Day Trading with Token Prints for Any Futures Market

– Token Print

o When price breaks out of a previous trading range, only to get pushed QUICKLY back into the range it just left.

o If the speed of this move is not fast, its just your normal failed breakout, which we can still trade with.

– Different chart types

o I use tick, range, time charts
o My favorites are range charts

 Remove the time variable so all we see is the MOVING market, not a slow market
 Help me identify risk per trade b/c the range of the candlestick is always the same

• Not true for tick, time, or volume charts
• Only true for range charts

 Are the easiest to see clean patterns

o Watch the video on the blog
o My favorite timeframes

 4-range, 13-range, 34-range
 Use the document called ‘timeframe stops and targets”

– Why is it that sometimes nobody has control over price? How does that work?
– Volatility index, do I use them?

o VIX,

o I don’t use them because they are too broad, they look at the big picture and I need something more specific

o Volatility index looks at the volatility using ALL the information the market has to off
o I want to know what the volatility is RIGHT NOW
o Market internals are another example of sentiment tools that are too BROAD

– How do we use momentum when using different chart timeframes?

o I always use the momentum indicator on the chart im trading
o Example

 Looking for a trade on a 13-range chart, will need to use the momentum on 13range

• I can be proactive and look at momentum on a slower chart as well for double the confirmation, but not 100% necessary

o Example:

 Im looking for a long trade on a 4-range chart on crude oil

• I want momentum to confirm on the 4range chart
• I will use the 13-range as double-confirmation for momentum to be pointing up as well.
• After I enter the trade, I will use the 13 range momentum to tell me when to look for an exit.

 Example:

• Im looking for a trade on the 13range chart, so I want momentum confirming the 13range

• I can use the 4-range to ‘cheat’ and get in early using the momentum curling in your direction earlier on the 4range than on the 13range

– What is a wide/narrow trading range?

o Wider the better, more price movement
o Narrower are harder to trade, less price movement
o Compare the range today (or right now) to the trading range yesterday (or 10 minutes ago)

 Narrower they go the harder the market is to profit

– Using the 10 tick or the 20 tick for the Fast Track

o 13-range for the fast

 10-tick stop/target

o 21-range for the fast

 20-tick stop/target

o You can feel free to use ANY stop and target you want, just make sure its 1:1 risk/reward ratio

– Can a fast moving market skip your stop order?

o Skip your entry
o Skip your stop loss
o It may TRIGGER your entry/stop but that doesn’t guarantee a FILL
o Your fill may be much different

– Do we have chart templates and set-ups for the YM and ES?

o Pace of tape = PaceOFTape_ES

– Why don’t I trade the dollar?

o Because the volume is too low
o How does it move the markets to much?

 The dollar is the reserve currency
 Everything is settled in dollars

• Example: you buy the euro contract

o Give your broker USD
o Your broker gives EUR
o Sell the euro for a profit
o You get more USD’s

 Why don’t the BIG BOYS use the dollar for their accounts?

• Low volume is a MAJOR issue for money managers
• Not a good hedge for most clients