Saturday, June 23, 2012

Trading Plan: Recap my 3 Entry Setups

Both entry setups look at the 3 min chart as you can see on the screenshot:


The difference between:

1. Reversal Setups

these setups most often happen at 10 Min Decision Point areas and have as a target usually the next Decision Point area, if they happen directly at the decision point level there is no need to wait for a squeeze before going long above the high or the 2nd cyan blue box

For Reversal Setups its good if they happen at support and resistance levels (in DP areas, trendlines sometimes just pause a trend but do not reverse it ):


2. Breakout Setups

in case there is already a trend or a reversal where no squeeze happens on the 3 min chart, I consider using Squeeze off breakouts a 30 Sec. Chart as entries:


With exit at the low of the prior 10 bars on ADX > 37 and price over VWAP
or if thats not the case a simple 9 times ATR trailing stop on the 30 sec chart or 3.9 times ATR on the 3 min chart:






3. Re-Entries Setups

happen sometimes together with AB correction at the 50% retracement level, but dont have to, in any case the direction is clear as the prior move continues.




Sometimes there is also a re-entry possible on a break of an 10 Min DP area:




So the only thing I need to pay attention to avoid high volatility (sometimes caused through news events and market opening moves) and a clear entry setup at a DP level or 50% retracements:


Its not possible to trade this kind of setup automatic as a lower high for short entries and seeing an existing trend can not be automated:


So in case a trade goes wrong I will learn to see trendlines better that first have to be broken in order for a trend change to happen, or I entered on too high volatility or other markets did not reverse their trends and the entry on the one market I traded was simply a fake out with a -1 R loss.

No matter which entry setup the actual entry happens always below a lower RED bar or above a higher blue/cyan bar):


On AB Corrections I look either for clear swings (a move line between point A and B) or that point C bounces of support:






The opening move usually is towards the nearest prior sessions DP level, so I will be taking any setup in that direction after the market opened even 30 Sec Signals.













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