February 8, 2011
- in Uncategorized by schooloftrade
Trend Reversal or Trend Continuation Pattern, day traders use them both
How do we use speed?
o Speed is the pace of the orders coming into the market
o Our members will use the pace of tape indicator to measure that speed.
o Red = Slow
o Yellow = medium
o Green = Fast
o Most important thing is the condition of the speed (rising or falling)
o I take trades on rising speed
o I avoid trades on falling speed
o “speed slowed down at the HOD, so I will look to sell the highs”
o Speed slowed down at the highs, I will take profit at the highs
o Speed picked up at the highs, I saw big money buyers as well so we buy the highs
– How do we know when to buy the lows or when to sell a retracement? (momentum)
– Momentum will give you the clue as to which direction you should be looking for.
– What are range charts?
o Range charts have specific trading range for every candlestick
o 20 range = 20 ticks of range inside each candle
o 20 min = 20 minutes of time inside each candle
o 20 tick =20 ticks of price inside each candle
Why do we use these?
o They look much cleaner, not as sloppy as the time charts we used.
o Every candle is the same ticks of range, each candle is exactly the same
o Easier to LEARN the patterns and easier to RECOGNIZE the patterns when you see them on your chart.
– Auto Trader
o 100% fully automated
o Comes with membership
o Includes all future updates
o $1500/mo/contract
o You need $1500/contract to use it
o Hold overnight for a swing trading type of strategy
o Gold seems to like $3000/mo/contract
o Euro = $1500/mo/contract
o Very low drawdown and only have 1.5 trades per day.
o 20 tick stop / 80 tick target
o Slippage is a non issue
– New Momentum indicator
– Post the Momentum template (FastM)
