1,500 Tick Chart Review from Friday 6 May 2011 (17:06)
Dan T. sent an email about his reading of Friday’s 1,500 tick chart. I wanted to review this and just add my thoughts on trend changes and re-entries in direction of trend. Remember, for confirming trend changes always look for 3 signals (“the Trifecta”):
- Exhaustion volume (Better Momentum indicator)
- End of Trend price patterns (Better Sine Wave indicator), and
- Professional activity (Better Pro Am indicator)
Plus remember these two Rules of Thumb with trend changes:
And review your charts at the end of every day – every day is different but patterns on your indicators and charts repeat day-after-day.
Quotes of the day
From Brian O.
“Thanks for your time and been trading live for a week and am 7.5 pts in profit. Love your trading system and web site.” Brian O.
And great observation about the Pros and fishing from Scott H.
“Thank you so much for the 10 days series. I put two lessons together: Start doing uncommon things and Use fewer price indicators, and came up with a great exercise – I marked with drawn lines support/resistance from higher time frame charts, then turned OFF price on the charts and only referred to a chart of $TICK to help pinpoint entries. Using Better Sine Wave, Better Pro Am and Support/Resistance info only, I made 4 points on three trades. Traded relaxed and allowed winners to run for the first time. I realized that the Pros use price in just the same way as an angler uses bait to catch fish. It was my breakthrough day and I owe it all to you. Thanks again for all that you share.” Scott H.
Good luck with your Emini trading.