September 29, 2011
- in Uncategorized by schooloftrade
Mini Russell Futures; Here’s a classic example of an Inside Day, Price Wedge, and a Wave Long Failure
Price moves to the highs of this price wedge with a simple wave pattern long. You won’t take the wave long because you would be buying into the highs, so you mark the swing low (conveniently below the BMT) and then when price breaks the swing low momentum is falling and we jump in short.
 |
| 89Range Russell Futures |
Trade management is simple with the Fast Track Method. Stop is at the swing highs, and the target is all the way at the lows of the wedge which is also the PLOD.
This is one of the highest percentage patterns you will see. Wave patterns are great, unless they are at the highs of the wedge in this case, so its easy to skip the buy, wait for the failure, and then knowing how a price wedge and inside day works, its very easy to hold this trade all the way to the lows.
This is our Fast Track Method applied to an 89-Range chart, which means this would be classified as a ‘position trade’ because it is 1 trade taken with the intention on holding it during the day, but not overnight to help lower margins.
We see these types of trades 10 times a week, so come join me in Monday’s training and we will review this pattern, and many other with our members!
Hope it helps! Post your comments below!
