Look for Confirmation of the Move
(scroll down for video)
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…