About this Book

What is Tactical Marking Strategy?

Financial market moves in a dynamic & variable manner. Tactical marking strategy is an advanced strategy devised with the help of technical analysis, which adjusts with the market’s dynamic & variable moves to ensure that we get an entry at optimum points from where price action follow through is seen in most cases and we avoid entering into false breakouts, false breakdowns and consolidations.

The problem trader’s face with static price action based systems the biggest problem of follow only price action based system is that it makes you enter into trades which can result in false price actions more often. So the success ratio of such static system turns out to be low. Another problem is getting stuck in extended consolidations.

With Tactical marking strategy trade with clarity=fearlessly. The Tactical marking strategy makes you trade with clarity, so there is no fear when you trade. When you get into an element of the unknown, it creates a lot of fear and frustration. As a trader you must avoid getting into this kind of situation. So the key is to trade in such a manner so that you are able to identify and avoid entries during “false price actions” which fail to see a follow through and enter only during price actions which will see a follow through which we call “true price action”.  

The benefits of using the Tactical marking strategy With Tactical marking strategy, we take care of these problems and tackle most variations that occur and we enter in trade only, at the point from where price advances in sustainable manner, which we call it as “True price action”. Due to such optimum point of entries, traders do not get trapped in extended consolidations in most cases.

False price action traps can make you exit with a loss due to stop loss being hit. Uncalculated waiting period, which results due to lack of price action for a long time after you enter, proves to be more frustrating for you. One more thing you must ensure is that you enter at a point of low risk, high reward point, where in case of bullish trades, downside is limited, and the upside is extended, and in case of bearish trades, upside is limited, and the downside is extended. The risk-reward ratio must always be in your favor when you initiated a bullish trade or a bearish trade.

In other words, in case of bullish trade, your entry must be such that, after you enter, higher bottom is made, so you do not have to see price retracing to your buy levels or below it. In case of short sell trade, your entry must be such that after you sell, price action makes a lower bottom, so you do not have to see the price pullback to your initial sell point or above it.

Like mentioned above, another key aspect is to enter at a point after which an uncalculated consolidation is not seen. Calculated waiting period before and after a trade is initiated is allowed and sometimes inevitable part of trading activity, but long consolidations beyond calculation must be avoided and tackled properly after the trade is done.