Ilmu Trading Yang Bermanfaat [PDF]

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=Trading pun demikian, ketakutan itu bisa diminimalisir dan diatasi dengan langkah yang berawal dari sebuah persiapan.



Coba kelompokan modal anda menjadi 5 bagian .  Hal ini akan membatasi anda melakukan transaksi dengan lot besar sehingga loss pada setiap transaksi tidaklah besar. Ataupun jika modal 2 juta ini habis anda masih memiliki 8 juta atau 4 kesempatan lagi. Untuk anda yang mengalami rasa putus asa, kesal, menyesal atau benci pada trading, gunakan kekuatan emosi itu untuk belajar ilmu forex lebih dalam.



Startegi Breakout Candle Kali ini kita akan coba mengupas strategi Breakout masih dengan berbasis Candle. Breakout bisa diterjemahkan sebagai perubahan/lonjakan harga yang cukup tinggi dalam waktu yang singkat.Moment breakout bisa terjadi setiap saat. Ada beberapa strategi breakout yang bisa kita pakai untuk meraih profit tinggi dalam waktu singkat. Kita coba lihat satu persatu : 1. Open Day Breakout



1. 2. 3. 4. 5. 6. 7. 8.



Buka Chart H1  Perhatikan Candle pkl. 1:00 - 2:00 waktu server  Lihat harga tertinggi (High) dan Harga terendah dari kedua candle tersebut  Hitung range harganya ( High - Low ) = X, misal 15 pip  OP Buy ketika harga menyentuh High + 15  OP Sell ketika harga menyentuh Low - 15  Close saat menjumpai Candle Pinbar (Dalam gbr ditandai tanda panah).  Atau pasang TP 10-100 pip



Next Breakout Inside Day and Breakout Intraday............Di strategi yg saya sampaikan mungkin berita ini akan berpengaruh pada strategi harian dan bulanan. Di strategi yang lainnya tidak akan banyak memberi dampak. Kalau kita jeli, untuk mendapat 100 pip sebenarnya tidak perlu sampai seharian. Cukup pasang order di TF 15 dg 10 OP sekali order dan TP 5. Buka OP ke-2 di candle TF 15 berikutnya msh dg 10 OP dan TP 5. Berarti dg 2 candle TF M15 kita sudah bisa meraih 100 pip. Bagaimana kalau dg 4 candle TF M15 (60 menit). Tinggal dihitung aja. Intinya dalam scalping jangan terlalu terpengaruh oleh berita2 apa pun. Ikuti aja kemana Candle bergerak, karena kita bergerak pun paling lama cuma 1 Candle. 2. Inside Day Breakout



Inside Day bisa diartikan ketika pergerakan harga hari ini baik High atau Low nya tidak melebihi pergerakan hari kemarin.  Strategi Breakout Inside day : 1. Buka chart Daily / D1  2. Cari candle inside day dengan ciri-ciri baik high/lownya lebih kecil dari candle sebelumnya  3. Lakukan BUY pada posisi High Inside Candle + 10 pip  4. Atau SELL pada posisi Low Inside Candle - 10 pip  5. Close pada saat dijumpai Reversal Candle.



Next Breakout Intraday and Asian Breakout....... untuk scalping H1 khan tidak ada SL, gmana kalo floating loss gede? apakah ada standard untuk cutloss? Kalau candle berikutnya berlawanan (floating minus), cutloss aja. Cara dan Teknik Membaca 1 Candle (Secret Strategy TF H4 with Candlestick) Satu candle cukup untuk meraih profit .Itulah philosofi para trader jangka panjang.Mereka hanya mengharapkan profit dari satu buah candle saja namun dengan banyak point yang didapat frame yang biasanya digunakan itu minimal 1 hari . Namun bagi kita para intraday trader pun bisa melakukan seperti mereka , kita bisa meraih banyak point dengan membidik candle 4 jam-an. Ada 3 teknik atau cara untuk membaca satu candle berikutnya yaitu : 1. Teknik membaca tenaga candle Jika candle sebelumnya memiliki tenaga besar namun badannya pendek maka ini berarti tenaganya belum digunakan atau terjadi penyumbatan tenaga . Sehingga candle selanjutnya akan meledak membentuk candle body panjang. Jika candle sebelumnya memiliki tenaga besar dan badan candle besar, maka ini berarti tenaganya telah digunakan . Sehingga candle selanjutnya masih tetap searah dengan tenaga candle sebelumnya namun panjang body candle selanjutnya akan lebih pendek . 2.Teknik membaca posisi candle pada market volatile Selain dengan ukuran volumenya , arah candle berikutnya juga bisa dilihat dari posisi candle itu sendiri. Candle pada market yang volatile tenaganya lebih besar dari candle yang berada pada market yang sepi. Sehingga pada market yang volatile badan candle biasanya lebih panjang. Aturan pemanfaatan tenaga yang membentuk panjang badan juga berlaku pada posisi candl market yang volatile . Anda bisa membayangkan apa mungkin ditengah kondisi volatile candle yang pendek adalah sebuah bentuk pelemahan trend? Apa mungkin pada saat maret sedang bergairah mudah untuk dibalik arahkan ? Jawabannya tidak mungkin. Oleh karena itu jika anda melihat candle pendek ( spining top atau doji) setelah candle panjang pada volatilitas tinggi , itulah peluang terjadinya candle panjang.



3. Teknik membaca candle pada ujung trend Ujung sebuah trend adalah area yang sangat potensial terjadinya pembalikan arah.Oleh karena itu biasanya sebuah ujung trend terjadi pada area yang jenuh. Tanda-tanda market akan balik arah adalah munculnya perlawanan dan percobaan balik arah dalam bentuk ekor candle. So, jika anda melihat sebuah candle dengan panjang ekor sama dengan atau lebih besar panjang body dan terjadi di area jenuh, maka itu menunjukan bahwa pada candle tersebu terdapat perlawanan . Oleh karena itu arah candle selanjutnya akan berlawanan dengan arah trend yang sedang terjadi. Master...saya ada beberapa pertanyaan nih: 1. Kalau tenaga besar - Badannya pendek- candle selanjutnya akan meledak : berarti kita OP searah ya? Mohon cth gambarnya gan 2. Tenaga Besar - Body Besar - Body candle sebelumya pendek : Berarti kita OP Kebalikannya ya? Mohon contoh gambarnya . Makasih



Agan



Saya mengerti maksud agan, saya coba menjelaskan dan ini juga utk teman2 trader yg ada di thread ini. Reversal candle atau candlestick pattern tidak harus dihafal, candlestick cukup dengan dipahami tenaganya/kekuatanya, bentuk bodinya dan posisinya. Jika telah mampu membaca dan memahami tenaga/kekuatannya, bentuk bodinya dan posisinya dengan sendisinya akan memahami candlestick chart (pattern/reversal) Coba perhatikan gambar dibawah ini.



Perhatikan candlestick yg saya beri nomor urut 1 - 6, saya akan jelaskan satu persatu cara membacanya  1. Candlestick No. 1 Candlestick/CS ini awal terbentuknya adalah bearish, karena tekanan buyer sangat kuat maka akhirnya terbentuk CS bullish. Jika dalam chart candlestick/CS disebut Engulfing Bullisc CS. Bagaimana cirinya dan bagaimana kita bisa tau jika trend berikutnya adalah up. Ciri Engulfing Bullish adalah body CS nya lebih panjang dibandingkan body CS sebelumnya, kebalikannya adalah harami bullish. Seperti ilmu dasar CS jika muncul Engulfing Bullish CS, maka trend berikutnya adalah up. Bagaimana jika kita tidak mengetahui jenis2 reversal CS dan tidak menggunakan indikator indentification candlestick. Caranya adalah lihat harga HIGHT pada CS ini, jika harga HIGHT-nya lebih tinggi dibanding CS sebelumnya maka bisa diprediksi trend market perikutnya adalah up



