Trade Setups #45 Revised: 07/08/18
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
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My worst 4-letter word: WAIT
1) Master the ability to WAIT!
2) Master Self Control: trade “Your Trades”
3) Remember, we get paid to WAIT.
Complete Nexgen Training Course, 03/07/18
Spotting Highest & Lowest Probability Trend Trades, 02/27/18
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Diagnosing a Range Day v. Trend Day
Support & Resistance Levels, and Trend Identification
A doctor needs to diagnose before he/she can prescribe the correct treatment. A trader
must diagnose a Trend v. Range Day before he can prescribe the correct setup! SDT
If the market is sideways we are greatly challenged unless the range is large. It is imperative to find moving markets. Martin Runes (Hit the Mark Trading)
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Overnight:
Has the Market observing the Fibonacci Levels, Mid-Bands, 165, Background colors?
Upcoming News? 1) No new orders, 2) Cancel non-active orders, 3) If active, Lighten or lift, 4) T1 hit, let T2 run.
Opening Gap: After the first hour did the Gap fill? If not, probably be a Trend Day. If so, probably a Range Day. Formula: Prior days Close - Open
$TICK (S&P 500) and $TIKI (DOW 30) criteria met can produce Trend days. SPY session data only (not overnight). Typically will stay in a Range. If ranging (consolidating) for 3-4 days, be on the lookout for a Trend Day breakout. After a Trend Day it is more common to follow with a Range Day.
Cory’s Favorites: Tick and Breadth indicators with 5 minutes and 15 minute for longer term chart.
Trend/Range Ratio: 4-6 Trend Days per month out of the 20 trading days (depending on volatile times/markets).
Range Day: Setup trading off Bollinger Bands, Keltner Channels, Fibonacci Levels, etc.
Trend Days: Setups trading off moving averages (20/50).
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
TST RULES: When do I need to be flat? A. Funded Accounts (and Prep) must be flat one (1) minute before
until one (1) minute after a major economic release.
PRIVATE ACCOUNT RULES:
10 minutes prior news: Action:
Not placing a new order… Do nothing
Order already placed…. Cancel untriggered order
Active trade, no target reached… Lift trade or move to break even
Active trade, T1 reached runner on… Let the runner run
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
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Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
“CATFISH” SETUP (Range Trade): https://www.youtube.com/edit?o=U&video_id=SVBFX_UEztc
Counter Trend Rules:
1. Must trade off and at a major Support High/Low area! (Multiple Fibs, Market Maker Levels. NOT Reversal Bars)
2. Green/Red Pro9 DOT.
3. Must cross 5/1 MidBand if countertrend then retrace (5/1 Small Triggers in direction of trade).
4. If strong into area, wait until 5/1 Small Triggers reverse.
5. Two (2) attempts MAX. If fail wait until they get lower
Range Rules:
1. Prefer to go with the larger timeframe Trend. If Countertrend, must be at strong areas.
2. Must cross 5/1 MidBand if countertrend then retrace.
3. Background color = Lots or Gray and/or color changes.
4. Must enter at Lows/Highs at Areas.
5. Small targets at areas.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
“A” Trades: (Trend trades only)
“A” Trades are only A-Trades when the Bottom Chart is outside the Neutral Zone (+/-25).
Single “T” Single Turnbar with Red/Green Triangle (with 50 CCI over -/+ 25 line)
Single “T” Single Turnbar with Red/Green Circle (with 50 CCI within -/+ 25 line)
Continuation: 2 TurnBars in a row or TurnBar, TCT (Color Bar, TurnBar). Only trade not requiring Turnbar.
“DOT” Trades
Note: Do not take trades into 50 or 200 EMA, trade away from them. Need distance for target!
Note: For this trade to be valid, there must be enough distance to reach a full Target 1 (8 ticks) before hitting a moving average. This can be adjusted using the (ProfitTargetBufferInTicks) under the Trade Management heading in the Pro9Trader Strategies.
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Pro9 Money Management: Pg 14
Q: Your ATM videos say set both contracts (or all 3) to break even after 8. Getting 8 ticks usually is not a problem but when the runner goes to breakeven it will get kicked out a lot of times due to a 8 tick retracement.
I always thought you meant Target 8 ticks and then Breakeven -8 giving it room for the runner. If it retraces a total of 16 times from the 8 tick target (or 8 from the original entry) then it will be a scratch at Breakeven.
Do you find it often retracing 8 ticks to the entry price and kicking out your runner? I watch the Debriefs and don’t see that happening to you a lot. With a 6 tick Momentum that is even more of the case with a 6 tick retracement stopping out your runner.
A: https://academydaytrading.zendesk.com/hc/en-us/articles/216983697-Profit-Targets-and-Stops
If we enter the trade on the Turn Bar, we do so while the 1st green color bar is visible, and our stop is the Red DPI price. Once the 2nd green color bar plots, we adjust the stop to the Low of the previous green bar. Once the 3rd green bar plots, our first two contracts have been filled with our 1st profit target of 8 ticks, and the 3rd contract stop is adjusted to the Low of the previous green bar.
This is known as using a trailing stop loss. We continue to do this with each new price bar that plots until we are stopped out using this approach. Some people choose to adjust the stop to Break Even, which is the price they entered the trade, once they have reached the 1st profit target, understanding that it can sometimes prevent them from participating in big moves.
Summary
The DPI or (Dynamic Price Indicator) is used as the initial stop, which equals 26 ticks (22 ticks creates a Turnbar). Once the 1st color bar plots, after your entry bar, use the high or low of the previous bar as your trailing stop.
Once the 3rd color bar plots, after your entry bar, your 1st contract has been “filled” with the 1st profit target of 8 ticks, putting you in a “free trade”, meaning you cannot lose money at that stage, and you continue to use the high or low of the previous bar as your trailing stop.
Trailing Stop Long Trades = Low of previous bar.
Short trades = High of the previous bar.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Upper Panel:
SIGNALS:
Wonder Bars – 14/4 Tick Renko bars with proprietary indicator setting.
Dynamic Price -- Indicator (proprietary) 26 ticks
Long: 1 tick above one of the last 2 bars. Short: 1 tick below 1 of the last 2 bars.
Action Signal -- Red/Green Triangle
Turnbar – White Price Bar (proprietary)
The Turnbar will plot one (1) tick above/below when price breaches the Dynamic
Price Indicator.
Prior bars High/Low prices (small yellow price top/bottom of previous bar)
Exit: see “Stops”
After T1 (8 ticks) trails 1t past prior bars high/low (5 ticks stop. Long=prior low, Short=prior high.)
CHART INDICATORS: (short bursts do not change trend)
20 EMA (Directional, minor)
50 EMA (Directional)
200 EMA (Trend)
Middle Panel: (Directional)
14 CCI – Dotted Red/Green: This histogram color must agree with trade.
Cut-Through: When the 14 CCI crosses over and closes through its 50 CCI moving average.
14 CCI EMA – Solid Red/Green: 50 EMA of the 14 EMA: Used to confirm Reversal trades.
Histogram used paint on its 6th bar (after 5 bars of direction history). Now that have been changed to paint on bar one for better visual. (02/26/14, 60% into recording.)
145 CCI Extreme Dashed White – Max Zone 03/24/14, 17 min
Lower Panel: (Trend)
50 CCI -- Neutral Zone Rules: Avoid if 50 CCI within +/-25.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
SINGLE “T” SETUP TRADE REQUIREMENTS:
Watch for a CONTINUATION in the opposite direction with the start of an opposite trend.
