August 15, 2011
- in Uncategorized by schooloftrade
Hard vs. Soft Profit Targets
Hard Target = the most important level of support and resistance we have off our 89range charts.
Soft Target = minor level of support and resistance, found on your 34range chart.
When do we use a hard target rather than a soft? Or vice versa?
When i take a long trade and I approach my soft target I’m looking for three things…
· Speed
· Size
· Momentum
This is the same thing as the 3-steps to Price Reversal strategy
When you get price to your hard target, look for the price reversal!!
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Big Money Trigger Line (BMT)
· Best place for your target
· Worst place for entry
· “stay away from a trade around the BMT”
· “Final target will be the 21r BMT”
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Which timeframe do I look for a pattern on?
– Use your 89range for the major levels of support/resistance
– Use your 34range for the Intra-day levels
– Use 21/13/8/4/144tick to find price patterns
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– 1 of many indicators that come with membership
– It marks the most important levels of support and resistance.
– You can use the auto levels on ANY chart you please. I use them on the 34range chart b/c it gives me enough S/R to keep trading all day, but not too many levels so that I know which ones I can trust.
– You want a balance between having enough levels to work with, but not too many to kill your confidence in each level, or not too few so you’re sitting and falling asleep waiting for the level to show up.
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Tape Reading:
– Learn it first on the blog
– Practice every day 10 mins a day for days
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The key to trading a double-top/bottom is understanding WHO is trading and WHAT is really going on.
Double-top = buyers in charge, we will try to go higher again. Buy at major support and target back at the highs again.
Opposite is true for a double-bottoms.
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– Uses our chart trade (trade off the chart)
– Uses a MACD as another look at momentum
– Uses the ‘JJTriggerLine Indicator’ to plot all the other trigger lines from other timeframes.
– Mass x Force (add gravity)
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Which is better? Reading the tape or reading the volume?
– Volume only shows you the TOTAL, rather than the specific trades that were being made.
– Example: 1000 volume may have 1000 1’lots
– I dont want to be trading without BIG MONEY in the markets.
– I want to read the tape so I can SEE when and where the largest orders were placed.
– Volume does not show me where and when the orders were placed.
– Reading tape tells me there was a big 100-lot buy at support, so i follow that large order.
