October 15, 2010

Day trading strategy for CHOP ZONE Sideways Low Volume Flat Markets

– Chop Zone Trading

o Is the center 1/3 of the sideways range

 Define the range with double-tops and double-bottoms
 Auto-levels indicator does all of this for me!

o speed analysis in the chop zone
o divergence
o how we make money with chop zone

– So why can we buy/sell the breakouts, but you say we don’t sell the lows? We don’t buy the highs?

What is the Fast Track?

o The goal Is simple:

 Teach you patience

 Teach you the patterns

 Teach you the rules

 Teach you to handle losses

 No trade management means easy trading

 Use limit orders for your entry, so no missing trades!

 1:1 risk/reward ratio which is perfect for a new trader who we assume has a smaller account and more likely to make mistakes

– What is your entry trigger?

o Fast track = I use a standing limit order

o Day Trader = identify a level of interest and then wait for the break above/below that level to trigger the trade.

o Swing Trader = identify a level of interest and then wait for the break above/below that level to trigger the trade.

    schooloftrade

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