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14Ticks Today: In a hole? Stop Digging & Follow THESE rules!
Today was a day made for building character, one of those days you heard about when traders tell stories about the struggles we all go through as traders.
• We had chart issues at the open, so we had to deal with re-loading charts
• The Market was VERY slow today almost all morning
• First trade was a FULL STOP LOSS, so we dug ourselves a big hole
• We didn’t know if we would have any opportunities to dig our way out!
To say that today was challenging would be an under-statement!
To make matters worse…after we loaded our charts @ 1030am and started trading after the delay we took a FULL STOP! Ouch!
Our 3rd trade made half the loss back
TODAY’S TRADE ROOM QUESTIONS:
What are the settings on the time & sales window?
– ADV/Download Section: Time & Sales Window Properties (copy that)
– Filtered Time & Sales = 10 contracts, Block size = 20
Market Profile: How do we use it?
– Used very differently than most traders
– Use it as directional bias, and a confirmation tool
– FREE Webinar on it all the time, Tuesday & Thursday’s @ 1130am EST
Limit Moves:
– Each exchange has a specific limit to the amount of movement in price in one single trading day
– Doesn’t happen often
– Last time I saw it… early 2008 with the credit crunch
– Crude Oil: never seen it
– Corn, Wheat, Soybeans, saw it often in 2008
– Go to the exchange website for more info on daily limits
Max loss per day?
– 2 stops in one day
Either 1 reason or the other
I’m not making good decisions today
The market may not be in a good position either
Both are reasons to STOP giving money away!
– Move to simulation
– Never stop trading, don’t take yourself out of your rhythm
OPEX: 3rd Friday of every month, unless the first of the month is a Friday, then it’s the 4th Friday
– Applies to the E-Mini’s ONLY
– NOT to Currencies or Commodities
– Most important day is WEDNESDAY (Wacky Wednesday)
Options expire on Saturday
Last day of trading is Friday, so we call it opex Friday
People get started managing their expirations on Wednesday
Lots of unpredictable volume
Large traders entering and exiting the market without and reason
Wednesday = haircut/dentist/eye-doctor/mother-in-law visit
Transition into Lunch:
– There’s no lunch bell that rings, so we watch the market to tell us
Slow Price Action: Red Pace of Tape Indicator
Sideways Markets: Flat Trigger Lines (fast)
Lack of BIG Money: Fewer orders on FILTERED time & sales window
What if your levels are different than JJ’s?
– Re-load your historical data
– If your slow time frame doesn’t match your fast timeframe levels, you need to re-load the indicator
NinjaTrader 6.5templates
Delete the file for the chart in question
F5 on Slow
F5 on Fast
That will re-load all your levels
6-Tick Rule: what does it mean?
We use Swing Highs/Lows for potential entry points in the market
o 6 ticks of room from our potential entry to the next level of S/R
o Also check my slow and medium timeframes as well (watch the trigger lines & trend lines)
o Ignore other light-blue swing levels
Unless you see a bunch of them on top of each other, that gives a lot more importance than a single swing high/low
Pace of Tape Indicator:
– Measures the speed of the tape
-Lots of info on the Youtube page
– Does not count volume
No different between 100 lot order and 10 lot order, as long as its 1 order
Example: RPM in your car’s engine, POT = RPM of the market
Speed of the Tape
Use it most effectively by watching the comparison of where it was and where it is now
Rising POT = confirms the move
Falling POT = negates the move
Example: if Euro price is rising, but POT is falling, tells us fewer people are interested in a rising price, which should develop a reversal
Confirmation for entry = RISING POT (falling POT means slower speed, means fewer people)
Most important times to use the POT:
Entry: confirm the move with RISING POT
Exit: Get out of a trade w/ falling (RED) POT,
MACD Curls
Momentum Curl
EXIT: stay in the trade if the POT is consistent
With Membership
– Charts ($150/mo)
– Market Data ($150/mo)
Savings $300usd/mo
12 mos = $3600usd per year
This course pays for itself in 12 months!
Pace of Tape = Advanced Course Only
