Day Trading Blog: Trading Plan: 512 tick chart

Saturday, November 14, 2015

Trading Plan: 512 tick chart

Long time ago I used the 512 tick chart bollinger bands squeeze for entries, that was wrong because entering a market that just comes out of a consolidation area usually first establises a trend (bounce of 50% level) and then continues to move or not.

So lets say we found a trending market what tells you that the trend will continue?

On the 3 Min Chart price will make all kinds of movements that make you think the market is not moving forward and even if it does move quite fast forward how do you know the last strong up move was the last one?

The 512 Tick Chart will show you directly when a new high has been made, no need to wait till a 3 min bar closes and it will show you after the 2nd upswing when a move is over:

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Trading Rules:

how to trade profitable? with KSE. knowledge, strategy, execution.
Knowledge: You need to buy low and sell high. So I wait for the price to first go to a prior support level on the daily, 4h, 1h chart.
Strategy: Timing is important so I trade when there is a good setup on the dax, s+p, nasdaq or oil market. My goal is to make few trades with high risk reward, that is archived by either holding a trade till the market closes or reaching a level that sets up a counter trade.
Execution: Usually there is only a 20 point risk involved, so I try to get into a prior support level on the 10 min chart and automatically set a stop and multiple take profit targets.
All the little details how to trade better are listed here but I like to keep it simple: just enter the market at prices with a target that it at least 3 times the initial risk.

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Trade at your own risk. The information provided here is for Education only and is of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action.

By reading this Blog, you acknowledge and accept that all trading decisions are your own sole responsibility, and I cannot be held responsible for any losses that are incurred as a result.

There is risk of loss in trading and investing. All trade decisions are your own sole responsibility.