2 ND EDITION www.tradingsetupsreview.com Day Trading with Price Action Volume III: Price Patterns Galen Woods Trading Setups Review Copyright © 2014-2016 Galen Woods PDF eBook Edition Cover Design by Beverley S www.tradingsetupsreview.com i Copyright © 2014-2016 by Galen Woods (Singapore Business Registration No 53269377M) All rights reserved First Edition, September 2014 Second Edition, April 2016 Published by Galen Woods (Singapore Business Registration No 53269377M) All charts were created with NinjaTrader™ NinjaTrader™ is a Registered Trademark of NinjaTrader™, LLC All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, without written permission from the publisher, except as permitted by Singapore Copyright Laws Affiliate Program If you find this course to be valuable and wish to offer it for sale to your own customers or readers, please contact Galen Woods to be an affiliate and get a percentage of each sales as commission Contact Information Galen Woods can be reached at: Website: http://www.tradingsetupsreview.com Email: galenwoods@tradingsetupsreview.com www.tradingsetupsreview.com ii Disclaimer The information provided within the Day Trading with Price Action Course and any supporting documents, software, websites, and emails is only for the purposes of information and education We don't know you so any information we provide does not take into account your individual circumstances, and should NOT be considered advice Before investing or trading on the basis of this material, both the author and publisher encourage you to first seek professional advice with regard to whether or not it is appropriate to your own particular financial circumstances, needs and objectives The author and publisher believe the information provided is correct However we are not liable for any loss, claims, or damage incurred by any person, due to any errors or omissions, or as a consequence of the use or reliance on any information contained within the Day Trading with Price Action Course and any supporting documents, software, websites, and emails Reference to any market, trading time frame, analysis style or trading technique is for the purpose of information and education only They are not to be considered a recommendation as being appropriate to your circumstances or needs All charting platforms and chart layouts (including time frames, indicators and parameters) used within this course are being used to demonstrate and explain a trading concept, for the purposes of information and education only These charting platforms and chart layouts are in no way recommended as being suitable for your trading purposes www.tradingsetupsreview.com iii Charts, setups and trade examples shown throughout this product have been chosen in order to provide the best possible demonstration of concept, for information and education purposes They were not necessarily traded live by the author U.S Government Required Disclaimer: Commodity Futures Trading and Options trading has large potential rewards, but also large potential risk You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets Don't trade with money you can't afford to lose This is neither a solicitation nor an offer to Buy/Sell futures or options No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site The past performance of any trading system or methodology is not necessarily indicative of future results CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDEROR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN www.tradingsetupsreview.com iv Contents Chapter - Introduction 1.1 - The True Purpose of a Trading Setup 1.2 - What to Expect 1.3 - The Holy Grails 1.4 - Overview of Price Patterns 1.5 - Ground Rules Chapter - Congestion Break-out Failure 2.1 - The Psychology Behind 2.2 - Identifying the Congestion Break-out Failure 10 2.2.1 - Congestion 10 2.2.2 - Break-out 14 2.2.3 - Failure 15 2.2.4 - Long Congestion Break-out Failure Setup 16 2.2.5 - Short Congestion Break-out Failure Setup 16 2.3 - Trading the Congestion Break-out Failure 17 2.3.1 - 6E 60-Minute Example 17 2.3.2 - FDAX 10-Minute Example 19 2.3.3 - ES 10-Minute Example 20 2.3.4 - CL 5-Minute Example 22 2.3.5 - ZN 60-Minute Example 24 2.4 - Conclusion 25 Chapter - Congestion Zone 27 3.1 - The Psychology Behind 27 www.tradingsetupsreview.com v 3.2 - Identifying the Congestion Zone 31 3.2.1 - Drawing the Congestion Zone 31 3.2.2 - Merging Congestion Zones 33 3.2.3 - Long Congestion Zone Setup 35 3.2.4 - Short Congestion Zone Setup 37 3.3 - Trading the Congestion Zone 39 3.3.1 - CL 5-Minute Example 39 3.3.2 - ZN 60-Minute Example 42 3.3.3 - NQ 3-Minute Example 44 3.3.4 - 6A 30-Minute Example 45 3.3.5 - 6E 45-Minute Example 46 3.4 - Conclusion 48 Chapter - Trend Bar Failure 