March 23, 2011
- in Uncategorized by schooloftrade
Find the best DAYS to trade, here’s how
– How could you chose the best 3 days per week to day trade?
o Check your news calendar, looking for the following
o Avoid days when there is no news, or when there is BIG news on the following day
o Trade on days when there is a lot of news today, and no major important news tomorrow.
o Next week:
§ Days without news? No
§ Big News? Thursday, Friday,
§ Bad Days: Thursday = end Q1
§ Not going to trade on Thursday (end Q1),
§ Will trade on Friday (NFP), Monday and Tuesday next week
o The week of April 4th
§ No news on Monday (slow)
§ FED Minutes on Tuesday (slow)
§ Wednesday is ok
§ Thursday is ok
§ Friday no news
§ Trading Tuesday, Wednesday, Thursday
§ Not trading Monday and Friday
– Trend Lines Function
o We can draw trend lines and add them to multiple timeframes using the newest version of NT7
o Trend lines do not auto scale
o All your charts must have the same # of days of data
o Or…you can remove the ‘global drawing objects’ from the charts you don’t want these to show up.
o Make sure you have a back up workspace file ready if this crashes your charts
– Indicators we use
o Auto Levels = marks the most important levels of support and resistance, and it then adds those levels to different timeframes so I can use them effectively.
o Swing Indicator = marks the most important swing highs and lows
o Divergence = used with any pattern and it also has its own trading method (divergence method)
o Trigger Line = used for all the patterns and we look for the SLOPE of this as our guide
o JJMomentum = Measures the momentum in the market, but goes one step further and links multiple timeframes together to look for double confirmation. Red = sell, green = buy
o Pace of Tape (POT) measures the speed of the orders coming into the market
o Does not count volume, does not know buy or sells
o All it knows is that 100 lots and 10 lots are the same….1 order coming into the market.
– Session template = 24/7
– MACD = 4range for entries, 144tick for exits
– Dollar Correlation = does NOT work as well with low volume, this time of year we have less volume than normal
– What happens if you lose power or internet connections?
– Your trade is still active, as long as you had the order executed BEFORE the power went out.
– Your entry, stop and target will be OK as long as you got into the trade below the power cut.
– Call your broker as soon as possible.
– Remember, how do you call him/her if there is no power/internet/phone?
– Keep a cell phone handy
– If you live in area where power goes out often you NEED to get a battery back-up.