2. Candlestick No.2 CS ini juga awal terbentuknya adalah bearish yg cukup kuat ditandai dg ekor bawah yg lumayan panjang, karena perlawanan buyer sangat kuat maka terbentuk CS Bullish dg tenaga yang sangat besar, ini ditandai dengan body CS yg panjang lebih panjang dari ekor bawahnya. CS ini juga sempat mendapatkan perlawanan dari seller namun tidak cukup kuat, ini ditandai dg ekor atas yg tidak begitu panjang, dan dapat diprediksikan trend berikutnya masih akan berlanjut up, dikarenakan harga CLOSE dan HIGHT dari CS ini lebih tinggi dari CS sebelumnya 3. Candlestick No. 3 CS ini juga merupakan CS Bullish dg tenaga yg cukup kuat, terlihat dari bentuk body dan ekor diatas yg cukup panjang. Awalnya CS ini terbentuk dg kecepatan dan kekuatan yg sangat besar ke atas, namun perlawanan seller memaksa untuk terjadinya koreksi, namun juga tidak cukup kuat, terlihat dari ekor panjang yang belum mencapai 1/2 body CS dana harga CLOSE dan HIGHT dari CS ini masih lebih tinggi dari CS sebelumnya, maka trend akan berlanjut seperti CS no. 4 4. Candlestick No.4 CS ini jika menggunakan idikator indetification CS disebut Harami Bearish. CS ini awal terbentuknya adalah bullish, dg kekuatan cukup besar ini di tandai dg harga OPENnya lebih tinggi dari harga CLOSE dari CS sebelumnya. Dalam perjalananya CS ini megalami perlawanan cukup kuat dari seller karena dianggap kondisi sudah Overbought. Harusnya setelah muncul CS ini trend berikutnya adalah downtrend, tapi kenapa trend berlanjut up. Ini karen kondisi market sedang volatile atau bergairah dan posisi harga CLOSE dari CS ini masih jauh di atas harga OPEN CS sebelumnya dan dalam kondisi market yg sangat bergairah tidak mungkin trend akan berbalik arah, maka bisa dikatakan buer masih mendominasi, shg trend berlanjut ke CS no.5 5. Candlestick No.5 CS ini terbentuk awal bearish yg lemah, ditandai dg ekor bawah yg kecil. Kemudian naik cukup kuat dan kemudian mendapat perlawanan dari seller juga cukup kuat sehingga terbentuk body bullish yg seimbang dengan ekor atasnya, ini menandakan tenaga buyer masih tersimpan dan siap meledak kembali, dan selain itu harga CLOSE CS ini lebih jauh tinggi dibanding CS sebelumnya, sehingga trend berikutnya meroket seperti CS no.6 6. Candlestick No.6 CS ini juga terbentuk awal adalah bearish yg lemah, ditandai dg ekor bawah yg jauh lebih kecil dari body CS nya. CS ini merupakan ledakan dari tenaga CS sebelumnya yg tertahan oleh perlawanan seller dan merrupakan kekuatan terakhir dari up trend yg sangat kuat ditandai dengan munculnya CS bearish dan kekuatan buyer sudah mulai melemah, sehingga dapat dipredikisikan trend berikutnya adalah downtrend meski tidak se extreme trend sebelumnya



Bahwa kekalahan anda sebenarnya bukan saat anda rugi atau saat kehabisan modal,tapi saat anda memutuskan untuk berhenti trading dan memutuskan untuk tidak akan melakukannya lagi.



Trader yang saat ini berhasil hampir semuanya pernah mengalami saat saat seperti anda, tapi keinginannya yang kuat untuk menjadikan trading forex sebagai sumber penghasilan membawanya bangkit lagi dan tetap menyukai trading serta percaya suatu saat trading lah yang bisa membawa pada kesuksesan finansial. ” Masa orang lain bisa sukses sedangkan anda tidak…! Keberhasilan bukanlah takdir, tapi buah dari usaha anda karena Tuhan pun tidak pernah mentakdirkan seseorang jadi gagal..! Tuhan tidak pernah ikut campur masalah uang, tapi Tuhan menjanjikan kepastian perubahan hidup lebih baik bagi siapa saja yang mengusahakannya..” Dalam prakteknya langkah yang harus dilakukan untuk mengatasi mental trading yang down yaitu : 1. Silahkan tradingnya libur dulu selama sepekan Artinya selama seminggu kedepan silahkan tetap amati kondisi market, tetap lakukan analisa tapi jangan lakukan transaksi . Kedisiplinan anda akan diuji disini .Belajarlah untuk tidak tertarik melakukan transaksi hanya karena emosi .Belajarlah menganalisa secara netral. 2. Temukan Strategi Baru Sambil mengamati grafik seperti di langkah 1 , coba cari dan temukan strategi baru karena strategi lama anda terbukti tidak berhasil. Dengan menemukan strategi baru pasti akan muncul gairah untuk trading karena anda bersemangat untuk menerapkan strategi itu. Tapi harus diingat lakukan uji coba dulu pada strategi baru itu. Dengan menerapkan 2 langkah diatas semoga mental trading anda terangkat dan tidak lagi down. Tapi jika anda ingin tahu, sebenarnya kunci agar mental trading tidak mudah runtuh adalah kekuatan tekad anda untuk berhasil dalam trading forex serta keyakinan bahwa anda pasti bisa berhasil dalam bisnis ini. FOREX



Oleh karena itu dalam memilih waktu trading yang baik perlu memperhatikan beberapa hal berikut : 1. Jumlah profit yang ingin didapat dalam 1 hari. 2. Kesibukan sehari-hari Seandainya dalam satu hari kita hanya melakukan 1- 3 kali transaksi maka : Untuk anda yang hanya ingin meraih 5 – 15 pips dalam sehari , anda bisa trading kapanpun. Untuk yang ingin meraih 20 – 40 pips bisa trading mulai pukul 13:00 –



21:00 karena saat itu market sedang ramai sehingga pergerakan dala 1 sesi minor trend saja bisa mencapai 30 pips .Serta untuk anda yang ingin meraih lebih dari 60120 pips sehari,waktu trading terbaik adalah mulai dari market dibuka yaitu di pagi hari sampai sebelum market eropa dibuka yakni antara pukul 05:00 pagi s.d 12:00 karena pada saat itu market belum bergerak sehingga diakhir hari trading kondisi market telah bergerak jauh. Untuk anda yang full time trader bisa memilih waktu trading sesuai dengan jam trading diatas. Tapi untuk anda yang part time trader atau memiliki pekerjaan lain selain trading . Sebaiknya trading di malam hari diatas jam 21:00 atau dipagi hari antara pukul 04:00 – 06:00 . Cobalah lakukan analisa pada 2 – 3 time frame.



STRATEGI



Untuk strategi scalping karena mengharapkan market yang bolak-balik maka efektif dilakukan saat market sedang sepi dan belum menentukan bentuk trend nya yaitu dari pagi sampai siang . Untuk strategi trending karena yang diharapkan adalah bisa masuk diawal trend maka bisa dimulai pukul 11:00 sd 15:00 ,lalu trend kedua mulai pukul 19:00 sd 21:00 . Untuk strategi breakout harus masuk pada saat market volatile yang biasanya terjadi pukul 13:00 sd 15:00 atau 20:00 sd 22 :00 . I. Entry Point Trend Naik Higher low



II. Entry Point Trend turun Lower high



III. Entry Point Balik Arah Naik



Candle hammer atau inverted hamer serta candle reversal di area oversold atau konvergen .



IV. Entry Point Balik Arah Turun candle shooting star , hanging man dan candle jenis reversal lainnya di area overbought atau konvergen



REVERSAL or CONTINUATION



I.



Continuation



Untuk mesamstikannya kita lihat pola grafik nya pada time frame yang lebih kecil , lalu kita  analisa apakah grafik nya menunjukan akan terjeadi trend turun juga.



 Dari grafik di atas kita menemukan 3 hal yang menunjukan trend akan turun yaitu : - Adanya puncak yang merendah



- Garis support yang berhasil ditembus - Penembusan garis support ini dikonfirmasi dengan sebuah koreksi yang kemudian di balikkan lagi kebawah oleh candle panjang .



II. Reversal. Entry point pembalikan arah adalah jika candle sebelumnya menunjukan jenis candle reversal , dikonfirmasi dengan bentuk grafik penyusunnya yang overbought atau oversold atu bahkan konvergen .  



untuk membaca satu candle kita perlu juga membaca grafik penysun candle tersebut pada time frame yang lebih kecil .Dengan demikian akan terbentuk sebuah aturan : 1.Jika pola grafik penyusun satu candle sebelumnya berupa pola bullish continuation , maka satu candle berikutnya akan membentuk candle bullish  2. Jika pola grafik penyusun satu candle sebelumnya berupa pola bearish continuation , maka satu candle berikutnya akan membentuk candle bearish 3. Jika pola grafik penyusun satu candle sebelumnya berupa pola bullish reversal , maka satu candle berikutnya akan membentuk candle bearish 4. Jika pola grafik penyusun satu candle sebelumnya berupa pola bearish reversal , maka satu candle berikutnya akan membentuk bullish Selain dengan cara diatas , membaca satu candle juga bisa dilakukan dengan melihat kronologi terjadinya candle tesebut. ” kemanakah market akan bergerak ?”  Untuk menjawabnya kita harus melakukan analisa .Dalam forex trading dikenal ada 2 jenis analisa yaitu analisa fundamental dan analisa teknikal.Untuk saat ini kita akan membahas cara menganalisa forex secara teknikal , yaitu analisa dengan memanfaatkan pola grafik, candlestick serta indikator. Dalam menganalisa untuk menentukan arah market selanjutnya,susunannya adalah lihat arahnya secara umum , lihat arah pada time frame diatasnya, lihat arahnya pada grafik yang diamati, lalu cari entry pointnya.



