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Services Disclaimer (for full disclosure, see “Disclaimers” section of website)
▪ Information
▪ Contained within our website and affiliates is not a substitute for professional advice (e.g., stock broker, financial advisor,
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the materials shall be considered legal, financial, or actuarial advice.
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▪ All information, training, and coaching sessions offered by TED are for educational purposes only.
▪ No warranties or guarantees of stock market success are offered of any kind.
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Don’t make trading…complicated!
Keep It Simple and Look For Quick Profits
Mass
Psychology
Moving
Averages
Law of
Large Numbers
Gaps
Japanese
Candlesticks
Chart
Patterns
Why Are You
Trading?
Market
Hours
Chart
Analysis
Human
Biases
Individual
Psychology
Technical
Analysis
Chart Types
Support &
Resistance Multiple
Time Frames
Breakaway
Momentum
Myths
Trade
RangeStochastics
Engulfing
Patterns
2-Bar
Patterns
Topping
Tail
Pre-Market
YOU
What to use
Flags
What Is
Price Action?
Neglected
Essentials
VolumeUndercapitalized
LifestyleSelf-
Fulfillment
Simple
Trading
Survival
Paper
Trading
Learning
Curve
Mass
Psychology
Moving
Averages
Law of
Large Numbers
Why Are You
Trading?
Market
Hours
Human
Biases
Individual
Psychology
Technical
Analysis
Momentum
Myths
Stochastics
Pre-Market
YOU
What to use
What Is
Price Action?
Neglected
Essentials
Undercapitalized
LifestyleSelf-
Fulfillment
Simple
Paper
Trading
Learning
Curve
Chart
Analysis
Trading
Survival
Support &
Resistance Multiple
Time Frames
Gaps
Japanese
Candlesticks
Chart
Patterns
Chart Types
Breakaway
2-Bar
Patterns
Topping
Tail
FlagsTrade
Range
Engulfing
Patterns
Volume
PHASE I
TRADING TACTICS
Range bound; Buy on dips &
Sell on tops
Consolidation; Buy Breakouts
& Sell Breakdowns
Congestion; Don’t Trade
PHASE II
TRADING TACTICS
Major market uptrend & Phase II match,
Buy bottom of dips & breakouts.
Sell tops of rallies
OPTIMAL BUYING ZONE OR
SHORT COVERING
OPTIMAL SELLING ZONE OR
SHORT SALE
PHASE IV
TRADING TACTICS
Major market downtrend & Phase II match,
Sell or Sell Short rallies & buy back on dips.
PHASE III
TRADING TACTICS
Range bound; Buy on dips &
Sell on tops
Consolidation; Buy Breakouts
& Sell Breakdowns
Congestion; Don’t Trade
PHASE I
TRADING TACTICS
Range bound; Buy on dips &
Sell on tops
Consolidation; Buy Breakouts
& Sell Breakdowns
Congestion; Don’t Trade
SIDEWAYS TRADING PATTERNS
RANGE CONSOLIDATION CONGESTION
Expansion of movements
Up Trend1
Down Trend2
Sideways Price Action3
Up Trend breakdown
4
Down Trend breakout
5
Breakout6 Breakdown7
Expansion of movements
Up Trend1
Down Trend2
Sideways Price Action3
Up Trend breakdown
4
Down Trend breakout
5
Breakout6 Breakdown7
Mini Market Cycles
Up
Down
Up
Up
Down
Down
Natural pullback
Natural pullback
Up-Down-Up Down-Up-Down
upper third of bullish bar
lower third of bearish bar
FASTER On Mini Market Cycles
Transition Among PhasesM Patterns
W Patterns
Breakaway Gaps
Exhaustion Gaps
Common Gaps &Runaway Gaps
Common Gaps &Runaway Gaps
Breakaway Gaps
Exhaustion Gaps
1
2 3
B
A
C
Flags1
2
3
1
32
B
AC
Flags
Parallel
12
3
1
2 3
STOP
ENTRY
TARGET
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
REWARD
RISK
(1R)
(multiple R)
Entry areas
Natural Pullback
We often move the stop to fast!
