Trading the Middle of the Day Flashcards
Most days Change behaviour at least once
So Traders have to be ready to change how they are going to trade
Most days Change behaviour at least once
So Traders have to be ready to change how they are going to trade
Every market has 3 parts to the market cycle
Most days change behavior after the first 1 - 3 hours and towards the final hour or two of the day it changes behavior again
Every market has 3 parts to the market cycle
Most days change behavior after the first 1 - 3 hours and towards the final hour or two of the day it changes behavior again
The Middle of the day is only important if it is different from the open
The Middle of the day is only important if it is different from the open
End of Middle
End of Middle
Trend from the Open, will it continue?
Trend from the Open, will it continue?
a TR day has at least one leg down and one leg up, and either can come first
a TR day has at least one leg down and one leg up, and either can come first
An open with a series of Sell Climaxes is sometimes just to much to continue, no one left to sell (09/04/2020) was a day like this
An open with a series of Sell Climaxes is sometimes just to much to continue, no one left to sell (09/04/2020) was a day like this
Trend, then TR - Look for Trend Resumption or Reversal
Trend, then TR - Look for Trend Resumption or Reversal
Trend on Open - Does it continue All Day?
Compare the TWO BELOW
Trend on Open - Does it continue All Day?
Compare the TWO BELOW
Trend - Just a Leg in a TR
Trend - Just a Leg in a TR
If the market is going to be in a Bear Trend DAY I do not want to see a lot of Big Bull Bars closing on their highs
If the market is going to be in a Bear Trend DAY I do not want to see a lot of Big Bull Bars closing on their highs
Early TR look for Early Signs of BO
TR on open, Gap down so often gets trend up or down once it gets near the MA
(On this chart the lack of selling after gap down resulted in a higher probability to the upside)
Early TR look for Early Signs of BO
TR on open, Gap down so often gets trend up or down once it gets near the MA
(On this chart the lack of selling after gap down resulted in a higher probability to the upside)
BO - DO NOT DENY Transition into Trend
BO - DO NOT DENY Transition into Trend
Strong Rally on the Open - Look for early signs of TR
Whenever I see an exceptionally strong trend right from the open I have to be thinking that it could be a climatic brief rally that it leads to a TR or a Reversal or a Parabolic Wedge
Strong Rally on the Open - Look for early signs of TR
Whenever I see an exceptionally strong trend right from the open I have to be thinking that it could be a climatic brief rally that it leads to a TR or a Reversal or a Parabolic Wedge
Leg in TR - Reversal Bar can lead to an Opposite Swing
If a TR looks likely watch for a REVERSAL BAR, it is often just a medium size bar but can lead to a swing lasting 20+ bars
Leg in TR - Reversal Bar can lead to an Opposite Swing
If a TR looks likely watch for a REVERSAL BAR, it is often just a medium size bar but can lead to a swing lasting 20+ bars
Leg in TR - Watch for Reversal Bar
Since this is a Bear leg in a TR it is better to enter as early as possible because I am expecting a bull leg in a TR and not a bear trend and this increases my profit potential
Leg in TR - Watch for Reversal Bar
Since this is a Bear leg in a TR it is better to enter as early as possible because I am expecting a bull leg in a TR and not a bear trend and this increases my profit potential
Leg in TR - Weak Trend, Especially if still in Yesterdays TR
Leg in TR - Weak Trend, Especially if still in Yesterdays TR
TR - Look for Early signs of BO for Late Swing Trade
Bulls will not rely on their stops once clear the bears have won
TR - Look for Early signs of BO for Late Swing Trade
Bulls will not rely on their stops once clear the bears have won
Once in TR - BLSHS, like with all TRs
Once in TR - BLSHS, like with all TRs
The open of the day is often a magnet at the end of the day, it happens more often if the open is in the middle 3rd of the day but it still does happen even if the market is near the low or high of the day
IF the market is above the open it can selloff to or near the open before days and and vice versa if it is below
The open of the day is often a magnet at the end of the day, it happens more often if the open is in the middle 3rd of the day but it still does happen even if the market is near the low or high of the day
IF the market is above the open it can selloff to or near the open before days and and vice versa if it is below
TR - Test of Support or Resistance at the end of the Middle 3rd
The open of the day is often a magnet at the end of the day (it happens more often if the open is in the middle 3rd of the day)
TR - Test of Support or Resistance at the end of the Middle 3rd
The open of the day is often a magnet at the end of the day (it happens more often if the open is in the middle 3rd of the day)
Support or Resistance - Reversal or BO?
3 Common outcomes after the test
- Spend the remainder of the day in a small range around the open
- Reverse up and close near the high, creating a bull trend day, like today
- Fall below the open and close near the low, forming a bear trend day
Support or Resistance - Reversal or BO?
3 Common outcomes after the test
- Spend the remainder of the day in a small range around the open
- Reverse up and close near the high, creating a bull trend day, like today
- Fall below the open and close near the low, forming a bear trend day
Late in TR - Strong BO often is a Trap, then Reverses
Late in TR - Strong BO often is a Trap, then Reverses
Test, then reversal - often creates an opposite Trend
Test, then reversal - often creates an opposite Trend
Strong Trend can still be a Leg in a TR Day
Strong Trend can still be a Leg in a TR Day
Waiting until I see the Strong BO increases the probability of my trade but I pay for that with my stop being further away.
Waiting until I see the Strong BO increases the probability of my trade but I pay for that with my stop being further away.
Late DB or DT often leads to Trend in the Final 3rd of the Day
Good Bull Bars closing near their highs at support was excellent for this setup for the DB Wedge Bottom reversal for the final 3rd of the day
Late DB or DT often leads to Trend in the Final 3rd of the Day
Good Bull Bars closing near their highs at support was excellent for this setup for the DB Wedge Bottom reversal for the final 3rd of the day
80% Rule - Markets Resist Change they tend to continue to you what they have been doing
If the market is in a Trend 80% of reversal attempts will FAIL
If the market is in a TR 80% of BO attempts will FAIL
80% Rule - Markets Resist Change they tend to continue to you what they have been doing
If the market is in a Trend 80% of reversal attempts will FAIL
If the market is in a TR 80% of BO attempts will FAIL
Wide Stops or Tight Stops; EITHER CAN BE GOOD
Wide Stops or Tight Stops; EITHER CAN BE GOOD
Late Entry - Higher Probability, Great Risk due to Stop Being far
Late Entry - Higher Probability, Great Risk due to Stop Being far
Strong Trend can still be a Leg in a TR Day
Strong Trend can still be a Leg in a TR Day
