The Complete Price Action Workflow

Here is how to combine auction market theoryDefinitionMarkets alternate between balance (rotation) and imbalance (trending). Determines your strategy., swing movements, measured movesDefinitionA price projection where Leg B equals Leg A. Halsey's primary target is the -23.6% extension beyond 100%., and premium/discount into a practical trading workflow:

• Step 1: Determine market state — is the market in balance or imbalanceDefinitionA price level where one side overwhelms the other by 3:1 or more. Shows where big players committed.? Check the volume profile shape and whether price is trending or rotating. If balanced, trade mean reversion. If imbalanced, trade with the trend
• Step 2: Identify the current swing — are you in an impulse legDefinitionA sharp, fast move that establishes the trend direction. The big candles. Don't chase these — wait for the pullback. or a correction leg? If in an impulse, do not chase. Wait for the correction. If in a correction, start preparing your entry
• Step 3: Measure the prior impulse — how many points did Leg A cover? This gives you your measured moveDefinitionA price projection where Leg B equals Leg A. Halsey's primary target is the -23.6% extension beyond 100%. target for Leg B
• Step 4: Find the premium/discount zoneDefinitionLower half of a swing range (below 50%). Price is cheap — look for longs here, not shorts. — calculate the 50% level of the current swing. Only take longs in discount. Only take shorts in premium
• Step 5: Wait for the correction to reach the entry zone — the 50-61.8% retracement of Leg A, in the discount zoneDefinitionLower half of a swing range (below 50%). Price is cheap — look for longs here, not shorts.. This is where you want to buy
• Step 6: Confirm with order flow — at your entry zone, switch to the footprint chartDefinitionA chart showing bid and ask volume at every price inside each candle. Reveals who is buying and selling.. Look for stacked imbalancesDefinition3+ consecutive price levels where one side overwhelms the other by 3:1. Marks institutional zones., positive deltaDefinitionAsk volume minus bid volume. Positive = more buying. Negative = more selling. Shows who is more aggressive., and absorptionDefinitionHeavy aggressive orders hit a level but price doesn't move — a large passive player is absorbing the flow.. These confirm institutional participation
• Step 7: Execute with the measured moveDefinitionA price projection where Leg B equals Leg A. Halsey's primary target is the -23.6% extension beyond 100%. as your target — enter the trade with a stop below the swing lowDefinitionA trough on the chart where price reversed higher. Marks where buyers previously overpowered sellers. and a target at the measured move projection

• Buying in premium — if price is above the 50% level of the current swing, you are paying too much. Wait for a pullback into discount
• Chasing the impulse — the impulse legDefinitionA sharp, fast move that establishes the trend direction. The big candles. Don't chase these — wait for the pullback. is the signal, not the entry. Every point you chase is a point off your risk/reward
• Ignoring the higher timeframe — a measured moveDefinitionA price projection where Leg B equals Leg A. Halsey's primary target is the -23.6% extension beyond 100%. target on the 5-minute chart means nothing if the 1-hour structure is bearish. Always check the higher timeframe state first
• Trading balance like imbalanceDefinitionA price level where one side overwhelms the other by 3:1 or more. Shows where big players committed. — if the market is in a rotational range, measured movesDefinitionA price projection where Leg B equals Leg A. Halsey's primary target is the -23.6% extension beyond 100%. and trend entries will fail. Switch to mean reversion
• Forcing trades when the correction is too shallow — if price only retraces 23.6% before continuing, the move is too strong to enter on a pullback. Wait for the next setup

The framework is simple:

• Auction market theoryDefinitionMarkets alternate between balance (rotation) and imbalance (trending). Determines your strategy. tells you the state (balance or imbalanceDefinitionA price level where one side overwhelms the other by 3:1 or more. Shows where big players committed.)
• Swing movements tell you the rhythm (impulse and correctionDefinitionEvery trend is a series of impulse legs (the move) and correction legs (the entry). See the market structure lesson.)
• Measured movesDefinitionA price projection where Leg B equals Leg A. Halsey's primary target is the -23.6% extension beyond 100%. tell you the target (Leg A = Leg B)
• Premium/discount tells you where to enter (only trade in discount for longs, premium for shorts)
• Order flow confirms the setup (imbalancesDefinitionA price level where one side overwhelms the other by 3:1 or more. Shows where big players committed., deltaDefinitionAsk volume minus bid volume. Positive = more buying. Negative = more selling. Shows who is more aggressive., absorptionDefinitionHeavy aggressive orders hit a level but price doesn't move — a large passive player is absorbing the flow.)

When all five align, you have the highest-probability trade in futures.