February 9, 2011
- in Uncategorized by schooloftrade
Token Prints for Price Reversals & Trend Lines for Day Trading Sideways Markets
– Token Print
– We took 2 winning trades using this theory of the token
o We watch for the token, but we pay VERY close attention to the REACTION to the Token.
o Both example this morning had momentum oversold (no not looking for shorts) and we see the 1 tick lower low on the wave pattern.
o We saw the token, we saw momentum, and saw speed and big buyers on the tape to confirm the entry long.
o In today’s example the MOMENTUM indicator told the story, it gave us the CLUES for the direction of the trade, and then we waited to break above any overhead resistance (trigger lines or trend Lines) to get long on the wave entry.
o Tokens will work on any market, any timeframe.
o They key to a token is the REACTION.
o Was that 1 tick lower low met with more sellers?
o If not….why not?
o If it was, look to sell short
o If we don’t we the big money sellers, if we don’t see increase in speed, if momentum doesn’t confirm we wont even use the token print
o So make sure your rules line up, and then watch the reaction to the token.- Trend Lines
– Watch the two videos on drawing trend lines in the advanced course
– Fast Track Method
o Watch the video(s) on the FT and use the notes in the download section
o Streamline trading system, intended to be the best way to learn and earn at the same time
o Limit orders for entry = no worries about the exact entry
o 1:1 risk/reward ratio = 1 loss = 1 winner = losses will not KILL YOU
o Remove the Chaos: don’t let yourself get ahead of your learning process
o We give our members exact entry, exit, and trade management specifics so they can trade the FTM.
o Im going to hold our members accountable for their trading if needed
o Send me snapshots, send me your trading worksheets and ask lots of questions.
– TRADE Management
o Watch the two videos in the advanced course
o 3 pattern
o Trade Management
– How do we trade from 3am – 7am EST? (EURO)
o Most major money managers look at the Euro Open as the first heads up for the day (many traders also use the Asian open @ 630pm EST)
o Which markets am I trading?
o Euro
o Pound
o Crude
o Gold
o I can trade almost every market at 3am that I would at 10am, with the exception of the emini TF, ES, etc
o Don’t worry about changing YOUR lifestyle to fit the markets.
o See if we can fit the markets into your lifestyle
o Rather than staying up all night, just look for the times most convenient for you and ask me for help you need it.
o
– Euro chart, do we give more importance to the channel low support or the overhead resistance
o The bigger picture is the bullish price channel, so therefore I’m looking for long trades at support (not into resistance) are the highest % trades
o The stronger trend lines will be the PINK because they cover the most price action
o I cant ignore the yellow trend line, but its not as important as the price channel.
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– Best way to use the 4range for a scalp entry on the wave 21range pattern?
– 2STEP ON THE 4RANGE
– INTO A 21RANGE WAVE SHORT/LONG
– Why are we looking at all these other charts?
o Multiple timeframes allows us to see the BIG picture, but we take trades on much faster timeframes for more precise entries, tighter stops, and easier to get into the trade.
– Auto Trader
– These are done, I got sick on Sunday so didn’t post them, but these will be up today
– Final settings on the auto trader will go up today
– New Momentum Indicator
o Small changes needed, sending it back to the drawing board
o Overbought/oversold
o Tied to the FAST line on the momentum
o Change the colors
Tomorrow in training:
– Auto trader training
– Maybe have the new momentum done
– Fast Track Method
– Trade Management
– Entries, stops and target
