Price action trading is a popular method of analyzing and trading financial markets. It involves studying the movement of prices on a chart and making trading decisions based on that price movement alone, without relying on any technical indicators or other external factors. Traders who use price action trading strategies typically look for patterns and signals in the price movement to help them identify potential buying and selling opportunities. This approach is often favored by traders who prefer a more hands-on, intuitive approach rather than relying on complex automated algorithms.
While indices, Forex trading, and cryptocurrency are my areas of interest, Trade Selector System (TSS) price action applies to any financial instrument, such as stocks, futures, options, etc. If you can produce a chart, then TSS can be applied.
Trading is a complex and multifaceted activity that involves a wide range of skills and abilities. To become a successful trader, one must possess analytical and intuitive skills and the ability to remain disciplined and focused in the face of rapidly changing market conditions.
Learning to trade can be challenging and demanding, requiring much practice, patience, and perseverance. While some individuals may have a natural talent for trading, most people must learn the necessary skills through education, training, and experience.
The trading world is one of excitement and wonder but also of considerable risk and potential loss. Successful traders must balance courage and discipline as they make complex decisions in the face of uncertainty. They must be able to analyze market trends, identify potential risks, and make informed decisions based on their analysis.
If you are fortunate enough to have discovered the joys of living life on your terms, then you know how rewarding it can be. You may have already started trading and are now looking for a few reasonable rules or strategies to enhance your success. Alternatively, you may be a successful entrepreneur, a self-made individual eager to conquer new frontiers. Regardless of your background, it would help if you utilized your talents, skills, and knowledge to master this challenging market strategy.
Mastering the art of trading requires dedication, hard work, and a willingness to learn from your experiences. By following a few proven strategies and developing a solid trading plan, you can achieve your goals and experience the joy of living life on your terms.
I have spent the last thirty years trading the markets. I had my ups and downs when I first started due to my inexperience in understanding how the markets worked. It is a well-known fact that many traders lose their capital when they enter the market, primarily due to their inadequate knowledge and preparation.
Through my early trading days, I learned that the periodic rise and fall of markets are based on natural law. This led me to devote several years to studying natural law as it applies to the markets. My goal was to make trading a profitable profession.
After extensive research and experimentation, I discovered the law of price action of market symmetry. The system can foresee short-term and long-term market trends by identifying the reason and the effect. The system can prepare the trader and investor for trading the market before it happens.
Most traders experience failures because they ignore the settings and only look at the result. The law of market symmetry is the fundamental principle upon which all markets behave, and it has enabled the Trade Selector System to forecast market movements with consistency and accuracy.
Although explaining the law of market symmetry is challenging, viewing the charts on the Trading View page can help one understand basic principles.
My profound understanding of entrepreneurship was acquired through rigorous study, hard work, and the pursuit of knowledge through experience. Strangely, I come from a corporate background in high technology. And although I thought the corporate world would be for me, I always deeply longed to be a trader.
In my forties, I set out to make my mark once I became an independent consultant to major high-tech firms in Japan (the "no turning back" kind). I have traveled the entire country of Japan, from my residence in Tokyo and Matsumoto to Hokkaido, up to Okinawa, and just about everywhere in between.
As a consultant, I realized I had inadvertently implemented a "one size fits all" approach to my services. However, my experience with Japanese clients highlighted the need for tailor—made communication strategies depending on market segments and company sizes.
It became increasingly evident that a communication strategy that worked for small companies might need to be more effective for larger companies. My desperation necessitated this realization to succeed in a highly competitive industry.
The Japanese clients' feedback and responses prompted me to seek different approaches to enhance my consulting services. It was a valuable lesson, and I learned that effective communication and approach are vital in providing comprehensive and satisfactory services.
After testing and testing my consulting approach, I stumbled upon a particular system that anyone could replicate if they were armed with the correct information: ''Human behavior''. The key to successful business ventures is recognizing the proper human behavior at the right time.
The Trade Selector System method I have discovered has been based on that premise. The trading methodology was tested, battle-tested, and stress-tested in financial market after market. Large and small traders can use it, so one can be confident that one can apply this in one's trading business.
Are you skeptical? Great. I am a chief among sceptics. I want to tell you a little about the system and the unlikely story of how the Trade Selector System method came together to create what's becoming a trader's dream—with a financial impact beyond one's wildest imagination.
The real breakthrough came after I discovered a way to quantify what can only be adequately described as market symmetry trading. The master market symmetry trader understands beforehand where the market will go. He's the one who buys when the market is still in consolidation or showing nothing. He understands that the market needs time to develop. He also knows when to exit.
My goal was to trade based on market probabilities without being influenced by my emotions or biases. My market intuition was good, but, like many traders, I had difficulty attending to it.
