KEY IS TO SET AND FORGET, FOR DAYS, WEEKS.
THIS IS THE LOWEST RISK AND HIGHEST PROFITS PLAY.
WHEN A SUBSTANTIAL BBREAKOUT PRINTS, CONFIRMS ON A CERTAIN TIME FRAME, THEN LOOK TO TAKES THE (FIRST) BLACKJACK ON A SMALLER TIME FRAME.
AGAIN KEY IS INDIFFERENCE TO HIW LONG IT TAKES TO WORK.
THE GAME IS TO PLAY FOR A REVERSAL, TO BET FOR A REVERSAL BY SPOTTING CERTAIN CLUES, BY WAITING FOR CERTAIN CLUES, WHEN PRICE GOES TO SOME LINES/LEVELS
HOW TO PLAY THIS GAME:
MAP OUT THE CHART, DRAW LINS BY CONNECTING THE HIGHS AND LOWS: TO ANTICIPATE A U TURN AROUND THOSE LINES
- DRAW HORIZONTOL LINES AND DIAGNOL LINES-CONNECT THE HIGHS AND LOWS
- ANTICIPATE A CHANNEL BY CONNNECTING THE HIGHS AND LOWS DIAGNOLLY. NEED THREE POINT TO ANTICIAPTE A CHANNEL
THEN:
WAIT FOR SOLID, CONFIRMED,CLOSED CANDLE CLUE/S
- WHEN PRICE GOES TO CERTAIN HORIZONTAL OR DIAGNOL (CHANNEL) LINE
- OR WHEN GOES TO ANGLED M.A'S AFTER A NEW HIGH/LOW, OR GOES TO 200EMA
- OR AFTER A FIRST TIME BIAS CHANGE AND A PULLBACK
THEN WAIT FOR THESE CLUE/SIGNALS:
- PIN BAR-BIG ONE
- ENGULFING BAR, OUTSIDE BAR, DOUBLE/TRIPLE PINS
- OUTSIDE RANGER,
- PINGU
- A REVERSAL PATTERN
THE BEST LOOKING SETUPS, THE MOST CONFIRMED CLUE CANDLES UPON LEVELS CAN FAIL. SO NEVER RISK MORE THAN 2% ON ONE IDEA. ANTICIPATE RETRACEMENTS AND ANTICIAPTE ANOTHER PUSH TOWARDS S/R LEVEL BEFORE REVERSALS
THE ROOT OF ALL EVIL IS "ASSUMING" WHAT WILL HAPPEN, INSTEAD OF MAKING DECIESIONS BASED ON EVIDENCE AND WITH CALCULATED RISK-WEATHER PLANING TO SCALE IN OR JAMMING THE STOP
THE MAIN CULPRITS:
1) IF ASSUME A POSSIBLE RANGE TO HAPPEN, OR ASSUMING SOMETHING IS STRETCHED ON ONE SIDE AND IT WILL PULLBACK ENOUGH AND FADING THE MOVE THEN KEEP ADDING TOO CLOSE, AND WHEN IT DOESN'T I LOOSE BIG
2) IF ASSUME A MOVE WILL GO A LITTLE MORE, AND I GET IN TO MAKE A FEW LAST PIPS IN THE MOVE, AND KEEP ADDING AS IT'S REVERSING OR PULLING BACK DEEPLY
3) I ASSUME AFTER A MOVE AND AFTER A PULLBACK, THE MOVE IS GUARENTEED TO CONTINUE AND I KEEP ADDING, AND WHEN IT'S A V REVERSAL I LOOSE BIG
It's ONE'S repeated pattern of destructive trading behaviors (that put me in the possibility of having a major loss):
IF FORGET TO FOCUS ON HOW MUCH CAN I LOOSE, AND ONLY FOCUS ON MAKING A FEW DOLLARS/PIPS
"Greed and Fear of Loss are the the roots of not earning a living in trading"
1. Will there be a good signal to take?
2. Will the signals work 7 out of ten times?
FACTS:
THERE WILL ALWAYS BE A FEW CLEAR AND GOOD SIGNALS EVERY WEEK, AND 7OUT OF TEN WILL WORK.
