November 24, 2010

o Tells us when the WAVE PATTERN is going to be a winner or not

 If its inside the ‘zone’ the pattern is HIGH %
 If the pattern is above/below the ‘zone’ this will be a higher risk trade.

– Does the 4-range develop ‘tunnel vision’ for day traders?

o Yes it does

o We use slower timeframes along with faster timeframes to see BOTH whats happening in the big picture and zoomed in for your next trade

– What are your stops and targets?

o Scalpers = stops and targets are always the same

 4/8/Runner
 5/10/Runner

o Day Traders = always different, depending on the market we’re trading and the S/R levels we see at that time.

 Stops at the previous swing-highs/lows
 Targets at the next levels of S/R
 Always changing, and I use

• Trend line
• Trigger lines
• OHLC levels
• Swing highs/lows

– How many contracts do we trade?

o 4 contracts

– What different types of charts do you use?
– What is the AB = CD Pattern
– Different colors on Time and Sales

o Green = buyers

 Light Green = excessive buyers (demand)

o Red = Sellers

 Dark Red = excessive sellers (supply)

o White = between bid and the ask (both supply and demand)
o Big money buyers/sellers

Wave Patterns and using our Trigger Zones; 4-Range Trading Tunnel Vision