Tick Charts Fast Track Day Trading Using Multiple Time frames Scalping Futures

I’m using tick charts and the Pace of Tape Indicator to predict price reversals, and its REALLY easy to learn…and VERY exciting to use.

We also covered topics including our Fast Track method and the ways we use multiple timeframes to help scalpers always get the best trading opportunities.

 
– How large of an order can we place without worrying about getting filled?

o 20 contract is pretty much my limit for everything except the ES, FESX, Bonds and T-Notes

– Dollar Correlation

o Dollar has negative correlation to everything else

o Video: https://www.sidewaysmarkets.com//2010/07/21/dollar-index-futures-contrac/

– Fast Track: when does a trade become invalid?

o Streamlines trading method that use

 1:1 risk/reward ratio
 Limit orders for precise entry
 No trade management, so very easy to use
 Use the same simple patterns we always use.
 Goal: patience, discipline, and the ability to have confidence in follow your rules.

o How long do we wait for the trade to trigger?

 The longer it takes the higher the risk

• Watch the speed of the orders, the speed of the pattern, and the speed of the trigger of this pattern

 If the price slows down to a crawl around your entry, you need to be careful
 5-minutes I would be worried
 If the move doesn’t happen…why not?
 If the move didn’t happen 5 mins ago? Whats changed?

– What is more important? 13range or 21range trigger?

o Im going to enter long on the Russell
o 13-range momentum points up (good)
o 21-range momentum points down (bad)
o What do I do?

 Scalper? Take the trade with the faster timeframe momentum
 Day Trader / Fast Track? I will use the 21-range as additional confirmation

• Look for both of them to confirm

 Swing & Position Traders, the best entries come with multiple momentum indicators confirming.
 It does NOT require us to use multiple momentum indicators, but we like to in the summertime months for additional confirmation for the move.

– How often do we re-draw the wedge pattern?

o Never

– Working with multiple timeframes

o Scalper: I will look for the pattern on a 21/13/8/4 range chart, and then ZOOM in and take the on the 4-range chart or 1-min chart.

o Day trader: I will look for the pattern on a 21/13/8/ range chart, and then ZOOM in and take the trade on the 8/13-range chart or 2/3/4-min chart.

o Position trader / swing trader: I will look for the pattern on a 34/21/13 range chart, and then we do NOT zoom in, we take the trades when the pattern develops

– What’s our entry trigger on the 13 and 21 range trades

o Find the pattern
o Qualify the trade with your rules
o Assuming the rules are qualified, then look for entry
o Triggers

 Momentum on my side
 Large buyers/sellers on my side
 Increasing Speed on the pace of tape indicator

– Tips to avoid over trading

o Discipline Cycle, watch it!

o https://www.sidewaysmarkets.com//2010/04/14/discipline-cycle-tutoria/

o Much more detail in the advanced course

o Know your patterns and rules very well and trade with confidence.

o Market replay after you’re done trading is an excellent to practice patience.

o Define YOUR trade and then wait for YOUR entry.

– Why not the ES?

o The ES is a good example of a market with too much volume, and too much speculation

o End of 2008 the credit crunch spooked everyone into taking money from emerging markets and they put it on Gold and ES (more stable markets)

o Range-bound and sluggish market is NOT the ideal trading environment when we have OTHER markets that are making us so much more money!

o Use a slower timeframe on the ES than the other markets for better trading.

Tick Chart Method:

– Trying to identify the speed of the market as the market develops and make educated decision based on this information

o 144-tick chart
o Pace of Tape Indicator
o Knowledge of tape reading, how speed helps us as traders.

– I want to try and watch at the highs and the lows of the day and look how speed reacts at those highs.

– Stay away from the middle, and wait for the HOD/LOD to be tested, that will be the highest percentage opportunity.