A clear two-legged correction has occurred (Leg 1 down, brief correction, Leg 2 down).
Price is in a clear downtrend and pulling back to a flat or falling 21 EMA. Count: A clear two-legged correction upward has occurred. pats price action trading manualpdf patched
This is the cornerstone of the PATS methodology. Price rarely moves in a straight line. It moves in waves. PATS identifies that a "two-legged pullback" toward a key trend line or EMA (Exponential Moving Average) is often the best spot to enter a trade in the direction of the trend. A clear two-legged correction has occurred (Leg 1
Look for the next time the market tries to resume the main trend. When it ticks past the previous bar's high/low, it creates the Second Entry . High-Probability PATS Setup Rules pats price action trading manualpdf patched