Winning Trade but…•You get stopped out•Small profit at best•Psychological “let-down”…you see the rest of the original profits
Trigger
Profit
Stop
STOP
ENTRY
TARGET
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
REWARD
RISK
(1R)
(multiple R)
Entry areas
Natural Pullback
We often move the stop to fast!
Winning Trade but…•You get stopped out•Small profit at best•Psychological “let-down”…you see the rest of the original profits
Trigger
Profit
Stop
Strategysignal Buy ShortSOH SOH
Transition Among Phases
Strategysignal Buy ShortSOH SOH
Transition Among Phases
Buy Limit Order
Buy Stop Order
Current market
Strategysignal Buy ShortSOH SOH
Transition Among Phases
Sell Limit Order
Sell Stop Order
Current market
Strategysignal Buy ShortSOH SOH
Transition Among PhasesBuy Stop Order
Sell Stop Order
Current market
Range Consolidation Congestion
a
b
c e
d f
Equal support & resistance
Breakout
1
2 3 1
Breakdown
32
Mini Market CycleMini Market Cycle
Mini Market Cycle
Mini Market Cycle
20 MA
200 MA
PHASE III
RESISTANCE
SELL POWER
DISTRIBUTION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERBOUGHT
PROFIT TAKING
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
20 MA
200 MA
PHASE III
RESISTANCE
SELL POWER
DISTRIBUTION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERBOUGHT
PROFIT TAKING
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
PHASE I
SUPPORT
BUYING POWER
ACCUMULATION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERSOLD
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
Faster movement with small time candlesticks
Mini Market Cycles or shorter in duration
More visibility to reversal patterns
Sometimes more difficult setups requiring 3-4-5 bar reversal patterns in
order to enter trades
More noise because of candlestick deficiencies
Can occur inside all four Phases
Expect multiple mini cycles in up trends and down trends
Often inside of chart formation and chart patterns (i.e, Flag patterns)
Remember on higher timeframes we look for W & M patterns and then
focus on the first flag patterns after the neckline is broken
With Mini Market Cycles, you have to respect the timing and skip the first
one so you can catch the natural movements up and down
Establish discipline and standards
(trading rules) to follow
Create Trading Triangle
▪ “High Odds” Trades
▪ “Medium Odds” Trades
▪ “Low Odds” Trades
High
Odds
Medium Odds
Low Odds
Let trade quality determine money
management strategies
▪ “High Odds” Trades – bigger stops
▪ “Medium Odds” Trades – normal
stops
▪ “Low Odds” Trades – tighter stops
Pre Market Session
News Events
Overnight Futures
Analysis
Morning Session
Gaps
Opening Range
Reversal Times
News Events
Volume Increases
Mid-day Session
Continuation Moves
Failed Patterns
Reversal Times
Volume Declines
Late day Session
Momentum
Rallies
Reversal Times
Volume Returns
After Hours
News Events
Analysis
Volume Declines
Pre Market Session
News Events
Overnight Futures
Analysis
Morning Session
Gaps
Opening Range
Reversal Patterns
News Events
Volume Increases
Mid-day Session
Continuation Moves
Failed Patterns
Reversal Patterns
Volume Declines
Late day Session
Momentum
Rallies
Reversal Patterns
Volume Returns
After Hours
News Events
Analysis
Volume Declines
Strategysignal Buy ShortSOH SOH
Transition Among Phases Opening Bell
Strategysignal Buy ShortSOH SOH
Transition Among Phases Opening Bell
Strategysignal Buy ShortSOH SOH
Transition Among Phases Opening Bell
Transition Among PhasesM Patterns
W Patterns
Breakaway Gaps
Exhaustion Gaps
Common Gaps &Runaway Gaps
Common Gaps &Runaway Gaps
Breakaway Gaps
Exhaustion Gaps
1
2 3
B
A
C
Flags1
2
3
1
32
B
AC
Flags
Parallel
12
3
1
2 3
STOP
Initial
ENTRY Signal
TARGET
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
Late entry
Initial Entry Signal missed or
hesitated on…
Contemplation leads to “late” entry
Price action has moved significant
enough that retracement or
“pause” is ready to occur
Anxious money management
tactics and “draw-down” create
anxiety in trader such that he has to
close out the trade
B
A
C
Flags
1
2
3
Good Entry
Preliminary target
Initial Stop
Fibonacci Retracements
TARGET
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
Late entry
Initial Entry Signal missed or
hesitated on…
Contemplation leads to “late” entry
Price action has moved significant
enough that retracement or
“pause” is ready to occur
Anxious money management
tactics and “draw-down” create
anxiety in trader such that he has to
close out the trade
Mini Market Cycle
1
2
3
4
STOP
ENTRY
TARGET
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
REWARD
RISK
(1R)
(multiple R)
Entry areas
Natural Pullback
We often move the stop to fast!
