Day Trading Gaps, Market Profile, Ergonomic Day Trading, technical indicators we use in our trading with SchoolOfTrade.com

If you aren’t using Market Profile in your trading you aren’t truly reading VALUE in the market, and you definitely need to know how to trade GAPS, so be sure to watch today’s video.

– Market Profile, how we use it

o Covered in our intermediate course
o One of the most important ways to define market sentiment
o I think most trades use market profile use this incorrectly
o VAH/VAL are very tough levels to see convictions, and most market profile traders use these levels for their entries.
o The most difficult areas on your charts are VAH/VAL/POC
o We use these levels to determine sentiment, but trying to trade around these levels is almost suicide.

 Very choppy
 Lots of different types of traders making important decisions.
 The Value area calculation is often different from one trader to the next, so that VAH/VAL/POC may not be correct!

-How do I use market profile to make money?

 Avoid the VAH/VAL/POC areas
 Watch for market reaction around the VAH and VAL

• This reaction around these levels will tell me where to go next.

 Example: I see big sellers all the way through the VAL.

• Look for a breaker short at the next levels of support once we break out to the downside.
• Notice I didn’t say ‘short the break of the VAL’
• Trading around these levels are very inconsistent.

– Setting up your workspace and charts to make your entries easier

o Log into the advanced course, and use the document title: traderoom workspace description

 Tell you where to place all of your charts, and the specific parameters for each of them that JJ’s uses in the room.

 We want to make sure that our EYES can easily flow from one side of your workspace to the other.
 Set my charts up in order of timeframes

• Chair = herman miller

•

– Wave Method

o Uses the wave indicator and the wave patterns

 We can use these separate to each other
 I can use a wave entry without the wave indicator
 Apply to any chart timeframe, and any market
 My favorite chart to use the wave is the 13-range and 21-range.
 We encourage you to watch for the PERFECT pattern

• Identify the perfect pattern and enter with confidence
• Identify the not-perfect pattern and avoid the trade with confidence.
• Defined in the Advanced Course

 You don’t need to load the Wave template if you don’t intend to use the Wave Indicator.
 We take wave trades on any market, any timeframe, as long as the rules confirm.

– Don’t trade the middle, but what happens when we are between 2 trading ranges?

o We avoid trading in between the 2 ranges
o Or if you do take a trade, it will be higher risk.

– GAP Fills

o Why don’t we trade gap fills?

 3 reasons why I avoid trading Gaps

• It goes against the fundamentals of everything we believe in with reading price action (something changed overnight, so why would we ignore that?)

• It requires a very wide stop! How far against my position am I willing to let this go against me?

• Lack of consistency, we don’t see more than 50% win ratio on these trades.

– When do we know to begin trading gold again?

o When you see GREEN pace of tape
o When you see the auto levels showing you lots of support and resistance lines
o And when we see a lot of big money on the time and sales window

– Can you trade the 21 and 13 range patterns without any confirmation because they are strong?

o Yes you can! But keep good notes because after 2 weeks you will most likely be close to b/e possibly a little in green.

– Indicators we use for our trading

o We have a few proprietary indicator

 Pace of Tape
 Auto Levels
 Swing-high/low
 MACD
 Trigger Line

o All the others are found on any charting package

 Trend lines
 OHLC / HOD/LOD
 Momentum
 Time and Sales window

o All of our indicators, charts, market data, it all comes with advanced membership!
o All future updates are also included!

3 times a year for the most difficult price action:

– End of 1st quarter
– Month of August (last 2 weeks) – after labor day
– December 15th – end of the first week of January