Price Reversals, Pullbacks & Retracement Day Trading Strategy

– Qualifying pullbacks/retracements

o Buying pullbacks/selling reversals are the most efficient way of earning income

 Selling as the price is rising, gets me the best fill and im short above the highs which is the best location

 I will also use overhead resistance levels to support my trade short.

o Ways I can add more potential to this winning trade:

 Short trade

• Use overhead resistance levels
• Trigger line as overhead resistance
• Speed analysis
• Look for divergence for reversal

 When to avoid a pullback/retracement

• Stutter step, the other side of the market grabs hold of price
• Watch out for trades that do NOT have enough room to run
• Flat trigger lines are public enemy numero uno!

– Time and sales window properties

o At the top of the advanced course download section

– Joe’s dual workspaces

o To make things easier to follow, I focus on 2 markets at a time, and I have 2 workspaces that focus on 2 separate markets

o I load BOTH workspaces, and then toggle back and forth between the two.

– How do we see 100 lot orders getting filled, when day traders have a hard time with slippage?

– How many markets do I follow

o Favorites: crude oil, gold, euro, Russell, aussie, e-mini ES,
o Our method works on ANYTHING that moves
o ES = TOOO MUCH LIQUIDITY, that’s the why the moves don’t run very well
o TF = has just enough liquidity so the margins are lower and the trades MOVE!!!
o I want a balance between volatility and liquidity

 Too much volatility is too risky
 Not enough volatility there’s nothing moving!
 Too much liquidity and the market goes sluggish and sloppy
 Not enough liquidity and we cant get low margins or any confidence to enter the trades