50 4.1 - The Psychology Behind 50 4.1.1 - Finding Numerous Counter-Trend Traders 51 4.1.2 - Finding What Makes Them Freak Out 51 4.2 - Identifying the Trend Bar Failure 52 4.2.1 - Long Trend Bar Failure Setup 54 4.2.2 - Short Trend Bar Failure Setup 54 4.3 - Trading the Trend Bar Failure 55 4.3.1 - 6J 20-Minute Example 55 4.3.2 - CL 5-Minute Example 57 4.3.3 - ES 10-Minute Example 58 4.3.4 - 6A 30-Minute Example 59 4.3.5 - 6E 30-Minute Example 61 www.tradingsetupsreview.com vi 4.4 - Conclusion 64 Chapter - Deceleration 66 5.1 - The Psychology Behind 66 5.2 - Identifying the Deceleration 68 5.2.1 - Deceleration Pattern 68 5.2.2 - Long Deceleration Setup 69 5.2.3 - Short Deceleration Setup 72 5.3 - Trading the Deceleration 72 5.3.1 - CL 5-Minute Example 72 5.3.2 - ES 10-Minute Example 74 5.3.3 - 6J 30-Minute Example 75 5.3.4 - FDAX 10-Minute Example 76 5.3.5 - NQ 5-Minute Example 78 5.4 - Conclusion 80 Chapter - Anti-Climax 81 6.1 - The Psychology Behind 81 6.2 - Identifying the Anti-Climax 82 6.2.1 - Anti-Climax Pattern 82 6.2.2 - Anti-Climax versus Deceleration 83 6.2.3 - Long Anti-Climax Setup 87 6.2.4 - Short Anti-Climax Setup 87 6.3 - Trading the Anti-Climax 88 6.3.1 - CL 4-minute Example 88 6.3.2 - 6A 30-Minute Example 90 6.3.3 - ES 10-Minute Example 91 www.tradingsetupsreview.com vii 6.3.4 - FDAX 10-Minute Example 94 6.3.5 - NQ 3-Minute Example 95 6.4 - Conclusion 97 Chapter - Pressure Zone 99 7.1 - The Psychology Behind 99 7.1.1 - Traders Who Sold at the High of the Bar (Stage One) 100 7.1.2 - Traders Who Bought at the High of the Bar (Stage One) 101 7.1.3 - Traders Who Sold at the Low of the Bar (Stage Two) 102 7.1.4 - Traders Who Bought at the Low of the Bar (Stage Two) 102 7.1.5 - Deducing Pressure 103 7.2 - Identifying the Pressure Zone 104 7.2.1 - Pressure Zone 105 7.2.2 - Long Pressure Zone Setup 108 7.2.3 - Short Pressure Zone Setup 109 7.2.4 - Pressure Zone & Congestion Zone 110 7.3 - Trading the Pressure Zone 111 7.3.1 - NQ 3-Minute Example 111 7.3.2 - 6A 4-Hour Example 112 7.3.3 - ES 10-Minute Example 114 7.3.4 - CL 4-Minute Example 115 7.3.5 - FDAX 10-Minute Example 118 7.4 - Conclusion 120 www.tradingsetupsreview.com viii Chapter – Anxiety Zone 121 8.1 - The Psychology Behind 121 8.2 - Identifying the Anxiety Zone 125 8.2.1 - Anxiety Zone 125 8.2.2 - Long Anxiety Zone Setup 130 8.2.3 - Short Anxiety Zone Setup 131 8.2.4 - Important Notes 131 8.3 - Trading the Anxiety Zone 132 8.3.1 - CL 4-Minute Example 132 8.3.2 - NQ 10-Minute Example 133 8.3.3 - ES 10-Minute Example 135 8.3.4 - 6E 60-Minute Example 137 8.3.5 - NG 6-Minute Example 139 8.4 - Conclusion 141 Chapter - Weak Pullback 143 9.1 - The Psychology Behind 143 9.2 - Identifying the Weak Pullback 147 9.2.1 - Weak Pullback 147 9.2.2 - Weak Pullback in Bull Trend 148 9.2.3 - Weak Pullback in Bear Trend 149 9.2.4 - Trading the Weak Pullback 151 9.2.5 - Long Weak Pullback Setup 152 9.2.6 - Short Weak Pullback Setup 154 9.3 - Trading the Weak Pullback 155 9.3.1 - ES 10-Minute Example 156 www.tradingsetupsreview.com ix Chapter 13 - The Meaning of Form after day Hence, only their trading profits over time will tell if the trader has been reasonably flexible or just purely reckless Unfortunately, the reckless trader will only know the answer when it’s too late, when his trading account has been wiped out For the serious trader, there are two aspects we can work on to avoid this unfortunate outcome The first aspect is to understand a few general principles about exercising discretion in trading The second is to keep solid records of your trades, especially of the instances when you bend your trading rules We will deal with the first aspect here and leave the second aspect to the next volume as record-keeping is relevant to the entire trading process and not just limited to price pattern and setup analysis 13.2 - Principles for Discretionary Trading The first principle is that your margin for bending rules depends on your trading proficiency Absolute beginners not bend rules As you gain experience from observing the market and as you internalise market price action concepts, you can then start to bend some rules You start to pay more attention to concepts instead of the exact form of each pattern When you attain a high level of trading proficiency, rules not matter anymore The most important trading principles are ingrained in your mind, and you react to price action subconsciously and correctly This evolution of a learner I have described is a common process in many disciplines beyond trading Forbidden Kingdom (2008) is a Hollywood movie starring Jet Li, one of the most renowned martial artist on screen Unsurprisingly, he acted as an ancient Chinese hero, the Silent Monk, who is highly skilled in martial arts