1 Background color match plus 200 EMA in proper order. **
o (Background color setting represents only 3 MA’s (10/20/50) are in correct order.)
2 SuperTrend (Bottom Panel) must be outside of the neutral zone (+/-25) in direction of trade. *
3 Direction (Middle Panel) Pro9 Line must cut through or be above/below the Histogram.
o If it does not come from an extreme area (+/-135) it could be representing chop.
4 TurnBar entry price at the DPI (Dynamic Price Indicator) or up to the 1st price bar. If first color bar is need for Cut Through use 4 tick offset.
5 Entry on DPI with Room to Target.
o There must be enough distance to reach the first profit Target of 6-8 ticks before hitting the High/Low of the Day unless the Pro9 Direction Histogram is below +/-50. Can always wait to break Nexgen’s MTF S/R then enter on Trend Trade or another Momentum/Continuation.
Green
Triangle or Red Triangle (Action Signal) is a bonus if it’s plots.
Caution: Is it going into the high/low of the day? OK if the Direction Line is outside of the Directional Neutral Zone.
Caution: If price (price bar) is between any sets of triggers without at least 9 ticks for T1.
T1 must have at least 9 ticks before reaching HOD/LOD.
Chop (GrayBar): EMA roped together? Direction coming from extreme?
YELLOW BAR: Didn’t touch the 50 or the Super Trend not outside it’s +/-25 Neutral Zone.
Originating from the 50 EMA:
* If the price originates from the 50 EMA, the SuperTrend is not required to be outside of its Neutral Zone.
** When the Pro9 TurnBar originates from the 50 EMA, the 200 EMA is not required to be behind the other moving averages (10, 20 and 50 only).
Sent: Tuesday, August
12, 2014 6:11 PM
Subject: Re: Monday update
-- REVERSAL QUESTION
Hello Steve,
Having the 14 come from +/- 100 is not necessary, as a matter of fact, some of the better set ups have the 14 bouncing off the zero line.
I would suggest changing the rules to only take trades up to the 1st color bar, and no longer up to the 2nd color bar, like the Reversals and SingleT.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Also See: DOT Pullback (MoneyBall) Trade (Reversals)
“DOT” SETUP (Trend Continuation):
1 Green DOT matching 200 EMA color / Red DOT matching 200 EMA color.
2 EMA’s in direction of trade: 20 must precede the 50, and 50 must precede the 200 EMA. (10 EMA not used.)
o Background NOT needed. Color represents 3 MA’s (10/20/50) are in correct order. – 10 EMA not used.)
3 Direction (Middle Panel) Pro9 Line (Blue Line) must cut through or be above/below the Histogram. If first color bar is need for Cut Through use 4 tick offset.
4 Direction (Middle Panel) must be in direction of trade or room to target of 8 ticks prior to EMA.
5 Entry on DPI with Room to Target.
o There must be enough distance to reach the first profit Target of 7-9 ticks before hitting the High/Low of the Day unless the Pro9 Direction Histogram is below +/-50. Can always wait to break Nexgen’s MTF S/R then enter on Trend Trade or another Momentum/Continuation.
10 EMA not used
SuperTrend
(Bottom Panel) must be outside of the neutral zone (+/-25).
Caution: Is it going into the high/low of the day? OK if the Direction Line is outside of the Directional Neutral Zone. Caution: If price (price bar) is between any sets of triggers without at least 9 ticks for T1.
T1 must have at least 9 ticks before reaching HOD/LOD.
Chop (GrayBar): EMA roped together? Direction coming from extreme?
YELLOW BAR: Didn’t touch the 50 or the Super Trend not outside it’s +/-25 Neutral Zone.
Note: Old rules required at least two (2) 200 EMA dots and two (2) 50 EMA dashes match the direction of the DOT Trend Trade.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Available
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Available
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
“CCI” SETUPS: Martin Runes, https://youtu.be/68toN7k7U90
6 Diagonal trendline break with Trend!
7 Start drawing a trendline from the +/-150 14 CCI and second touch. Long: Down trendline, Short: Up trendline.
o (If you cannot draw a diagonal trendline, do you really want to take the trade?)
8 Stop entry at the Confirmation Price Bar (DPI) close unless Trend is SUPER STONG.
9 Room for Target
10 ?
Exits:
11 If the 14 CCI crosses the +/-100 line. (14 CCI crosses the +/-150 line, that is a warning.)
12 Price touches a Floor Pivot.
Don’t trade the open for 15 minutes.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
TRIPLE TURNBAR: (TTT)
Use Continuation Criteria
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
CONTINUATION SETUP (Trend Continuation):
Continuation also if TCT (TurnBar, Color Bar, TurnBar) Two (2) consecutive White TurnBars = Single T
1 Background color match. (Background color represents 3 MA’s (10/20/50) are in correct order.)
o EMA: 10
EMA must precede the 20, 20 precede the 50, and 50 precede the 200 EMA.
*
2 SuperTrend (Bottom Panel) must be outside of the neutral zone (+/-25) in direction of trade. **
3 Direction (Middle Panel) Pro9 Line must cut through or be above/below the Histogram.
o If it does not come from an extreme area (+/-135) it could be representing chop.
4 TurnBar entry above/below the 200 EMA. *200 not used but do not trade into the 200 EMA without 7-9.
5 Entry on DPI with Room to Target.
o There must be enough distance to reach the first profit Target of 6-8 ticks before hitting the High/Low of the Day unless the Pro9 Direction Histogram is below +/-50. Can always wait to break Nexgen’s MTF S/R then enter on Trend Trade or another Momentum/Continuation.
Stop 22 ticks. Target: 8 ticks:
Caution: Is it going into the high/low of the day? OK if the Direction Line is outside of the Directional Neutral Zone.
Caution: If price (price bar) is between any sets of triggers without at least 9 ticks for T1.
T1 must have at least 9 ticks before reaching HOD/LOD.
Chop (GrayBar): EMA roped together? Direction coming from extreme?
YELLOW BAR: Didn’t touch the 50 or the Super Trend not outside it’s +/-25 Neutral Zone.
* The 200 EMA is not required (although preferred) to be behind the other moving averages (10, 20 and 50 only).
** If TurnBar originates from the 50 EMA, the SuperTrend is not required to be outside of its Neutral Zone.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
MOMENTUM SETUP (Trend Continuation): Video 1 (Long) Video 2 (Short)
#4 BETA: Momentum Trade disqualified if Pro9 Line is outside its extremes (+/-135).
1 Background color match. (Background color represents 3 MA’s (10/20/50) are in correct order.)
o
EMA: 10 EMA must precede the 20, 20 precede the 50, and 50 precede
the 200 EMA. *
2 Purple Bar/White Momentum Arrow must appear. Enter on DPI price if above/below the 200 EMA.
o First Arrow on a new background color should be ignored unless off the 50 EMA.
o Prefer for the first Momentum Arrow to plot before the 8th color bar.
3 Ribbon color must match trade direction. (Pro9 direction not used.)
o The Ribbon color represents that the Pro9 Direction is on the trade side of Histogram (purple line).
4 Pro9 Direction (Middle Panel) CCI 14 Blue Line must cut through or be above/below the Histogram (purple line).
o BETA: Momentum Trade disqualified if Pro9 Line is outside its extremes (+/-135).
5 Entry on DPI with Room to Target.
o There must be enough distance to reach the first profit Target of 6-8 ticks before hitting the High/Low of the Day unless the Pro9 Direction Histogram is below +/-50. Can always wait to break Nexgen’s MTF S/R then enter on Trend Trade or another Momentum/Continuation.