After years of struggling with the problem of uncertainty, I discovered the notion of what I call the "Behavior event," which changed everything. Now, I could accept—and expect—the very opposite of the conventional wisdom to come true. At the bottom of what I was striving to understand was that there was some pattern as to why the market behaved as it did. That led to the notion of behavior event breakthrough. There was a pattern in the market, and it was right there in front of me.
The Trade Selector System—Price Action Time Visibility System aims to align with the market without demanding the market to align with you. Trying to force the market to follow your will is egotistical and may lead to your downfall. To synchronize with the market, one needs to be humble and willing to follow its lead.
If you go against the market's current by attempting to move upstream, you will face an unyielding and relentless opponent who continually thwarts your efforts. However, the market is not your enemy; it merely flows in its natural direction. Trading becomes effortless and serene if you can align yourself with it, mirror its movements, and go with the flow.
The Trade Selector System is all about inner and outer market symmetry. With the advent of personal computers, traders gained the ability to analyze vast amounts of technical information in short periods, leading to the proliferation of technical analysis across all markets. Traders were overwhelmed with the different systems and methods developed to trade the markets based on price, volume, and open interest.
I learned that there is less to trading than meets the eye. The Trade Selector System offers a unique perspective on the markets and a unique approach to trading them.
It is the purest, simplest, and easiest way to profit from trading the markets, relying solely on what the market tells us about itself.
But the Trade Selector System is more than that. It shows the trader the most probable course the market will take in the future. With Trade Selector System technology, traders can project and visualize that path.
The Trade Selector System can be applied to any timeframe, from tick-to-minute price bars and beyond. It is a visibility factor best seen on a simple bar chart without any mathematical calculations involved.
The Trade Selector System accomplishes all this by only looking at what the market says about itself without introducing anything arbitrary. It is the most straightforward and purest concept yet eludes most traders.
The Trade Selector System asks: What is the fundamental principle behind succeeding in markets? To succeed in markets, we must understand that there is some common element shared by everyone who trades the markets successfully, knowingly or unknowingly.
Surrender is the first of three things we must allow ourselves to do to succeed in the market. In the trading context, surrendering is accepting that the market is constantly shifting and learning to move with the flow rather than trying to float against it. Prosperous traders allow themselves to be free of biases because they recognize how easily their thoughts and assumptions about the market can impede their trading judgments.
Giving in to the markets entails confronting them without bias or preconceptions but with curiosity and openness. It means letting go of our deeply held beliefs and analysis of the markets and embracing complete ignorance. This is not to argue that we shouldn't have a system or trading plan; instead, it only means that we should be open to changing it as we gain more market knowledge.
In trading, surrender is crucial because it allows us to be adaptive and flexible. Since markets are dynamic, strategies that were effective yesterday might not be effective today. We will likely seize new opportunities or hold onto holdings if we approach the marketplace with an overly strict or fixed perspective.
As such, it is imperative that one approach the markets with humility and an open mind. Successful individuals recognize that they are not experts and can always get better. Giving in to the markets becomes an ongoing process of self-examination and development.
To sum up, giving up is a necessary part of successful trading. We can improve our odds of adjusting to shifting market conditions by accepting the ever-changing nature of the markets, letting go of our prejudices, and developing a humble and adaptable mindset.
A Trade Selector System theory follower believes it can succeed in the market without taking on additional risk. The theory also suggests that financial products maintain price trends over time, which means they can outperform the market by carefully choosing when to enter and exit a trade.
I use "follow" cautiously because so much of what happens in the market seems random and nonsensical. I won't deny that it can be overwhelming for new traders. However, one learns to embrace the uncertainty over time, which can be a liberating experience. To succeed, we must learn to follow the market and let go of our preconceptions about how it should behave.
The market has wisdom, and we cannot tell it what to do. Instead, we must observe and listen to it to understand its intentions. Fortunately, the market announces its intentions for anyone willing to pay attention. However, it takes skill to recognize patterns and make intelligent assumptions about market direction due to the symmetrical nature of markets. A market that cannot rise will fall, just as a market that cannot fall will eventually ascend—usually in keeping with the symmetry already evident in the price pattern.
Be present with the markets
To understand the markets better, you must let go of preconceived ideas and be present with the markets. This means you should use something other than traditional analysis, like fundamental and technical approaches, as they can create expectations that prevent you from seeing the market accurately.
One should follow the market directly and let go of opinions or biases. This way, participants can gain a clear perception of the truth of the market. It would help if people were flexible, open, and honest about why they participate in the markets. If one wants to make money, one should be willing to go with the flow of the market and not be attached to one's expectations or desires.
It can be hard to embrace this approach because it requires trust, rejection, and the garnishment of opinions. But if we let go and be present, we can understand the markets more deeply and what drives them. This can lead to more success and fulfillment in our trading ambitions’. One will also appreciate the ever-changing nature of the markets.
