Rules Flashcards
(97 cards)
1
Q
No open loop
A
Find the Range
2
Q
1st channel Break
A
Expect a retest of high/low (closing the loop) 2 legs to retest—> 2 try rule
3
Q
Always
A
mark mark the range
4
Q
open loop
A
look for 2 try setup—> pattern entry
5
Q
sffo
A
strength with follow through with freedom with open loop
6
Q
Range or Trend….
A
always in—->
7
Q
Range
A
buy the low (bottom) sell the top (high)
expect it to hold until it proves differnt
8
Q
Trading ranges act as….
A
magnets
9
Q
Open loops are
A
The key!!!
10
Q
trending rules –Bull–1
A
Buyers have control
11
Q
trending rules –Bull–2
A
find your measured moves
12
Q
trending rules –Bull–3
A
Wait for Open loop —(urgency)
13
Q
trending rules –Bull–4
A
Hidden channel drawn off the highs (tight*)
**Measured move pullback**
14
Q
trending rules –Bull–5
A
find the 38.2% pull back of the most recent “1,2,3”
mark the 50% line
15
Q
trending rules –Bull–6
A
avoid falling resistance trend line –not in the face, have room to attack it
16
Q
trending rules –Bull–7
A
Wait for the Sellers to try twice —take it below the ma 8 or 20 (Research this)
17
Q
trending rules –Bull-8
A
buy below the 50% of high
18
Q
trending rules –Bull–9
A
entry is a strong green candle that closes above the ma —>play the give back
19
Q
trending rules –Bull-10
A
“Limit in” if the signal bar is to large—–>(give back bar)
20
Q
trending rules –Sellers–1
A
Sellers have control
21
Q
trending rules –Sellers–2
A
find your measured moves
22
Q
trending rules –Sellers–3
A
Wait for Open loop —(urgency)
23
Q
trending rules –Sellers–4
A
Hidden channel drawn off the highs (tight*)
**Measured move pullback**
24
Q
trending rules –Sellers–5
A
find the 38.2% pull back of the most recent “1,2,3”
mark the 50% line
25
trending rules --Sellers--6
avoid falling resistance trend line --not in the face, have room to attack it
26
trending rules --Sellers--7
Wait for the Sellers to try twice ---take it below the ma 8 or 20 (Research this)
27
trending rules --Sellers--8
buy below the 50% of high
28
trending rules --Sellers--9
entry is a strong red candle that closes below the ma --->play the give back
29
trending rules --Sellers--10
"Limit in" if the signal bar is to large----->(give back bar)
30
Range bound Entry Rules 1
who has control --> buyers or Sellers ---> are you at the top or the bottom of the range
31
Range bound Entry Rules 2
Beware of rotation from above the range
32
Range bound Entry Rules 3
watch for open loop break outs ---if break out open loop closes on next bar look for failure (test this)
33
Range bound Entry Rules 4
Buy at Support below the Range (38.2 and 50%)
34
Range bound Entry Rules 5
Where are the "edges" below the range?
35
Range bound Entry Rules 6
Where is the pendulum swing"
36
Range bound Entry Rules 7
Avoid any channel resistance
37
Range bound Entry Rules 8
2 tries by the other side below/above the range
38
Range bound Entry Rules 9
Entry must be below the range low or above the range high. (buy the bottom sell the top)
39
Range bound Entry Rules 10
entry is a strong candle closing above the MA
40
5 things on a trend
1. open loop
2. pull back to the 38.2 or 50% levels
3. 2 try rule for the setup
4. momentum signal
5. target is the closing of the loop
41
5 things on a range
1. add range expansions (based on the width of the range
2. wait for the breakout attempt into range expansion zone
3. look for 2 try rule for the setup
4. momentum signal
5. Target is back to the opposite side of the range
42
Range day plan -1
Define the range
43
Range day plan -2
expansions & pendulum
44
Range day plan -3
exp. Triangle and rotation on channel lines
45
Range day plan -4
focus on the edges
46
Range day plan -5
directional bias - micro channels, are you at bottom or the top of the range?