90% of the problem is not taking the signals and not sticking to "The Process", to this:
Once you have spotted one of your entry signal:
You must take a shot at it, place a stoploss and
leave it alone, must give it time to work,
If there is nothing screaming to get out, then leave a stop and let it take it's time, scale out , and trail the trade.
GET IN THE ZONE FIRST,
DANCING LOKE ALI - ATTITIUDE LIKE ALI,
ARE THE REQUIREMENTS TO MAKE MAONEY,
IF NOT ABOVE THEN WILL LOOSE MONEY
PROJECT 50 SMA CLOSE ON 8HR-CUT SWITCH WITH DOUBLE POSITION,LET PROFITS RUN. NEVER CLOSE EVERYTHING, LET A PORTION RUN WITH TRAILING STOP
REMEMBER JUST WAIT FOR SOMETHNG THAT SCREAMS OUT
BEING A TRADER IS NOT ABOUT "DOING", IT'S ABOUT "BEING"
THE KEY IS: WAITING FOR IT (T.L.S: TREND? LEVEL? SIGNAL?)
TAKE SMALLER POSITION AND CUT THE LOSS WHEN SETUP BUSTS
LET IT WORK, GIVE IT TIME, LET PROFITS RUN
SIZE THE POSITION ONLY FOR 1/2 TO 1 PERCENT RISK OF MAX LOSS.
BE OK WITH 1/2 PERCENT UP OR DOWN
ACCEPT THE RISK-ACCEPT THE STOP-REMEMBER THERE WILL BE MANY MORE PROFIATABLE OPPORTUNITIES
AND IF YOU DO THE FOLLOWING YOU WILL HAVE ALL THE MONEY YOU NEED
NEVER TAKE A TRADE WITHOUT A SIGNAL AND A CONCRETE STOP.
NEVER TRADE ONLY BASED ON THE POSSIBLE SCENERIO AND ASSUMPTIONS (OF A CONTINUATION, OR OF A POSSIBLE RANGE PLAY, OR FADE HEAVILY TOO MANY-TOO CLOSE FOR A POSSIBLE RETRACEMENT AFTER A TREND-MOVE-I.E: FADING A TRENDING MOVE EXPECTING A PULLBACK/RANGE.)
ONLY OPEN A TRADE IF THERE IS A SIGNAL/CONDINITIONAL CANDLE AND PLACE A STOP BEHIND THAT CANDLE OR BEHIND PREVIOUS HI/LOW OR BEHIND A M.A. NEVER ADD WHEN A POSITION GOES IN MINUS, ONLY ADD IF YOU HAVE ANOTHER CANDLE SIGNAL AND PLACE A STOP BEHIND THAT CANDLE, MAY ADD WHEN IN PLUS IF THE SCENERIO CALLS FOR IT.
WAIT FOR, SPOT THESE TO TRADE-DO NOTHING IMPULSIVE IN THE MEAN TIME:
THEY WORK MOST OF THE TIME, THEY SHOW UP OFTEN.