Melihat arah market secara umum bisa dengan cara melihat candle hari sebelumnya .Jika candle harian kemarin menunjukan jenis continuation maka /penerusan , maka candle yang akan terbentuk hari ini searah dengan candle harian kemarin.Begitu juga sebaliknya. Selain itu untuk melihat arah market secara umun bisa dilakukan dengan memperkecil tapilan grafik yang sedang dianalisa.Jika tampilannya mengarah naik, maka untuk hari ini masih cenderung naik . Begitu juga sebaliknya. Selanjutnya pada time frame yang sedang dianalisa pasang bollinger band untuk melihat keramaian pasar / volatilitas pasar. Saya merekomendasikan bollingerband period 12 dengan deviasi 2 . Selain itu siapkan indikator pengukur kejenuhan pasarmisalnya stochastic oscilator atau RSI . JIka menggunakan stochastic oscilator saya merekomendasikan parameter ( 9,3,5) atau jika RSI pakai period 7 atau 9. Langkah selanjutnya pada grafik yang sedang diamati buat garis support dan resistance yang terdekat dengan harga market saat ini untuk menentukan area pantulan grafik. Setelah pengukur volatilitas dipasang , pengukur kejenuhan dipasang serta dinding pembatas dipasang, kini kita tinggal mencari entry point untuk membuka posisi. Mencari entry point bisa dilakukan dengan cara menjawab pertanyaan berikut : 1. Apakah market mengalami breakout ? Jika YA , apakah arah break out sama dengan arah market secara umum? jika YA segera bukaposisi dengan target posisi agak panjang. Tapi jika searah targetkan hanya pada support resistance terdekat. Ciri-ciri breakout adalah munculnya candle berbadan panjang yang menembus support/resistance disertai bollingerband melebar dan volume membesar. 2. Apakah trend mulai terbentuk ? Jika YA, segera buka posisi .Jika arah trend sesuai dengan arah umum harian maka targetkanprofit lebih banyak. Namun jika tidak searah , targetkan pendek saja yaitu pada support/resistance terdekat. Cirinya trend mulai terbentuk adalah adanya lembah yang meninggi untuk trend naik, atau adanya puncak yang merendah untuk trend turun. 3. Apakah market menyimpang ? Dalam istilah trading lebih dikenal dengan konvergen/divergen. Jika YA , anda bisa membuka posisi . Cirinya konvergen adalah ketika grafik merendah sementara indikator meninggi. Sebaliknya, ciri divergen adalah grafik meninggi sedangkan indikator merendah. 4. Apakah grafik akan balik arah ? Jika YA , maka buka posisi target dengan profit pada trendline.



Ciri-ciri market akan balik arah adalah grafik berada diarea jenuh. Signal balik arah muncul dari perpotongan stochastic atau candlestick jenis reversal. Itulah cara menganalisa forex secara umum. Untuk cara menganalisa yang lebih detail dibahsa pada halaman lainnya.Oleh karena itu jika anda mau lebih paham cara menganalisa forex, anda bisa baca caranya pada halaman berikutnya Scalping in numbers is the secret! Remember earlier when I told you that scalping a single pair won't make you much money? Have you ever heard of the saying, "There's power in numbers?" Well this is a scientific fact, that has been proven over and over again. When you scalp a pair make sure that you purchase a high amount. This is to maximize your profits. So if your trade makes 2 pips you can make upwards of a couple hundred to a couple thousand dollars. Be careful. This is probably going to be one of the most important tips ever. Along with the quick profits, you can and most likely will come across a couple big losses on this magical Forex scalping journey! This is why you have to be able to accept these losses. Trading on a small scale can be easier for some. I always suggest that newer traders should really try to scalp on a demo account. Get comfortable with trading on a short term scale. I would advise that you should only scalp on a live account when you feel 100% comfortable with every trade. Imagine the demo account being your money. Imagine taking a huge loss in real life when you make a mistake. When you feel fully comfortable with everything even after a big loss, then you are ready grasshopper. Scalp the Forex market with a plan! This is the best way to avoid losses during your adventure. Use that demo account that we talked about earlier to find a suitable set of indicators or oscillators or even both! The demo account allows you to trade in a real time setting while trying out different systems. This can greatly increase your odds of making a good profit. Try every single combination of technical indicators. Do this until you find a pair that you like. Once you find one then you will truly be on your Forex scalping journey. Please make sure that you use my tips. I didn't know about it when I started. And I lost EVERYTHING! 30 minute scalping technique that nets 20 to 40 pip This technique requires identifying a candle pattern that I call a tech one trade. Specifically, this candle pattern is either an engulfing candle pattern or Morningstar/evening star pattern. A special tip it may help you is to wait for the candle pattern to close and complete itself.



Do not assume that it will make a candle pattern until the candle has closed. I use the CCI indicator and macd histogram however it may be used with other technical indicators, you may need to do some testing if you use something other than the two I listed. The setup requires there to be some form of consolidation with a clear support and resistance identifiable on the 30 minute chart. It begins with the candle that closes above or below the range of consolidation, specifically, support or resistance. once the candle has closed outside of the consolidation range in price has moved perhaps 30 or 40 pips, if this activity is not something you prefer to trade fearing possible false moves outside of consolidation, you can wait for price to retrace giving you a second entry opportunity and also additional confirmation.  trading like this will take a great deal of fortitude however patients makes the trader. The retracement will usually occur or pull back to another level of support or resistance depending on which direction prices headed. Retracements using Fibonacci tools such as the 382, and 618 levels are quite reliable. Often times you will notice Price retraces to an old support or resistance level, typically the high or low in which created a consolidation range to begin with. All of these are forms of confirmation and waiting for the retracement to occur allows additional time for a trader to gauge and identify market sentiment and price direction on an intraday basis. Please see the first chart picture of the breakout candle and the retracement. Once the retracement to a support or resistance level has occurred I wait for the tech one candle pattern to develop. In this example using the GBP/USD 30 minute chart it was a bullish engulfing candle. This example shows several forms of support as confirmation. The 20 psychological level, the daily fulcrum, and also the 618 retracement level. These are just a few forms of confirmation you should be aware of when using this technique. The entry is on the close of the completed tech one candle pattern, again a tech one candle pattern is an engulfing candle or Morningstar/evening star pattern. The stop is placed several pips below the price swing that creates the candle pattern. Depending on price activity at the time and also considering the actual time, targets are approximately 15 to 40 pips from entry. You may also consider using Fibonacci extension targets based on the most recent price going on the time frame you are trading from.



Possible trade opportunity on EUR/JPY I trade two basic techniques, one is a break out of consolidation and the other is entering on a pullback when price is trending . My techniques can be used on almost any timeframe however I prefer the one hour and four hour charts using the daily chart for overall trend direction and the 30 minute chart to minimize the stoploss levels and pinpoint specific entries. Just a short time ago, from the time of this writing, April 13, 2009, 1 p.m. New York time. I have a confirmed bullish breakout candle on the four hour chart for the EUR/JPY. Specifically, the move is a potential bullish breakout with a potential profit target of 136.00 and above. The stoploss levels however would be quite large trading off of the daily or four hour chart so I prefer to wait and watch the 30 minute and one hour charts.  What I am looking for is a pullback to a support level, perhaps a psychological level, a fulcrum point or a Fibonacci retracement, and even a combination of these. Once I have identified the retracement I look for a bullish candle pattern such as engulfing or morning star pattern at this support level. It will take a great deal of patience and discipline but I am specifically looking for a closed completed bullish candle pattern on the 30 minutes or one hour chart. I stress the fact that I only analyze closed completed candles as this eliminates jumping in to soon in anticipation of a substantial move. Waiting for the candles to close is an additional form of confirmation. As time continues I will post another candle pattern when it develops on the 30 minute or one hour chart to signal a possible entry for this pair. I stress waiting for the pullback and looking for the bullish candle pattern before entering. This will allow for much more confirmation.



This same breakout technique is the one I used today on the EUR/USD which was a bullish trending move, April 13, 2009. The reason I look at the 30 minute chart is to minimize stoploss levels based on the most recent/significant price swing on that timeframe after I have an entry point. My entry is on the closed completed candle pattern.



