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34 Ticks Today Look for the CONFIRMATION to Pull the Trigger
Another day filled with learning and profits in our live trade room for members and guests!
Today was a challenge, but we knew what to expect!
We identified the day ahead of time today as being a potentially VERY SLOW day because of…
• Fed’s Ben Bernanke in front of Congress
• Sec. Tim Geithner in front of the Budget Committee
• Toyota hearing on Capital Hill
With these speaking events today, we expected to see more people sitting on the sidelines than any other day this week.
We were correct, and we saw this in the markets when we opened our charts:
• Red Pace of Tape Indicator
• Flat Trigger Lines
• All Trigger Lines were the SAME price level
• Lack of BIG MONEY in the market
The lack of BIG MONEY was the most obvious.
We had dozens of potential trades today, however, we cannot change our rules, we need to see BIG MONEY in the market as a confirmation to take our entry on the trade.
The patterns kept lining up, we qualified each one correctly, and we WAITED for the BIG MONEY to give us the confirmation trigger…..and….NOTHING.
Lots of little traders on the time & sales window, nothing from the BIG MONEY, and we assume it was b/c of the events scheduled for today.
So how did we trade this market today?
Very patiently, and we emphasized being aggressive with our defense! Lock in profits early, and move onto the next high percentage pattern.
One of the most important things to remember on days like today is that making money is a great result, but keeping money from yesturday’s $800 day is the most important.
Often times the market will give you a challenging day, and the easiest way to trade it is to use patience to wait for the obvious patterns, look for the best volume, and lock in those profits b/c the market gets very choppy quite often when volume slows down.
We stuck to our rules today, and we made money!
6 trades today, 3 winners
+34 ticks, $365usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session.
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TODAY’S TRADE ROOM QUESTIONS:
JJ@SchoolOfTrade.com
Where can I find today’s news?
http://schooloftrade.com/news
Which brokers do we use?
Sales@SchoolOfTrade.com / 800.381.2084
List of brokers, computer requirements, etc+
What are our concerns today?
– Ben Bernanke & Timmy Geithner speaking, we may not have the BIG MONEY in the market until after they finish
– Did we see this?
o YES! On Crude Oil, missing the Large buyers/sellers
o YES! On Gold, all the trigger lines are the same
Flat price action, NO BIG MONEY, who moves the market up/down
Why chose range bars?
– Price action looks cleaner, less sloppy
– Helps me manage risk
o All the candlesticks have the same RANGE of price (4-Range = 4 ticks of range/bar
– Patterns look cleaner
– Doesn’t portray a slow/sideways market
o Compared to
Tick
Time (min, hourly)
Volume
Renkow (not specific enough for us)
How do we know when we have enough liquidity to trade?
– Speed
o Pace of Tape Indicator®
Rising Speed = GOOD for trades!
Falling Speed = BAD for trades
– Size
o Filtered Time & Sales Window
Filters out only the 10+ orders
Easier to see where and when the BIG MONEY is placing their orders
– Don’t worry about TOTAL Volume for the day
– Pay close attention to volume RIGHT NOW!
o Compare the volume NOW to how it was 10/20/60 minutes ago
What conditions to look for?
Flat Market:
– No News Events, lack of anything important that day
– Politician Speaking today
– Lack of BIG MONEY in the market
– Flat Price Action / Flat Trigger Lines
o All the TriggerLines are the SAME price level (big concern)
– Slow Price Action, Red Pace of Tape
Trending Market:
– Lots of important news today
– Nobody speaking!
– Lots of BIG MONEY on the Filtered Time & Sales
– Higher-Highs / Lower-Lows, moving price!
o Steep SLOPE to the trigger lines
o The trigger lines will all be different prices
– Faster pace of the tape, Yellow & Green POT
