January 12, 2011
- in Uncategorized by schooloftrade
Sell the Highs, Swing Trading, Speed of the Tape, Daily and Continuous contracts Ninja trader 7
– How do we use the daily chart?
o See the big picture
o Not looking for patterns as often as the faster timeframes, this is just to see the big picture
§ We use two trigger lines
§ Normal trigger
§ Big money trigger line (dotted)
§ We also use the divergence indicator
o Draw trend lines from the highs and lows, looking for wedges, channel, sideways ranges
– Which is more important? The wedge or the channel?
o The pattern with the most price data is the most important
o Usually the longer term trend is the one to watch
– What size stops and targets do we use?
o All depends on your type of trading
o Scalper = always the same
§ 6 tick stop
§ 5/10/Runner Profit
o Day Trader = always different
§ Stop @ next level of support and resistance
§ Profit @ next level of support and resistance
§ Cheat and use the same 6-tick stop (scalper) but use this with wider targets like a day trader.
o Swing Trading will be the exact same, find the support and resistance in the markets you’re trading and that is where your stops and targets will do.
– How would you use this method for a swing trader?
o 50% of my account and use the auto trader for a swing trade
o 50% I would discretionary trade with our simple patterns and entry rules.
o Check the daily chart, then use my 55-range chart as the slow timeframe (34range for day trading)
o Looking for patterns on the 34-range and 21-range charts you can use the levels from the 55-range and Daily charts
o Very important that swing traders keep their patience to let the trade run either into their stop or into their profit targets.
– Manage the trade by identifying the support/resistance and placing your targets accordingly.
– What does the speed of the tape tell me?
o Increasing speed confirms the move
o Decreasing speed DQ’s the move
o Measure the speed of the market with Pace of Tape Indicator
– Quick Start guide in the advanced course will show you how to set up all the charts
– What indicators do you use?
o Auto levels
o Swing indicator
o OHLC for the last 2 days
o Momentum
o Trigger Lines
o Load your chart template and all these indicators will work properly
o I don’t worry about the indicator settings, I use templates to make it easier.
– How do you sell the highs?
o First identify the highs
o Use your slower timeframe (daily, 34-range, 55-range)
o Then look for the pattern at the highs on the faster timeframes
o This will be a reversal pattern = 2-step pattern
– Auto Levels on the TMC
o What do the different colors mean?
– How do we use divergence?
o Video on it at the bottom of the advanced course.
o Notes on it in the download section
o Indicator that we use is in the download section