30 minute scalping technique tips This post is an extension of my previous 30 minute scalping technique. Below you will see a comparison between two charts, one worked better than the other and for several reasons. The first one is GBP/USD 30minute chart. The first thing to notice is that the white line is the 20 day EMA. On this timeframe it shows that the trend remains intact and it is only a pullback. What I am looking for is what I call a tech one candle pattern and more specifically it must be a closed candle pattern. I do not want to assume anything when trading so I absolutely have to wait for



the candle to close. When the candle finally closed and completed the pattern, there was a bullish engulfing tech one candle pattern. This is my entry. Now, notice the EUR/USD 30 minute chart. There are several things that are a bit uncertain on this chart. First of all price is well below the 20 day EMA which could provide a little bit of resistance or perhaps a smaller/slower move. When we are scalping we are usually looking for quick short profits in a relatively short period of time. It is possible that the EUR/USD trade will work however we are trading against the trend and it is very different from GBP/USD. My point here is that as traders we should only look for specific patterns or locations to enter a trade we feel will provide the greatest opportunity to succeed. There really is no point in testing the market with real money, we can save that for our demo accounts. So while the EUR/USD worked, the safest trade was GBP/USD and we need to be aware of all the technical information available in the chart. The comparison here is just to show that one looked a lot better than the other and when you�re in a trade there is no reason to panic or be afraid. We want to take trades we can be comfortably sure will usually result in a profitable outcome. By only taking trades that we are comfortable with and we understand, we are more likely to observe the market and what price is doing in a more educational and responsible way. When we enter a trade we are not sure of in the first place, what sets in is panic and uncertainty, and it makes it very difficult to be aware of what is actually happening in price. Often times when we are in a bad trade which we were aware was a bad trade to begin with, we start to see things in a way that represents what we want to have happen rather than what is actually happening. This is another tip for the 30 minute scalping technique which can result in 15 to 20 pips each time you use this trade in the correct locations. It is available on almost all currency pairs several times per day. Stops are equivalent to targets.



The importance of using larger time frames for Forex trading strategies A larger time frame can be considered any time frame larger than the one you are looking at to identify a trade entry. There are valid trading techniques and methods for almost any time frame however it is always important to be aware of what is actually taking place on the larger time frames such as the four hour and daily charts. Support and resistance are key levels we must always be aware of even if we trade on a five or 10 minute chart.



Often times day traders will use a smaller timeframe to identify entries and profit targets and their focus becomes myopic and they no longer look at the larger four hour and daily charts. I would like to discuss an example of using the four hour and daily charts to determine whether or not the market is trending or inside of consolidation which often times can be found using the larger time frames. This example is a recent example from the time of this writing. I am using GBP/USD. The first chart shows consolidation on the 30 minute chart. Knowing where support and resistance is on the daily or four hour chart isn�t always possible to see using the 30 minute chart. Always giving the larger time frames a quick look before making a trading decision will work in your favor. I considered entering a trade on this pair during this 30 minute consolidation when it appeared price may be making a move, however looking at the daily chart shows a significant old resistance level that is now possibly acting as a support level, if only temporary. This daily support level was not noticeable on the 30 minute chart by itself. Identifying this support level on the daily chart keeps me from making a trade decision to quick without looking for confirmation. I may need to wait for some significant economic data that will make some kind of an adjustment and re-evaluation of this currency pair or it may simply take time before sentiment wins over in one direction or another. At this point, I will isolate the consolidation area on the 30 minute chart and when I see a breakout candle, again I will look at the four hour or daily chart. Hopefully at the time of the breakout candle on the 30 minute chart I will see some kind of candle pattern on the four hour or daily. This could either confirm the bounce off of this possible support area on the daily chart or indicate that price will be moving lower and breaking through the support level. No matter the outcome, what is very important is always to remember using the larger time frames as an additional source of confirmation for your Forex trading strategies.



Patience in your Forex trading strategy Whether we can admit it or not,  Patience will make or break your Forex trading strategies. Especially a scalping Forex scalping strategies. There are times when there simply isn�t a trade to be made. And even if we need the money, we might lose more than we could make if we don�t find the strength to restain ourselves and our thoughts. Today I was watching the EUR/USD. (april 21st 2009). For the most part, the EUR/USD remained inside consolidation with nothing more than perhaps a small scalping opportunity. If you are not in at the right time, you might as well forget it because the stop loss on days like this ends up being more than any potential profits. My first suggestion, learn how to correctly identify consolidation. Not just on large time frames, but on the time frame you are trading and looking for your entry.



Once you can correctly identify consolidation, knowing when you should stay out of the market and refrain from trading becomes a lot easier. Again, there are simply days when we shouldn�t be trading and your Forex trading strategies should include methods for identifying what state the market is currently in. Is the market trending or inside of consolidation and what time frame are you using to identify the state of the market? These are serious questions you should ask yourself before ever considering any trade. A tip I can share with you and one that has probably kept me in the game a lot longer than most, �Only analyze closed candles, regardless of what time frame you are looking at. Never assume that a candle will close in a certain way. Just wait till the candle closes before making your decision.� A second tip is to obviously spend as much time as you possibly can learning how to identify consolidation. Watch and learn everything about it. Watch it during holidays, watch it during news events, watch it when certain markets are closed. Remember learning to successfully trade the forex will take time and you will need as much experience as you can possibly get. It�s the only way!



30 minute Forex scalping method revealed The principles to this 30 minutes scalping strategy can be applied on almost any time frame however please make adjustments for stop loss levels and profit targets. This trading strategy takes place approximately 3 to four times in a 24 hour period between the three major currency pairs. I like to use this strategy on a 30 minute chart however I know that some successfully apply it on smaller time frames. When choosing to look for a different time frame you must do some testing to determine your comfort level for profit targets and stop loss. Each one of us prefers to use a different type of stop loss and it may change the outcome of this strategy but I will attempt to explain my stop loss strategies with this 30 minute technique. How to set up your charts: I typically use the CCI and the MACD histogram. I also apply the -DMI and the +DMI to my charts and when I am looking to scalp I often times will rely on the DMI. In the price pain window I use a 20 day EMA. Generally I will go long when price is above the 20 day EMA and short when it is below. These are just some basic outline principles and can be adjusted according to market conditions such as consolidation. I also use the fulcrum based on each day price activity. A general method of using the fulcrum is to go long when price is above the fulcrum and short when the low. please remember these are just outline rules to apply some structure, don�t forget to do some testing.



The set up: The entry occurs when I have a completed candle pattern such as a morning star, evening star or engulfing candle pattern. I must stress that I only analyze a trade when I have a closed completed candle on whatever timeframe I am using. For example, If price is inside of consolidation, I will look for one of these candle patterns to occur at support or resistance on the 30 minute chart and I prefer price to be below or above the 20 day EMA according to the rules I mentioned above. Now in reality it isn�t always going to look like that when price is inside of consolidation. The 20 day EMA will often times move in a semi-straight-line through consolidation making it difficult to get a reading. If this is the case I will only take one of these candle patterns when price has hit support or resistance that I can identify during the consolidation stage. If there is one of these candle patterns in the middle of this consolidation, I leave it alone as it may be a false move. The other location I find an entry to use the scalping method is when price has actually broken outside of a consolidation range. What I am specifically looking for is a confirmed closed breakout candle. Afterwards I watch for the retracement to either support or resistance depending on which direction price has broken out. Once price has returned to a support or resistance, again I look for that candle pattern in the direction of the confirmed breakout. Using this retracement pullback method will also allow for additional forms of confirmation such as finding the support or resistance level with psychological levels, Fibonacci retracement levels and the fulcrum. Additionally old highs and lows will come into play often.



Profit targets: I am basically looking for 15 to 25 pips as a profit target. This method can be used with only one lot as there is no scaling out of the trade. Comfortably I look for 15 to 20 pips on GBP/USD and approximately 15 pips on EUR/USD. The stop loss levels are approximately one to one and equal to profit targets however on occasion it is not always possible to make that so and depending on market activity at the time retests are bound to happen. Specifically retests to support or resistance levels that often times will be very close to your stop loss. If the stop loss levels such as support below the candle pattern that creates the entry is too large and unacceptable to you, pass on the trade and look for another opportunity. Often times using the 30 minute and the 15 minute chart will provide numerous opportunities to keep stop loss levels within 15 to 25 pips. That�s basically it. The tip I would recommend always remembering is only analyze and wait until the candle has closed creating the pattern you�re looking for. Also don�t anticipate price



will continue any farther than you planned. Simply take what you intended to from the beginning of your trade and follow your plan. It is always when we change our plan that we tend to lose. If you would like to see chart examples please instant message me and I will be happy to forward them or perhaps with enough interest I can post them here on this thread.



