Pro Trader 2 DAY 4 Flashcards
what is significant about 10AM EST
reversal
mid day doldrums significance
215-230 significance
breakouts
4 trader timezone considerations
- trading during high liquidity time zones give you more price fill safety2. minimal trading during hte doldrums unless a solid set up presents itself3. watch out for higher volatility during the reversal time zones, opening and closing4. be very careful trading the gaps and during the opening rush.
Momentum breakout trading is based on ______
taking trades in the direction of the trend and following the trend, after the trend has clearly been established
Momentum breakout trading is “fractal,” meaning _______
it can be applied in any timeframe
3 MBO Long strategies
3 MBO short strategies
MBO used for, positives, negatives
used for: joining strong trendspositives: can participate in a trade when retracements are only very modest.can participate in a trade after missing the turning pointnegatives: higher probability of being stopped out due to less precision of the stop location.insure to be slightly late in the move increasing risk and decreasing reward.may suffer some slippage
A reserve or Iceberg order is when market participants ________
display only a portion of what they wish to buy or sell
only by _____ can we truly understand their intentions
observing
narrow range side ways trend. what OCO to use?
OCO Break outBuy/Sell STOPwaiting for trend to break out of range
Large range side ways trend. what OCO to use?
OCO FADEBuy/Sell LIMITlooking to trade withing range
down trend. what OCO to use?
OCO Fade Breakout SELLSell LIMIT /Sell STOPlooking to trade toward downtrend from bottom or top of range
Up trend. what OCO to use?
OCO Breakout Fade BUYBuy LIMIT /Buy STOPlooking to trade toward uptrend from bottom or top of range
