The 20-EMA is your boss. If price is chopping back and forth across the line (whipsaw), the market is in a range. PAT systems perform terribly in ranges. Do not trade when price is entangled with the EMA.
Before clicking "buy" or "sell," a PAT trader asks: pat trading system
A critical concept within the PAT system is the . When a significant low in an uptrend is broken, the structure flips, alerting the trader that the trend may be over and a reversal is imminent. This is often the first signal to exit a trade or look for entries in the opposite direction. The 20-EMA is your boss
The PAT system uses extremely tight stops (2 ticks in the futures market). This is not a "swing for the fences" strategy. It is a high-volume, low-risk-per-trade scalping system. A 2-tick stop means you risk roughly $25-$50 per contract (depending on the instrument). You aim to make 4 to 8 ticks on the trade (1 to 2 points in the ES). Do not trade when price is entangled with the EMA