SuperTrend (Bottom Panel) not required in Master Rules however, SDT Rules require it to be on the correct side of trade. Outside of the neutral zone (+/-25) preferred. **
Stop 15 ticks. Target: 6 ticks:
Caution: Is it going into the high/low of the day? OK if the Direction Line is outside of the Directional Neutral Zone. Caution: If price (price bar) is between any sets of triggers without at least 9 ticks for T1.
T1 must have at least 9 ticks before reaching HOD/LOD.
Chop (GrayBar): EMA roped together? Direction coming from extreme?
YELLOW BAR: Didn’t touch the 50 or the Super Trend not outside it’s +/-25 Neutral Zone.
Originating from the 50 EMA:
* The 200 EMA is not required (although preferred) to be behind the other moving averages (10, 20 and 50 only).
** If TurnBar originates from the 50 EMA, the SuperTrend is not required to be outside of its Neutral Zone.
Smart Money Room (Scott’s) Favorite Trades & Conditions:
1) First Arrow gone through both 50 and 200 EMAs.
2) First Arrow gone through both 50 and 200 EMAs regardless of count (Previous Arrow touching 200 EMA).
3) Tail/Wick reaches and touches the 50 and/or 200 EMAs regardless of count.
4) Request 3 bars between Momentum Arrows.
Does not like:
1) Momentum Arrows when price is between the 50 and 200 EMAs.
2) First Momentum Arrow after having touched the 200 EMA then through the 50 EMA
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
SURF SETUP (Trend Continuation):
The Pro9 Surf takes advantage of the waves that the Turnbars generate. It’s designed to keep you in as long as the wave continues. How does it work? It’s rather simple: If there is a Turnbar, or any bar that has a wick, and the Trend indicated by the Pro9 Direction agrees, you are in. We do not even need the EMAs to be in order.
Specifics on the Surf Trade can be found in the Master Rules:
1 White TurnBar, a Purple Bar, or a Green Color Bar with a wick/tail agreeing with the Pro9 Direction Trend
2 Pro9 SuperTrend – Outside the Neutral Zone in either direction (+/-25)
3 Pro9 Direction – Blue Line value greater than (Longs) or less than (Shorts) the Purple Line value
4 Pro9 Direction – Blue Line value outside Neutral Zone (+/-50)
5 Enter on DPI with Room to Target.
Stop 15 ticks. Target: 6 ticks:
Caution: Is it going into the high/low of the day? OK if the Direction Line is outside of the Directional Neutral Zone. Caution: If price (price bar) is between any sets of triggers without at least 9 ticks for T1.
T1 must have at least 9 ticks before reaching HOD/LOD.
Chop (GrayBar): EMA roped together? Direction coming from extreme?
YELLOW BAR: Didn’t touch the 50 or the Super Trend not outside it’s +/-25 Neutral Zone.
* There must be at least 7 ticks before hitting an EMA. Your entry price must have enough distance (at least 7 ticks) before hitting the High/Low of the Day unless the Pro9 Direction Purple Line is above/below 50. You do not want to bounce off the High/Low of the Day before hitting your profit target.
Sent: Tuesday, August 18, 2014 10:29 AM
Subject: CONTINUATION
CHANGE
When a Continuation trade sets up, and the Pro9Line (Blue CCI line) has come from an extreme (+ or - 140) I want it to cut-through the Pro9Direction (histogram) and cut BACK through in the direction of the trade, with at least a 20 point gap between the two lines.
See the screenshot for a shorter description w/ visual….. (next page)
Continuation
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
BREAKOUT (Highs/Lows) SETUP), Pro9:
Indicators: Only the HOD/LOD and the Pro9 Direction Histogram (Middle) are used.
1 A maximum of 10 bars from the most recent TurnBar. (The entry bar can be the 10th bar.)
2 Direction Histogram (Middle Panel Purple Line) must be outside of the neutral zone (+/-50) in direction of trade.
3 Entry price is one (1) tick above high or day/below low of day (HOD/LOD).
4 Room to Target (a must with Breakouts).
5 Daily High/Lows are measured throughout the overnight session, however only enter trades during market hours. Can always wait to break Nexgen’s MTF S/R then enter on Trend Trade or another Momentum/Continuation.
Initial Stop: 15 ticks Trail Stop: BE +/- 1 tick
Target: 5-10 ticks (8 suggested) Trail Stop or “All IN” / “All OUT”
Stats: 90% will hit 6t with 8-10 at 80%
90% of the time if the market moves against the trade by 10 ticks, it’s likely to continue and hit the 15 tick stop.
Caution: If price (price bar) is between any sets of triggers without at least 9 ticks for T1.
Caution: With NQ and YM, hit target in 3 minutes or consider closing.
T1 must have at least 9 ticks before reaching HOD/LOD.
Chop (GrayBar): EMA roped together? Direction coming from extreme?
YELLOW
BAR: Didn’t touch the 50 or the Super Trend not outside it’s +/-25 Neutral
Zone.
BREAKOUT (Not Taught) SETUP), Nexgen:
See Nexgen’s Sheet (“Bookmark Breakouts”)
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Nexgen DIVERGENCE / COUNTER TREND RULES: More DivRules Video/Divergence-Counter Trend
ENTRY:
1. No triggers may violate the last Fibonacci. If Triggers VIOLATED last lines you must wait until they are on trade side of edges.
2. Bonus in large gap to 14/2
3. At multiple timeframe Fibonacci (MTF).
4. Fib2Fib with Divergence Pattern or at least 50 with Room to Target.
5. Market Flow signals: Volume Reversal Patterns ARROWS. May also use HVA with small triggers crossed in trade direction or pullback to small triggers rolling over if at Fibonacci Lines.
TARGET:
If 14/2 Synthetic Triggers are WIDE first counter trend target is 14/2 Mid Band. If not, manage based on 5/1 chart.
Pro9 REVERSALS / COUNTER TREND (Divergence Reversals) SETUP):
Discretionary trades will have a CCI/Price Divergence.
1 Green DOT / Red DOT plots.
2 SuperTrend (Bottom Panel) must be outside of the neutral zone (+/-60) in opposite direction of trade.
3 A maximum of 10 price bars in opposite direction of the Pro9 Line (Blue Line, Middle Panel) with at least five (5) Pro9 Line bars minimum plotting opposite to the price bars.
o Price Bars 10 max from TurnBar.
o Pro9 Line between 5 and 10.
4 Direction (Middle Panel) Pro9 Line (Blue Line) must cut through to or be on the trade side of the Histogram.
5 Wait for the 2nd color bar to make sure this doesn’t turn into a Trend Continuation
then enter on 2nd
TurnBar with 8 tick offset (original TurnBar price).
Note:
Sideways plotting price bars are considered the same as opposing price bars.
Caution: Chop (GrayBar): EMA roped together? Direction extreme +/- 135?
Caution: If price (price bar) is between any sets of triggers without at least
9 ticks for T1.
YELLOW BAR: Didn’t touch the 50 or the Super Trend not outside it’s
+/-25 Neutral Zone.
DOT Pullback / “MoneyBall” (Steve DeWitt not Pro9) -- REVERSAL
1 Green DOT / Red DOT plots opposite trend color.
2 SuperTrend: The greater the better (+/- 60 of Trend preferred).
3 TurnBar (White Bar) must appear.
4 Direction (Middle Panel) Blue Line must cut through or be above/below the Histogram.
5 Entry price is 4 ticks better than the Turnbar close price (Retrace 4 ticks).
Note:
This looks like a Trend Trade. Direction of Triggers? Extremes?