Winning Trade but…•You get stopped out•Small profit at best•Psychological “let-down”…you see the rest of the original profits
STOP
Good Entry
TARGET
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
Late entry
Multiple entry signals missed …trend is
ignored or trader in disbelief of momentum
After frustration of missing the
move…”jumps in”
Entry is extremely late
Price action is now exhausted after several
up “thrust”
Using “big” stop to compensate for “missed
entries” and ease the tension…price action
transitions to down trend and has trader in
quandary for taking setups
Good Entry
LONG Entry•Up trend•Higher Highs & Higher Lows
Price Action
Late Long Entry
Defines your HH’s and HL’s
Multiple entry signals missed …trend is
ignored or trader in disbelief of momentum
After frustration of missing the
move…”jumps in”
Entry is extremely late
Price action is now exhausted after several
up “thrust”
Using “big” stop to compensate for “missed
entries” and ease the tension…price action
transitions to down trend and has trader in
quandary for taking setups
Mini MarketCycles
M Patterns
W Patterns1
2 3
1
32
1
2 3
1. Skip the first one2. Look for timing3. Reversals define P1’s & P3’s
1. Skip the first one2. Look for timing3. Reversals define P1’s & P3’sIntraday
Daily
Weekly
Monthly
M Patterns
W Patterns1
2 3
1
32
1
2 3
1. Skip the first one2. Look for timing3. Reversals define P1’s & P3’s
1. Skip the first one2. Look for timing3. Reversals define P1’s & P3’s
Multiple timeframes is one of the most effective trading tactics for creating
congruency and increasing the odds of a “winning trade”
▪ Day traders should consider one (1) timeframe above (macro) the primary timeframe they
trade
▪ Only consider one (1) timeframe below your primary timeframe to identify the mini market
cycle, improve trade execution and trade management
Goal should be “Trading with the trend”
▪ The stronger the macro trend, the more price action profit opportunities for traders to
participate
▪ Shorter micro trends present “early warning” opportunities to more effectively manage
existing trades and prepare for the next alignment of macro and micro timeframes
Will experience faster movements with small time candlesticks
Mini Market Cycles or shorter in duration
More visibility to reversal patterns
Sometimes more difficult setups requiring 3-4-5 bar reversal patterns in
order to enter trades
More noise because of candlestick deficiencies
Can occur inside all four Phases
Expect multiple mini cycles in up trends and down trends
Often inside of chart formation and chart patterns (i.e, Flag patterns)
Most of the time – trend determination is based on the movement of price action
using trend lines, price patterns and moving averages.
