March 15, 2011
- in Uncategorized by schooloftrade
Big Round Numbers and Day Trading Strategies to Profit from them
Big Round Numbers
o 1.3500 Euro
o 100.00 Crude Oil
o 1400.0 Gold
o 1300.00 ES
o 2 reasons why we care
§ b/c the BIG MONEY will typically buy/sell around these levels
§ very easy to remember
o today we had almost EVERY pattern today had something to do with the big round number of 100.00
o 1000.00 was the big BIG ROUND # on gold
o Big money tends to buy and sell around these areas, and since they are so easy to remember, day traders use it to see the big picture.
o If we try to buy above 100.00, we have big sellers trying to sell < 100, and the same time we have big buyers buying > 100
o So price chops around until 1 side tires out the rest.
– Drawing trend lines in NT
– QUAD Witching
o Options expire on the 3rd Friday of every month, unless the first day of the month is a Friday, and then it’s the 4th Friday of the month
o 4 times a year, we have 4 different asset classes that expire.
o At the end of each quarter 4 different things expiring, QUAD WITCHING
o This time of the year is also the end of first quarter
o Spring break
o Daylight savings time
o Lots of things that are distracting the big money from doing what it does best
– Trading @ the open level
o Trading at the open, we have to assume the buyers looked to the highs, and the sellers looked to the lows
o They found no support, no resistance and the price fumbles down to the open of the day
o Nothing has changed, we’re looking for direction at the open
o This is why we see price very sloppy.
– Rollover on Many markets today:
o Dollar Index 06-11
o Russell 06-11
o Euro 06-11
o ES 06-11
o (FDAX from the Eurex will not rollover until end of the month)
o Remove all the drawing objects first, and then change the chart
o You then need to re-set your auto levels indicator b/c the line file will be from the previous front month contract.
– Multiple Workspaces:
o Better to have 2 workspaces or to use 1 workspace with everything in 1
o This will use the SAME cpu bandwidth b/c NT doesn’t know if your charts are shown or hidden
– How do we use our Trigger Line:
o Breaker or wave pattern, we need to see a steep slope of the trigger line
o We use it for entry on a wave pattern
o We use it as support and resistance to watch out for on the 2-step pattern
o We don’t care too much about the slope on the 2-step pattern b/c it’s a trend reversal pattern.
– Time and Sales Window:
o Match your time and sales to ours
o Use the properties that are posted in the advanced section downloads up top.