Sent: Tuesday, August 12, 2014 6:11 PM
Subject: Re: Monday update
-- REVERSAL QUESTION
Hello Steve,
Having the 14 come from +/- 100 is not necessary, as a matter of fact, some of the better set ups have the 14 bouncing off the zero line.
I would suggest changing the rules to only take trades up to the 1st color bar, and no longer up to the 2nd color bar, like the Reversals and SingleT.
Actually, the Reversals have become me least favorite trade, unless I have a significant amount of room before hitting the 200.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
https://academydaytrading.zendesk.com/hc/en-us/articles/216983697-Profit-Targets-and-Stops Also see Page 1
Initial stop is 22 ticks (with the exception of ES). First Target is 8 ticks.
When the first (1st) bar plots (closes) tighten stop by 4 ticks. (18 tick stop)
When the second (2nd) bar plots (closes) tighten stop by another 4 ticks. (14 tick stop)
Once T1 (First Target) is hit in 8 ticks, use the prior bars high/low as a trailing stop.
If the CCI 14 is 100+ use the Dynamic Price Indicator for a wider stop (aggressive).
If the trade starts to max out it to be more conservative go back to prior bars high/low (conservative).
Pro9 Profit Target
Target 1 (T1) is 8 ticks.
Target 2 (T2) is a trailing stop loss.
Pro9 Stop Loss
Initial Stop Loss – 22 ticks
The Dynamic Price Indicator is used as the Stop until T1 is reached. On the third completed colored bar in the direction of the trade, T1 will be reached. Stops move from that moment on to the bottom/top of the previous bar.
Alternative Trailing Stop Suggestion
This Stop moves by 4 ticks for every colored bar that completes in the direction of the trade, until T1 is hit. This means that the initial stop moves from 22 ticks to:
1. 18 ticks after the first completed bar in the direction of the trade.
2. 14 ticks after the second completed bar in the direction of the trade.
Optional Trailing Stop (not automated)
Dynamic Price indicator High or Low, depending on the trade direction and/or when the dotted red/green 14 CCI is above/below the 100 line. This option is typically used once trade is “in the money” usually used once 5 or 6 colored bars have printed.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Graybar Yellow Bar
MISC. https://jesse-livermore.com/price-patterns.html
Impulse Trade:
1 Revenge Trade
2 Just Jumped In: News, Momentum, EOD.
3 Intuition
4 Wrong reading of chart. Setup did not plot.
5 Feeling: Felt good about market and other charts. Matched other larger time frame chart.
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Psychology (Feelings before or after trade): Jesse Livermore
1 Over trading – Euphoria after winning trade(s).
On a euphoric day or time, except it, feel it, embrace it, but accept it as it is and do not make
any decisions at that time. Let it Digest.
2 Moved Entry – Jumped in based on nerves of missing trade. Hesitated too long and then jumped in.
3 Shortened Target or moved Stop too early based on nerves.
4 Entered trade with an unease.
5 Calm, Cool, Collective, and Confident! Rules kept until Stop/Target (OK if moved a bit based on conditions).
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VWAP https://www.youtube.com/watch?v=GoxkQRUyD5E
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QUESTIONS:
Q: If there is a Action Signal 3-4 bars after a Turnbar is it still valid as an A trade if everything else is still good, or does it become a B trade?
A: No longer valid.
Q:
Is T9T taking the back seat to P9T? Now that I have learned your setups the criteria does not match what is on the P9T screen. If it is still valid do the ticks still apply 8/18 and 20/43 vs. P9T settings of 8/22?
Now that I have TradeStation established, will you send me T9T files?
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NEXGEN CHART COLOR LEGEND
5/1 Chart:
Skype: Steve.Tremper, Fibs: 7/1, 8/2, 14/2, 24/3, SyT: 8/2, 14/2, 24/3
5/1 Triggers: 5/1 Fibs:
SmT (Salmon/Lime Green) ? Base Chart (Red/Blue)
SyT 8/2 (White/Cyan) ^ 7/1 (Cyan/Magenta)
SyT 14/2 (Red/Lime) C 8/2 (Dark Cyan/Dark Magenta)
SyT 21/3 (White/Black) ^ 14/2 (Med Blue/Khaki)
C 24/3 (Black/White)
Tremper.com, FIBS: 5/1 (Red/Blue Dots), 14/2 (SkyBlu/Khaki Diamonds), 21/3 (Bk/Wht Boxes); Synthetic Triggers: 14/2 (Green/Red), 21/3 (White/Black)
7/1 Chart:
Skype: Steve.Tremper, Fibs: 12/3, 19/4, SyT: 12/3, 19/4
7/1 Triggers: 7/1 Fibs:
SmT (Salmon/Lime Green) ? Base Chart (Red/Blue)
SyT 12/3 (White/Cyan) ^ 12/3 (Cyan/Magenta)
SyT 19/4 (Red/Lime) C 19/4 (Dark Cyan/Dark Magenta)
8/2 Chart:
Skype: Steve.Tremper, Fibs: 12/3, 24/3, SyT:12/3, 24/3
8/2 Triggers: 8/2 Fibs:
SmT (Salmon/Lime Green) ? Base Chart (Red/Blue)
SyT 12/3 (White/Cyan) ^ 12/3 (Cyan/Magenta)
SyT 24/3 (Red/Lime) C 24/3 (Dark Cyan/Dark Magenta)
14/2 Chart:
Skype: Steve.Tremper, Fibs: 24/3, 38/8, SyT: 24/3, 38/8
14/2 Triggers: 14/2 Fibs:
SmT (Salmon/Lime Green) ? Base Chart (Red/Blue)
SyT 24/3 (White/Cyan) ^ 24/3 (Cyan/Magenta)
SyT 38/8 (Red/Lime) C 38/8 (Dark Cyan/Dark Magenta)
21/3
Tremper.com, FIBS: 21/3 (Red/Blue Dots), 38/8 (SkyBlu/Khaki Diamonds); Synthetic Triggers: LrgTrig (Green/Red)
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brick plays (John Carter)
YM Intraday Reversals (Best on Choppy days)
Brick Setup:
Brick Formation: A series of three consecutive higher closes will form an “up” brick, and a series of three consecutive lower closes will form a “down” brick.
Three (3) consecutive Up/Down closes form a brick.
1. 24 hour intraday chart, under 5 minute (John likes 3 minutes).
2. Once the market reverses by changing color, count backwards to the first brick within the formation.
3. Draw a horizontal line across the top (for long) or bottom (for short) of this brick.
4. Once the price brakes this horizontal line enter your Long/Short trade.
5a. Based on 4 contracts; Stop: 10 ticks. (Hubert Centers)
T1: Close two contracts at 10 ticks, TS: BE-3;
T2: Close one contract at 20 ticks, TS: +6 ticks (BE+3);
T3: Trail or close last contract upon formation of Reversal Brick.
5b. Based on 4 contracts; Stop: 20 ticks. (John Carter)
T1: Close two contracts at 15 ticks;
T2: Close last two contracts upon formation of Reversal Brick.
Also see Hubert Senters’ “NYSE Tick Index” https://www.youtube.com/watch?v=wjOWsZaUnx8
Downloaded as: Chop Trading-NYSE Tick Index 2016-09-03.mp4
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HIGH PROBABILITY TRADES
/ Trend
Trade Rules, 10/03/18
TREND TRADE RULES: More TT Rules Trend Trades… Chart Legend
With strong 14/2 Triggers trend trade until one (1) the following happens:
1. If the HTF charts price hits: MTF Fibs, Mid Band, or Synthetic Triggers crossed.
2. Any areas with a huge gap back to Synthetic Triggers.
ENTRY: 5/1 Chart with Synthetic Triggers on CORRECT SIDE: 20%
1. 14/2 Triggers crossed in trade direction.