Fundamental secrets are often simple. The most consequential secrets often have a straightforward answer. The human mind tends to enjoy the challenge of solving complex problems but cannot always comprehend simple ideas.
The Trade Selector System was conceived to be practical and straightforward. It is a bottom—line thing that is all about what performs. It may not be flashy or complicated, but it is always in tune with the market. The system is focused on delivering results instead of impressing people with its complexity.
To understand the markets, you need to experience them. Reading about them isn't enough. It would help if you saw how they work in real life to get a proper understanding. Some people will understand once they've done it themselves. It is essential to experience the markets first-hand to develop appropriate knowledge.
The market sometimes behaves differently than expected, which can be frustrating. However, most people believe these are temporary anomalies, and their trading methods are still valid. There are instances when trading methods call for the market to go one way but the other way instead. This can be disheartening, but most traders believe these are temporary aberrations that do not invalidate their trading approach.
To succeed in the markets, one needs a fresh perspective. Approach them with an open mind, like a child with no preconceived notions. Avoid jargon and fancy language. Using simple and avoiding double—talk can help you connect with markets better and make your trading more successful.
Price and time are the most critical factor in the market, as it reflects everything traders and the market know about the trading environment. When traders consider the financial market, they often base their decisions on what they believe should happen based on fundamental factors such as economic indicators, market trends, and other relevant data.
However, what truly matters in the markets is what is happening now, reflected in the current price. This means traders must know the current trading environment and make decisions based on the available data.
Repeating expectations or beliefs about what the market should do is irrelevant, as it needs to reflect what is happening. Instead, traders should focus on the current state of the market and make decisions accordingly.
One advantage of being new to the market is having no preconceived notions or beliefs that could cloud your perception of the market. This allows you to see the market objectively without biases or filters. By focusing on the current price and making decisions based on available data, traders can make informed decisions that reflect the actual state of the market.
Price action trading is a method of studying the market's price movement to forecast future market trends. Traders commonly use the adage, "history repeats itself, " emphasizing the importance of scrutinizing past price data. By mastering the Price Action, traders can make informed decisions and succeed.
Price action trading filters out false signals by focusing on raw price movement. This approach provides a clear understanding of the market's current conditions, enabling traders to identify high—probability trades with a solid risk—reward ratio.
While numerous trading strategies exist, the Trade Selector System stands out for its simplicity and clarity. This system facilitates easy market analysis and trade filtering, leading to high-probability trades.
However, achieving success in trading may present challenges. Most successful traders have experienced frustration and setbacks in their journeys. But with self-discipline and mastery of the Trade Selector System, traders can overcome challenges and achieve their goals in the market.
It is essential to have a concrete strategy to trade without making arbitrary decisions. One approach is to rely on market signals to determine when to take profits. This means gradually adjusting the stop in the direction of the trade until the trader is stopped or the result of the trade has been achieved.
Traders should avoid imposing personal expectations or rules on the market. Instead, they should observe and adapt to the market's dynamics. Successful trading requires a harmonious relationship with the market, which leads to profitable outcomes.
However, every orthodox trading system will become obsolete because the markets continuously change and must be overhauled periodically. The Trade Selector System is built on the fundamental principles of the market that remain constant. To truly understand the market, traders must be in tune with it and perceive it directly.
Automated trading systems can only oversee the superficial aspects of the market, which are constantly changing. While they may perform well in recent history or contract/equity instrument selection, they must be equipped to manage future unpredictability. The most skilled traders do not rely solely on automated systems but instead use them as a factor in their decision—making process.
What is the most basic definition of a trend? How about a price trend in the markets? How would you define a price trend if you get down to basics and break it down to its simplest elements? Answer: something that is repeating. What does exact repetition lead to? Exact repetition leads to symmetry.
Symmetry is observed across different time periods. The market has ups and downs, with rallies followed by profit—taking market breaks and bargain—hunting rallies following declines. When news is released, the market experiences choppy price action while processing the information. Eventually, an equilibrium in the market is reached, and the rally or break usually resumes.
Market symmetry is the time and price application of built-in mathematics to market patterns. Persistent time and price patterns manifest themselves in the market every day. If one has such confidence in market pattern clarity, one should only take a trade if one knows where it should go and how it should get there!
It is no coincidence that market patterns often assume a V or inverted ᴧ shape and frequently exhaust themselves at the point of origination. This phenomenon can be observed in various market conditions and suggests that market trends may follow a predictable pattern. Understanding the characteristics of this pattern may enable participants to anticipate market movements and make more informed decisions.
The Trade Selector System provides a comprehensive solution to the long-standing question of market direction. By integrating the dimension of time, the system can address the timing aspect of this question, including how and when the market will reach its destination. The system also incorporates an assessment of risk, which identifies the point at which the trade becomes unviable and the appropriate time to exit. This capability is practical for participants seeking to minimize their exposure to risk while maximizing their profit potential.
