakes of trapped
Has the market completed a two-legged correction? Is this a valid second entry?
The price immediately reverses and breaks above the high of the signal bar.
The candle that triggers the count must look correct. For a buy, the signal bar should be a strong bullish reversal bar closing near its top. For a sell, it should be a bearish bar closing near its bottom. Do not take entries on dojis or neutral bars. The highest probability second entries occur when the
The EMA acts as a visual anchor. In a strong trend, price will consistently revert to the 21 EMA before bouncing.
In the fast-paced world of day trading, stripped-down technical analysis has become a cornerstone for success. Among the many methodologies available, (often referred to simply as "Mack's Manual" or "PATs") has emerged as a premier guide for traders looking to master naked chart trading, particularly in the futures markets.
The most famous aspect of the PATS Price Action Manual is its strict counting system. The market moves in two-legged corrections. PATS capitalizes on the end of these corrections. Second Entry Longs (2EL) In an uptrend, the market will eventually pull back.
An Amazon India reviewer appreciated the clarity: