June 8, 2011
- in Uncategorized by schooloftrade
Fade The News when everyone THINKS they know where price is going
Fade The News:
Traders expect a certain news event has already been ‘priced into the market’ which means when the news comes out, rookie traders try and buy/sell, only to find the BIG MONEY traders waiting to take it from them.
Some easy clues for when to fade the news:
– When its very easy to see where the news will be, and where price ‘SHOULD’ go.
– If the market reacts different than it should. (bullish news and price drops, etc)
What the heck is a token print?
– Assumed to be the last print before the reversal
– Its usually very large, and very QUICK to reverse
– New Lower Low does NOT require a lot of speed, whereas a token print certainly does.
– Are trades using token prints higher %?
o The token itself is nothing more than a failure print on your time and sales
o Its defined as a token when it breaks a major swing-high/low, when it makes new lows outside of the range.
o Bottom line: a token will get you into a trade
§ At the extremes
§ After failure from the opposite side buyers/sellers
§ Will use lack of speed to define when the reversal shows up, so just use a 2step long/short price reversal pattern to enter the trade.
What will crude do?
– Dx rising
– Euro falling
– Over supply on Crude
– Downward trend
– Answer = should drop
– Reality is = OPEC meeting tomorrow traders are SOH.
