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Day Trading with Token Prints for Any Futures Market
– Token Print
o When price breaks out of a previous trading range, only to get pushed QUICKLY back into the range it just left.
o If the speed of this move is not fast, its just your normal failed breakout, which we can still trade with.
– Different chart types
o I use tick, range, time charts
o My favorites are range charts
Remove the time variable so all we see is the MOVING market, not a slow market
Help me identify risk per trade b/c the range of the candlestick is always the same
• Not true for tick, time, or volume charts
• Only true for range charts
Are the easiest to see clean patterns
o Watch the video on the blog
o My favorite timeframes
4-range, 13-range, 34-range
Use the document called ‘timeframe stops and targets”
– Why is it that sometimes nobody has control over price? How does that work?
– Volatility index, do I use them?
o VIX,
o I don’t use them because they are too broad, they look at the big picture and I need something more specific
o Volatility index looks at the volatility using ALL the information the market has to off
o I want to know what the volatility is RIGHT NOW
o Market internals are another example of sentiment tools that are too BROAD
– How do we use momentum when using different chart timeframes?
o I always use the momentum indicator on the chart im trading
o Example
Looking for a trade on a 13-range chart, will need to use the momentum on 13range
• I can be proactive and look at momentum on a slower chart as well for double the confirmation, but not 100% necessary
o Example:
Im looking for a long trade on a 4-range chart on crude oil
• I want momentum to confirm on the 4range chart
• I will use the 13-range as double-confirmation for momentum to be pointing up as well.
• After I enter the trade, I will use the 13 range momentum to tell me when to look for an exit.
Example:
• Im looking for a trade on the 13range chart, so I want momentum confirming the 13range
• I can use the 4-range to ‘cheat’ and get in early using the momentum curling in your direction earlier on the 4range than on the 13range
– What is a wide/narrow trading range?
o Wider the better, more price movement
o Narrower are harder to trade, less price movement
o Compare the range today (or right now) to the trading range yesterday (or 10 minutes ago)
Narrower they go the harder the market is to profit
– Using the 10 tick or the 20 tick for the Fast Track
o 13-range for the fast
10-tick stop/target
o 21-range for the fast
20-tick stop/target
o You can feel free to use ANY stop and target you want, just make sure its 1:1 risk/reward ratio
– Can a fast moving market skip your stop order?
o Skip your entry
o Skip your stop loss
o It may TRIGGER your entry/stop but that doesn’t guarantee a FILL
o Your fill may be much different
– Do we have chart templates and set-ups for the YM and ES?
o Pace of tape = PaceOFTape_ES
– Why don’t I trade the dollar?
o Because the volume is too low
o How does it move the markets to much?
The dollar is the reserve currency
Everything is settled in dollars
• Example: you buy the euro contract
o Give your broker USD
o Your broker gives EUR
o Sell the euro for a profit
o You get more USD’s
Why don’t the BIG BOYS use the dollar for their accounts?
• Low volume is a MAJOR issue for money managers
• Not a good hedge for most clients