October 3, 2011
- in Uncategorized by schooloftrade
Learn to trade Inside and Outside Days, these are my favorite
Inside Day / Outside Day Transition:
Here’s what you need:
– 24hour chart, 12am start, 12am finish
– PHOD
– PLOD
– My slowest timeframe, 89range chart
Inside day = we are below the PHOD and above the PLOD, inside the previous day’s range.
Tells us that the perception of value is the SAME from one day to the next, and until we break out of the Prev range we can assume the lows and highs will hold.
Inside the range, I’m buying at support when price falls, and selling at resistance when price rises.
Once it breaks the PHOD or PLOD is becomes…
Outside day = either above the PHOD or below the PLOD. Not inside the range from yesterday.
Tells us ‘something changed the perception of value’ either more bullish or more bearish.
If price trades above the PHOD the buyers are clearly in control and we should be buying pullbacks.
If price breaks below the PLOD we know the sellers are control and we should sell retracements.
Outside the range, expecting breakouts.
Looking for trades when the market transitions from inside to outside, or outside to inside. One thing I need to be concerned with is when the transition happens more than once per side.
Example: we sell short when break below the PLOD, and then buy long when we fail at the lows and break above PLOD. We then try it again, and again, and again, and by the time I realize we’re slopping around the PLOD I’ve given back all my money
How long will it take to learn this method?
2 weeks if you follow the plan exactly.
30 days to 60 days for part-timers
Our lifetime membership will allow you to learn at YOUR pace and not worry about the time aspects.
