May 10, 2011

Different PHOD and PLOD Levels on Monday Morning

–          Calculating the PHOD and PLOD on a MONDAY morning
o    I use 24/7 charts, no open or close of the pit, 24 hours a day
o    I will show the price action from the WEEKEND
o    I need to ignore the PHOD and PLOD on Monday
o    Ignore the HOD/LOD on Sunday, and use the HOD/LOD from the previous Friday
o    Why not just use the template 24/5?
§  I still need to know where the highs and lows from overnight/over the weekend were
         
–          Gold Lunch
o    End of morning move
o    Usually occurs when there is NO NEWS in the morning session
o    If there is no news and no speed or movement this looks VERY good for a late morning move.
    
–          Drawing Trend Lines on Multiple Charts
o    Global drawing objects turned off on 4/8/ATR/POT/
o    Fast charts, turn off plot executions to speed up your computer
–          4 contract ATM strategy
o    Log into your advanced course and check out the document titled ‘ATM for Every trader’
How much big money does it take to qualify ‘big money’
–          Its not a science, its an art
–          I want to see as many big orders in my direction as possible.
–          If I have concerns over price action I will wait for MORE to qualify the trade
–          If I see a strong clue that makes the trade higher % I can trade without as much as I would normally need
–          Rule = 50 contracts or more = big money
o    5 x 10 = 50
o    2 x 25 = 50
o    10 x 5 = 50
o    No matter how they show up, 50 contracts should be enough to tell me the BIG MONEY IS HERE.
o    The 50 value is only a guide.  There will be times when you need more, or when you need less.
o    This is only for gold and crude oil
o    ES = 1,000
o    Euro = 500
o    TF/CL/GC, anything not highly liquid and 50 is perfect.
Best way to get started:
–          Quick Start Guide = 45mins to set it all up
–          Fast Track, learn it and begin to trade it on demo
–          Set up your Auto Trader and start on a demo
–          1 week on a demo to get your confidence and now you know what to expect and you’re off to the races.
–          Start earning profit on BOTH, the FT and the AT

    schooloftrade

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