July 8, 2011

3 Phases of Sideways Ranges, use this for profit

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3 Phases of a Sideways Market / Sideways Range
Watch this video for more info on sideways ranges.  Or use this video on the blog.
3 phases of the sideways range:
–          Highs of Range:  as price approaches the highs I have 2 options, sell the highs or wait to break the highs and then buy a pullback
–          Middle of Range:  I do not trade the middle of the range
–          Lows of Range:  as price drops to the lows im buying as support or waiting for new lows to sell a retracement.
          
10:30 Reversal:
–          Watch this video on the blog
–          Log into your advanced course and watch the video on price reversal patterns (3 Price Patterns video, 2-step pattern)
–          This video is another example of 1030 reversal
Golden Lunch
–          Watch this video on the blog
–          Did not see one today b/c we have major news early tomorrow morning.
AB = CD Pattern
–          Watch this video on the blog
–          I can use this technique in any way I chose.
–          I used it today on crude oil to anticipate a fake-out breakout and we all avoided a losing trade b/c of it.
Auto Trader 1.9
–          Open your chart properties and enable the TOOLBAR
–          The TOOLBAR is where the manual exit is.
–          Review our automated trading strategies on the blog
Big Money?
–          I use the larger orders on the time and sales window to qualify my entry.
–          Each market has different things to consider, so watch the video on the blog.
–          Advanced course has a video on tape reading.
What does a BEARISH USD mean for us?
–          Remember the dollar correlation
–          Another article on the correlation
–          Everything RISES when the DOLLAR falls.
–          As our USD is more valuable I can afford more things.
–          As I can afford more things, they are more available, and therefore prices eventually drop.
–          As the dollar decreases in value, I can afford FEWER things, and with more things unavailable the prices rise.
Inside Day vs. Outside Day
–          Inside day = I trade inside the range I’m in. (sell highs, buy lows, avoid the middles and the fake-out breakouts)
–          Outside day = expect breakouts
–          STEP 1 = Define the day as either inside or outside.
–          STEP 2 = find your ranges (sideways, channel, wedge)
–          STEP 3 = use this information to trade at the highs or the lows of these ranges

    schooloftrade

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