Moving averages will focus on smoothing out all the Mini Cycles
▪ Effective when used in basic manner for lower timeframes
▪ Stay away from fancy moving averages and derivatives
Momentum indicators often focus on the depth of strength or weakness of price
action
▪ Rate of Change, Divergences, Relative Strength Indicators, MACD, and Stochastics don’t follow the
Mini Cycles consistently to be used for Buy and/or Sell Signals
Fibonacci Retracements are not very effective because Mini Cycles usually don’t
retrace to “hot-zone” (i.e., 38%-62% area)
Major and Minor Support and Resistance areas can be also be defined by using Mini
Cycles
1
2 31
32
Breakdowns for SHORT signals
Breakouts for LONG signals
Look for reversal pattern in Mini Market Cycles beforeGoing Long
Look for reversal pattern in Mini Market Cycles beforeGoing Short
1
2 31
32
Lower time frame Breakdowns for SHORT signals
Lower time frame Breakout for
LONG signals
Buying Signal
Short Signal
1
2 3
Buy Signals
1
32
Short signals
REWARD
RISK
STOP
ENTRY SIGNAL
TARGET
Buy Zone
Price Action
Looking for entry in lower timeframe
Higher timeframe entry signal is more potent
Tighter stop are usually inherent with lower timeframe entry signal – potentially more traders getting stopped out
Beginning of Phase 2
Bullish up trend• Macro uptrend•Complete Mini Market Cycles
Macro Timeframe
Micro Timeframes
1. Trend trading increases the odds
of trading success and profits
2. Trade bullish mini Market Cycles
P2 in bullish up trends and
bearish mini Market Cycles P4 in
bearish down trends
3. Improve trade quality by trading
setups when the macro and micro
timeframes align
4. Avoiding trading the macro trend
causes insurmountable obstacles
for scalp trading
Lower timeframe
Phase 2 Entry
#3
#2
#1
We want to analyze each pullback in Phase 2 to
evaluate pivots for uptrend
On lower timeframes…one approach is to constantly
review swing pivots for higher highs and higher
lows and similar in Phase 4’s
Faster movement with small time candlesticks
Mini Market Cycles or shorter in duration
More visibility to reversal patterns
Sometimes more difficult setups requiring 3-4-5 bar reversal patterns in
order to enter trades
More noise because of candlestick deficiencies
Can occur inside all four Phases
Expect multiple mini cycles in up trends and down trends
Often inside of chart formation and chart patterns (i.e, Flag patterns)
Preliminary Mini TARGET
Higher Timeframe•Up trend•Higher Highs & Higher Lows
Price Action
2/3 Br Reversals
Mini Market Cycle Setups often will be the
Swing Pivot Lows from the higher time
frames
Mini Cycle Phase 1’s will be the same as or
similar to the 2/3 Br Reversal and Swing
Pivot Lows
Higher timeframe will proved clarity by
looking at Higher Lows
Mini Cycle Phase 4’s will establish the Higher
timeframe flag patterns
Consider Scaling-In each Mini Cycle setup
with small position
Mini Market Cycle
P1
P2
P3
P4
Preliminary Mini TARGET
Higher Timeframe•Up trend•Higher Highs & Higher Lows
Price Action
2/3 Br Reversals
Mini Market Cycle
P1
P2
P3
P4
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
stop
Macro Timeframe
Micro Timeframes
Setups on Mini Market
Cycle
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
Beginning of Phase 2
Bullish up trend• Macro uptrend•Complete Mini Market Cycles
stop
Beginning of Phase 2
Bullish up trend• Macro uptrend•Complete Mini Market Cycles
Macro Timeframe
Flag pattern on highertimeframe is the
same as the lower timeframes Phase 4
1. Trend trading increases the odds
of trading success and profits
2. Trade bullish mini Market Cycles
P2 in bullish up trends and
bearish mini Market Cycles P4 in
bearish down trends
3. Improve trade quality by trading
setups when the macro and micro
timeframes align
4. Avoiding trading the macro trend
causes insurmountable obstacles
for scalp trading
Lower timeframe
Phase 2 Entry
Minor Phase 1’s
▪ Bottoming Tails
▪ Reversal Patterns
▪ Narrow Range Bars
▪ Novice Gaps
Minor Phases Minor Phases
2
2
2
1
4
4
3
3
1
Major Bullish Phase 2
Trading Tip
Traders buy when the Minor 2 matches the Major 2. Herein lies the master key
to stock market accuracy on the buy side. The question of “when” to buy is now
answered. A buy is triggered each time there is a phase to phase “MATCH”.
Don’ miss this concept. It is Priceless!