With regards to www.tradingsetupsreview.com 213 Chapter 13 - The Meaning of Form learning martial arts, the Silent Monk said, “Learn the form, but seek the formless Hear the soundless Learn it all, then forget it all Learn The Way, then find your own way.” This quote accurately describes the passage from learning to mastering and is wholly applicable to skills beyond subduing your opponents with physical force “Learn the form, but seek the formless Hear the soundless Learn it all, then forget it all Learn The Way, then find your own way.” Silent Monk, Forbidden Kingdom Every price action trader starts with learning price patterns (visual forms) Over time, if you persist in your trading endeavour, the definitions and rules that helped you learn the basics will become the boundaries that limit your progress Then, it is through training your subconscious to perceive market nuances (the formless) that you proceed towards success The sequence goes like this Form before formless Learning before forgetting Basically, learn the rules well before you break them Use this principle to guide your trading This principle implies the need for a delicate approach Do not be too quick to exercise discretion Learn the forms first However, at the same time, remember that employing trading rules mechanically will impede your progress The second principle is that the more confident we are of the market bias, the more rules we can bend The market bias is truly what gives us our trading edge Getting the market www.tradingsetupsreview.com 214 Chapter 13 - The Meaning of Form bias right is the most important part of our analysis The clearer the market bias, the less important the exact entry setup becomes Hence, we get more room to bend the rules Figure 13-1 shows a clear bearish trend in the NQ futures market It demonstrates how the market bias is much more important than any one setup Setups that did not reach our targets Assuming that we targeted the amount equal to the trade risk each time, out of entries using a simple two-bar reversal hit their targets Figure 13-1 Most bearish setups work in a clearly bearish market This chart is extremely telling Usually, traders would look out for two-bar reversals that have strong bars in both directions or for the second bar to reverse the first bar completely However, in Figure 13-1, we marked out every single bearish two-bar reversals in its simplest form without imposing extra criteria to enhance the pattern Basically, we considered all instances of a bullish bar followed by a bearish bar That’s it, as simple as that As it turned out, this simple pattern did exceedingly well Six out of eight bearish two-bar reversal patterns attained a target www.tradingsetupsreview.com 215 Chapter 13 - The Meaning of Form aimed at achieving a 1:1 reward-to-risk ratio (This simplistic target placement is just for illustrative purposes.) Assuming that we targeted the amount equal to the trade risk each time, out of entries with a simple two-bar reversal hit their targets Setups that did not reach our targets Figure 13-2 Simple patterns work in a clear bullish market Figure 13-2 shows an equivalent example in a bullish market When the market is clearly bullish, even the simplest of patterns work New traders, after looking at examples like these, rush off to trade every two-bar reversal (or whatever other pattern) they can find They miss the point The merit does not lie with the pattern It lies with the market bias The point here is that once we get the market bias right, the exact pattern or form that we employ is not critical There might be some whipsaws, but they are acceptable as long as our trade risk is under control Ultimately, we should devote more effort to figure out the market bias instead of searching constantly for the perfect form of a price pattern or trading setup www.tradingsetupsreview.com 216 Chapter 13 - The Meaning of Form Of course, this is easier said than done I selected the examples in Figure 13-1 and Figure 13-2 by looking back in time Anyone can that The difficult part is in evaluating the market bias in real-time We’ve discussed how to that in Volume II and Chapter 11 of this volume Even in the other chapters of this volume, analysing the market bias was the first step in each trading example As you try to exercise discretion in your trading, abide by this guideline The more confident you are in your assessment of the market bias, the more justified you are in bending the rules There is a related sub-principle The more familiar you are with the market you are trading, the more discretion you can take For instance, you may notice that certain patterns work better in certain markets at certain time of the day If you have been trading the ES futures