Don�t use the scalping method when this happens- must read! I want to share with you a few tips about a trade technique I use. The first thing I would like to say is that it isn�t always possible to make a trade when ever a pattern appears. This is part of the reason automated trading systems don�t always work. It takes an experienced forex trader to stop and analyze the activity taking place in the market at the time a potential trade develops. Sometimes the signals will be mixed. You might see a BUY order on your charts but the economic data and market expectations may be telling you a different story. When I see conflicting signals between the fundamental and technical analysis, I will consider staying out of the trade even if it appears that there is a trade. I would rather watch how price reacts without risking my money than to test a theory or my ego, and lose money. There will always be another trade and there are many to chose from. The first thing any Forex trading strategy should include is a very specific plan that gives an exact entry and target with appropriate stop loss. But each time that pattern or trade sets up, you must confirm it with the economic data that is available or at the very least, market sentiment.  This is because not every trade will work and that�s were it takes trained human analysis. The scalping trade I use is a specific candle pattern that is easy to use and identify. However it requires confirmation. The confirmation is what a automated trading system can not do and something that will take time to learn on your own, or you can speed up the process by finding an experienced professional to teach you to details and nuances that cant be over looked. The scalping technique developed on both the EUR/USD and the GBP/USD. They both need confirmation and looking at the chart you can see that GBP/USD was clearly inside consolidation.  What is consolidation? Well we all know for sure that it is not a trending environment with momentum behind any move. When price is inside of consolidation it will usually move around with no clear direction and trying to use certain trade techniques will usually result in a stop loss triggered. So that�s our first lesson, don�t use this scalping method when price is inside consolidation.



Notice the difference between the EUR/USD and the GBP/USD. I used the method on the EUR/USD because price had broken outside of the consolidation range and the GBP/USD had not. I watched the GBP/USD at the same time just to make sure my analysis was correct and if I would have tried the scalping technique on the GBP/USD, I would have been stopped out. And soon after price went to the anticipated target. This is an all to familiar situation for all of us. Getting stopped out yet price still goes to the target. How do we eliminate the chances of that happening? Looking for an opportunity for price to move in a predictable manner with momentum behind a move. The perfect example of this is the EUR/USD. This one was on its way with price breaking the consolidation and traders driving price when they saw the breakout occur. So remember, you must know the difference between consolidation and a trending market. There are different trading strategies for each situation.



Scalping Strategies & Proven Techniques for any trader Personality: -          Experienced traders Scalpers need to have a lot of trading experience because the need for understanding market sentiment is vital. I need to be able to ‘feel’ or ‘sense’ the market is going to move ahead of time using technical indicators such as momentum, volume, and tape reading, and these skills take time to develop, especially because they move very quickly sometimes when conditions can be best for scalping. Many traders I have worked with can pick up scalping immediately by using simple entry patterns that can be used on faster time charts and range charts. One of the reasons I was successful in scalping was putting in a lot of screen time watching live market action, and getting used to seeing what happened on the tape, with momentum, and how my scalping was responding to certain conditions. We can use easy patterns to identify excellent entries for scalpers, but you need a strong foundation of price action knowledge to get started, so use a simple method like the ‘Fast Track’ to learn the basics, and work towards becoming a scalper in the near future.



-          Lots of action & emotions One of the biggest obstacles that a scalper faces is the fast pace of action during the trading day. We love the action, but it can be our own demise as scalpers.  Our emotions can sneak into our trading, so we need to be careful not to get carried away when we have a few winning trades. Ive had trading days that began with HUGE profits and ended in HUGE losses, just because I was supposed to be invincible. 



Handing losses is a big issue with scalping because you take a lot of trades, and if you get emotionally attached to your trading you will have a rough ride on the emotional rollercoaster after half a day of trading. My daily routine as a scalper is my secret weapon for trading success. One thing that I recommend to scalpers is a well defined routine and diet.  By calculating a daily routine you put your mind in a calculated state, and that gets a scalper in the ‘mood’ to follow entry rules and trade systematically. Suggested Reading:  Discipline Cycle Workshop



Common mistakes:



-          Risk/Reward Ratio (targets/stops) A common misconception among new traders is that s scalper can use a wide stop to avoid losses and can simply use a tight target and rack up all the money. Your trade management for scalping futures contracts will be the difference between success and failure. It it were only that simple…I need to keep my stop and my target equal distance from my entry (or as close to that as possible) so that I can keep the money that I earn when I have a winning trade. Wide stops cost you more money than your winning trades, so keep a tight stop when you use a tight first profit target to make sure your ratios in are line. For more information on trade management strategies just ask me for help



-          Over-trading / Lack of Discipline / Lack of Confidence All traders are human (well most of them at least) and us humans have emotions that make it difficult to stick to our plan of attack when we are trading. I need to have a strong command over my rules, and I need to know when to AVOID trading when I am scalping.



Trading with specific entry rules, and the ability to follow those rules will be vital to a scalpers long term success because little losses quickly add up if you are taking dozens of trades every hour at some times. -          Trading an illiquid market Picking the correct market can be tough to a new trader because there are so many options.  Trading stocks there are literally millions of companies to consider, and trading futures can be just as diverse when it comes to options for different contacts to trade. The key to being a good scalper is to understand the personality and trading range of the futures market you are trading. For example, if you are trading Crude Oil Futures you need to know the personality is significantly different then the E-Mini ES.  Neither of these is ‘better’ to scalp than the other, but their differences in LIQUIDITY, and in turn, personality, means we need to use slightly different approaches for each. Our goal as scalpers is to find a market that provides a combination of liquidity and volatility, giving us plenty of opportunity to trade, and when we do take a trade there is a high likelihood that the move will go a fair distance in our direction and makes us some money. Look for a market moves enough to see decent profits, and make sure there is enough volume in that market to show you consistency in the moves it produces. Crude Oil Futures would be a great example of a market that has just enough liquidity to provide good fills, but not too much volume to make it slow and sluggish like the ES, ZB, ZN, or FESX.



-          Tape Reading Scalpers must have a command over tape reading, and the ability to determine market sentiment based on the size and the speed of the orders coming into the market. The invention of the Pace of Tape indicator is an effective resource for scalpers to define the speed of the market, and therefor, should be considered when learning to scalp the futures markets.



Tape Reading in general is vital to a scalpers success because it is the purest form of price action, and our goal as a scalper is to find small moves in the market and take advantage of those moves with limited risk. Reading tape tells me when to enter, when to avoid the trade, where to take profit, and when to call a trade dead in the water. Tape reading is a skill that is more empowering to a scalper than being able to read the minds of other traders in the pit, but it can be hard to learn without the time committed to watching the time & sales window along with price action on your charts to see the battle between the bulls and bears develop right in front of you.



-          Too much with too little Don’t make the same mistake that I did when learning to become a scalper; try to make too much, too fast, with too little. I have to remind myself sometimes that I spent 10 years learning this process, and I spend less than 2 weeks with a client and they are making money  If I only knew then…what I know now.  It’s a beautiful thing to be given this great opportunity to learn and earn QUICKLY, but reading the tape has NO SHORTCUT, you need to listen to the market, and don’t be afraid to ask me questions.



Tools we use: -          Liquid Market In order to be an effective scalper you need a market that has a combination of liquidity and volatility. I want enough volume to fill my rapid entry orders, but I don’t want too much volume to slow down the pace of the market. The 30-year Bonds and E-Mini S&P are examples of futures markets that have a little too much volatility.  Crude Oil futures, gold and the Euro are great examples of markets we look for when scalping. -          Larger trade accounts One of the most common misconceptions among new traders is that scalping only requires a small trade account because you aren’t taking that much risk on each trade. Yes, there is very little risk per trade as a scalper; however, there will be more trades every day so your risk for the day is still relatively similar to many other trading styles. It is preferred that scalpers have larger accounts so they can have confidence in their calculated entries throughout the trading day. If you have a small trade account I encourage our clients to begin with our day trading strategies to learn with a more flexible and simpler approach, with the intention on building confidence and experience to become an excellent scalper in the future. -          Fast connection One of the most important aspects of scalping is your data connection; it’s your lifeline to the market and you need this to be fast and consistent. As a member of our trading community you will be provided with the fast data connection you need to be a scalper, one of the most common mistakes I see is a trader using filtered tick data for their charts. Filtered tick data or level 2 data will not give you the most recent price information from the exchange, which is vital to a scalper. -          Stable Charting Package Have you ever missed a trading day because your charts wouldn’t load?  We all have, and you cant be a trader without consistent charts and trading DOM.



