LOW RISK TRIGGER Flashcards
List of Studies
- Trend Change
- First Contraction after Trend Change
- Momentum during the first Contraction
- Spot the second contraction
Stock Trading= battle between buyers and sellers
- The results are random
- We don’t know who will will or lose.
- But we can identify who has won/lost
Randomness & Range
- Outcome is random
- 80% of market is in range
How to overcome the randomness of the stock market?
LRT
- Structure
- Specificity
- Play my own game. No Hunting but fishing. Waiting for the setup to happen.
What are 4 components of the Low Risk Trigger?
- Contraction
- Levels
- Extreme Support
- Break of Pattern Resistance
Why do you need the contraction with the pattern?
- 태엽감기 원리와 비슷하다. 투수가 와인드업을 하는것 같은 원리다.
- Contraction is natural head-fake. Trapping order flow on the wrong side.
- Extreme Support + Contraction =Fire and Oil
Types of Contraction
- Structural Contraction (Same Color but lower price)
- PA Contraction - Color Change
- MACD Contraction
- 3-EMA Contraction
- 9-EMA Contraction
Name all the levels
- WBO Level
- X-Level (Pattern Breakout Level)
- Reversal Level
What are extreme supports?
- Weekly Level
- Trendline 1-2-3
- EMA Surfing (Trendline 1-2-3 Surrogate)
- 18-50-100-200 EMA
- Positive Price Divergence (3-EMA) during contraction
- Pivot level
3-EMA Divergence during the impulse.
vs 3-EMA Divergence during the contraction
During the impulse - Sign of Contraction and continuation pattern may not happen.
During the contraction – The gap is very likely to be filled and it will give an LRT.
What is the first sign of trend change?
Lower high in weekly chart.
Trading the 2nd wave
Top 과 Bottom을 예측하기란 거의 불가능하다. Top Rejection Price Point에서 가격이 내려가면 그때서야. Continuation을 찾아낼수 있다.
Additional LRT.
- Double Contraction
- Pivot Level
- S-Flow
Long Wick?
Long Wicks = price rejection.
Continuation 실패 요소
- 3-EMA Divergence in the impulse
- No momentum 12-26
- Not Eliminating the Pattern Resistance
- Not clearing the Levels