2. Price touches Fibs and/or Mid Bands on the 5/1 chart.
3. Fib2Fib at 25/75 (50 exception if both Triggers sets in trade direction.)
4. Check Trigger vs. Synthetic Triggers location. Still in direction of trade?
5. No Divergence. If so, money management rules apply at pivot Stop-Out.
6. Enter at first “area” touched by price (Mid Band, Fibs). Are Small Triggers strong?
STOPS:
a. Initial max risk $100 dollars or less until a pivot is made then 2 ticks above/below pivot.
b. If small triggers on “CORRECT SIDE” of 14/2 Synthetic Triggers wait for targets and trail stops behind new reversal bar pivots.
c. No Divergence. If so, money management rules apply at pivot Stop-Out.
d. Be patient if triggers are very strong. It is important that you allow bigger winners to happen if indicators support holding.
ENTRY: 5/1 Chart with Synthetic Triggers on WRONG SIDE: 80%
1. 14/2 Triggers crossed in trade direction.
2. Trigger Line location is top priority with Fibonacci color changes. Big Gap back to Synthetic Triggers.
3. Look for furthest area for entry (not MB, but rather the 165, Fib, and/or Divergence / Pivot Stop-Out.
4. It is best if the market price and Synthetic Triggers makes a strong move before taking another trend trade.
5. Enter at “area”. Draw box from 14/2 Reversal Bar to 1st support line for furthest entry area or turn on Market Flow once area is reached. EXCEPTION: If large and strong 14/2 move then enter at the 1st support area.
STOPS:
a. Max risk $100 dollars or less until a pivot is made then 2 ticks above/below pivot.
b. Get stops to break even at any trouble spot including the furthest Synthetic Triggers, Fib, or Market Flow signal against trade.
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DIVERGENCE / COUNTER TREND RULES
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BOTH 14/2 and 21/3 Synthetic Triggers crossed UP or DOWN.
Fib2Fib Oscillator Must be at 75 or 100 for shorts, 25 or 0 for longs. The REVERSAL BAR CONFIRMS the trade was correct.
When watching triggers the location of Small Triggers vs Synthetic Triggers will be a key factor in what will happen next.
IF Small Triggers/price "on correct side" of both Synthetic Triggers then you will keep trading in direction of trend if you make new highs and the trigger lines keep pushing higher or lower.
FIRST TRADE after Small Triggers violate BOTH Synthetic Triggers (warning) IF "on wrong side" of both Synthetic Triggers and you "fail" (reversal bar) at the Synthetic Triggers without a significant moving of them you will NOT TAKE ANY MORE TRADES in that trend direction .
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
After Trigger Lines are properly established, we will look at areas for entries and exits at indicators" such as fibs and or mid bands.
We want to make sure we have ROOM TO KEY FIBONACCI AREAS... no trades directly into areas ... if you have at least 12-15 ticks from entry to fibs then you may try the trade and manage if BOTH TRIGGERS agree.
If divergence - ONE MORE TRADE IF "divergence pivot stop out at area" and you have not violated the ABOVE rule and you have great indicator support such as multiple Fibonacci levels , mid bands and or prior divergence lines.
1. https://www.youtube.com/watch?v=GGjCUyB4M5M&t=1s
2. https://www.youtube.com/watch?v=vcPuhVn_esw&t=218s
3. https://www.youtube.com/watch?v=TWyCCcsQswQ&t=116s
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1. At 14/2 area (Correct color Fibs, Synthetic Triggers, MB, etc.)
2. At least two (2) dot trend bar followed by a Reversal Bar. White Bar with color dots into “area” can be more assertive.
3. Both sets of Trigger Lines in Direction of Trade. *
4. 5/1 Fib2Fib 0/25 or 75/100. * Exception: 50 if both Triggers sets in trade direction.
5. Pivot Stop-out with Room to Target.
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FIB TRADE RULES (Sharp Point/DOT):
1. Multiple Time Frame Fibonacci Areas clustered.
2. Small Triggers roll over in Direction of Trade.
3. All Synthetic Triggers on trade side of Fibonacci Area.
4. Fib2Fib 0/25 or 75/100.
5. Sharp Point/DOT a plus (however that will be late on a Reversal Bar). Enter on pullback to ST, Fibs, MB, 165, etc.
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BREAKOUT (Stab Back) RULES: Breakouts… https://youtu.be/NfHdymmzNcA?t=29m30s
1. Recent background color change. (Possible failed Trend Trade).
2. Wide Small Triggers remaining in Direction of Trade.
3. Quick pullback to Area.
4. Synthetic Triggers (4 preferred) on trade side of Fibonacci Area.
5. Room to Target (a must with Breakouts). Exit if price breaks the Synthetic Triggers.
Trade Management and Entry Areas on next page.
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08:45:22 {JerryU} no crystal ball, read indicators at the areas
DEFINE TREND
1. Small triggers are above or below synthetic triggers. Synthetic Triggers crossed favoring the trade (minimum one) both crossed is best (best after key Fibonacci area that holds or breaks prior Fibonacci to create new one)
2. Exception if small trigger are "on wrong side of both" Synthetic Triggers still crossed in favor.
Can still trade until faster synthetic triggers cross and roll against. The synthetic triggers will be the "trouble spot” and protective stops must be moved up to dramatically reduce risk.
AREA TO TRADE - BEST AREA = Fibonacci (s) + Mid Band / 165 EMA + Synthetic Triggers in a relatively small range of one another. Note IF small triggers are wide into the area, look for the farthest away top or bottom support or resistance line to use.
Fib2Fib Oscillator - Minimum 75 for sell or 25 for buy - Can be at 50 if EVERYTHING SUPER STRONG
DO NOT GET IN IF AREAS ARE VIOLATED -
If the small triggers violate an area wait until they roll back across the area and are helping the area crossed in the right direction.
DELAY TRADE IF...
Strong move of wide small triggers into the areas, delay the trade until the small triggers roll.
MAKE SURE BEFORE TRADE
The market has not already reversed from target or trouble spots. If so, NO TRADE.
ROOM TO TARGET IS OK?
You must have room to target areas so your risk will be well rewarded.
ENTRY OPTIONS -
1. Get in AT the best spot if stops can be placed beyond ALL synthetic triggers and areas. This is especially true if you use multiple timeframe charts and both charts agree to the areas and direction.
2. Market Flow shifts from buyers to sellers or sellers to buyers if using MF.
3. Pullback to small triggers after they roll (give up couple ticks to get filled).
STOP PLACEMENT - Max Stop if getting in at area, 2 ticks above below pivot.
TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop behind pivots or tails.
INDICATOR BASED EXIT
Divergences or reversal bars at synthetic trigger trouble spots. NO exceptions, you can always get back in later. Study the Failure of the trend trades so you can properly control risk.
EXITS - AT targets... or IF indicators no longer support the setup.
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Small Triggers
on correct side of Synthetic Triggers.
(See prior page) Video/Correct Side
Small triggers on wrong side of Synthetic Triggers. (See prior page)
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https://youtu.be/ySaZdcSlCWI?t=5m10s
08:45:22 {JerryU} no crystal ball, read indicators at the areas
DEFINE FIBONACCI ANTICIPATED TO HOLD WITH SUPER HIGH CONFIDENCE
1. ZERO trigger lines break through the Fibonacci areas is a must. BEST PRACTICE - Use multiple time frame charts with Fibonacci areas that overlap. For example, have a "trend trade look" area from higher timeframe chart, with lower time frame counter trend trade look.