1. A BOW/ARROW OR A SHOTGUN AT M.A'S
= A BLACKJACK
1a) A BUSTED BLACKJACK
2. IF SPOT A BREAKOUT OR NEW HIGH/LOW-THEN WAIT FOR A SWING IN THE DIRECTION OF THE BREAKOUT-IN AND OUT BASED ON P.A. USE COUNTER T.L BREAK
2. A FAKE AND REVERSE
4. A PATTERN (i.e: DBL TOP/BOTTOM AND THEN A CLOSE BEHIND 50 SMA-IN AND OUT BASED ON 50
7 ACTS OF COURAGE THAT MAKES A TRADER: (AFTER ENTRY SIGNAL IS DEFINED):
1. COURAGE TO DEFINE THE WORST CASE SCENERIO & THE MIXIMUM LOSS ON EACH TRADE IDEA AND SIZE THE TOTAL POSITION ACCORDINGLY, NEVER HOPING
2. COURAGE TO WAIT,AS LONG AS IT TAKES, WHEN THEIR IS NO SIGNAL
3. COURAGE TO TAKE THE SIGNAL, WHEN SPOTTED
4. COURAGE TO PLACE THE STOP BEHIND THE SIGNAL/ZONE AND NEVER MOVE IT IN MINUS AND NEVER ADDING MORE TOO CLOSE TO EACH OTHER. HAVING COURAGE TO TAKE THE LOSSES, REMEMBERING THAT SMALL LOSSES CAN ALWAYS BE RECOVERED, BUT BIG LOSSES CANNOT BE RECOVERED
5. COURAGE TO GIVE THE OPEN TRADE TIME TO WORK
6.COURAGE TO LET THE STOP HIT, WITHOUT ANY STRESS OVER IT. COURAGE TO ACCEPT SMALL-TECHNICAL LOSSES
7. COURAGE TO RE-ENTER UPON THE NEXT SIGNAL, COURAGE TO REPEAT THE PROCESS
YOUR WEAKNESSES:
YOU GET COMMITTED/MARRIED TO YOUR ASSUMPTIONS, YOUR TRADE IDEAS
YOU ARE EXPECTING TOO MANY OPPORTUNITIES, IN A DAY, IN A WEEK. "OPPORTUNITIES ARE FEW AND FAR IN BETWEEN." WHEN YOU SEE YOUR SIGNAL, TAKE A SHOT WITH A TECH STOP OF 1% OR LESS-THAT'S THE ONLE KEY. IF YOU MISSED, DON'T FORCE IT, DON'T TRY HARD TO MAKE MONEY. IF NO SIGNAL=NO TRADE, REST ARE JUST PSYCHOLOGICAL ISSUES LIKE NEED AND DESPERATION TO MAKE MONEY, TO FEEL BETTER. TO FEEL WORTHY,THE NEED TO FEEL PRODUCTIVE.
ONCE YOU HAVE THE YOUR PARAMETERS/SIGNAL: AND YOU DEFINE AND ACCEPT THE INVESTMENT/RISK OF 1% LOSS, THEN YOU MUST NOT FEAR TAKING A SCREAMING OPPORNUTINY.AND YOU MUST GIVE IT TIME TO WORK.
YOU MUST NOT RISK MORE THAN 1%.
YOU MUST NOT HAVE ANY STRESS OR NEGATIVE EMOTIONS OVER STOP BEING HIT. IN SWING TRADES,MOVE TO BREAKEVEN, LET THE BREAKEVEN GET HIT.
YOU MUST REMEMBER THE PROCESS. THERE WILL ALWAYS BE ANOTHER OPPORTUNITY/SETUP TO TAKE, THAT WILL WORK OUR.
IT'S NOT ABOUT MAKING MONEY NOW
IT'S ABOUT REFINING YOUR SKILLS TILL YOU BECOME THE FLOW
NO SETUP=NO TRADE
NO MATTER HOW LONG IS THE WAIT
CHASING MOMENTUM, FADING AGAINST ANGLED M.A'S, ADDING TOO MUCH TOO SOON WHEN IN MINUS- WITHOUT BEING MENTALLY PREPARED TO SCRATCH/CUT THE LOOSING POSITION WHEN P.A CHANGES (AND SWITCH IF NEEDED TO), ARE THE REASONS FOR FAILURE.
-IF NO CONDITIONAL CANDLE AT/AROUND M.A'S/S.R'S=NO TRADE TO OPEN
THERE WILL ALWAYS BE ONE OR TWO BOW&ARROW OR SHOTGUN SIGNALS ON 5M-15M, 4 OUT OF 5 DAYS-JUST WAIT FOR THEM AND DON'T LISTEN TO THE IDIOT/RECKLESS TRADER IN YOU.
OBSERVE YOUR THOUGHTS AND THOUGHT PROCESS, THE MOMENT YOU FIND YOURSELF WANTING TO MAKE MONEY INSTEAD OF THE PROCESS OF "THE SIGNAL AND THE RISK CUT-OFF REFERENCE POINT", GET YOURSELF BACK ON THE TRACK.