Scalping requires the very best charting software you can find, and we provide it with membership to our trading community as well. -          Live News Data (here's the service I prefer) Easy access to live news data is one of the most significant advantages to scalpers in the last decade, and I rely on a accurate news information to show me trading opportunities as a scalper. Charts to watch for scalpers: -          4-Range -          8-Range -          89-tick -          1-min -          2-min Futures Markets to Watch for Scalpers: -          Crude Oil Futures (CL) (3am-6am & 8am-12pm EST) -          Gold Futures (GC) (3am-6am & 8am-12pm EST) -          Euro Futures (6E) (3am-6am & 8am-12pm EST) -          Aussie Futures (6A) (3am-6am & 8am-12pm EST) -          CAD Futures (6C)(8am-12pm EST) -          Mini Russell Futures (TF)(930am-12pm EST) -          E-mini S&P (ES)(930am-12pm EST) -          Dax Futures (FDAX) (3am-6am & 8am-11am EST) -          Eurostoxx Futures (FESX) (3am-6am & 8am-11am EST) -          US 30-Year Bonds (ZB) (3am-6am & 8am-11am EST) -          Wheat Futures (ZW) (10:15am-12pm EST) -          Corn Futures (ZC) (10:15am-12pm EST) -          Soybeans Futures (ZS) (10:15am-12pm EST)



Trade Management Strategies: Scalpers need to have a very precise and fully-automated trade management strategy ready to be used with every trade because the markets we look for move quite quickly at times. Our trading DOM we use in our live trade room, and included with membership, has automated trade management strategies that are set-up ahead of our trading to precisely what our profit targets, stops, and trade management will be.



Its important to remove the emotions of trading as a scalper because your emotions will cause you to make poor trading decisions, so automating your trade management is something we do first. The key to quality trade management for scalping is to understand how the market really moves.  In my opinion the market moves in 3 phases: 1.      Initial Noise 2.      Follow-Thru 3.      Exhaustion



If we understand how the market moves, we can plan our trade management accordingly. As a scalper, my trade management will be set up ahead of time, but I will need to know my final profit target, assuming I am using a 3-target approach, which is most common among traders. We have standard techniques and strategies for determining the final profit target as a scalper, which include support and resistance levels we have determined ahead of time. My goal as a scalper is to get into a trade before the move begins, look for a quick profit target to earn some money, and at the same time I want to remove the risk on my trade so that I can lock that profit up tight in case the market reverses. I’m going to move my stop loss to my point of entry when I fill my first profit target, which will be within 10 ticks of my entry point in most situations. With my first target filled, and my stop at entry I’m now in a great position; I have no risk, and I am in the trade before the market really takes off. This technique of managing a scalp trade is highly effective at allowing a trader to avoid losing money on winning trades, which preserves tradingCONFIDENCE, which is one of the most valuable commodities a trader can posses. Every trader wants to take large winning trades, and this management strategy gets me into scalp trades confidently, removes my risk quickly, and gets me into a trade so that I can capitalize on the larger move of the day. -          4/8/Runner o   Take ½ off at first profit target and move your stop to entry point



-          6/12/Runner o   Take ½ off at first profit target and move your stop to entry point



The best way to make money Scalping Futures: I really like to show my clients how they can use these techniques to make money.  This isn’t for having fun, or impressing friends of your futures information…this is for PROFIT, so lets get down to business on how we make money with these scalping strategies. Here’s what I’m looking for when scalping the futures markets I trade…. -          Check the time of the day, we cannot trade around the news events.  o   I use a live news feed, and I can give you info if you email me. -          Identify the pattern on the slower timeframes o   I’m watching 30-min, 34-range charts to see the BIG PICTURE patterns -          Zoom in and use a faster timeframe for a more precise entry o   When I see a pattern on the slow timeframes I find the location of the entry trigger, and then look for a precise entry pattern on a 1-min, 2-min, 4-range, 8-range chart, 89-tick chart -          Check your entry rules for this pattern o   Now that I can plan my entry on my fast timeframe, I scan my specific entry rules for this trade, making sure that I check them all. -          Plan your final target, your first 2 targets and your stop will be standardized o   Assuming my entry rules are ok, I then plan my trade management ahead of time so I am prepared for battle -          Read the tape looking at size and speed of the orders coming into the market. o   Once the trade is about to trigger, I’m paying close attention to the SIZE and the SPEED of the orders coming into the market -          Speed is the most important factor for scalping o   I check the Pace of Tape indicator and make sure the speed is rising, not falling. -          Look for momentum to confirm o   I check momentum on the fast timeframe AND the slower timeframe to trigger your entry.



o   In trending markets I only need 1 timeframe to confirm, but in slower sideways markets like we see during the summer or the end of the first quarter each year we should look for additional confirmation from a second timeframe. -          Time is not on your side, o   I need to see the move happen quickly.  The longer it takes the more risk on this trade.   Good rule of thumb is 5 minutes from when the pattern forms and when the pattern actually triggers.   The longer it takes we have to wonder.. “whats missing?” -          Be confident in your entries, and be confident in your exits if you make a mistake. o   This comes with experience, and experience comes from consistency o   You will get confidence when you consistently trade according to your scalping rules of entry. o   Keep it simple, focus on YOUR pattern, and don’t get distracted by things around you. -          Record Your Data o   After each trade I complete my analysis of the trade o   Very important NOT to over trade and lose track of the trades you have taken, especially while you are learning. o   Learning from losses is the most efficient way of developing your skills, so take the time to finish your day with the proper recap of your trading day.



Tape Reading Strategies for Beginner's



“Market participants leave their footprints… telling us where they’ve been...and giving us clues as to the direction they’re headed in the future” What is tape reading?  Why do day traders read the tape? • Tape Reading is the study of raw price action as it comes across your time & sales window, and is considered by most to be the ‘purest form of the market.’  • The term tape comes from ticker tape; print out by the ticker tape machines available since 1870s which reports the latest trade/bid/ask update information. How it’s used: • Predict short term price changes by examining price and volume information as it comes across the ticker tape.



• Most effectively used at potential turning points in the market to gauge overall market sentiment and help determine the future direction of price. • Traders use this to see confirmation of a potential trade set-up, or a heads-up that a set-up should be avoided. • Also used as an indicator of when momentum has dried up, signaling a trader to take profits or to limit his/her risk on a position. Benefit to the trader:  • Filter out the highest percentage set-ups • Confidence in your entries • Know when to exit a trade • Maximize profits on each trade • Limit the risk on each trade What to watch: • Speed of the orders • Size of the orders • Order Condition Learning to read the tape is a vital part to becoming a successful trader in the long term, and understanding how to learn this skill can be difficult if you don’t know what to look for. Learning to read the tape is as easy as 1-2-3!



First, know what you’re looking for… Find a pivot point A pivot point is nothing more than a specific price level for the market you are trading, and we will use this price point as a reference. The most common pivot points for this would be the open, high or low of day, and previous close levels. We use these specific levels in the market to watch how price action reacts in and around these areas. If we see that price action shows bullish patterns around the high of day, that will tell us we should expect to see the market try to rally through the highs of the day. In other words, this tells us the overall market sentiment at these levels. Reaction to Price Moves Successful traders always trade the reaction, rather than the move, and reading the tape allows them to really tune-into what really drives these moves.



For example, if price is trading in a specific sideways trading range and then breaks out of this to the up-side, the experienced trader knows to stay away from getting involved on the initial move up, but rather pays close attention to how the tape reacts to this move. Using simple price patterns at these extremes, the trader can get a better feel for the sentiment in the market, and make educated trading decisions based on this reaction to the increase in price. Conviction in the market Are buyers met with equal amount of sellers?  Are the sellers having a hard time keeping up with the buy orders?  Is price forcefully moving through levels of support or resistance?  Is price flirting with support and resistance levels, only to be swatted back and forth like a paper napkin? Price patterns on the tape solidify conviction in the market and give the trader more confidence getting involved with the current short-term trend. 



On the opposite side, conviction on the tape can also give the trader an indication that the current move has ended, and they need to be prepared to see a potential reversal



Second, use simple patterns to identify these opportunities As traders we use predictable and dependable patterns on the tape to make educated trading decisions. These patterns are easy to see on your time & sales window if you know what to look for. Use these simple patterns to develop your skills: Pattern #1: The Lift-Off!



Characterized by a breakout of range-bound price action, this move up is quick, and on increasing volume, followed by a small pullback down, only to be taken up again by increased momentum on the buy-side. In this example, you could use this pattern as confirmation for a LONG entry in the market, or as an indication that you should be covering a short position. Pattern #2: Got-Ya!   



Characterized by a sharp move out of its trading range, usually on low volume by small retail traders in the market, and is met with great resistance from larger-sized traders who quickly take advantage of this opportunity to get into the market at a great price, and the retail traders pay the premium on it. In this example, this pattern shows little confirmation, which is an easy give-away for traders to stay away from the up-side b/c the buyers didn’t bring enough conviction to the market and the sellers are ready to make them pay. Don’t get fooled into a long position on this, wait for the conviction to show you where to go, and in this example, you would want to short this jump up in price once you see the sellers take control. Pattern #3: Confusion   



The most common pattern we see, this pattern shows no concrete direction, no conviction, and no volume in any given direction. Traders who can see this pattern know to wait for more conviction in the price action as to where the market is headed.  In this example, the experienced trader waits patiently to see a pattern develop, knowing that this lack of conviction in the market increases the risk on a potential trade exponentially. “If you can’t see a pattern on the tape it’s most likely the confusion pattern, and in any case, you need to avoid it…”  Third,



use this knowledge to make educated trading decisions… Professional traders use the tape to better-understand the overall sentiment in the market participants, and we use that knowledge to make educated trading decisions in our trading.



