January 26, 2011
- in Uncategorized by schooloftrade
Better Wave Trades With the 2-step Price Reversal Pattern
– Using 2-step patterns for entries on wave patterns (2step short into a wave short)
– Slingshot (2step long into a wave short)
– Momentum
o You will get the EXACT momentum indicator to use with your membership
o I will tell you the EXACT settings to use and the EXACT ways to use it.
o Its easy to learn how momentum is used, or our theory of how we use it, but the best thing to do is get a little experience with momentum and see its different ‘looks’
o In real time, momentum can be a lot more challenging
o Overbought / oversold territory
o Long trade = oversold momentum and pointing up = avoid if overbought
o Short trade = overbought momentum and pointing down = avoid if oversold
– Speed and the wave pattern
o The wave pattern uses the correct SPEED to qualify the entry.
– Changing your indicators
o Right click on the chart, and open the indicator settings.
– Chasing a trade
– Make sure you know how much room you have for the trade to run, and don’t chase further than you have available.
– The farther away from your support/resistance the higher the risk….HOWEVER….if the momentum indicator has NOT confirmed yet its better to CHASE than to try and predict.
– Always better to get to the wave party a little bit late.
– Afraid to take breaker patterns?
– Failure Patterns
– Auto Trader
o Included with Advanced Membership
o Avg $1500/mo/contract (no overnight)
o Trade as many markets as your account will allow
o Requires $1500/contract you want to trade
o Does 100% of the work for you
o Flat Overnight = Low Risk = Low Margins
o Entry, Exit, Trade Management, everything
o Small Drawdown = Great equity curve
o Low Risk Reward Ratio (20tick stop / 80 tick target)
o Licensed to the individual trader
o Includes all future up-dates and 24/7 tech support
o Easy to incorporate with our Live Trade Room discretionary trading methods
o ‘Set it & Forget It’ Day Trading
o Has no monthly fees
o Runs on NT 7.0
– Mini Gold? YG? Too low volume, need more liquidity.
– Home office
o Much cheaper
o Usually nicer than an office
o More convenient
o More distractions
o More difficult to focus
o More difficult to disengage
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– Rent a space a trader?
– More money (right off)
– Not as nice as a home office
– If you have kids…2 offices!!
– Fewer distractions at the office
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– Dollar Correlation
o Low volume
o Or when people are leaving 1 currency and going into the gold and the dollar
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– Too many trend lines? What do we do?
o If you can’t SEE it, you can’t TRADE it
o If there are too many trend lines (correct) you need to skip this trade.
o Remove some of them, make sure that they are all correct.
o Don’t just draw trend lines to draw them, make them count. Too many TL’s will lose confidence in using ALL OF THEM.