WE CAN ONLY CHILL OUT AND WAIT FOR SOMETHING THAT SCREAMS, YOUR SETUP ,A SCENERIO THAT SHOW US A PROBABILTY OF WHAT IS A GOOD RISK
* FIRST AND SECOND BLACKJACKS ARE THE MOST IMPORTANT AND THEY CAN GO FAR. IF YOU MISSED THE FIRST TWO OR THREE AND PRICE HAS GONE ALOT ON ONE SIDE, DON'T EXPECT MORE CONTINUATIONS SO MUCH.
THE KEY IS TO LET A PARTIAL POSITION RUN FAR UPON THE FIRST BLACKJACK
TRADING RULES:
DO NOTHING, ONLY WAIT FOR YOUR SETUPS AND THE SIGNAL-CANDLE
TAKE THESE SETUP/SIGNALS WITH 1% HARD STOP BEHIND THE SIGNAL-CANDLE: SCRATCH WHEN BUSTS, REPEAT
SETUPS TO TAKE WHEN YOU SEE THEM ON THE CHARTS
IF YOU DON'T SEE THEM, THEN DO NOTHING AND JUST CHILL-THEY WILL SHOW UP SOONER OR LATER
1) THE BREAKOUTS:
A CLOSE ABOVE/BELOW 50MA, AFTER A (PATTERN) BREAKOUT
2) THE CONTINUATIONS:
A BOUNCE-OFF M.A'S, OR A U-TURN AT/AROUND ANGLED M.A'S-ONLY AFTER A CONDITIONAL CANDLE IS FORMED & COMPLETED TO PLACE A HARD STOP.
2a) A COUNTER TRENDLINE BREAKOUT WHEN M.A'S ARE ANGLED, WHEN PRICE HAS BROKENOUT TO ONE SIDE, WHEN WE HAVE DIRECTION/TREND ALREADY
3. A FAKE AND REVERSE WITH A CONTINUATION SWING TO PLACE THE STOP BEHIND THE SWING OR THE CONDITIONAL CANDLE
IDENTIFY THE BOUNCE-OFF M.A'S: A PIN/DOUBLE PINS, OR AN ENGULFING/OUTSIDE BAR, OR A CONSOLIDATION BREAKOUT AT/AROUND MOVING AVERAGES (ON YOUR CHART: 21,34,50,200) OR AT CONFLUENCE OF S/R'S.
WE TAKE THE SHOT THEN, WITH A 1%-2% MAX STOPLOSS, AND GET DETACHED FROM THE RESULTS.
WE RINSE AND REPEAT.
AND IF THE SETUP BUSTS WITH A MAJOR CANDLE ACTION/SIGNAL, WE CAN CUT AND SWITCH.
GO WITH THE REALITY OF CANDLE ACTION AND PRICE ACTION AT/AROUND MOVING AVERAGES AND TRENDLINES, YOU MUST CHANGE YOUR MIND WHEN THE REALITY OF P.A AND C.A CHANGES
GET IN A TRADE AND OUT OF TRADE/CUT THE TRADE BASED ON THE REALITY OF PRICE ACTION, CANDLE SIGNAL, BREAK OF TRENDLINE, BREAK OF A CONSOLIDATION/TRIANGLE.
YOU ALREADY LOST THE MOMENT YOUR FOCUS,YOUR THOUGHT IS MAKING MONEY INSTEAD OF WAITING FOR A HIGH PROBABILITY TRADE SETUP WITH A CONDITIONAL CANDLE. NEVER RISK MORE THAN MAX 2% STOP BEHIND THAT CONDITIONAL CONDLE.GET IN AND OUT OF THE TRADE BASED ON THE REALITY, ABSED ON THE EVIDENCE, NOT UPON YOUR ASSUMOTION, YOUR ANALYSIS OF WHAT SHOUD HAPPEN, WHAT SCENERIO WILL HAPPEN-I.E: AFTER A SUBSTANTIAL MOVE, ACONTINUATION SHOULD/WILL HAPPEN, NEVER GET STUBBORNLY FIXATED ON APOSSIBLE TRADE SCENERIO, MARKET CAN FLIP HORRIBLY ON ANY MOMENT AGIANST YOUR CONTINUATION TRADE.