market for the past 10 years and understand its price action tendencies well, you can certainly afford to bend some rules when trading the ES contract However, if you’ve just switched over to trading FDAX, please not start bending the rules from day one Observe the market for a period of time first I have no intention of discussing these market-specific nuances in detail These market-specific nuances are important but they change over time Hence, they are best left for the individual trader to figure out through actual trading experience The third principle is that we must maintain consistency This is the most important check to prevent us from abusing flexibility as an excuse for reckless trading Your trading techniques might disagree with other traders However, your trading techniques must be consistent internally www.tradingsetupsreview.com 217 Chapter 13 - The Meaning of Form The most common kind of inconsistency is going against the market bias We trade pullbacks because we are convinced that trends tend to continue Since trends tend to continue, taking counter-trend trades is inconsistent with our market perspective Yet, many traders cannot resist the temptation Occasionally, when they go against the trend, they make money Such small victories lure them into thinking that they are right to go against the trend However, they are sacrificing consistency As a result, they are unable to achieve sustainable trading profits over the long run Nonetheless, you can go against the trend while maintaining consistency For instance, a bullish market was clearly rejected from an area of strong resistance (a previous Congestion Zone) twice with strong selling pressure The third thrust upwards fell short of the resistance area and was a bearish Deceleration pattern that ended with a bearish reversal bar Coupled with an acceptable reward-to-risk ratio, it was reasonable for you to go against the trend Why is this instance of counter-trend trading consistent? It is because you clearly respected the power of a trend by waiting for multiple tests of the resistance, and the occurrence of credible bearish patterns, before deciding that the trend might not continue Of course, such trades should only be taken by experienced traders These instances of being flexible and yet staying consistent are extremely varied Thus, I cannot offer any concrete rules for internal consistency I can only show you examples of what is consistent and what is not The first example below looks at our definition of a congestion pattern In our introduction of the congestion pattern in Chapter www.tradingsetupsreview.com 218 Chapter 13 - The Meaning of Form 2, I mentioned that all definitions of congestion are imperfect, including mine Look at Figure 13-3 Both boxes in the chart highlight congestion patterns according to our definition Weak upthrust Horizontal shape Figure 13-3 Weak directional thrusts also fall into our definition of congestion The typical congestion pattern is made up of alternating bullish and bearish bars, with a couple of Dojis sprinkled among them However, the bars in these two congestion patterns close in the same direction The one on the left consists entirely of bearish bars while the one on the right is made up of bullish bars When we encounter such “congestion patterns”, we need to put the rigid definition aside and ask ourselves if they look like a horizontal trading range The congestion pattern on the left forms a horizontal shape expected of a sideways market Hence, there was little issue with it However, the one on the right looks more like a weak upthrust rather than a congestion pattern www.tradingsetupsreview.com 219 Chapter 13 - The Meaning of Form The normal congestion pattern is directionally neutral It does not imply weakness or strength in any direction and our basic trading methods were designed around this premise However, the weak upthrust “congestion pattern” implied weakness of the bulls Hence, it hinted at the possibility of a short position rather than being neutral If we had followed our definition rigidly, we would have missed the implied weakness of the upthrust This is a great example for illustrating the need for discretion in trading No pattern definition is perfect While we bent our rules for identifying a congestion pattern, we stuck to our understanding of congestion price behaviour We managed to be flexible while maintaining consistency Figure 13-4 shows an acceptable long trade despite a bearish market bias The first bar of the chart is the first bar of the session which opened with a strong gap down Our market bias was bearish when this session started www.tradingsetupsreview.com 220 Chapter 13 - The Meaning of Form Congestion Zone projected from a five-bar