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.
PATs uses Stop Orders , not Market Orders. If entering long, place a buy stop order exactly 1 tick above the signal bar. If the market does not break that high, you are not entered into the trade. Risk Management and the "Scalper’s Profit"
Many price action traders focus on "scalping" for a specific target based on the volatility of the instrument, while others use "runners" to capture larger trending moves. Learning the Methodology
A Second Entry is the cornerstone of the PATs manual. It represents the market making its second attempt to resume the dominant trend.
Mack’s recommended learning process is thorough and disciplined:
Be vigilant. A search for "Pats Price Action Trading Manual.pdf" often yields:
The first time a candlestick's low breaks below the low of the previous bar.