Buy
Buy2
2
2
1
4
4
3
3
1
Bullish Phase 2
Minor Phase 3’s
▪ Topping Tails
▪ Reversal Patterns
▪ Narrow Range Bars
▪ Novice GapsMajor Bearish Phase 4
Minor PhasesMinor Phases
2
24
1 4
43
3
1
Trading Tip
Traders short when the Minor 4 matches the Major 4. Herein lies the master
key to stock market accuracy on the short side. The question of “when” to
short is now answered. A short is triggered each time there is a phase to phase
“MATCH”. Don’ miss this concept. It is Priceless!
Sell
Sell
4
2
2
1
4
4
3
3
1
Bearish Phase 4
NO Setups
Swing Pivot
3 Br Reversal
Stop
2 Br Reversal BUY signal
StopSwing Pivot
Low
5 Br Reversal
Open
Stop
Swing Pivot High
SHORT signals
Stop
2 Br Reversal Short Signal
Stop
Swing Pivot High
5 Br Reversal
Stop
NO Setups
Macro Timeframe
Micro TimeframesSetups on
Mini Market Cycle
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
Higher Timeframe
Phase 2
Bullish up trend• Macro uptrend•Complete Mini Market Cycles
stop
Stop
Stop
Stop
Stop
Stop
Macro Timeframe
Micro TimeframesSetups on
Mini Market Cycle
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
Higher Timeframe
Phase 2
Leave stops until prior Flag Pattern high is broken for Mini Market Cycles
stop
Stop 1
Stop 2
Stop 3
Stop 4
Stop 5
Macro Timeframe
Micro TimeframesSetups on Mini Market
Cycle
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
stop
Trailing Stop 1
Trailing Stop 2
Trailing Stop 3
Leave stops until prior two (2) Flag Pattern highs are broken for Mini Market Cycles
HH1
HH2
B
A
C
1
2
3
Good Setups
Mini Market Cycles / Pullbacks
Macro Timeframe
Setups on Mini Market
Cycle
Look for flag pattern setups only in the Hot Zone when using the Fib Retracements
Macro Timeframe
Setups on Mini Market
Cycle
P2
P4
P2
Mini Market Cycles / Pullbacks
Stop
Stop
Stop
Stop
Stop
Stop
Stop
Stop
Macro Timeframe
Micro Timeframes
Setups on Mini Market
Cycle
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
Higher Timeframe
Phase 2
Bullish up trend• Macro uptrend•Complete Mini Market Cycles
stop
Stop
Stop
Stop
Stop
Stop
Target
Target
Target
Target
Macro Timeframe
Micro TimeframesSetups on
Mini Market Cycle
Micro Up Trend
Early 3 Br Reversal setup
Retrace50 %
Mini Market Cycle
Higher Timeframe
Phase 2
Bullish up trend• Macro uptrend•Complete Mini Market Cycles
stop
Trailing Stop
Trailing Stop
Trailing Stop
Range Consolidation Congestion
a
b
c e
d f
Equal support & resistance
Breakout
1
2 3 1
Breakdown
32
Mini Market CycleMini Market Cycle
Mini Market Cycle
Mini Market Cycle
1 2 3 4
1 2 3 4
Major Support
Major Resistance
Phase 2 Setups
Phase 4 Setups
Mini Market Cycles
20 MA
200 MA
PHASE III
RESISTANCE
SELL POWER
DISTRIBUTION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERBOUGHT
PROFIT TAKING
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
20 MA
200 MA
PHASE III
RESISTANCE
SELL POWER
DISTRIBUTION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERBOUGHT
PROFIT TAKING
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
PHASE I
SUPPORT
BUYING POWER
ACCUMULATION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERSOLD
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
PHASE IV
DOWN TREND//SELLOFF
LOWER HIGHS/LOWER LOWS
BEARS IN CONTROL
SELLERS
VOLUME UP = BEARISH
VOLUME DOWN = BULLISH
FEAR
PHASE I
SUPPORT
BUYING POWER
ACCUMULATION
SIDEWAYS PRICE PATTERN
VOLUME CONSOLIDATION
OVERSOLD
PHASE II
UPTREND/BREAKOUT
HIGHER HIGHS/HIGHER LOWS
BULLS IN CONTROL
BUYERS
VOLUME UP = BULLISH
VOLUME DOWN = BEARISH
GREED
P4 or P1
ENTRY
1
2
3
Transition Among PhasesM Patterns
W Patterns
Breakaway Gaps
Exhaustion Gaps
Common Gaps &Runaway Gaps
Common Gaps &Runaway Gaps
