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Day Trading With Price Action Indicator Manual PDF
Day Trading With Price Action Indicator Manual PDF
Indicator Manual
Galen Woods
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Copyright © 2014 by Galen Woods (Singapore Business
Registration No. 53269377M). All rights reserved.
Affiliate Program
Contact Information
Website: http://www.tradingsetupsreview.com
Email: galenwoods@tradingsetupsreview.com
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Disclaimer
The information provided within the Day Trading with Price
Action eBook series and any supporting documents, software,
websites, and emails is only for the purposes of information and
education. We don't know you so any information we provide
does not take into account your individual circumstances, and
should NOT be considered advice. Before investing or trading on
the basis of this material, both the author and publisher
encourage you to first seek professional advice with regard to
whether or not it is appropriate to your own particular financial
circumstances, needs and objectives.
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Charts, setups and trade examples shown throughout this
product have been chosen in order to provide the best possible
demonstration of concept, for information and education
purposes. They were not necessarily traded live by the author.
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Contents
Chapter 1 – Introduction ...................................................... 1
Chapter 2 – Setting Up ........................................................ 3
2.1 - NinjaTrader.............................................................. 3
2.2 - Indicators ................................................................ 3
2.3 - Chart Template ........................................................ 4
2.3.1 - Loading the Chart Template ................................. 4
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Chapter 1 – Introduction
This is a guide to using the “Day Trading with Price Action”
indicators. This version consists of the following indicators:
Trading Tools
Price Action
3. Congestion Zone
4. Trend Bar Failure
5. Deceleration
6. Anti-Climax
7. Pressure Zone
This manual will cover the following aspects for each indicator.
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Chapter 1 – Introduction
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Chapter 2 – Setting Up
To use the indicators on the NinjaTrader platform, follow the
instructions below.
2.1 - NinjaTrader
You need the NinjaTrader charting platform to use the
indicators.
2. Install NinjaTrader 7.
2.2 - Indicators
Before you can use the price action indicators, you need to
import them into NinjaTrader. Follow these steps to import the
price action indicators.
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Chapter 2 – Setting Up
1. Open NinjaTrader 7
2. From the Control Center window, select the menu File >
Utilities > Import NinjaScript to open the Import NinjaScript
dialog window.
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Chapter 2 – Setting Up
GalenWoodsPATI
GalenWoodsR2R
GalenWoodsTrendBarFailure
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Chapter 2 – Setting Up
To build the optimal chart template for your trading, you must
understand the trading concepts in the “Day Trading with Price
Action” book series.
1. Select File > New > Market Analyzer… to open the Market
Analyzer window.
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Chapter 2 – Setting Up
Break-out 1 -1 0
Failure
Anti-Climax 1 -1 0
Deceleration 1 -1 0
Trend bar 1 -1 0
Failure
Pressure Zone 1 -1 0
Table 2-1 Meaning of values in PriceActionAnalyser
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Chapter 3 – Trading Tools
The first two indicators in the bundle do not mark out price
patterns. They are trading tools that perform even more crucial
functions.
1. GalenWoodsPATI
2. GalenWoodsR2R
3.1.1 - Construction
A Marubozu is a price bar with its open and close at extreme
ends of the bar.
A Doji is a price bar with its open and close at the same price.
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Chapter 3 – Trading Tools
The PATI indicator plots the Index value in the lower panel.
It has a Check Line at 0.5. (If the PATI value is below 0.5 for
the entire chart, you will not see the Check Line.)
When the Index rises above the Check Line, the chart is flooded
with a color (red by default) to indicate a non-tradeable Zone.
Input Remarks
Field
Period The number of bars to consider for calculating the
index. The default value is 10.
Zone Color Color of the non-tradeable zone.
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Chapter 3 – Trading Tools
3.2.1 - Construction
The R2R indicator assumes that you will:
In any case, your trade risk is the bar range plus two ticks.