congestion pattern Highly probable target Massive congestion 5th rejection from the Congestion Zone (buy) Bear trend line drawn after this bar made a new market low Figure 13-4 Taking a long setup despite a bearish market bias The 2nd to 6th bar of the session (five bars) formed a congestion pattern It projected a Congestion Zone as a potential support or resistance In the price action that followed, the trend was clearly struggling to continue Recall from Volume II the definition of a struggling trend It is a trend that fails to resume after four attempts In this case, the bear trend took five downswings to push to a new trend low This was the price bar that made a new market low which confirmed the first valid high of the session We adjusted the bear trend line to catch up with this development, resulting in the trend line shown in the chart However, despite making a new low, price was clearly rejected from it as shown by the wide range bullish reversal bar www.tradingsetupsreview.com 221 Chapter 13 - The Meaning of Form Following that, the market meandered along the Congestion Zone without following through with any bearish action Due to the newly-adjusted bear trend line and a lack of bullish momentum, we maintained a technical bearish bias But were we certain that the market was still bearish? Certainly not Hence, when the break below the Congestion Zone was rejected for the fifth time with a nice bullish inside bar, we could no longer deny that the Congestion Zone was holding up extremely well as a support level Was buying one tick above the bullish inside bar acceptable? The bear trend line was still overhanging It was our likely target for this potential long trade With a standard stop-loss below the setup bar, this setup offered a healthy reward-to-risk ratio (More on reward-to-risk in the next volume.) Hence, this trade was acceptable Technically, our market bias was bearish But we took a long trade Were we consistent? We respected the power of the bearish market bias Thus, we waited for the fifth bullish rejection from the same price area before considering a counter-trend trade Moreover, the price area was a Congestion Zone which has proven itself as a support area We respected the effectiveness of our bear trend line (which was drawn according to our rules in Volume II) as a resistance point Thus, we assessed the trading opportunity using the trend line to estimate our profit potential We respected the premise of our Pressure Zone pattern Lower shadows means buying pressure In this case, the five bullish www.tradingsetupsreview.com 222 Chapter 13 - The Meaning of Form rejections showed obvious lower shadows within the same price range Think of it as a bullish Pressure Zone spread over a longer period Were we consistent in our analysis? Did we respect our trading principles? We were consistent On top of that, we were flexible enough to profit from a long setup despite a technically bearish market Let’s look at another example in Figure 13-5 It shows an imperfect Deceleration pattern This session has been plummeting Bearish Deceleration? After bouncing above the bull trend line twice, the market broke it decisively Figure 13-5 Can Deceleration setups look like this? The session opened with a gap up However, after a little meandering, it took a single trip down A bull trend line extended from previous sessions supported the falling market for two light bounces before price punched www.tradingsetupsreview.com 223 Chapter 13 - The Meaning of Form right below the trend line with strong momentum The bearish bias became clear Then, the market started to rise towards the broken trend line The shape of the ascent resembled that of a bearish Deceleration pattern However, on a closer look in Figure 13-6, it did not fit our identification rules for the Deceleration pattern Equal bar highs not fit the definition This bar high should be higher Figure 13-6 “Deceleration pattern” enlarged For a bearish Deceleration pattern, we need three consecutive bars, each rising above the high of the previous bar by a decreasing amount Each of the three bars must exceed the high of the previous bar, just that the range by which it exceeds must be decreasing However, for this pattern, the last bar did not rise above the high of the previous bar Thus, strictly speaking, this pattern does not fit our definition of a Deceleration pattern www.tradingsetupsreview.com 224 Chapter 13 - The Meaning of Form Nonetheless, this pattern fits the underlying logic of the Deceleration pattern We are looking for an upthrust that exhibits weakness as it pushes higher In this example, the last bar of the pattern did not push higher than the previous bar Could we have considered its failure to push higher