How to Trade Flashcards
(15 cards)
What are some signs of buying pressure?
*More bull bars than bear bars
* No consecutive bear bars and number decreases
*Consecutive bull bars and number increases
*Bull Micro Channels (no PBs)
*Bull bodies are bigger than bear bodies
*Bull bodies getting bigger
*Bear bodies getting smaller
*Bars closing near high and at least above midpoint
*Tails below bars
*Bull BO bars with gaps, and follow-through
*Bad FT after big bear bars
Why is a TR hard to trade?
*Signal Bars and setups are weak,
Trends are weak,
Spends a lot of time in middle not moving,
Bad follow through after strong trend bars and breakouts,
Confusion at start of legs rarely certain reversal has begun.
What are the characteristics that a Break Out will fail?
*The breakout bar has a small or average-size bull trend body and a large tail on top.
*The smaller the bar the less likely it will succeed.
*The spike breaks above a resistance level like a swing high, a bear trend line, or a bull trend channel line by only a tick or so and then reverses down.
*There is a sense of confusion. You feel like you are not certain whether the breakout will succeed or fail.
*As the breakout bar is forming, it pulls back for at least a third of its height two or more times.
Traders trade based on what happens when the market reaches a line. What happens when the market reaches a line?
Anytime I see a Bear Channel I should assume what?
It is going to transition into a TR which it does more than 75% of the time
If the Premise in the market has CHANGED, DO NOT WAIT for Stop to Be Hit.
Be ready to get OUT if Always In reverses, How many consecutive CT bars closing on their low should you automatically get out?
4
What are always the 2 options for a stop?
Out of Risk, Reward, Probability; which is the most important variable?
Above/Below the leg. Above/Below the BO bar/bars.
Probability.
What is the probability BO of TR will fail? How do experts trade TRs?
80% of BOs will fail so Bulls buy near bottom and scale in lower confident bear BOs will fail, and Bears sell near top and scale in higher confident bull BOs will fail.
Look for near by pivotal S/R where range expansion is likely to go.
What are the characteristics of a very strong breakout?
A very strong break out has 3 or more trendbars and even the strongest fail 30% of the time.
If a Trader is able to average 5000$/trading day trading 200+ Days a year = 1 Million Dollars made in a Year
There are about 250 business days in a year. Start by making 50$ a day, then 500$, Then 5000$. .1 Lot 1 Lot 10 Lot 5 points.
How to avoid Skunk Stops?
Are the Final Flags big or small after and during a climax?
1 emini is how many dollars a point. 1 micro emini is how many dollars a point.
50$ a point, 5$ a point. 5 Lot 50$ a pip $500 10 pips. .5 Lot 5$ a pip 50$ 10 pips.
What are the strong characteristics of a STRONG BULL BO?
*BO BAR has a Large trend body and small to no tails
*Larger the bar, the more likely the BO will succeed
*Vol 10-20x the avg vol of recent bars
*BO goes very far, lasts several BARS and breaks several Resistance levels like the MA, prior swing highs and TLs by many ticks
*You feel a sense of urgency to BUY but want a PB that never comes
*The 1st BO bar spends most of its time on the high of the bar and the PBs within the bar are small
What are some signs of selling pressure?
*More bear bars than bull bars
*No consecutive bull bars and the number decreases
*Consecutive bear bars and number increases
*Bear micro channels (no PBs)
*Bear bodies are bigger than bull bodies
*Bear bodies getting bigger
*Bull bodies getting smaller
*Bars closing near low and at least below midpoint
*Tails above bars
*Bear BO bars with gaps, and follow through
*Bad FT after big bull bars