ALL YOUR BIG LOSSES ARE BECAUSE OF:
1. BEING STUBBORNLY FIXATED ON CONTINUATION AFTER A SUBSTAIALLY STRONG MOVE. YOU THINK IT MUST CONTINUE MUCH FURTHER-IGNORING THAT IT CAN FLIP AND REVERSE HORRIBLY AGAINST YOU ALL THE WAY BACK AND MORE.
BLINDLY AND STUBBORNLY TRADING FOR CONTINUATION WITHOUT "A CONDITIONAL CANDLE-WITH A STOP BEHIND THAT CANDLE" AND KEEP ADDING WHEN IN NEGATIVE, IGNORING THE FACT THAT IT CAN REVERSE HORRIBLY AGAINST YOU.
FOR A CONTINUATION TRADE YOU MUST WAIT FOR A CONDITIONAL CANDLE, IN THE DIRECTION OF THE TREND AFTER A PULLBACK, TO OPEN A TRADE. PLACE THE HARD STOP BEHIND THAT CANDLE
LOOK TO CUT AND SWITCH UPON A CONSOLIDATION BREAKOUT ON EITHER SIDE, UPON A BUSTED BLACKJACK.
CUT AND SWITCH BASED UPON NEW TRENDLINE/TRIANGLE BREAKOUTS AND BASED UPON THE CANDLE SIGNALS.
2. ANOTHER SCENERIO/REASON FOR BIG LOSSES IS: WHEN FADING A POSSIBLE OVER-STRETCHED MOVE, YOU ARE OPENING, SCALING IN MORE POSITIONS TOO CLOSE TO EACH OTHER AND TOO EARLY IN THE MOVE, WHEN FADING THE DAY'S TREND/MOVE/POSSIBLE BUBBLE
FOR A BUBBLE-FADE TRADE: NEVER ADD TO POSITION TOO EARLY-WAIT AND SCALE IN FAR APART.YOU COULD BE IN THE MIDDLE OF A BIG MOVE. WAIT FOR EXTREMES, THE EXTEMES, AT TIMES ARE MUCH FAR THAN YOU THINK. SAVE YOUR AMMUNITION.
AS A DAYTRADER YOUR JOB IS TO TAKE YOUR TIME AND IDENTIFY THE PRESENT MARKETCONDITIONS AND THE RYTHYM OF THE DAY AND TO FLOW WITH THAT RYTHYM
SWING TRADING STRATEGY:
IDENTIFY: TOP-DOWN(WEEKLY TO 4 HR,
IDENTIFY A MAJOR CANDLE SIGNAL/S AT,AROUND S/R'S-KEY LEVELS,AT/AROUND M.A'S-EMA'S (AS A BALCKJACK/FIRST CAN GO A LONG WAY), IN CONTEXT OF A TREND, OR IN CONTEXT OF A CHANNEL, OR IN CONTEXT OF A RANGE, OR IN CONTEXT OF A CONSOLIDATION BREAKOUT OR IN CONTEXT OF A FAKE AND REVERSE.
TAKE THE SIGNAL with MAX 1% HARD STOP. GIVE IT TIME LET IT WORK.
TRADING WITHOUT A PLAN IS PLANNING TO FAIL.
HAVE A PLAN A, HAVE A PLANB, AND A PLAN C
THE ONLY KEY TO MAKE IT IN TRADING IS TO NEVER TAKE A TRADE WHICH HAS THE POSSIBILTY OF A MORE THAN 2% LOSS.
I.E: NEVER LET A LOSS BE MORE THAN 2%, REGARDLESS OF ANY ANALYSIS, THOUGHTS, POSSIBILITIES, REGARDLESS OF ANY REASON.
