Saturday, September 8, 2012

Trading Plan: 30 Min Decision Point Area + News Trade Entry + Re-Entry rules

A important re-entry rule is to only trade AB setups that result in a trendline break, especially on low volatile markets it makes sense to wait for a correct color on the ATR trailing indicator (on the market you are trading or on a similar market):



First the market has to make a reversal in a 30 min Decision Point area from prior days before a 10 Min setup can be considered. Notice the S+P did not reach the next 30 Min DP area therefore no shorts on any other market will last long:




On high volatility (after news) its valid to enter not on the 3 min bar but on the 1 min:
(notice its best to still use a break above a 3 min box but set the stop below the last blue 1 min bar instead of the low of the 3 min bar and obviously markets that did not retrace too much should be preferred (in the screenshot it was better to go long gold instead of crude oil that also had a 3 min buy bar after the news but declined far more before going up compared to gold):





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