IBO

Question 1

What is an IBO?

Answer 1

A trading strategy called the initial break out.

Question 2

What waves are we trading in the Elliot wave theory with an IBO?

Answer 2

Wave 3 or 5

Question 3

What is the first thing to look for with an IBO?

Answer 3

Rejecting major resistance on the daily; this can be horizontal resistance, ema, fib, etc.

Question 4

How do you know if we are rejecting a MAJOR support & resistance level?

Answer 4

This resistance should have at least 3 prior rejections.

Question 5

How do we confirm the IBO setup once rejection of S&R is identified?

Answer 5

We have deceleration and some kind of candlestick confirmation, such as tweezer tops/bottoms, doji, HT/LT, Bearish/Bullish engulfing etc.

Question 6

What else should you check once IBO is confirmed via deceleration and candlesticks?

Answer 6

We should check M and W charts for confluence. This will help inform us how far we can push targets.

Question 7

After we identified a rejection and confirmed that rejection is valid. What is the next criteria that we will be looking for?

Answer 7

A break of the 1HR 50EMA

Question 8

After the initial break, what fib level are we waiting to pullback to?

Answer 8

0.382

Question 9

How do we protect against a trap with an IBO?

Answer 9

By checking the 4HR price action and ensuring it is in our favor.

Question 10

On what timeframe do we calculate our IBO entry, target and SL?

Answer 10

5M

Question 11

What is the safest target and on what time frame are these determined for an IBO?

Answer 11

4HR 50EMA

Question 12

If Weekly and Monthly momentum is in our favor, what can we target for an IBO?

Answer 12

D 20EMA (1.0 Fib)

Question 13

If we are trading a daily pullback on an IBO, what is our target?

Answer 13

4HR 50EMA

Question 14

What is the ideal stop loss for an IBO?

Answer 14

0.75

Question 15

What is the entry for an IBO order?

Answer 15

The entry target will be around 0.382

Question 16

Why might you want to enter with an Entry Order?

Answer 16

If you are traveling and can’t be on the charts. Ideally only used when price action is clean, like perfect setups.

Question 17

Why might you want to enter with a Live Order?

Answer 17

A Live Order allows you to confirm the trade is doing what you expect before taking it.

Question 18

When placing a trade, what is most important about Volume?

Answer 18

That it is high.

Question 19

What is an IBO-A?

Answer 19

When we have 4HR confluence; some trend change or price action; for example, double tops or some other confirmation that it is with us.

Question 20

What is an IBO-B? Why wouldn’t you want to use an entry order?

Answer 20

When the 4HR is still developing and has not yet given us confirmation.

Question 21

Why wouldn’t you want to use an entry order with an IBO-B?

Answer 21

You’d want to avoid an entry order, because you have no confirmation. Best to enter with a Live Order once you have confirmation.

Question 22

What is an IBO-C?

Answer 22

An IBO where the 4HR 50EMA has been rejected. Due to this, you cannot target the 4HR 50EMA and you will want more than a 1-to-1, 2-1 minimum, ideally a 3-to-1.

Question 23

With an IBO-C what is your ideal Risk/Reward?

Answer 23

2-to-1 minimum, ideally a 3-to-1.

Question 24

With an IBO-C what do we need to confirm on that 4HR?

Answer 24

We really need to confirm that the 4HR rejection is finished before you place that trade.