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Learn the Breaker/Wave Combination Trade
Today we discussed a very exciting trading technique, which uses our Wave and Breaker Patterns to find some very high % opportuities.
I also took the time to answer a few questions from the trade room, and finished up with a great lesson on drawing & using trend lines.
Candlestick Patterns:
– Shooting Star (inverted hammer)
Use a Filtered time & sales
– Crude, Gold, Euro, = 20 Big Blocks
– ES, FESX, T-Notes, Bonds = 50 big blocks
o These are higher volume markets
o Fewer explosive moves on these higher volume markets
– HOD/LOD
o Always calculate the new lows and the news highs
Market Profile
o Intermediate course
o Don’t use it here in the room b/c its too much to learn when you get started
o Keep it simple!!
o Market profile: video on our blog!
Breaker / Wave Combination Trade:
– Enter the breaker first
– Wait for the trade to exhaust
– Then look for a wave entry to get back into the move
Trend Lines:
– Are ranges of price, rather than specific price levels
– We do not want to trade around trend lines
– Avoid them
– We look to trade as far away as possible
– Very inconsistent