TO TAKE A POSSIBLE CONTINUATION - YOU MUST HAVE ONE OF THE FOLLOWING-PREFEREBLY AT AN EMA: MUST PLACE A STOP BEHIND THE SIGNAL-BE READY TO CUT AND SWITCH:
TAKE THE FOLLOWING SETUPS AT/AROUND M.A'S AND
OTHER KEY S/R'S AND TRENDLINES/CHANNELS:
- THE SETUPS TO OPEN A TRADE-MUST BE COMPLETED/CONFIRMED:
- A CONSOLIDATION BREAKOUT
- M's and W's (DOUBLE TOPS/DOUBLE BOTTOMS)
- A MAJOR CANDLE SIGNAL (ENGULFING-PIN/S-FAKEY)
- A FAKE AND REVERSE
CUT AND SWITCH BASED UPON THE TRENDLINE/TRIANGLE BREAKOUTS AND BASED UPON PRICE ACTION AND CANDLE SIGNAL/ACTION.
THE STRATEGY
TO PLAN A TRADE ENTRY: IDENTIFY STATIC AND DYNAMIC BUY ZONES AND SELL ZONES IN CONTEXT OF THE TREND OR IN CONTEXT OF THE RANGE/CHANNEL, THEN IDENTIFY SIGNAL/EVIDENCE/CLUES FOR A U-TURN/REVERSAL AT/AROUND THOSE ZONES.
OPEN A TADE, PLACE THE 1% STOP BEHIND THE SWING/MAJOR CANDLE.
IF STOPPED OUT, RINSE AND REPEAT.
THE WORST CASE SCENERIO WILL BE A BUSTED SETUP AND INSTEAD OF A U-TURN/REVERSAL, THE PRICE WILL KEEP GOING. NEVER FIGHT THE MARKET-ANYTHING CAN HAPPEN-MOST UNEXPECTED AND UNIMAGINABLE THING CAN HAPPEN, LIKE THAT SWISS MOVE FOR 4000 PIPS WITHOUT A PAUSE-SO NEVER ADD WHEN IN MINUS-NEVER FIGHT THE PRICE ACTION-IF YOU ARE SELLING AT A CONFLUENCE OF RESISTANCES AT A "GUARENTEED" SELL ZONE AND PRICE ACTION IS MAKING HIGHER LOWS AND HIGHER HIGHS, THEN GET OUT-CUT LOSSES-DON'T FIGHT-DON'T ASSUME IT WILL COME BACK. ONLY TAKE THE NEXT TRADE UPON AN EVIDENCE-AND WITH 1% STOPLOSS-NEVER EVER MOVE YOUR STOP IN MINUS.
PLANIND TRADES: IDENTIFY DYNAMIC AND STATIC ZONES, TRENDLINES,CHANNELS AND PITCHFORKS TOP DOWN.
DYNAMIC KEY ZONES ARE: M.A'S, CHANNEL TOPS/AND DOWNS, TRENDLINES AND PITCHFORKS.
STATIC ARE: R.R'S, FIBS, PIVOTS
THE CONFIRMATON SIGNALS OF U=TURN/REVERSALS ARE: MAJOR CANDLE SIGNALS (PIN/S, OUTSIDE/ENGULFING BARS, FAKEY'S), PRICE ACTION (HIGHER LOWS TO BUY AT BUY ZONES, LOWER HIGHS TO SELL AT SELL ZONES, CONSOLIDATION/PATTERN BREAKOUT, MOVING AVERAGES CROSSOVER-PRICE CLOSING ABOVE/BELOW 50SMA WITH MAJOR CANDLE. OSCILATOR AND DIVERGENCE FOR ADDITIONAL CONFIRMATION.
IF STOPPED OUT (BY A WHIPSAW) AND GET ANOTHER SIGNAL FOR U-TURN/REVERSAL AS INITIALLY PLANNED-THEN ENTER AGIN (ADD SIZE)WITH A STOP BEHIND THAT SWING/CANDLE.
HOW TRADING BUSINESS WORKS:
WE EXECUTE A STRATEGY THAT IS TESTED FOR FOLLOWING RESULTS-OR BETTER:
IN NEXT 1000 TRADES,
UPTO 50%=500 TRADES MAY LOOSE/STOPPED OUT.
