Look for Confirmation of the Move

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Before we wrap up the 3 Steps to our Trading Success, Lets recall for a moment, our first 2 steps…

Step #1 was to use our AUTO-LEVELS Indicator to locate the very best levels to use, and then look for simple price patterns such as the Wave, 2-Step, and Breaker to enter the trade.

Step #2 we use our ENTRY RULES to identify these patterns as either HIGH or LOW probability in order to make sure we are taking only the very best trading opportunities.

Step #3 is to look for CONFIRMATION OF THE MOVE to give us confidence to enter this trade!

What does confirmation look like?

• Increasing Speed of Tape, Pace of Tape Indicator

• Large Buyers/Sellers on the Time & Sales Window

• Bullish/Bearish Price Patterns on Fast Timeframe

• Follow-Thru above the Swing-High, or Below the Swing-Low

Momentum Curls in your direction

• Medium/Slow Timeframes > 6 ticks

• Slope of the Trigger Line

• Does not take more than 5 minutes to trigger

What does NO Confirmation look like?

• Decreasing Pace of Tape

• Small orders on the tape

• Flat Price action, indecision on the charts

• Momentum curls against you

• Medium/Slow timeframes re-calculate < 6ticks

Trigger Line flattens, nobody has control

• Doesn’t move, stalls, takes > 5mins

Let’s wrap it all together…

    schooloftrade

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    Anonymous - June 15, 2011 Reply

    I really liked this series of vidios

    Dave D

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