The Trade Selector System is a tool that provides participants with necessary information about the market. It answers three key questions that we need to know:
Additionally, if the symmetry fails, it could indicate a market reversal. We gained a new market evaluation method by learning how to calculate these figures. Market direction can be accurately predicted without guesswork. Despite misleading breakouts and false moves, the evidence indicates that the market will trade at level A or B within X amount of time.
The Trade Selector System's time and price attribute pinpoints trade tops and bottoms when used by intra-day, day, or position traders to identify genuine trends. For example, for day traders, there is usually one in the morning and one in the afternoon, and erratic price actions from movements that comprise most market activity are identified.
To succeed in trading, one must be a chooser and patient. The winning participant must monitor the market closely, observe price failures, and be ready to reverse their position. Knowing what should have happened in the market is essential to make informed investment decisions and achieve optimal results.
Discovery of time and price trading is often met with skepticism, understandably putting participants in the skeptical mode of trading "systems," mainly when manually employed. Notwithstanding, with the advent of today's Artificial Intelligence (AI), it is possible to automate many Trade Selector System tasks.
For example, AI will tackle one of the most demanding participant challenges today—the stock market. More than 50,000 stocks are traded on the global stock market on any given business day. That's in addition to thousands of options, bonds, futures, commodities, and the nonstop barrage of news that moves these markets, so it will require a modicum of common sense to select a financial instrument for trading.
The most frequently asked question is this one. When to take profits and leave it to the market to decide is the least arbitrary course of action. Remember that if you never take significant risks and use stops, you will likely experience equal losses and wins. Consequently, you may only profit at the end of the year if your average profit transactions outweigh average loss trades. This might only be possible if you have made a few significant profitable trades by following long—term trends to their exhaustion.
But even captivating trends are often derailed by strong responses that make you want to hop off the train. Then, what do you do? Always be reassured to get out swiftly or return on board immediately permitted by the system pronouncement.
According to the Trade Selector System Theory, when you anticipate a significant market movement, you should capitalize on it by adding to your position. When adding to a position, it is essential to approach it with the same mindset as when initiating the position. But how do you know when these rare big moves are happening? A big move is underway when the price moves steady-to-higher or steady-to-lower.
However, most traders notice these big moves and start looking for a top to go short or a bottom to go long. Even so, it's crucial to remember that you should only increase your position by the original purchase amount at any given time. Stated differently, you are only buying (more) on (further) strength and selling (more) only on (further) weakness.
To avoid chasing trends, wait for a counter—move. But do take advantage of the opportunity. Strongly trending markets have minimal pullbacks or rebounds, so buy or sell immediately for maximum profit. Buy on strength within strength and sell on weakness within weakness—Always.
Discipline is crucial in trading and separates winners from losers. One mistake can erase all gains and emotions can ruin discipline, even in a once-in-a-lifetime trading opportunity. This presents a potentially lucrative opportunity that is common to all traders. As such, it is imperative that one be alert and prepared for its occurrence. Moreover, it is vital to maintain discipline and prioritize profit preservation over acquisition. Success lies not in how much one earns but in how much one keeps.
1. Only invest the capital you can afford to lose, and never put all your eggs in one basket. Diversify.
2. Keep your losses in check and never 'average down.’
3. Never initiate or add to trade without simultaneously establishing or adding to a stop to terminate the trade if the market is in the wrong.
4. Always keep the stop in its original position and never cancel: Move only in the trade's intended direction.
5. Never let a slight reasonable (more than 10% of your daily trading capital) become a significant or disastrous loss.
6. Don't pick tops and bottoms; focus on market trends instead. Don't be greedy, and don't implement FOMO (Fear Of Missing Out)
7. Do not counter the market; Don't assume a pivot will occur until it has been irrefutably confirmed.
8. Remain Flexible. Remember that we are dealing with high probabilities, not absolute certainties. You, the system, and anything between can be masquerading itself as a reality.
9. When experiencing a losing streak, pausing and stepping away from the market is essential. Give yourself time to relax and clear your head.
10. Always learn from your mistakes. By reflecting on past mistakes, you can gain valuable insights to help you evolve and succeed.
11. ‘Know thy self.’ Ask yourself if you are in the market to make money or seeking a thrill. And listen carefully to the answer.
This theory eBook does not disclose the Trade Selector System's proprietary price-action-time-trademark definitions. The theory model presented here is founded on complexity theory, historical facts, and human behavior and has proven to be an alternative to traditional systems.
Its objective is to assist novice and seasoned traders in modifying their trading approach and implementing defined theory to achieve higher financial gains and stay ahead of their competitors. There’s one hard and fast rule regarding guarantees in the financial markets: It never guarantees anything.
This article was printed from TradingSig.com