EACH LOSS WILL BE SET AT 1% (OF CAPITAL)
50%=500 WILL BE WINNERS - EACH WINNER WILL AVERAGE 2% (PLUS)
SO, IF ACCOUNT IS $10,000
500 LOSSES X $100 (1%) = 5,000
500 WINNERS X 200 (2%) = 10,000
NET PROFIT = $5,000
ONLY TIME TO TRADE, WHEN YOU HAVE ONE OF THESE SETUPS:
1. BLACKJACKS: PULLBACKS IN A TREND- (TO M.A'S 21/34/50/R.R/TRENDLINE/FIBS) WITH CONFIRMATION OF U-TURN AFTER THE PULLBACK -TO PLACE ASTOPLOSS BEHIND THE SWING
-FIRST BLACKJACK CAN GO A VERY LONG WAY-IF IN A FIRST BLACKJACK-THEN ALWAYS LEAVE A PORTION TO RUN FOR A LONG TIME.
2. A FIRST TIME BIAS CHANGE, A PATTERN BREAKOUT, THEN A PULLBACK TO FIB/M.A'S, R.R-THEN A UTURN TO PLACE A STOPLOSS
3. CONSOLIDATION BREAKOUT-THEN P.B (R.R, M.A'S)-THEN A SWING TO PLACE A STOPLOSS
4. RANGE/CHANNEL PLAY (ALWAYS UPDATE TRENDLINES FOR A POSSIBLE CHANNEL DEVELOPING)
5. A GOLDEN CROSS (EARLY ENTRY ONLY)
6. 4-HR CONFLUENCE: ON 4 HR & DAILY CHARTS: AN AREA WHERE A CONFLUENCE OF KEY TECH SUPPORTS OR RESISTANCES ARE. A POSSIBLE U-TURN POINT
Trading is War. Be highly focused and in the zone and act without hesitation when it's time to attack and more imporatntly when it's time cut the open trade.
Strategies to survive the battle are:
* I don't attack untill the time is right. Not doing anything untill a high probability with limited risk u-turn setup appears at support or resistance.
* If I open a trade without a good setup because of emotional reasons, Or if my u-turn setup is busted, Or I sense that I am in a bad trade, bad selection: I close my positions immediately and happily knowing I will make it back and more.
Reading the picture to find a high probability and low risk opportunity
From Weekly to 15m: Locate, Identify and Place all possible supports and resistances including all trendlines (upper and lower, connecting hi's and lo's), and any neckline (for possible H&S pattern) and look to trade the confirmed u-turn at these s/r's (trade continuation setups after the bounce off the s/r's), or break and continuation (upon retest of broken s/r line, or any continuation after the break).
On Weekly, Daily, 4hr, 60m and 15m:
* What is the price action?
* Where is the price in relation to key tech s/r's?
* How are the angles and seperation of moving averages? Any new G.C?
* Any dramatic Candle formation, and where in relation to s/r's and B.B's??
* Any obvious pattern, any defined range (any channel, wedge etc.)?
The key tech s/r's: (Possible U-turn Levels) On Wkly, daily, 4h,1h:
- Horizontal s/r lines. R.R lines
- Trendlines (upper and lower, connecting highs and lows)
- Fibs ( specially when in a trend)
- C.P.P on daily and weekly (specially when in a trend)
- Daily pivots, Weekly pivots
- 21 ema and 34ema on all T.F's inclding: 30M (specially when trending )
- Top, bottom, middle of Bollinger bannd (specially when flat)
- 200 ema, 50 sma on all T.f's (specially when it looks like R.R) (on 60m specially)
- Double --00's and --50's
What to expect in a session: Possible Scenerios:
1. Tight range, choppy, noise, wicky = No trading, staying out.
or 2. Consolidating, in a trap = wait for a confirm breakout.
or 3. Price pulling back, retracing On a 4hr trend to find a p.b-s/r level and
to U turn (Trend continuation). ( You can confirm the Utrn and trade
continuation setups on 1m and 5m, 15m).
or 4. A range day (30 to 60 pip), A Channel or Bollinger play.
or 5. A choppy, noisy, wicky trend (directional move of 40 to 80 pips), with
steep pullbacks to 5m,15m 21/34 and or a fib (after a B.C or a B/out).
or 6. An alpha trend, riding 1m-21, 5m-21, ( usually after a 4hr/daily
Confluence U turn setup, as trend continuation or a trend