Archive for June 24th, 2010
3 Steps to Success: Step #2, Entry Rules Identify the Highest-Percentage Patterns
Lets recall for a moment, our first step Step #1 was to use our AUTO-LEVELS Indicator to locate the very best levels to use, and then look for simple price patterns such as the Wave, 2-Step, and Breaker to enter the trade. Once we see those important patterns show up around those important price levels, we have to look at Step #2… Now we much use our ENTRY RULES to identify these patterns as either HIGH or LOW probability in order to make sure we are taking only the very best trading opportunities. Before we can do that, we must be aware of what those rules are! Our Advanced Members receive a full, detailed copy of our entry rules, but for live trading, we use a shorter version, which we call the CHEAT SHEET, and there is a copy of these rules posted on our blog for your reference. Lets go over these rules 1 by 1 for each pattern set-up so you can get familiar with them Its important that you are awarethese rules are listed in order of importance, so the first on the list is checked first, and the last is checked.last. ? Wave Set-Up: •Breakout Above/Below •Trigger Line HH/LL •Perfect Pattern •6-8 Ticks •Medium & Slow •Trigger Slope •Momentum (check this last) •Speed of Tape (POT) (check this last) oD/Q: Time/Price/POT The Wave Set-up is a trend-continuation pattern that works best on trending markets. This entry pattern looks to capitalize on a moving market, look for Swing-Highs & Swing-Lows as well as a steep slope to our Trigger Line for entry. Beware taking Wave …