pinpointing entry & exit points - mec · 2012-01-17 · this tutorial was originally titled “the...

This tutorial was originally titled “The Four Steps to 80% Day Trading Success” and was recorded at the Online Trading Expo

Pinpointing Entry & Exit Points

This tutorial was originally titled “The Four Steps to 80% Day Trading Success” and was recorded at the Online Trading Expo

Pinpointing Entry & Exit Points

Dr. John F. ClayburgDr. John F. ClayburgEmail Email -- [email protected]@pionet.net

Copywrite 2000 Traders’ LibraryCopywrite 2000 Traders’ Library

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The Four StepsTo 80% Day Trading Success


? 1. Define the major trend? of the day.

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? 1. Define the major trend? of the day. ? 2. Define the minor trend within the

major trend.

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major trend.? 3. Define a specific entry point

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major trend.? 3. Define a specific entry point? 4. Define a specific exit point

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Step OneDefine the major trend of the day.


??One hour into the session, determine that either One hour into the session, determine that either the high or the low of the day has been set.the high or the low of the day has been set.

??Thus the trend of the day has been defined.Thus the trend of the day has been defined.?? If the low is in place, the trend is up for the rest If the low is in place, the trend is up for the rest

of the day.of the day.?? If the high is in place, the trend is lower for the If the high is in place, the trend is lower for the

rest of the day.rest of the day.

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??Trend Definition based on Range ExpansionTrend Definition based on Range Expansion

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??Trend Definition based on Range ExpansionTrend Definition based on Range Expansion?? Probability that the entire range of the day Probability that the entire range of the day

has been established one hour into the has been established one hour into the market is remote.market is remote.

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??Trend Definition based on Range ExpansionTrend Definition based on Range Expansion?? Probability that the entire range of the day Probability that the entire range of the day

has been established one hour into the has been established one hour into the market is remote.market is remote.

??Any range expansion will occur on the high Any range expansion will occur on the high side of the range on an up day and on the side of the range on an up day and on the low side on a down day.low side on a down day.

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??Why is this Important?Why is this Important?

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??Why is this Important?Why is this Important???Trade with the trend.Trade with the trend.

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??Why is this Important?Why is this Important???Trade with the trend.Trade with the trend.??Traders are constantly looking to pick tops Traders are constantly looking to pick tops

and bottoms, thus trading against the trend.and bottoms, thus trading against the trend.

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??Why is this Important?Why is this Important???Trade with the trend.Trade with the trend.??Traders are constantly looking to pick tops Traders are constantly looking to pick tops

and bottoms, thus trading against the trend.and bottoms, thus trading against the trend.?? Profits are more likely trading in the Profits are more likely trading in the

direction of the current daily trend.direction of the current daily trend.

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??Take Trades only in the Direction of the Take Trades only in the Direction of the Major TrendMajor Trend

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??Take only buy signals on an up day.Take only buy signals on an up day.

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??Take only buy signals on an up day.Take only buy signals on an up day.??Take only sell signals during a down day.Take only sell signals during a down day.

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??Take only buy signals on an up day.Take only buy signals on an up day.??Take only sell signals during a down day.Take only sell signals during a down day.??Use opposite side signals as exits, but not Use opposite side signals as exits, but not

for entry.for entry.

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??How do we determine the trend?How do we determine the trend?

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??How do we determine the trend?How do we determine the trend??? 1. CD Market Direction Indicator1. CD Market Direction Indicator

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??How do we determine the trend?How do we determine the trend??? 1. CD Market Direction Indicator1. CD Market Direction Indicator?? 2. CD Median Line Indicator2. CD Median Line Indicator

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CD Market Direction IndicatorCD Market Direction Indicator

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CD Market Direction IndicatorCD Market Direction Indicator

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CD Median Line IndicatorCD Median Line Indicator

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CD Median Line IndicatorCD Market Direction Indicator


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??

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Step TwoDetermine the Short Term Trend

Step TwoDetermine the Short Term TrendDetermine the Short Term Trend

??Exhaustion of Corrective MoveExhaustion of Corrective Move

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??Use Four Indicators to Identify ExhaustionUse Four Indicators to Identify Exhaustion

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??Use Four Indicators to Identify ExhaustionUse Four Indicators to Identify Exhaustion??All are looking for exhaustion of a All are looking for exhaustion of a

correctioncorrection

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correctioncorrection??All do so in their own methodAll do so in their own method

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correctioncorrection??All do so in their own methodAll do so in their own method??Mathematical AlgorithmMathematical Algorithm

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correctioncorrection??All do so in their own methodAll do so in their own method??Mathematical AlgorithmMathematical Algorithm?? Pattern RecognitionPattern Recognition

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??One Indicator One Indicator -- SignificantSignificant

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??One Indicator One Indicator -- SignificantSignificant??Two Signals Two Signals -- Significance IncreasesSignificance Increases

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??One Indicator One Indicator -- SignificantSignificant??Two Signals Two Signals -- Significance IncreasesSignificance Increases??Three Signs of Exhastion Three Signs of Exhastion -- Higher Higher

ConfidenceConfidence

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??One Indicator One Indicator -- SignificantSignificant??Two Signals Two Signals -- Significance IncreasesSignificance Increases??Three Signs of Exhastion Three Signs of Exhastion -- Higher Higher

ConfidenceConfidence??All Four All Four -- Maximum Confidence of an Maximum Confidence of an

