July 13, 2011
- in Uncategorized by schooloftrade
New Technical Indicator Helps Manage My Trades
JJ-TriggerLines Indicator
I don’t like to use new indicators unless they help with two things:
– Help avoid mistakes
– Help save me time
Download this new indicator in the advanced course
Chart template ‘trade management’ has this new indicator already added.
Its that easy to use!
We have added the ‘trigger lines’ from multiple timeframes to this single chart.
This helps me avoid mistakes with trade management.
It helps to make it easier to find where support/resistance will be for my trade management.
How do we read the big money?
– 100 lots can be 10 x 10 or 20 x 5 or 1 x 100
– 5 orders of 20 lots = big money to me
– Ideally I need 50 orders or more all at the same time (or very close to each other)
– If we see 10 groups of 5, but they are VERY slowly coming into the market this now becomes a SPEED issue.
– This amount must be larger with the more liquid markets (Euro, ES, FESX, Bonds, T-Notes) will use more for big money.
– Euro = 100+
– ES = 200+
– FESX = 200+
Divergence Indicators
– Divergence is NOT a trading method
– It’s not an entry indicator
– It’s not anything more than market sentiment
– We then use this ‘sentiment’ to tell us which direction is higher % today, and then we trade in that direction.
– We have a full chapter dedicated to our Divergence Methods in our adv course.
– I cant blindly jump in with divergence, just the same way I cant blindly jump in long at the LOD.
Which of the timeframes are the most trust-worthy?
The slower the timeframe is, the more reliable the divergence signal is.
The best time to look for divergence is at potential turn points in the market:
– HOD/LOD
– Highs/Lows of a sideways range
– Highs/Lows of a price wedge
– Highs/Lows of a price channel
If you use your divergence as a filter, then wait for the swing trade entry confirmation, this is a very high % trade.
Can we predict chop and slop?
When the markets are too dangerous to trade?
– Watch this video on the blog
– Size and Speed, when the speed slows down the slop picks up
– Dollar Index, if the dollar isn’t move neither are the other markets.
– Average true range, if this is too narrow so will the price action
– When momentum goes overbought to oversold very quickly.
How do you avoid slippage?
– You cant avoid completely
– Trade markets with enough volume/liquidity
– Trade at the best times of the day
– Trade when you see the BIG MONEY enter the markets.
What’s your stop loss?
– This is a tough question to answer
– Everyone is different
– Me personally we use a max stop of 10 ticks. We also have options for stops at 20 ticks for different scenarios.
– Your stop loss amount is determined by three things
o Your trade account SIZE
o Your risk tolerance
o The chart timeframe / pattern you are trading.
– I will give you a custom-fitted trade plan
