Trading the Middle of the Day Flashcards

1
Q

Most days Change behaviour at least once

So Traders have to be ready to change how they are going to trade

A

Most days Change behaviour at least once

So Traders have to be ready to change how they are going to trade

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2
Q

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

A

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

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3
Q

The Middle of the day is only important if it is different from the open

A

The Middle of the day is only important if it is different from the open

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4
Q

End of Middle

A

End of Middle

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5
Q

Trend from the Open, will it continue?

A

Trend from the Open, will it continue?

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6
Q

a TR day has at least one leg down and one leg up, and either can come first

A

a TR day has at least one leg down and one leg up, and either can come first

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7
Q

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

A

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

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8
Q

Trend, then TR - Look for Trend Resumption or Reversal

A

Trend, then TR - Look for Trend Resumption or Reversal

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9
Q

Trend on Open - Does it continue All Day?

Compare the TWO BELOW

A

Trend on Open - Does it continue All Day?

Compare the TWO BELOW

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10
Q

Trend - Just a Leg in a TR

A

Trend - Just a Leg in a TR

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11
Q

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

A

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

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12
Q

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)

A

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)

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13
Q

BO - DO NOT DENY Transition into Trend

A

BO - DO NOT DENY Transition into Trend

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14
Q

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

A

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

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15
Q

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

A

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

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16
Q

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

A

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

17
Q

Leg in TR - Weak Trend, Especially if still in Yesterdays TR

A

Leg in TR - Weak Trend, Especially if still in Yesterdays TR

18
Q

TR - Look for Early signs of BO for Late Swing Trade

Bulls will not rely on their stops once clear the bears have won

A

TR - Look for Early signs of BO for Late Swing Trade

Bulls will not rely on their stops once clear the bears have won

19
Q

Once in TR - BLSHS, like with all TRs

A

Once in TR - BLSHS, like with all TRs

20
Q

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

A

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

21
Q

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)

A

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)

22
Q

Support or Resistance - Reversal or BO?

3 Common outcomes after the test

  1. Spend the remainder of the day in a small range around the open
  2. Reverse up and close near the high, creating a bull trend day, like today
  3. Fall below the open and close near the low, forming a bear trend day
A

Support or Resistance - Reversal or BO?

3 Common outcomes after the test

  1. Spend the remainder of the day in a small range around the open
  2. Reverse up and close near the high, creating a bull trend day, like today
  3. Fall below the open and close near the low, forming a bear trend day
23
Q

Late in TR - Strong BO often is a Trap, then Reverses

A

Late in TR - Strong BO often is a Trap, then Reverses

24
Q

Test, then reversal - often creates an opposite Trend

A

Test, then reversal - often creates an opposite Trend

25
Q

Strong Trend can still be a Leg in a TR Day

A

Strong Trend can still be a Leg in a TR Day

26
Q

Waiting until I see the Strong BO increases the probability of my trade but I pay for that with my stop being further away.

A

Waiting until I see the Strong BO increases the probability of my trade but I pay for that with my stop being further away.

27
Q

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

A

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

28
Q

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

A

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

29
Q

Wide Stops or Tight Stops; EITHER CAN BE GOOD

A

Wide Stops or Tight Stops; EITHER CAN BE GOOD

30
Q

Late Entry - Higher Probability, Great Risk due to Stop Being far

A

Late Entry - Higher Probability, Great Risk due to Stop Being far

31
Q

Strong Trend can still be a Leg in a TR Day

A

Strong Trend can still be a Leg in a TR Day