2. If small trigger break through Fibs but the synthetic trigs do not, you can still trade the Fibonacci areas after the small triggers roll back up through the Fib and are crossed in your favor. If too much momentum in synthetic triggers, wait for the small triggers to break above the synthetic triggers and then look for the trade on the retest of the Fibonacci areas after synthetic triggers pinch and roll.
AREA TO TRADE - BEST AREA = Fibonacci (s) + Small triggers in a relatively small range of one another. Note IF small triggers are wide into the area, look for the farthest away top or bottom support or resistance line to use.
Fib2Fib Oscillator - If you have potential / actual divergence this is very favorable.
DO NOT GET IN IF AREAS ARE VIOLATED -
If the small and synthetic triggers violate an area wait until at least two of the three roll back across the area and are helping the area crossed in the right direction which will end up looking like a trend trade.
DELAY TRADE IF...
Strong move of (ALL) wide small and synthetic triggers into the areas, (the "freight train") delay the trade until the small triggers roll and are well beyond the synthetic triggers and the market retests.
MAKE SURE BEFORE TRADE
The market has not already reversed from target or trouble spots. If so NO TRADE.
ROOM TO TARGET IS OK?
You must have room to target areas so your risk will be well rewarded. Mid Band /165 First spot to watch for targets. If you don't have that much room, you probably shouldn't be taking counter trend trades at Fibonacci areas.
ENTRY OPTIONS -
1. Get in AT the best spot if stops can be placed beyond ALL synthetic triggers and areas. This is especially true if you use multiple timeframe charts and both charts agree to the areas.
2. Market Flow shifts from buyers to sellers or sellers to buyers if using MF.
3. Pullback to small triggers after they roll (give up couple ticks to get filled).
STOP PLACEMENT - Max Stop if getting in at area, 2 ticks above below pivot.
TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop behind pivots or tails. Watch strength of small triggers as you near the mid band to see if you will break it, this will be the first spot to lower your stop risk.
INDICATOR BASED EXIT
Divergences or reversal bars at trouble spots. NO
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Small triggers at reversal/counter trend areas. (See prior page) Video/Edge Area
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Are the Small Triggers separated from price bar or are they close together?
If together, wait for slow down/indication.
If separated, the price should come back.
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Entry (“Area” or “Reversal Bar”: Area vs. Reversal Bar Examples… A vs R/B 1 A vs R/B 2 A vs R/B 3
Enter at the “Area” if Small Triggers are WIDE with price LEADING Triggers, enter at highest/lowest
support/resistance area.
If both Synthetic Triggers are crossed in direction enter at the area of Fib pullback. If move is far away (8-10 bars)
wait for cross of Small Triggers than enter with a Stab Back using the same Area.
If entering at the “Area” wait for Small Triggers to slow down before deciding on your entering point.
If Small Triggers are crossed in direction of trade, enter at support + offset limit.
If Small Triggers are against direction of trade, enter with Reversal Bar.
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Trade Management: https://youtu.be/NfHdymmzNcA?t=35m11s
Room to Target (* 8/2 caution) Small Triggers v. Trade
* If going into 8/2 Synthetic Triggers, exit if price breaks the Synthetic Triggers no later than the 2nd break.
Trail Stop above/below Pivot/Tail. A tail is a minimum of 3 ticks (past 2 bars).
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OLD
Fib Trade = Small Triggers must be crossed in direction within Neutral Zone for Fib Trade.
Fib Trade Setup Rules (trade with Synthetic
Triggers): Fib Trade
Setup Rules (trade against Synthetic Triggers):
1. Synthetic Triggers above/below Fib Area. 1. Synthetic Triggers above/below Fib Area and crossed.
2. Synthetic Triggers (1 min) in Direction of Trade. 2. Opposite background color to trade.
3. Price bars touch Fibonacci Area. 3. Price bars touch Fibonacci Area.
4. Room to Target. Distance to 16/4? 4. Room to Target. Distance to 16/4?
5. Price closing and leading 5/1 Small Triggers. 5. Reversal Bar above/below or in Synthetic Triggers.
Stabback Trade Rules (see example SB1 & SB2):
1. Price w/color in Direction of Trade.
2. Synthetic Triggers crossed into Direction of Trade.
3. Strong and wide Small Triggers.
4. Price closing and leading 5/1 Small Triggers through Fib area. 5/1 leading 8/2?
5. Entry at Stab Back to Midband, Fib, 1:1, Prior Div, and/or Large Triggers.
--------------- If the first bar after an entry goes against you, it’s time to exit as most likely it will continue. ---------------
Fib (Trend) Trade (8/2 Chart):
1) Break Through and pullback to a Fibonacci level. 2) Small Triggers can be crossed against trade initially.
3) Small Triggers on trade side of Fibonacci level. 4) On trade side of trend – trade side of 24/6 SyT.
5) Look to other charts for agreement.
Fib Countertrend Reversal (8/2 Chart):
1) Price bouncing off Fibonacci level (entry on second bounce). 2) Small Triggers on trade side of Fibonacci level.
3) All Synthetic Triggers on trade side of Fibonacci level. 4) Small Triggers crossed in direction of trade.
5) Look to other charts for agreement.
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SMALL TRIGGERS ARE THE VISUAL FOCUS FOR TODAY's CLASS (08/03/15 – 08/06/15)
* Small Triggers in front of 8/2; 8/2 Synthetic Triggers in front of 12/3 Synthetic Triggers.
Small Triggers will tell us if an area (Fibs or MidBands) will hold or break (location).
They will tell us if we should trade an area or not by the position of small triggers relative to that area, if Small Triggers get beyond a Fibonacci or MidBands then you will have to wait until they get back on the "Correct Trade Side" of that area.
They will alert us to a TREND CHANGE by -- the small triggers crossing above or below the other "Synthetic Triggers”.
Small Triggers above = Trend Up
Small Triggers below = Trend Down
(LOCATION Small triggers relative to the Synthetic Triggers)
We will trade ONLY WITH the trend as dictated by the Small Triggers relative to the Synthetic Triggers.
In a Trending Market, Small Triggers may get beyond the 8/2 (White/Cyan) Triggers to get to an area, as long as they do not get beyond the 12/3 (Red/Green) Synthetic Triggers.
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Counter Trend Trades: Small Triggers must breakthrough the 8-2 (White/Cyan) Synthetic Triggers and then the market must retest the Fibonacci areas before trading.
* Fib2Fib not necessary but a plus.
Fib color change in trade direction.
Midband color change
Small Triggers under Midband
------------------------------------------------------------
Trade Management: Stops behind Pivots & Tails. If Small Triggers on WRONG SIDE of the (8/2) Synthetic Triggers we will manage out at Reversal Bars +/- a tick.
* If Small Triggers are in trade direction strong you can get in at the area. If not wait for the Reversal Bar.
Line Count (10 Max)
Small Trigger = 2
8/2 Synthetic Triggers = 2
12/3 Synthetic Triggers = 2
Synthetic Triggers crossed in direction = 1 each/4 max (Synthetic Triggers not Small Triggers)
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RULES for Fibonacci Reading. Trigger Lines relationship to Fibonacci Areas:
Support/Resistance Will Hold If:
Trigger Lines are above Support/below Resistance.
Trigger Lines crossed up/down assisting trade area.
Price & Triggers break Resistance (Longs)/Support (Short) creating a new Fibonacci Support/Resistance.
