Pats Price Action Trading Manual.pdf |link|

The "PATS Price Action Trading Manual" by Mack is a comprehensive guide focusing on "pure" price action, utilizing trend lines and support/resistance on 2000-tick charts to identify high-probability setups. The strategy centers on identifying second entries, two-legged pullbacks, and market structure, commonly applied to E-mini S&P 500 futures. For more details, visit Price Action Trading System Using Trend Lines To Help You Read The Price Action

Based on the title provided, this refers to the well-known trading educational material authored by Pat Mitchell, often associated with the website Price Action Trade.

While there are various iterations of the PDF circulating online, the core philosophy remains consistent. It is widely respected in the retail trading community for demystifying "Price Action" trading without relying on lagging indicators. Pats Price Action Trading Manual.pdf

Here is a comprehensive write-up on the concepts typically found within "Pats Price Action Trading Manual."

The Core Philosophy: The Chart Tells the Story

The central thesis of the manual is that Price is King. Pat argues that indicators are derivatives of price and therefore lag behind. If you want to know what the market is doing now, you must look at the price action itself. The "PATS Price Action Trading Manual" by Mack

The manual focuses on teaching traders how to identify Trend, Pullbacks, and Reversals through visual pattern recognition. It emphasizes patience and discipline, famously advising traders to wait for the market to come to them rather than chasing trades.

A Step-by-Step Example from the Manual

Let’s simulate a trade using the Pats Price Action Trading Manual.pdf guidelines on the 5-minute E-mini S&P. The Core Philosophy: The Chart Tells the Story

1. Setup: The ES breaks to a new high (Bar 1).
2. Pullback 1: Price pulls back to the 20 EMA (Bar 2). Ignore this.
3. Signal: Price attempts to break the high again but fails, creating a "first entry short" signal. Ignore again.
4. The Trigger: Price pulls back to the EMA a second time (Bar 3). The second bar closes with a tiny tail and body.
5. Action: You buy at market. Stop loss is 5 ticks below the low of Bar 3.
6. Target: The manual doesn't use fixed profit targets (like 1:2 R:R). Instead, you scale out partially at the previous high, and you move your stop to breakeven after 8 ticks.

2. The Trendline Break & Retest

The manual devotes significant space to "slanted support." In the Pats method, you do not trade the trendline bounce; you wait for the violation.

• The Setup: Price breaks a significant trendline aggressively.
• The Pullback: Price comes back to touch the underside of that broken trendline.
• The Trigger: A small reversal bar forms at the touch.
• The Trade: You fade the old trend.

Key Concepts of the Methodology