Trading Breakouts Flashcards
Bull BO - Strong Bull, SO BUY!
The probability Favors the Bulls (60% or more due to the context telling me so)
This 60% gives the Bulls a favorable traders equation
Bull BO - Strong Bull, SO BUY!
The probability Favors the Bulls (60% or more due to the context telling me so)
This 60% gives the Bulls a favorable traders equation
When there is a Bull BO always look for signs that we may have a strong Bull BO / Strong Trend
When there is a Bull BO always look for signs that we may have a strong Bull BO / Strong Trend
It is always important to decide early the always in direction
(as soon as you tell yourself OMG I want a pullback that means you should be going long/ BUY for any reason as the market is in AIL)
It is always important to decide early the always in direction
(as soon as you tell yourself OMG I want a pullback that means you should be going long/ BUY for any reason as the market is in AIL)
Many ways to Buy - All good so choose one
Many ways to Buy - All good so choose one
Setups never look good enough
Setups never look good enough
Stop - Decide where it belongs
Reasonable stop is below BO or below bull leg
Once you know where your stop is, trade a small enough size so risk is acceptable
Stop - Decide where it belongs
Reasonable stop is below BO or below bull leg
Once you know where your stop is, trade a small enough size so risk is acceptable
Stop, they’re always several good choices
Stop, they’re always several good choices
Any Reasonable Stop is good
Any Reasonable Stop is good
No matter where you buy the stop location is always the same
TRUE OR FALSE?
True
No matter where you enter the stop placement is always the same because it is to do with what took place to the left(the context) not the time you entered.
After each new BO while in a trade what should I do with my stop?
After each new strong BO, especially if a new high, trail stop to just below bottom of bull leg (major HL)
What is the simplest approach to buying the close of a strong bull trend?
The simplest approach is to buy at the market as soon as the bar closes
Some place a limit order to Buy the Close as soon as the next bar begins, but sometimes to not get filled
Beginning traders should mostly enter every trade with a stop order
As long as strong bull trend is in effect, buy 1 tick above the high of bulls bars that close near their highs
Beginning traders should mostly enter every trade with a stop order
As long as strong bull trend is in effect, buy 1 tick above the high of bulls bars that close near their highs
Buy The Close Bulls sometimes buy more as the Rally continues
Buy The Close Bulls sometimes buy more as the Rally continues
When the market is in a Strong Bull Trend there is a lot of profit potential
As a trader waits for a PB for smaller risk they most of the time you will miss the best part of the trend
When the market is in a Strong Bull Trend there is a lot of profit potential
As a trader waits for a PB for smaller risk they most of the time you will miss the best part of the trend
The market is always in a Cycle
Either in a BO , a Channel or TR.
a BO and Always in Long is a great time to Buy (at least a small position)
The market is always in a Cycle
Either in a BO , a Channel or TR.
a BO and Always in Long is a great time to Buy (at least a small position)
After a Bull BO when I am looking to go long in a Bull Flag choose either the High 1 or High 2 to enter the market long
As trends mature (add more bars) I will start to get more High 2 and High 3 (not just a High 1 because the trend was so strong initially)
After a Bull BO when I am looking to go long in a Bull Flag choose either the High 1 or High 2 to enter the market long
As trends mature (add more bars) I will start to get more High 2 and High 3 (not just a High 1 because the trend was so strong initially)
In a Strong strong should I bet on failed Reversals?
Yes, expect reversals to be minor and to create PBs, not bear swings
When the Bull Trend is Strong ALWAYS Swing at Least part of it
How long should I hold this swing for?
Hold it until there is at least a decent Sell Signal or at least until the end of the day
a Perfect Trade cannot Exist
a Perfect Trade cannot Exist
Never worry about perfection
Any trade that has a positive Trader’s Equation is as good as any other
Never worry about perfection
Any trade that has a positive Trader’s Equation is as good as any other
Let’s say you buy the reversal up from yesterday’s low, your risk is small and your reward is great.
This type of trade most of the your stop will get hit, but sometimes you will have a huge swing up for a huge profit.
Let’s say you buy the reversal up from yesterday’s low, your risk is small and your reward is great.
This type of trade most of the your stop will get hit, but sometimes you will have a huge swing up for a huge profit.
Gap Open Bars - Can Signal Weakness or Strength
Gap Open Bars - Can Signal Weakness or Strength
When the market has consecutive strong bear bars what should I do?
As long as the Context is good for the bears, Sell the Close of Bear Bars
Simplest approach is to sell at the market as soon as the bar closes
Some traders place a limit order to sell at the close (sometimes if the bear trend is strong I will not get filled short)
Sell The Close - Likely Bear Trend or TR
Most Traders sell once and then swing trade once they see the PB fails and the once potential TR is now a Bear Swing
Sell The Close - Likely Bear Trend or TR
Most Traders sell once and then swing trade once they see the PB fails and the once potential TR is now a Bear Swing
Scale into a Winning Trade - Most Traders however Sell inly Once or Twice
Use the appropriate stop and just hold for a swing
Scale into a Winning Trade - Most Traders however Sell inly Once or Twice
Use the appropriate stop and just hold for a swing
What does a Sell The Close BO eventually evolve into?
It eventually evolves into a a Channel (or Sometimes a TR)
When Scalping should I use a Tight Stop or a Swing Stop?
When Scalping use a Swing Stop this increases my probability
Positive Trader’s Equation is ALWAYS NEEDED
The problem with taking a profit that is to small is the trade has to be perfect and this is rarely true in the markets
Positive Trader’s Equation is ALWAYS NEEDED
The problem with taking a profit that is to small is the trade has to be perfect and this is rarely true in the markets
Minimum Profit = Rarely the Best Choice
Minimum Profit = Rarely the Best Choice