as a sign of weakness? Yes, we could Although it was not the perfect Deceleration pattern, considering the clear bearish bias in this case, it was a tenable exception Since this variant is acceptable, why don’t we expand the definition of the Deceleration pattern to include it? First, it is not possible to include all variants and whether or not we find each variant acceptable depends on the clarity of the market bias Second, it is not necessary to so The aim of the definition is not to comprehensively define all forms of Deceleration The aim of a pattern definition is to facilitate learning and comprehension of the underlying concept For that purpose, a clear and basic definition is sufficient 13.3 - Records of Discretionary Trades When you exercise flexibility in your trading, how you know if you are consistent? This is where record-keeping is essential To reliably track the consistency of your trading decisions, you must maintain an analysis report Write down or type out your ongoing market analysis It is like writing a report to your superior to analyse the situation and recommending a certain course of action for a project Write down your observations and explain why you might or might not take a trading setup www.tradingsetupsreview.com 225 Chapter 13 - The Meaning of Form There are several important pointers regarding maintaining this record which I will elaborate in the next volume 13.4 - The Real Meaning of Form We have spent this chapter emphasising how rigid forms of price patterns and trading rules constrain our trading performance and how flexibility enhances it In that case, why did we introduce seemingly strict definitions for the price patterns earlier? Learn the Form Imagine being completely new to trading and hearing this on your first lesson with your trading mentor “Look for a weak upthrust in the market and sell when it is clear that the market is unable to rise further.” Well, seems to make sense But what exactly does it mean? What you really need to look for? No idea Thus, having a clear definition for price patterns is essential for learning The definition of a form is especially important for new traders to kick-start their learning Armed with a clear definition of a price pattern, traders who are new to the pattern can identify them on charts unambiguously for further study As the trader progresses, the form becomes less important Rigid forms are also helpful for more experienced traders Price action that fits the strict definition can be marked out quickly before in-depth analysis For traders following multiple markets, a set of rules for price patterns opens up the possibility of scanning for price patterns across markets with computer programs www.tradingsetupsreview.com 226 Chapter 13 - The Meaning of Form The above are equally applicable to other price patterns and even indicator trading rules When learning any new trading strategy, starting with clear rules is the best way Seek the Formless However, the ultimate aim is not to memorise these rigid identification rules It is to understand the price action and market behaviour that underlie these patterns, and to develop a reliable trading instinct At the end of day, you not need complicated and exact harmonic patterns or an exact 50.0% pullback to the tick to make money You not even need to remember what is a Trend Bar Failure or Deceleration pattern or any of the trading setups we’ve discussed at length When you start to find value beyond the form of a trading technique, you have made real progress 13.5 - Conclusion Move slowly towards exercising discretion Rigid rules protect you, but flexibility propels you When in doubt, always choose to be inflexible and consistent, rather than attempting to be flexible but ending up reckless Bear in mind that you are not ready to trade yet, especially for new traders You can analyse the market bias You can spot and assess the quality of trading setups You understand both the importance and danger of bending trading rules However, you are still not ready to trade, not until you take a close hard look at the concept of positive expectancy in the final volume of this series www.tradingsetupsreview.com 227 ... Zones 33 3. 2 .3 - Long Congestion Zone Setup 35 3. 2.4 - Short Congestion Zone Setup 37 3. 3 - Trading the Congestion Zone 39 3. 3.1 - CL 5-Minute Example 39 3. 3.2 - ZN 60-Minute.. .Day Trading with Price Action Volume III: Price Patterns Galen Woods Trading Setups Review Copyright © 2014-2016 Galen Woods PDF eBook Edition Cover Design by Beverley S www.tradingsetupsreview.com... 130 8.2 .3 - Short Anxiety Zone Setup 131 8.2.4 - Important Notes 131 8 .3 - Trading the Anxiety Zone 132 8 .3. 1 - CL 4-Minute Example 132 8 .3. 2 - NQ 10-Minute Example 133