Never Miss Another Entry, Sideways Markets and Signs of Price Reversal

We always take time to answer ALL of the questions in the live trade room, and today we spend some time talking about some VERY important topics.

How do we avoid missing the best trade entries?

How do we know when a reversal is coming?

We answered these questions, and many more, so be sure to watch today’s video and don’t forget to bring questions with you to training on Wednesday @ 1130am EST!

Click below to watch the video…

Questions:

– How do I avoid missing my trades?

o Paying attention (aware of your surroundings)

 When is the news?
 Do we have anything later today to worry about?

o You know your position, know your job

 Be watching the correct info
 Don’t check emails, or chat on skype, pay attention

o Know how to use your tools

 Practice using charts
 Use the market replay recorder
 Attend a few of the FREE webinars offered by Ninja Trader and learn how to use your tools.

o Practice this repetitively so you can do it in your sleep.

 As a day trader I need to:

• Learn the patterns on different timeframes (they all look the same)
• Learn the entry rules, know them well, and be ready to use those rules in the heat of the battle.
• Look for confirmation

o Steep slope to my trigger line (no flat trigger line trading allowed)
o Momentum to be pointing in my direction, but avoid overbought/oversold
o Big Money big and sellers!
o Speed of the tape, we want the speed moving quickly.

– Trading sideways markets

o Does not need to be a more difficult environment to trade
o I think sideways markets are easier

 Trending markets are like a match that gets lit….ready…set…BANG!!

• Tough to know where the move will end?
• Often on low volume
• ALWAYS impulsive, never logical

-How do I make money?

 Define my sideways range

• Do it by hand using the video called ‘bracket bootcamp’ in the advanced course
• Load my auto-levels indicators, which will find all the important levels for me without the need to do it by hand
• Then look for 2 red lines that will define your range

o Look for brackets or trading ranges that are VERY wide, wider the better,
o Buy the lows and sell the highs
o Use any pattern, wave, breaker, 2-step to accomplish this

– What are the signs of a reversal?

o The easiest way to anticipate a reversal is to watch the speed of the market

 Is speed increasing? Is it decreasing?

o As the trade sets up, we begin to see..

 Speed decreasing on the pace of tape indicator
 Big money BUYERS, and im looking to get short
 Momentum will ‘snap’ back in the opposite direction

– Pace of Tape Indicator

o Proprietary indicator
o Not a volume indicator, it does not count volume
o It measures the rate of speed for the orders coming into the market