Trading the Reading

The routine ends with two sentences: a reading and the level that would change it. This chapter turns them into a trade — an entry, a stop, a target, and a size — and it does so with one rule that governs everything else: every part of the trade is a level on the ladder. Not a distance in pips, not a percentage of account, not a feeling about where price “should” turn. A level. If a part of the trade cannot be stated as a level, it is not ready to be placed.

This chapter describes a method. It is not advice about any particular market, position, or account, and nothing in it removes the risk that every trade carries.

From Reading to Trade

The reading names a direction, a state, and an expectation. The trade is the expectation, expressed as a position with a defined failure point.