Exhausted Correction Exhausted Correction

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?? Four IndicatorsFour Indicators

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?? Four IndicatorsFour Indicators?? 1.1. CD ReversalCD Reversal

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?? Four IndicatorsFour Indicators?? 1.1. CD ReversalCD Reversal?? 2.2. CD Real Time PivotCD Real Time Pivot

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?? Four IndicatorsFour Indicators?? 1.1. CD ReversalCD Reversal?? 2.2. CD Real Time PivotCD Real Time Pivot?? 3.3. CD ExhaustionCD Exhaustion

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?? Four IndicatorsFour Indicators?? 1.1. CD ReversalCD Reversal?? 2.2. CD Real Time PivotCD Real Time Pivot?? 3.3. CD ExhaustionCD Exhaustion?? 4.4. CD ClusterCD Cluster

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Step TwoCD Reversal Indicator

Step TwoCD Reversal IndicatorCD Reversal Indicator

??Appear as cyan squares below the bars or Appear as cyan squares below the bars or magenta squares above the barmagenta squares above the bar

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?? First appearance is indicative of a trend First appearance is indicative of a trend which is experiencing early signs of which is experiencing early signs of exhaustion.exhaustion.

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??When the indicator stops plotting the When the indicator stops plotting the exhaustion phase is completedexhaustion phase is completed

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??When the indicator stops plotting the When the indicator stops plotting the exhaustion phase is completedexhaustion phase is completed

??A trend change is now expectedA trend change is now expected

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Step TwoCD Real Time Pivot Indicator

Step TwoCD Real Time Pivot IndicatorCD Real Time Pivot Indicator

??Buy Signals are plotted as blue dots below Buy Signals are plotted as blue dots below the barthe bar

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?? Sell Signals are plotted as red dots above Sell Signals are plotted as red dots above the barsthe bars

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?? Plots do appear in real time, as the name Plots do appear in real time, as the name suggests.suggests.

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?? Plots do appear in real time, as the name Plots do appear in real time, as the name suggests.suggests.

??Dots are printed when the bar closes.Dots are printed when the bar closes.

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Step TwoCD Exaustion Indicator

Step TwoCD Exaustion IndicatorCD Exaustion Indicator

??Consists of four plotted linesConsists of four plotted lines

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??Consists of four plotted linesConsists of four plotted lines??Market tries to stay in a “comfort zone” Market tries to stay in a “comfort zone”

between the two yellow bandsbetween the two yellow bands

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??Consists of four plotted linesConsists of four plotted lines??Market tries to stay in a “comfort zone” Market tries to stay in a “comfort zone”

between the two yellow bandsbetween the two yellow bands??When the market strays outside these bands When the market strays outside these bands

a trading signal is set upa trading signal is set up

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Step TwoCD Exaustion 2 Indicator

Step TwoCD Exaustion 2 IndicatorCD Exaustion 2 Indicator

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Step TwoCD Cluster Indicator

Step TwoCD Cluster IndicatorCD Cluster Indicator

??Most complicated of the short term groupMost complicated of the short term group

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??Most complicated of the short term groupMost complicated of the short term group??Usually the last to appearUsually the last to appear

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??Most complicated of the short term groupMost complicated of the short term group??Usually the last to appearUsually the last to appear??Can be used as the final confirmation of Can be used as the final confirmation of

exhaustionexhaustion

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?Step TwoCD Cluster IndicatorCD Cluster Indicator

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All FourAll Four

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Trade SequenceTrade Sequence

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Step ThreeEntry

Step ThreeEntry

??CD Entry Point IndicatorCD Entry Point Indicator

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Step ThreeEntry

Step ThreeEntry

??CD Entry Point IndicatorCD Entry Point Indicator??Measures Short Term Support and Measures Short Term Support and

ResistanceResistance

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Step ThreeEntry

Step ThreeEntry

??CD Entry Point IndicatorCD Entry Point Indicator??Measures Short Term Support and Measures Short Term Support and

ResistanceResistance?? Place buy stops and sell stopsPlace buy stops and sell stops

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Step ThreeCD Entry Point


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Step FourExit

Step FourExit

??Trailing StopTrailing Stop

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Step FourExit

Step FourExit

??Trailing StopTrailing Stop??CD Entry PointCD Entry Point

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Step FourExit

Step FourExit

??Trailing StopTrailing Stop??CD Entry PointCD Entry Point??CD Volatility StopCD Volatility Stop

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Step FourExit

Step FourExit

??Trailing StopTrailing Stop??CD Entry PointCD Entry Point??CD Volatility StopCD Volatility Stop??CD Cluster Volatility StopCD Cluster Volatility Stop

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Step FourExit

Step FourExit

??Trailing StopTrailing Stop??CD Entry PointCD Entry Point??CD Volatility StopCD Volatility Stop??CD Cluster Volatility StopCD Cluster Volatility Stop??CD Real Time TargetCD Real Time Target

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Step FourExit - Trailing Stop

Step FourExit - Trailing Stop

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Step FourExit - Volatility Stop

Step FourExit - Volatility Stop

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Step FourExit - Cluster Volatility Stop

Step FourExit - Cluster Volatility Stop

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Step FourCD Real Time Target Exit

Step FourCD Real Time Target Exit

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Step FourCD Real Time Target


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pinpointing entry & exit points - mec · 2012-01-17 · this tutorial was originally titled “the...

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