February 28, 2011
- in Uncategorized by schooloftrade
Fake-Out Breakouts how to Avoid them day trading and swing trading futures
How to predict a fake-out breakout?
– What I need:
o Slow timeframe: Looking for the trend
o Medium timeframe: looking for the pattern
o Fast timeframe: looking for the entry
Slow timeframe:
This defines the trend, or lack of trend. Then once we see the trend, we want to follow it
We also now begin to see where the highs and the lows of wedges, channels, sideways ranges will be.
We want to trade with the trend, and use the highs and the lows of the ranges as our entry locations.
Medium Chart:
Looking for the price pattern
The slow timeframe told me where to look for the pattern, and which direction to trade, now I need the actual price pattern to show me where im going to be entering the market.
Fast Timeframe:
Look for the same pattern to trigger at the same time as the medium chart.
Use the pace of tape indicator to look for increasing speed, and want big money on the filtered time and sales to confirm the buyers or sellers agree with my trade
How do I get the Pace of Tape? Indicator for our members
