Always In Flashcards
Most important fact
The market is always in a _______ or a ___________ on all time frames/ charts?
Trend or Trading Range
what percentage of Trend Reversals and BOs fail and why?
80% of Trend Reversals and BOs fail because the markets have Inertia
*They tend to continue doing what they have been doing
(Therefore look to the context to see what is most probable to happen next)
80% of trend reversals will fail
Due to this what direction should I trade-in?
Trade in the direction of the trend
When in a TR 80% of BO attempts fail
Due to this how should I trade a TR?
Trade in the opposite direction of BOO attempt
BUY reversals up from near the bottom
SELL reversals down from near the top
If I am unsure if the market is in a TR or Trend what should I then assume?
Assume the market is in a TR
Confusion = Hallmark of a TR
Always In Direction need strong Reversals to change the Always In
What would have to occur for a Reversal here and for the market to change to AIL?
With this BO Trend Bar closing above a Minor Lower High, we would need a strong follow-through Bull BO bar to change the Market to AIL. As you can see we had bad follow-through and the market is likely to go lower.
If not clear, look back to most recent BO, if the market as yet to reverse from this, then still Always in Direction
What is most likely to occur with this context?
Trend Resumption, AIS
Identify the Always in Direction here
Always In Long
Identify the Always in Direction here
Always In Short
Define this
Always In Short
Strong BO with Strong Follow-Through; sell the close of the the follow-through bar
Traders Equation has 3 Variables
What are they?
What does Always In focuses on?
Always In focuses on probability
Trade in the direction of HIGHER probability, because it is usually easier to make money
Always In Trading Direction can come from what?
- Can come from the Dominant Feature of the Day
- Can come from 3 - 5 BO Small Bear/Bull Bars
- Two Medium Bars BO
- One Big BO Bar
What is the Key for when I enter an AIL Long trade?
MY STOP LOCATION
When the market is AIL should I buy PBs and if not why?
Yes buy PBs when the market is AIL, the only reason not to is if the market becomes AIS
*Assume market will not fail below low of BO
When always AIL ensure stop is always below the strong BO, Major LH point
TRUE OR FALSE?
TRUE
Bulls will continue to buy until bears create credible top
TRUE OR FALSE?
TRUE
THE MARKET IS NOW IN AIS
Where should I begin selling on this chart?
Wedge Bear Flag and Gap Bar
Sell close of Bar after Gap bar
Also on this chart sell below the Triangle
As soon as you know the Always In Direction what should I do?
Enter a trade-in that direction!
as the PB may never come
*Tthe most important thing now is trade management with my stop
When scalping in the Always In direction what do I rely on?
Rely on your Stop in the correct place
AIL Swing Trade
Where on this chart would be my swing Take Profit and why?
Wedge Final Flag Strong Sell Signal BAR Micro DT
at the final push of the wedge = TAKE PROFITS on Reversal down
Can an AIL on 60 min be an AIS on a 5 min?
Yes, it can,
That is why it is som important to make decisions based upon the timeframe you are entering and exiting the market it on so your perspective on Price Action Trading stays true and pure.
