May 11, 2011

Morning Prep, Trade Management and the 10:30 Price Reversal

Disclaimer
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–          Gold trend line (Ian)
o    Log into your advanced course and watch the video, that will have the BEST information
–          Fear is not an exit strategy
–          Why no Gold in the morning prep?
–          Trade Management
o    Or log into the adv course for your trade management for ANY type of trader.
o    Different patterns
§  Not very often, mostly the same basic fundamentals
o    Different charts?
§  Use the same fundamentals, but the slower timeframes will always require a wider stop/target
§  The same ratio of risk, but just a wider trade to account for the slower timeframe.
o    Automated trade management (ATM)
§  Use the document called ‘ATM Strategies for every trader’ in the advanced course
§  This allows me to set up the automated stop, profit targets in advance.
–          1030 Reversal
o    Gold 60 minutes after the PIT open (820)
o    Crude 60 minutes after the PIT open (900)
–          Wave Patterns and Momentum indicators on different timeframes
o    Log into the adv course and watch the 5th video down from the top
o    Our 3 price pattern
o    The most important momentum is on the chart you see the pattern.
o    Slower timeframe momentum will be another additional confirmation
o    But I don’t need to see multiple timeframes confirming.
§  Watch the video on JJ Momentum to learn the value we place on seeing 2 timeframes confirm.
–          Do you take all the trades with the 4range chart?
o    I take trades when I see…
§  The correct location from my 89range/34r charts
§  My rules confirm
§  I see a pattern
–          What type of orders are you using?
o    Fast Track = Limit Order, resting, waiting to get filled, very easy
o    Advanced = We use the ‘TRAP ENTRY’ uses a buy/sell stop a creative way
–          What I use for the OHLC session (24/7 charts)
o    My OHLC is calculated off the 24 hour chart.  12am open, 12am close.
o    I don’t pay attention to the open/close of the pit
–         
–          GAP Trading
o    The risk vs. reward is very hard for new traders
o    Not enough consistency in trading opportunities
o    While we wait for a gap to fill we could have already taken all the profit out of the market.
–          Stutter Step:  heads up for a potential wave failure.  We know what the perfect wave pattern looks like, and when it does NOT look perfect we want to recognize it.
–          Sideways Market:

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