Breakaway Gaps
Exhaustion Gaps
1
2 3
B
A
C
Flags1
2
3
1
32
B
AC
Flags
Parallel
12
3
1
2 3
Losing Trades
Break-even Trades
Winning Trades
Tenacity for staying in “wrong and bad” trades
Very suspicious of “winning trades”
Unwillingness to detach from old trades
Distrust for the current trending price action
Consumed by anticipation of next trending move
Excessive sensitivity to loses
Lack of remorse during account draw-downs
Disregard of feelings in loosing trades
Impulsive and irresponsible decision-making
Strong emotions of anger, anxiety, or depression
that last for hours
Unstable trading behaviors…chasing markets,
entries…
Technical Analysis Based Stops
▪ Trend line
▪ Pivot points
▪ Channels
▪ Previous Day High or Low
▪ Fibonacci Retracement
▪ Indicators
Trailing Stops
▪ Volatility stop
▪ Fixed amount trailing
Fixed Stop
▪ Percentage of capital
▪ Fixed points
Price Action Stops
▪ Measured Moves
▪ Chart patterns
▪ Support & Resistance levels
▪ Pivot Points
▪ Previous Day High/Low
▪ Pre/Post Market support & resistance levels
▪ Volume spikes
Exit Tactics and Tools
▪ Scaling Out
▪ Exit All Out
Risk Management
▪ Single stop-loss
▪ Pivots
▪ Support & Resistance
▪ Prior Day Highs & Lows
▪ Trailing
▪ Congestion Areas
▪ Multiple stop-losses
Money Management
▪ Exit All Out
▪ Partial Exits & Scaling Out
▪ Targets
▪ Single
▪ Multiple
Identify strategies and trading styles that provide high odds trading
For example, using multiple timeframes and trading in the trend direction
increases your odds of a favorable trade
Determine which trading style fits your demeanor
▪ Low % of winning trades (Being Wrong more…)
▪ High % of winning trades (Being Right more…)
Understand the requirements for having a profitable system or strategy for the
style chosen.
Your Daily Preparation Actually Starts the Day Before –After the Prior Day’s Close.
Study the impacts on existing or new trader opportunities – including post-market news
and movers.
Write entries in your Trading Journal, including trades taken and not taken; good, bad,
and ugly trades; state of mind; distractions; entries, exits, stops; etc.
Review trades, charts, and watch list items for potential impacts to the next day.
Analyze and study trend, support, resistance of broader markets, sectors, market
internals, and set alerts at key levels.
Always Start Again With a Clear Head and Fresh Eyes!
Examine the gap size of the stocks and/or futures of your choosing, and mark it for
future reference.
Your first suggestion of direction in the first 15 to 30-minutes.
Unless a longer time frame supports it, don’t‘ take trades based on 2-minute charts.
Based on net change from open, sort your market minder of stocks, then condense
the Focus List into a separate minder.
Focus and work from your condensed list when/where scanning should be done.
Prioritize your list and be prepared/confident to execute your plays.
Review Your List of SetupsFrom Your Trading Plan
Volume Spikes
Wide Range Bound at Supply and/or
Demand
Breakouts
False Signals
Engulfing Bars
Gaps
Prioritize the List
Based on the following:
Quality vs. Inferior
Moving Averages
Relative Strength
Sector Strength
Support/Resistance
Supply/Demand
Trend on Multiple Time Frames
Price Voids
No pending News
Strategysignal Buy ShortSOH SOH
Transition Among Phases
Don’t make trading…complicated!
Keep It Simple and Look For Quick Profits
Transition Among PhasesM Patterns
W Patterns
Breakaway Gaps
Exhaustion Gaps
Common Gaps &Runaway Gaps
Common Gaps &Runaway Gaps
Breakaway Gaps
Exhaustion Gaps
1
2 3
B
A
C
Flags1
2
3
1
32
B
AC
Flags
Parallel
12
3
1
2 3