Trend Change (Red / Green) YouTube: “Nexgen’s Best Trading Setups”
1) Strong move of F2F over/under bought. F2F exceeded by multiple bars (any 2 of 8 ). https://youtu.be/WGFH33_tkeM?t=14m21s
2) Small Triggers violate all four (4=2sets) Synthetic Triggers.
3) Divergence of Fib2Fib. Divergence… https://youtu.be/WGFH33_tkeM?t=14m56s
4)
Trend Change (Neutral Zone) https://youtu.be/WGFH33_tkeM?t=22m1s
Fibonacci areas with proper Trigger line configuration with change the background color.
Sharp Points (on F2F) https://youtu.be/WGFH33_tkeM?t=20m19s
At key areas (e.g., Fibs) with Sharp Point on F2F. If not in line with trade setup it will usually get price back to an area for a trade setup.
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Divergence Patterns http://youtu.be/WLd5FvLbFx4
3 of the last 8 bars will change background color. If Small Trigger roll with DIV = GET OUT!
Patten #1
100/25/75 Reversal of UP Trend
0/75/25 Reversal of DOWN Trend
Pattern #2 Double Top/Bottom (Good for exit signals)
100/50/75 Reversal of UP Trend
0/50/25 Reversal of DOWN Trend
Patten #x Reversals
100/25/100 Over shoots 75 line by 1 bar creating a point at 100.
0/75/0 Over shoots 25 line by 1 bar creating a point at 0.
Pattern #x Strong Move Pattern
100-0 w/o any up moves indicates a Reversal of a UP Trend w/short entry setup at the 75 line.
0-100 w/o any down moves indicates a Reversal of a DOWN Trend w/long entry setup at the 25 line.
EVALUATE any areas for up or down
PRICE BARS versus SYNTHETIC TRIGGERS
Bars below - shorts more favorable
Bars above - longs more favorable
SYNTHETIC TRIGS versus MID BAND & FIBONACCI AREAS
Strings below - shorts more favorable
Strings above - longs more favorable
--------------------------------------------
Fibonacci Support/Resistance Bar Color Change requires multiple price bars in opposite direction.
Background Color Change:
A) Background color change. Small Triggers turn and divergence.
B) Divergence, 3of8 f2f, or fib with syn (or ST) on side of fib.
C) I think 02/09
Only plots DIV if it’s against the trend background.
If Synthetic Triggers, MB, 165 are all far and wide apart you must wait until they line up tighter.
MidBand is 55 EMA
One
of the most effective weapons to help fight the most prevalent of trading
enemies; over-trading and over-leveraging… is PATIENCE. Patience is a necessary
ingredient for successful trading, in fact it is probably the most important ingredient; without
patience, you are almost guaranteed to struggle or fail as a trader.
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AREA & DIRECTION using the 8/2 Chart:
8/2 Chart Area (not necessarily color) defines at High/Low Fib Levels, and a consensus of Direction (Areas, Prior Divergence Potential Indicator (negative %), Rolling Large, and Small Triggers) to determine the 5/1 trade direction.
a) If all Indicators are in agreement direction is clear.
GoTo: “Entry”
b) If one (1) indicator (e.g., Small Triggers, “not price”) doesn't agree, then use discretion. If two (2) or more don't agree then consider directional BIAS CHANGE defining an intermediate trend reversal.
c) Trend transition from bias change to full trend reversal is complete when major support/resistance is broken (MidBands, and/or Fibs).
ENTRY RULES:
1) 8/2 Bias & Trend Area (color not necessary). Refer to a, b, and c above. Large Divergence % = probability to hold.
2) FULL Price Bar in front of Triggers OR Triggers Crossed on the 8/2 Chart. “Loss of Momentum” if not in above/below.
The greater the distance between the Small Triggers and Support/Resistance (Loose Look), the more likely it will retest that area. The closer the Small Triggers are to your areas, the better (Tight Look).
3) 25/75 Fib2Fib Oscillator.
4) 5/1 Chart Key Entry Area: M/B, F2F. Trade the trend not the Bias.
5) Room for Target?
(MidBand, Fib Lines, 1:1, Prior Divergence, Outer Bands, Pivot Highs/Lows).
1) 8/2 Background colors do not have to match 5/1 entry direction but it helps if they do - look for color transition on 5/1.
2) Buy/Sell Pattern Divergence if the bar closes beyond “Trigger Lines” and we expect the area to hold for a reversal.
* NEVER fight small triggers on entry:
5/1 price bars must be above (long) or below (short) Small Triggers, and/or Small Triggers crossed in our favor. One of these two conditions must be true to enter trade.
3) On the 5/1 we look for the first Trend Trade supported by 25/75 Fib2Fib Oscillator levels, subsequently look for Fib2Fib Oscillator trades.
4) Trade off key areas, e.g., 1-MidBands, 2-Fibs on the 5/1 Chart. Trade the trend not the bias.
5) Only trade if there is room to hit target. E.g., $300 range from High/Lows.
TARGETS:
Previous pivot high/lows, trail stops behind key areas (MidBand, Fib Lines, 1:1, Prior Divergence, High/Lows Outerbands, and pivot highs/lows).
STOPS:
Trail Stops 2 ticks above/below MidBand, Fibs, 1:1.
Close entry at “Market” if Triggers start to cross.
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 |
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Divergence Example: Divergence Rules… Trend Change…
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Neutral Zone Example, page 2: Trouble… https://youtu.be/NfHdymmzNcA?t=28m50s
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Breakout Example, page 2
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Trend Trades:
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Nexgen Software Services - Fibonacci Reading Cheat Sheet
General thoughts: Small Triggers will help us decide if an area should hold or break based on several factors:
· The direction triggers are crossed when we hit Fibonacci areas
· The strength of the triggers when you reach Fibonacci areas
· The location of the triggers relative to the Fibonacci areas
BEST CONDITION - Triggers Already Crossed in Favor with stab back look
· Breaking a Fibonacci -
· MAX BARS STAB BACK 4-7 bars is about limit for stab backs.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
.
· Un-Breaking a Fibonacci - getting the second chance AKA False Breakout
VERY GOOD CONDITION- ROLLING above or below Fibonacci areas before you get there in price
· How far away is OK ? The Closer the better.
· Looking for direct hits after they roll - maybe with divergence potential
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
GOOD CONDITION - Rolling AT Fibonacci areas
· Needing to wait for retest of triggers or Fibonacci to use it
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
TRIGGERS BREAKING THROUGH- and TRIGGERS ROLLING AT OR BEYOND
· Weak Retracement Trend Continuation.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
·
UNDECIDED CONDITION - Barely breaking above or below Fibonacci areas
· Needing to wait for a clear breakout or retest
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
·
·
·
Don't forget to use this same concept when evaluating Mid-Bands on higher timeframes and prior divergence highs and lows on higher timeframes.
Now let's add in different ways you can get INTO a position AT the BEST SPOTS on higher timeframes.
1. Divergence at that spot on smaller timeframe
2. Pullbacks to small triggers rolling on higher or lower timeframes at the best spot
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
3. Just get in AT the spot if you have a stab back look
FINE TUNE WITH SMALLER CHARTS IF POSSIBLE FOR PRECISION
4. A bar close in your direction IF both timeframes say YES at multiple timeframe Fibonacci
· You must first have a READ OF BOTH FIBONACCI TIMEFRAMES THAT SAYS YES THEY WILL HOLD!