 • Execute with Confidence:



 o Reading the tape increases your confidence to pull the trigger on your trades by giving you the ability to know what the other traders are thinking. o Wish you had the ability to speak with the other traders in the pit? You do when you read the tape!  • Know when to hold ‘em, and when to fold’em:  o Know when to exit your position, or when to let it run using the information you gather from reading the tape.



o Using specific ‘pivot points’ as a reference, you will better understand what other traders are thinking as price moves in your direction, and you can use this information to know whether you need to exit your position or stick around for the ride! • Understand your stops and targets: o Ever wonder why you got stopped out of a trade? o Ever wonder why you get some targets filled and some do not? o The answer lies in the tape, and your ability to read and understand it. o Using the tape, you’ll know more about why a trade didn’t work out, or why you barely missed a profit target, or even when to move that target closer to price to ensure you get filled. o Remember, the markets are anything but random, and price always moves with purpose, it’s your job to interpret the tape to understand why.  Author:  Joseph James I look forward to demonstrating these techniques to you live in our trade room!



2 Step Set-Up Market Commentary October 23, 2009 Well it has been another great week of profits for all of the traders at the School of Trade! We saw some decent price action today; earlier in the morning many of the markets seemed to consolidate from yesterday’s close. This didn’t last long though, with the chairman of the Federal Reserve, Big Ben Bernanke, speaking at 8:30am EST as well as the Existing Home Sales figures being released today for the United States (Identify Market Sentiment For Day Trading Futures). With another exciting day in the markets come and gone, we were able to scalp off two trades, for a total of +$260 to end our week!



Our first trade of the morning came on the Gold market (Symbol GC). Today the gold market continued its consolidation throughout the early electronic trading hours, but once the currency and commodities trading began at 8:20am EST, the Gold market really started to rally. We believe this rally also had to do with the Federal Reserve Chairman Bernanke’s speech at 8:30am EST. With the passing of some of the news events and added volatility, we began looking for possible School of Trade set-ups on the Gold market (Gold Futures Day Trading Video). Our



opportunity came about an hour later, when Gold was finally starting to retrace off its highs. At 10:08am EST we entered the market short, off a Breaker pattern; getting our order executed at 1062.8. The stochastics began to rollover to the short side, and as more sellers joined the market via our pace of the tape indicator, we were able to pick up +4 ticks (2 contracts), +8 ticks and another +10 ticks for our final contract, for a total of +26 ticks! ($260)



The second and final trade for us on this Friday morning came on the Mini-Russell (Symbol TF). We also saw a lot of consolidation today on the Mini-Russell; and didn’t see any real significant price action until the U.S Existing Home Sales numbers were released at 10:00am EST (E-MINI Futures Day Trading Video). With added volume finally entering into the market after 10:00am EST, we were able to start looking for possible quality School of Trade set-ups. At 10:46am EST we were able to qualify a Breaker pattern short; gaining an entry into the market at a basis of 603.8. Soon after our order had been executed, we continued to watch price action on the tape and our P.O.T indicator to see where the market was going to show us any follow through. After seeing our first target just barely missed multiple times, we decided it was in the best interest of our account balance to exit the trade early, for a scratch (+/- 0 ticks).



Range Charts, Time Charts, Tick Charts



Hi guys! Are you aware of all the different options we have for chart timeframes and time intervals? Did you know there are over 10 different types of charts we can use as day traders? Did you know that some chart types are better for day traders? Let’s look at the basics first… Day trading charts can be based upon several different criteria, with the most popular being time, ticks (number of trades), volume (number of contracts), and price range.  All four types of charts use the same market information (price, volume, etc.), but they display the information slightly differently. There are 4 main types of charts we use as day traders and swing traders: 1.       Time Charts



2.       Tick Charts 3.       Volume Charts 4.       Range Charts Let’s review each of these… Time Charts: Popular short term time intervals include 1 minute, 3 minutes, and 5 minutes, and popular long term timeframes include 1 hour, 1 day, and 1 week. Time based charts are named for the time interval that they are based upon. For example, a chart that is based upon a 1 minute timeframe is known as a 1 minute chart.  Shorter timeframe charts often look like zoomed in versions of longer timeframe charts, because there are more bars for the same amount of time, but with the same prices. For example, a 1 minute chart would have 5 price bars for every 1 price bar of a 5 minute chart, even though both charts would have the same prices and the same open, high, low, and close for the 5 minute time interval. Second Charts:  we use a 10-second chart for our Pace of Tape Indicator, but we don’t ffind much use for second charts anywhere else in our trading. Minute charts:  most popular amount traders, minute charts are typically where a day trader begins to learn, however, we have lots of concerns over using minute charts -          They are sloppy -          They never stop moving for a sideways market -          They have different ranges for each candlestick o    1 candle may be 10 ticks long, while another candle may be 20 ticks long o    This makes identifying risk on the trade more difficult. Hourly Charts:  these are not used very often Daily Charts:  used commonly by long term swing traders.  I never use daily charts for my day trading. Tick Charts: Charts based upon ticks make a new price bar (or candlestick, line, etc.) every time a specific number of trades are completed. Popular numbers of ticks are 33 ticks, 133 ticks, and 233 ticks, which are all short term timeframes. As tick based charts only make new bars when there have been enough trades, they adjust to the market, making bars less often when the market is moving slowly. Some day traders believe that this gives tick charts an advantage over time charts, and I agree.



Range Charts:



In the mid-1990s, a Brazilian trader, Vicente M. Nicolellis Jr., developed a new and exciting price bar for charting.  He had found markets in his country to be unstable and unpredictable and that, for sizable periods of time, the market would be in a sideways or consolidating action.  After careful deliberation on how to tame this volatility and price bar movement variations, he came to the conclusion that eliminating the time factor would form the basis of his hypothesis. (I 100% agree!)



Nicolellis proceeded to develop a price bar without time involved at all, just price. This became known as the range bar, or breakout bar. Each range bar has the same price increment and each bar closes either at the high or the low, regardless of where it opened.  Charts based upon price range make a new price bar (or candlestick, line, etc.) every time the price has moved a specific distance. Popular short term price ranges are 4 ticks, 8-ticks, 10-ticks, and popular long term price ranges are 21 ticks, and 34 ticks. As price range based charts only make new bars when there has been enough price movement, they adjust to the market, making bars less often when the market is stuck in a small range (i.e. not moving). Some day traders believe that this gives range charts an advantage over time charts, but this really depends upon the trading system being used. Price range charts appear different from other types of charts, because each bar (or candlestick, line, etc.) has the same range (high - low), and therefore has the same size when displayed on the chart. I think the biggest benefits of trading range charts are: -          Every bar is the same ‘size’, this makes for cleaner patterns, not as ‘sloppy’ as minute charts -          I can easily identify risk on each trade because I know that we have the same length of each candlestick, which is usually where my stop will be placed. -          When the market is slow and sideways, range charts will STOP moving, this is good because I don’t want to trade when the market isn’t moving UP or DOWN.



Volume charts: Charts based upon volume make a new price bar (or candlestick, line, etc.) every time a specific number of contracts have been traded. This is different from tick charts because a single trade can consist of several contracts. For example, a single trade for 10 contracts would be 1 tick on a tick chart, but would be 10 contracts on a volume chart. Popular volume charts are 500 contracts and 1000 contracts, but any number of contracts might be suitable depending upon the market being traded.



Volume charts also adjust to the market, and make price bars less often when the market is moving slowly, as there are less contracts being traded. Volume charts have a similar advantage to RANGE charts because if the market is moving, so will these charts.  If the market is NOT moving, neither will the charts.



Open up your 34 range chart, this is your slow timeframe; add the template ‘traderoom_slow’  Now open a 13-range and a 21-range chart You will be trading 1 contract to begin, and when you see 2 weeks of consistency on 1 contract, then move to 2 contracts. I’m going to use a 10-tick profit target, and a 10-tick stop I need to use a 1:1 risk/reward ratio to make sure my long term results are successful.



comparison to minute charts. 4range = 30sec - 1min 13range = 1-2 min 21range = 3-5 min 34range = 5-8 min 89range = 10 min 144 tick chart = 4 range = 1 minute



Open up your 34 range chart, this is your slow timeframe; add the template ‘traderoom_slow’  Now open a 13-range and a 21-range chart You will be trading 1 contract to begin, and when you see 2 weeks of consistency on 1 contract, then move to 2 contracts. I’m going to use a 10-tick profit target, and a 10-tick stop I need to use a 1:1 risk/reward ratio to make sure my long term results are successful.



