Learn to trade the functions of price movements

I have coined the term “Functional Trading” (could also be called “ghost trading” or the approach of “trading functions of price movements” or “narratives trading”) because of my conclusions on price movements. I use the word “movements” because “action” sounds like the present is most important to focus on, while movements link present and past actions. You may find that some elements are not sounding like original thoughts. Yes, many of the elements have not been invented by me and you should not be suspicious, I use what works and give proper credit to the originators. However, I have taken things to another or different level. Some other people might have figured the same things out, although I am not aware of a similar approach. Congratulations to those who have reached this level!

The elements:

1. There are no timeframes. What happens to price, does not happen within timeframes. It is TFs that needs to fit to price movements as price movements do not fit TFs. Price movements take place in different timeframes. It is dangerous if one is unable to change the technical timeframe according to price movements. To cut it short, you trade movements, regardless to TFs.
2. There are and there are no price levels. I do think in terms of price levels but price levels are not determined by the way price builds them up, they are determined by how and what price shows you relative to what it has already shown you in the past and some other targets price seems to have. Another important concept is that price levels are not exactly levels as one would expect them to be. They are functions, something that price does to achieve something. Price levels are best understood from the point of functions price movements fulfill. Instead of levels one may want to focus on price behavior.
3. Price draws cycles, price is always within a cycle and the trader’s job is to understand price’s position within the cycle, larger or smaller, hence be able to figure out direction of movements. Movements within a cycle depend on variations of price patterns.
4. The unit of price movement. All price price movement is made up of a single pattern and it is virtually the same all the time. This pattern is the reason for all misery of traders because it is being drawn on the chart constantly and it is non-conclusive. A trader needs an out-of-the-box thinking to resolve the issue. The recognition and study of the basic unit of price movement (from traders’ perspective) is what has led me to the concept of functional trading. Because it is not always what you see being drawn is what you should be focusing on when price is moving. Price action is not about the action of price as of now, in the present, there is way more to it.
5. What is it that you are trading? You are trading the basic unit of price movement, recognizing it for what it is in terms of the functions it fulfills, the roles it plays. It shows itself in multiple forms to drive you crazy and lose track of your trades. The pattern and its variations include all strings and notes your emotions can react to, from hope to feeling beaten up. You need to think ahead: what function is next and what type of a skewed unit of price movement or price pattern is to fulfill it with consideration to the price cycle and the various TFs within which it/they materialize.
6. Functions of the pattern: all you need to think about is what price movements do. All moves start somewhere, at a bottom or top formation. Price moves to a level and continues accumulation. Price moves, positions are stopped-out. Price also ends somewhere, completing the cycle. The entire cycle and its elements are functional and made up of the same pattern presented in multiple ways to you. From your perspective it is something like chasing a ghost.
7. There are other elements of functional trading that I do not wish to list all here, purely because those elements are used by many traders and definitely not invented by me. To list a few: narratives, topping formations, patterns of accumulation, stop-outs, level counting, price mapping. Maybe one important note to share. Apart from its existence, level counting has never been taught to me, I only received hints, pieces of the puzzle, so I had to figure out the logic for myself. When that happened I was a bit shocked about how many years I had wasted on level counting without knowing what it should represent and how to do it.
8. Functional trading is naked trading, no indicators are used to predict price. However, expect that you would have to annotate hundreds of charts before you will start to see something.
9. A functional trader is one who is a student of price. If you decide to pick this approach, you will likely enjoy the ultimate learning experience of being the master and the student of price.

I am telling you upfront that it is not easy to remember and check on everything, especially when price is moving but with years of training your brain and assuming you have the persistence and can keep your emotions under control, you will likely stand a chance.