Price Channels and Wedges, Drawing Trend Lines and Using These to Make Trading Opportunities

– Trading with trend lines; wedges and channels

o Open your chart and zoom all the way out

 Control + up/down arrow

o Drawing trend lines
o Defining different patterns

 Wedge

• Sell the highs
• Buy the lows
• Avoid the middle
• Don’t be afraid to trade wedges inside of wedges

 Channel

• Sell the highs
• Buy the lows
• Avoid the middle
• Don’t be afraid to trade channels inside of channels

 24-hour chart, not the OHLC

• 12am open
• 12am close
• 24-hour charts

 How do I use this to make money?

• Avoid higher risk trades by avoiding

o Trading in the middle
o Avoid Buying the highs
o Avoid Selling the lows

• Beware of channels and wedges on slower timeframes, they will be very important to your day trading results.

– Does the Dollar Index Correlation apply to ALL the markets?

o Yes, but some more than others

 Commodities and Currencies are effected the most
 E-mini’s have not seen the strong correlation that other markets enjoy.
 The correlation should show you instant feedback
 If the markets DON’T react in a very fast manner, something is wrong and we wait for the ‘correction’

o What timeframe do I use?

 21-range and 13-range charts
 90 days of data

– Tape Reading

o Looking for entry long when I see…

 Momentum up
 Nothing overhead to keep this trade from moving
 Big buyers on the tape

• ‘Above the ask’ is preferred

– Easiest ways to find your patterns

– Fast Track Trading Method

o 2 weeks to learn: patterns, entry rules, setting up charts and workspace
o 2 weeks of practice

 Doesn’t have to be 2 weeks, but this is what I recommend
 Just had 2 members today go live after only 5 days (1 week)

o Then you’re learning and earning at the same time!

– Chasing Trades

o Don’t do it!

o Wait for the next pattern

o Our trap entry technique seeks to identify the worse-case scenario to ensure that I’m always away of how far I can chase.

– What type of stop loss am I using?
– How often do we use the 5-second rule

o Used for scalping
o Slower timeframe day traders will not use this

– What do I mean when I say ‘big buyers’?

o Buyers on my filtered time and sales window
o Filtered for 5-10 contracts

– Auto Trader will be ready this week

o Fully automated
o Take the trades, enter, exit, trade management, it does it all.

– What is Average true range

– What is the 1030 e-mini reversal?

– How many trades each day do we take from our 4-range chart

o 10-20 trades per day

– 13-range and 21-range

o 3-10 trades per day