Expectancy = (W x R) – [(1 - W) x L]
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Chapter 3 – Trading Tools
Winning Probability = W
Trade Reward = R
Trade Risk = L
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Chapter 3 – Trading Tools
Risk Parameters
Input Field Remarks
Volatility Add-On
Input Remarks
Field
Filter Choose if you want to hide the targets for wide range
bars. (i.e. higher trade risk)
Period Bars with range above the average bar range are
considered ‘wide range’. The average bar range is
calculated based on this period.
Table 3-3
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Chapter 4 – Price Pattern Tools
These price pattern indicators are meant as educational tools
rather than trading tools. They mark out price patterns
according to our definition in the “Day Trading with Price Action”
series to facilitate your learning.
While you may also employ them in your trading process, there
are two important points to note:
1. GalenWoodsCongestion
2. GalenWoodsTrendBarFailure
3. GalenWoodsDeceleration
4. GalenWoodsAntiClimax
5. GalenWoodsPressureZone
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Chapter 4 – Price Pattern Tools
4.1.1 - Construction
The indicator will mark out a Congestion Zone when three
consecutive price bars fail to close beyond their preceding price
bar.
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Chapter 4 – Price Pattern Tools
Figure 4-1 ES 5-minute chart with Congestion Zones and Break-out Failures
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Chapter 4 – Price Pattern Tools
Congestion Zone
Input Remarks
Field
Color Color of Congestion Zones.
Table 4-1
Table 4-2
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Chapter 4 – Price Pattern Tools
Advanced
For the Market Analyzer and using the indicator within another
indicator or strategy, the following states are exposed.
Failure
Value Meaning
0 Default
Table 4-3
Congested
Value Meaning
1 In congestion
Table 4-4
4.2.1 - Construction
The body of a price bar is the difference between its open and
close. The range of a price bar is the difference between its high
and its low.
A trend bar is a price bar with a body that takes up more than
half of its range.
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Chapter 4 – Price Pattern Tools
Display
Input Field Remarks
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Chapter 4 – Price Pattern Tools
Table 4-5
Advanced
For the Market Analyzer and using the indicator within another
indicator or strategy, the following state is exposed.
Failure
Value Meaning
0 Default
Table 4-6
4.3 - Deceleration
4.3.1 - Construction
A bearish Deceleration must meet the following criteria:
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Chapter 4 – Price Pattern Tools
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Chapter 4 – Price Pattern Tools
Display
Input Field Remarks
Table 4-7
For bullish patterns, wait for a bullish bar to serve as the setup
bar. For bearish patterns, wait for a bearish setup bar.
Advanced
For the Market Analyzer and using the indicator within another
indicator or strategy, the following state is exposed.
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Chapter 4 – Price Pattern Tools
Deceleration
Value Meaning
0 Default
Table 4-8
4.4 - Anti-Climax
4.4.1 - Construction
A bearish Anti-climax pattern must meet the following criteria:
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Chapter 4 – Price Pattern Tools
Display
Input Field Remarks
Table 4-9
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Chapter 4 – Price Pattern Tools
For bullish patterns, wait for a bullish bar to serve as the setup
bar. For bearish patterns, wait for a bearish setup bar.
Advanced
For the Market Analyzer and using the indicator within another
indicator or strategy, the following state is exposed.
Anticlimax
Value Meaning
0 Default
Table 4-10
4.5.1 - Construction
This indicator marks out Pressure Zones when three consecutive
price bars exhibit overlapping tails/shadows/wicks.
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Chapter 4 – Price Pattern Tools
As a Pressure Zone is only confirmed with its third bar, the first
and second bars are marked as part of the Zone retrospectively.
Parameters
Input Field Remarks
Table 4-11
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Chapter 4 – Price Pattern Tools
Display
Input Field Remarks
Use bullish bars for bullish Pressure Zone setups, and bearish
bars for bearish Pressure Zone setups.
Advanced
For the Market Analyzer and using the indicator within another
indicator or strategy, the following state is exposed.
Pressure
Value Meaning
0 Default
Table 4-13
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