January 31, 2011
- in Uncategorized by schooloftrade
How to Draw and How to use Trend Lines for Day Trading any futures market
– Trend Lines: draw them, use them, etc
– Morning routine goes over it all, so log into the beginner’s course and watch the video on the morning routine.
o Draw:
o Open my slow timeframe first (daily, 34-range, 30-minute)(major)
o Find the highs and find the lows
o Move closer to the most recent price and draw more trend lines (minor)
o Look for sideways ranges, wedge patterns, price channels.
o Once you have this completed on your SLOW chart, then apply the same technique to the fast charts.
o USE:
§ Entry: avoid trading around trend lines
§ Exit & Profit targets: we take profit ahead of the trend lines, do NOT wait for the trend to be tested.
§ Market Sentiment: is speed rising or falling into a trend line?
§ Example: we are long, and we see big money BUYERS at the trend line acting as resistance, increasing speed and big money tells us that the buyers are in control over price.
§ On the opposite side, if we see SLOWING speed and big SELLERS at the trend line we now know more about what to do next.
– Different contracts = different trade management
– 1-contract trading is very simple
– 3 contracts
– Watch the video in the advanced course
– Use the notes along with the videos
– MACD CROSS
– Its not the most important item to watch on the TMC, the most important is the background color, are we above/below the zero line?
– Explain our profit and trade management (How do we make our money)
– Different chart types: minute vs range
– Range charts are better because:
o They all have the same size candlestick
o Easier to learn the patterns
o Easier to recognize the patterns
o Easier to plan your stops (all the candles are the same size)
o They don’t move unless the market moves with more range.
– How do you know then the big money is running stops?
o Stops get run during low volume times of the day
o Stops get run over lunch, overnight, early in the AM
o There isn’t enough to keep the big traders from pushing the price up the HOD, just barely breaking the HOD enough to run the stops, with the sole intention on sending the price right back down.
– What is the plan of attack as a new member:
– Beginner’s Course
– Advanced Course: Quick Start Guide set up your charts
– Learn the Fast Track Method and begin on your demo.
– I do want you to learn it all, so watch all the videos and don’t jump ahead.
