September 12, 2011

Easy way to find the best LOCATIONS to trade

Find the Highest Percentage LOCATIONS:

At the highest percentage locations, I look for high percentage patterns (3 price patterns) at the highest percentage times of the day (entry rules)

I begin looking for the highest percentage locations with my slowest timeframe first.

Start with my 89-range chart, and I mark the following:

– Price Wedges

– Price Channels

– Sideways Ranges

– Double-tops/bottoms

– Inside Day / Outside

I am only looking for the AREAS to trade, I am not going to get the EXACT price for the entry on the 89range chart.

Wider tolerance around those areas the less liquid the market is (crude, Russell, Gold, FDAX)

Think of these ‘locations’ as a ‘range’ and not a specific price level.

Once i have the locations on my 89range chart, the best thing (and the hardest thing) is to wait for price to come to YOU.

Bear Channel, highest % location is at the highs of the bear channel.

Sideways Ranges: remember the 3 phases of every range.

There can be 3 different versions of a sideways range:

– Long Bias : at the lows

– Short Bias: at the highs

– No Bias = highs and the lows are the same, they are both high % location

Example:

Obama speaks @ 4pm today

Traders will leave from 1130-330.

Wait to hear his speech

Trade the reaction of his speech, assuming there is patterns and personality.

Different types of chart data will act differently:

Daily Data = takes a while to load initially, but then doesn’t take a lot of cpu resources

Minute Data = happy medium, loads quickly, but its a little more intensive on cpu

Tick Data = takes a while to load, and its very intense on cpu resources. (used in range charts, tick charts, volume charts, renko charts)

Euro is traded in the US, however, you will still watch the EUROPEAN NEWS.

Day Trading Computers:

(overall review)

(my current specs)($1500-$1600)

Three Categories:

Bare Essentials = $999

Professional = $1,500-$2000

Top of Line = $2,000-$2,500