Lets Review Our Entry Rules Cheat Sheet: Breaker -Be more than 5 ticks away from the big round number (75.00, 1.2000, 56.000) -Must see a breakout first, above/below the RED LINE -Swing Low for short trade, swing high for a long trade -6-ticks from the swing-high/low to the next level of support/resistance ? Uses your trade management as a guide ? Scalper = 4/8/Runner • 6 ticks = 4 + 2 slippage = 6ticks ? Day Trader (13-range) • 8/16 • 10-tick rule (8 +2) o Steep slope to the trigger line ? Avoid trading a breaker pattern when we see a flat trigger line ? You don’t need to worry about the slope on a 2-step pattern • b/c it’s a trend reversal • use the trigger line as support/resistance for a 2-step o Momentum must be pointed down for a short, or up for a long ? Be careful around overbought, or oversold momentum o Size of the orders (larger the better) o Speed of the orders coming into the market ? Pace of tape indicator



? Faster the better to confirm your entry.



Exit Rules: - Green or Yellow POT = use my mechanical trade management Pink line on Trade Man Chart - RED Pot I use a discretionary o Red POT = slow speed o MACD against my position ? Long = macd below the zero line ? Short = macd above the zero o Momentum curls against my trade



Discipline Cycle Tutorial Today’s lesson is something VERY close to my heart because it’s my personal story of how I finally became consistently profitable as a day trader. 10 years ago, after I lost my 2nd trade account I was about to quit trading when something dramatic changed my life forever…I learned some very valuable lessons along my journey as a trader, and when I looked back on my experience I noticed that EVERY trader must go through the same process that I did. The Discipline Cycle is the process that EVERY trader goes through, so don’t miss today’s video lesson! If it feels like I’m reading YOUR story with this lesson, you’re not alone, and this simple ‘cycle’ will be your key to future success. Your Emotions can be an asset or a liability to your trading; I think we all agree on that.Out of ALL the things we worry about in the trade room each day, the most important is within ourselves. Our emotions a deadly to our trading if we can’t keep them under control. Every trader goes through an evolution of learning and growing as a trader, and this Discipline Cycle defines that EVOLUTIONARY PROCESS that all traders must go through to achieve long term and consistent success as a day trader.



E-Mini ES Live Day Trade & Trade Management Lesson We had another great day in the live trade room today!



Did you know that new traders need a different trade management strategy than experienced traders? Yes, thats because new traders have two simple goals: - Consistency - Confidence Today we took some time to review the importance of using the correct trade management strategy, and we had a bonus when a live E-Mini ES trade happened right in front of our eyes! Why do we use such a tight target? - We want to profit on the big and the small moves - What if the market only goes 6 ticks in your direction? o Is that a losing trade? o No way! - What if the big winners come? What if we get a 60-tick winner? o We still use a tight first profit target We then use a runner to catch the big moves! o We never miss the big ones unless the market is very indecisive. o Very choppy price action will bounce you out of some trades, but the good news is that it will help you profit from that small choppy movement, rahter than losing money getting stopped out. 



Trade Management for Position Trading & Scalping Make sure you use the correct trade management for the chart you’re trading: - Scalpers will use the same trade management every single time they execute 4/8/Runner - Day Traders / Position Trader  Use the market’s support and resistance to plan our trade management 



Most common ways to place your stops and targets: ? Swing-High/Low 



? Trigger Line (thin yellow)     Symbol: DX (ICE) Tick Value: .01 (80.68) Cost/Tick: $5.00 usd  Margin: $500 usd/contract Benefits: excellent correlation for determining market sentiment Drawbacks: very low volume, not trading this market Best Time to Trade: 3:00am – 1230pm Favorite Pattern: Euro Correlation Favorite Timeframes: 13-Range for Day Trading, 21 & 34-Range for Swing Trading Dollar Index futures make us money every day without ever giving us a trade. The dollar has low volume, so we don’t trade it; we use its correlation on currency futures such as euro, pound, yen, Aussie, and Canadian dollar. One of my favorite ways to use the dollar index futures is with the DX-Pattern. This takes advantage of the negative correlation between these markets looking for price reversals at the highs and lows of the daily, weekly and monthly trading ranges. You will have plenty of time to witness plenty of DX-patterns setting up in the live trade room, so come join us, and bring your questions! Contact our support team for futures brokers



262 Ticks Day Trading Gold Futures, Russell Futures Another day filled with profits as we trade through this summertime trading environment. So what happened? The Dollar broke the wedge and we made money on the gold…the Crude broke its wedge and we made money from the very first trade. We also did a special breakdown of a PENANT (or) FLAG Pattern on Euro… 800am EST 



Crude Oil Futures are trading sideways in a wedge pattern - Slow timeframe shows we are at the bottom of the wedge pattern o I set my price alert indicator to tell us when we break above the bottom of the wedge at 77.80, or if we break out below the wedge at 76.80. - Fast timeframe shows a very narrow trading range o We notice however that YESTURDAY we had a similar tight and narrow trading range, but that narrow range was made much wider after 10am Consumer Confidence o This tells us just sit back, relax ,and wait for the market to start running for us. o This is the perfect time to give some money back to the market from yesterday. o We have 10:30am Crude Oil inventories, we have 900am Home Prices, these are both expected to give us that volume we need to see this market. 850am EST - Crude oil breaks out of the wedge below 76.80 and we look for a short entry - We notice the dollar is in a wedge pattern, and this pattern shows indecision in the dollar, and this means no direction for the markets we are trying to trade, so let’s be careful, and watch when that dollar breaks. 930am EST - Gold Futures are trading at their quarterly lows, finding support at the double bottom from May 20 at 1156.9. o Slow timeframe shows a wide open space to the downside of this move, but the lack of price action and speed make this a very tough trade to feel confident with. o Fast chart shows us trading at the lows in a sideways range from 56.9 up to 65.0, which is the high of day o We notice the very narrow trading range, and with the dollar trading sideways and flat this morning, this tells us we may need to wait. 1000am EST - Trying to grab the gold to the long side after it broke its down trend line o We entered on big buyers, but then we sat in the trade for a few moments and the price went nowhere, so I made the decision to Flatten my long trade….here’s why  Red Pace of Tape, anytime we see this we need to be careful.



1100am EST - Crude Oil futures break their highs and also break the previous low of day, this is our entry point! o Watch the speed, watch momentum, and let’s wait to get the best entry when we KNOW the price is moving for us to the long side. o Remember, we have our targets already set up, so just wait for the trigger and fire away! o All 3 profit targets filled on crude oil breaker long entry! $890usd cha-ching!



Pace of the Tape technical indicator for day trading futures contracts



Pace of Tape Indicator Hi guys, Speed, in my opinion, is the most important factor in determining market sentiment. (read this article on SPEED in your trading)



We use speed to determine market sentiment, and market sentiment determines trade direction, which determines the difference between a trending pattern and a reversal pattern, and that is the different between



success and failure as a day trader. I look to use speed of the market at all times. - Speed of the orders coming into the market on the time & sales window - Speed of the market moving from HOD to LOD - Speed of each pattern developing - Speed of the trade to trigger - read the article...its a good one :) For years we had to use our eyeballs to watch the speed of the orders coming into the market on our time & sales window, and it took new traders YEARS to develop an 'eye' for reading the speed of the tape. This all changed when I created the Pace of Tape Indicator.   The Pace of Tape Indicator measures the SPEED of the orders coming into the market on your time & sales window.  It does not count contracts, does not count volume, and cannot tell the difference between 100 and 1 lot coming into the market.  All it does is count the orders, no matter the size. This simple approach measures the SPEED of the market itself, and this is the purest form of price action.



I look forward to sharing this unique indicator with our advanced members, and we use it every day in our live trade room. Here's how to use it... Details:         Use on a 10-Second chart for the pace of the tape in a very real-time format.         Can be used on any timeframe and any symbol         You can use three (3) different colors to make different distinctions in the pace of the tape o   Red:  Slow Speed of the Tape, Signals a Higher Risk Trade o   Yellow:  Moderate Speed of the Tape, Signals a Lower Risk Trade o   Green:  High Speed of the Tape, Signals the ideal environment to trade o   Use The ‘Pace of Tape’ Chart Template to ensure all the correct parameters! o   The EURO has its own Pace of Tape template, with different setting.         Please Note:                     We use a different TEMPLATE for the Euro and the Dollar, so when loading your Pace of Tape template, look for templates designed for the Dollar & Euro in the description.