47
Range day plan -6
Buy low, sell high, avoid the middle
48
Range day plan -7
Watch for break outs
49
Trend day plan -1
follow the momentum
50
Trend day plan -2
major channel rotation
51
Trend day plan -3
reversal lines
52
Trend day plan -4
38.2 and 50% pull back levels
53
Trend day plan -5
Measured moves
54
Trend day plan -6
open loop
55
Trend day plan -7
watch for runaway
56
trend into range plan -1
Follow the Momentum
57
trend into range plan -2
trading range
58
trend into range plan -3
expansions and pendulums
59
trend into range plan -4
exp. Triangle and rotation
60
trend into range plan -5
focus on the edges
61
trend into range plan -6
Major Channels
62
trend into range plan -7
Reversal Lines
63
trend into range plan -8
measured moves
64
trend into range plan -9
38.2 and 50% pullback levels
65
trend into range plan -10
open loop
66
runaway 1
Identify the runaway---no pullbacks to the ma
67
runaway 2
Cut position size in half
68
runaway 3
widen stop loss
69
runaway 4
find narrow channel/wedge
70
runaway 5
focus on traps
71
runaway 6
don't expect perfect setups
72
runaway 7
limit in entries don't chase...play give back bars
73
runaway 8
take it twice if needed
74
runaway 9
leave a runner
75
runaway 10
don't stop trading
76
market objective
channel - rotation from high to low and low to high
| measured - moves as trend continuations and counter trend corrections
77
major and minor cycles
tell you where to look for trades
78
micro cycles
tells you when to enter the trade
79
micro channels
are for essiential for timing the entry
80
Major measured moves
pay close attention so you do not buy or sell in the face of completed measured moves
81
bullish trend
tells us to buy the completion of a bear cycle after the bear channel breaks and retest the low
buy the break of a bull micro as it attempts to retest the high
82
bearish trend
tells us to sell the break of a bear micro as it attempts to retest the low
tells us to sell the completion of a bull cycle after a bull channel breaks and retest the high
83
trading ranges
look for a break out and continue in the direction of the trend. look for counter trend traps around the highs and lows of the short term ranges always trading in the direction of the trend.....(the way it entered the range)
84
trend day set ups
```
2nd Try
2nd Try Failure
Wave Set-up
Strength
Trap
Triangles
```
85
trade management
use channel rotation and major measured moves for targets\
86
range expansion
and % expansions above and below.... double up triple up..
87
rotation
2 try rule iinto expansion ranges, pendulum swings when they fail to complete the rotation
88
2 try rule for range
the market ewill try twice to complete rotation 2nd try must be greater than the 1st try
89
best way to trade the range
wait for price to leave the original trading range, try twice to test the first range expansion then use a 2nd entry failure to trade back to the original trading range
90
after 2 trys in a range rotation
after 2 attempts if the market is unsuccessful in its attempt to rotate from high to low it will react aggressively in the opposite direction(pendelum swing) our objectie is to sell the highs using buyer failure and buy the lows using seller failure as price rotates back and forth inside the trading range
91
range rotation
after the lows are tested we will see price try twice to move back to the highs
after the highs are tested we will see price try twice to move back to the lows.
92
range bull micro channels
sell the highs of the range with the completion of a bull micro break and retest of the high
buy the lows of the range with the break of a bull micro before it retests the high
93
range bear micro channel
sell the highs of the range with the break of a bear micro before it retests the low
buy the lows of the range with the completion of a bear micro break and retest of the low
94
range day set ups
```
2nd Try (during range-rotation)
2nd Try Failure (buying the lows and selling the highs of the range)
Expanding Triangles (combined with 2nd try failure set-up)
```
95
rotational day
Session begins with a spike in one direction which fails and goes in the opposite direction with strength . the day will continue to trade in the same direction relentlessly until the end of the session
the market will make small/ shallow counter trend corrections as traders take prfit but most traders will hold
96
rotational day failure
rotational days fail and become trend days if / when the counter trend traders can hold price on the opposite side of the 20 ma on the pullback
97
rotational day trade management
use channel rotation and major measured moves for targets.
