Beginner Day Trading Strategies; charts, divergence, time and sales, trend lines, Pace of Tape Indicator

– What are the signs of a low volume market?

o Momentum is oversold to overbought very quickly
o Slow speed of tape (POT)
o Price gravitates to big round numbers
o Price gravitates towards trend lines
o Price gravitates towards obvious levels of support and resistance

Beginner’s Training:

– Margin on Gold and Crude Oil = $1,000usd

o Broker References: Sales@SchoolOfTrade.com

– Divergence: how does it work? How do we use it?

o When price moves up and the indicator moves down

o Which charts?

 I use any chart for divergence
 Slower timeframes will work best
 Fast timeframes will give too many signals
 Its useless without the proper s/r levels and entry/exit rules.

o New Chart templates

 Up-dated yesterday

• Traderoom_fast
• Trademanagementchart
• Both have added the new divergence indicator

o Leading or Lagging?

 Tells us what MAY happen in the future (leading)
 Compare to a moving average tells us what happened in the passed. (lagging)

– Drawing trend lines

o Log in and watch the video on trend lines

– Where do you find the POT Indicator?

o Open a new chart

 10-sec chart
 Load the ‘paceoftape’ template

o ES / Euro / Dollar have different templates

 Paceoftape_ES
 Paceoftape_DX
 PaceofTape_6E

– How do we use the dollar?

o As a correlation
o I don’t trade the dollar b/c its too low volume
o Negative correlation

 Dollar is flat = everything is flat
 Dollar rising = looking for shorts
 Dollar Falls = looking for longs

o I watch 2 timeframes

 13 range (5min)
 21 range (15min)

o Watch the video and read the article on the blog

– Max contracts for scalpers?

o E-mini, commodities
o 20-contracts is where slippage starts to affect you trading

 < 20 contracts im getting in and getting out with ease
 > 20 slippage will require me to scale in and scale out

– Setting up the DOM

o TUTORIAL: SETTING UP YOUR TRADING DOM W/ ATM STRATEGIES

o 3 moving parts

 Then set your stops and targets
 Set your stop strategy
 Save them all as a new ATM Strategy

– Dom vs. Chart Trade

o If im scalping I use the DOM (more responsive, easier to use)

o If im swing trading or trading something that doesn’t require that split second decision I will use the chart trader

– Chart / Indicator Properties: changing the FONT

o Make the Auto levels changes on the Slower timeframe, then that will affect the fast timeframe
o When you’re done save the template to save those changes
o Then save your workspace so the next time you open your workspace you will have the correct template.

– Time and Sales window: buyers at highs/sellers at lows

o What does that do for Momentum and Divergence?

– Market Analyzer

o File / New / Market Analyzer
o Load the ‘market analyzer’ template

– Is it possible for the market to go THROUGH your stop loss order?

o Yes!

– What do I mean by higher risk?

o Lower potential for a winning result
o What do I do with that?

 MARKET’S PERSONALITY
 Our entry rules
 Time of day
 Lack of speed
 Lack of direction

– How do you add another indicator onto a chart?

o Right click and select the indicators
o Add the indicator by 2-clicking on the name of the indicator
o Set the correct parameters
o Save the template

– Difference between the Wave Template and the trade-room templates

o Wave = uses the wave indicator

 Waves happen during trending markets

– Why should we watch other charts if we are trading on 13-range chart? Why watch the 4? Or the 21?

– Time and Sales Window
– Connecting to the Market
– Setting Up charts
– Using the members section
– Using those charts
– Using our indicators
– Average True Range