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
10/22/14
09:43:55 {JohnT} Steve, the cheat exists because what is in the cheat sheet happens over and over and over and over again and again....memorize the cheat sheet
.pdf’s added
Nexgen Trades Using Two Chart Setups
Nexgen Text Cheat Sheet
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Pro9 Trader Trade Management: Money Management ATM Setup in Members Area ATM Trailing Stop Options
Congratulations on successfully completing the Trading Combine®. Our trading firm is prepared to provide you with a Funded Account™ pending you complete, and follow all the rules of, Funded Trader Preparation™ (FTP).
Effective Thursday, January 12, 2017, the following rules are no longer required in Funded Trader Preparation™ and Funded Accounts™:
1. Only trade the Trading Combine/Funded Trader Preparation products you were profitable in
2. Maintain an Account Balance greater than $0 after a minimum of 10 trading days
Over the years, these rules have allowed many traders to fine-tune their strategies while building their accounts and, although we are providing more autonomy in accounts, we encourage traders to continue to set their own individual guidelines.
However, as we grow, we want to open our parameters to grant us the ability to evaluate as many strategies as possible to further our mission of empowering anyone, anywhere. In order to allow this and still evaluate based on true performance, Funded Trader Preparation will now have the same profit targets as the Trading Combine.
FTP SPECIFIC RULES:
· Trade ONLY the Trading Combine product(s) that you were profitable in during permitted times
· Do not hit or exceed the Daily (unrealized) and/or Weekly Loss Limit*
· Do not allow Account Balance to hit or exceed Trailing Max Drawdown*
· Do not hold positions into major economic releases
· Follow the scaling plan (2 lots<$1500, 3 lots>$1501, 5 lots>4501)
· After your 10th trading day, maintain an account balance above $0
*The Weekly Loss Limit (if applicable) and Trailing Max Drawdown are eliminated after 10 trading days.
YOUR ACCOUNT PARAMETERS:
Duration: A minimum of 10 trading days are required, within a maximum of 60 calendar days. You may continue to trade until objective is met, as long as you adhere to the rules listed above.
Profit Target: $1,000 - Based off of End of Day Balance
Starting Balance: $0
Daily Loss Limit: $1,000
Weekly Loss Limit: Same as Daily Loss Limit (Exception: traders who successfully completed the $10K or $30K Trading Combines do NOT have a Weekly Loss Limit)
Max Drawdown: $2,000 (account may not drop below Trailing Max Drawdown)
Our team reviews Funded Trader Preparation accounts daily. We will contact you within 24 hours (of the next business day), once you meet the profit target. If a rule is violated, you’ll be moved back to the Trading Combine.*
Please respond back to this email with the date, at least one trading day in advance, you would like to begin FTP. Your recurring Trading Combine payments have been turned off and you will not be charged again. By beginning FTP, you are indicating that you understand and agree to the rules and parameters listed above.
If you have any questions, please call 312-212-0481 to
speak with a member of the Funding Department (not required).
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
CHOP 14 Period ADX, https://www.youtube.com/watch?v=PasWCb-Kz5A
Consolidation, Sideways or Choppy Markets: Whatever you call them, what we really want to know is - how do we avoid getting caught in whipsaw trades? We use a couple of things to help us avoid the choppy markets, one is the Pro9 Line and the other is waiting for the market to trade out of its tight range. Unfortunately, often, right before consolidation, we take a losing trade, which gives us the “heads up” that we should be cautious.
GRAY
BAR: A Gray Bar is plotted when a trade is disqualified by extreme chop or
consolidation.
For example, a Gray Bar will plot if:
More than half of the last 10 bars are TurnBars
More than half of the last 10 bars had the Blue Line and the Pink Line cross
The current bar's date and time match the previous bar, meaning it moved too fast
We have all three classic conditions of consolidation:
EMAs are too close together
Purple Line is within +/-10
The Blue Line has not made it outside +/- 135 for 6 bars
These conditions are adjustable in the Smart Indicator settings as well.
The
4 Signs of Chop:
Many TurnBars in a row.
EMAs close together (“roped”) crossing each other back and forth.
Pro9 Direction Histogram (Purple Line) close to zero
Pro9 Direction Blue Line not going to extremes (+/-135)
Look at your charts beyond the obvious clue that the high and low of the recent bars are in a channel - the moving averages are close together, there are several TurnBars plotting within a few color bars, the histograms are back and forth across their zero lines, or one of my favorite clues is the Pro9 Line unable to get to extreme levels. (+/-135)
So, how do we have confidence that the chop is nearing the end?
We wait for the Pro9 Line to get to an extreme level. (+/-150) This usually shows that the market has worked its way out of the tight range.
Another option is to wait and see one of the Pro9 Trader setups work, in other words, move at least 8 ticks. This can give us the confidence that things are back to cycling or trending.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
Timing insurance, Book - Jesse Livermore - Trade like Jesse Livermore.pdf
Timing in the stock market is the key to success. A trader may deduce that a stock is going to go up or down in a big way and eventually he may be correct. In fact, if you have any experience in the market this will ring true. I knew that stock was going to go up ten points I was just too darn early on the trade. I lost my money but I was ultimately right on the stock. I just moved too soon, the market went against me and I sold out my position for a loss. I even made a second attempt to buy it and it dropped three points, I got nervous, so I sold it. Often a trader will move too soon and then doubt his opinion on the stock and sell it out. Or perhaps he makes other commitments and has no money left to buy the stock when it does make a move. Having been too hasty and having made two erroneous commitments, he loses courage. This is a common lament of stock traders. What a trader is battling here is basically his greed. He wants every point out of the move and will kick himself if he is a point or two on the late side of the trade. Don’t be anxious to make the trade. Wait for the confirmation of the market before you place your order. Think of it as a small insurance plan, lose a point or two and help eliminate the bad trades on the times when you are wrong and everyone is wrong on at least some of their trades.
Say, for instance, a stock is selling around $25 and has been consolidating within a range of $22 to $28 for a considerable period. Assuming that you believe that the stock should eventually sell at $50, have patience and wait until the stock becomes active, until it makes a new high, at around $28 to $29. Watch for an increase in volume activity, say 50% or more over normal volume. You will then know that you are correct. The stock must have gone into a very strong position, or it would not have broken out. Having done so, it is altogether likely that it is starting a very definite advance the move is on. That is the time for you to back your opinion. Don’t let the fact that you did not buy at $25 cause you any aggravation. The chances are if you had, you would have become tired of waiting and would have been out of it when the move started, because having once gotten out at a lower price, you would have become upset and perhaps fearful, and would not have gone back in when you should have.
Catfish, CCI, Continuation, Breakout, DOT, Fx, Momentum, Nexgen, Reversals, Single-T, STOPS, Surf, TM, Misc.
FOREIGN EXCHANGE
Tokyo (TSE) 09-11:30, 12:30-15:00 Central Time: 19:00 Overlap: Tokyo/Sydney 19-02:00? (CT)
USD/JPY GBP/CHF GBP/JPY Season: (Week JPY July, Strong JPY August)
Australian (ASX) 10-16:00 Central Time: 19:00 Overlap: Tokyo/Sydney 19-02:00? (CT)
EUR/JPY
London (GBP) 08:16:30 Central Time: 02:00 Overlap: GB/Tokyo 02–04:00? (CT)
EUR/JPY
US (NYSE) 09:30-16:00 Central Time: 08:30 Overlap: US/London 08:30–10:30 (CT)
Seasons:
January Weak EUR, Strong USD Euro Sales Event
December Strong NZD, NZD/USD Year End
May Strong CAD Canadian May
July Strong JPY Japanese July
August Week JPY Japanese July
September Strong GBP, Week USD