DAY TRADING GUIDE TRADE ON EVERY MOVE CATCH ME IF YOU CAN.

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Alan Lawson
6 years ago
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1 DAY TRADING GUIDE TRADE ON EVERY MOVE CATCH ME IF YOU CAN.

RISK WARNING PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS. TRADE WITH STRICT MINIMAL MONEY MANAGEMENT TO AVOID PSYCHOLOGICAL EMOTION WHILE TRADING. THERE IS NO SUCH THING AS HOLY GRAIL.

2 RISK WARNING PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS. TRADE WITH STRICT MINIMAL MONEY MANAGEMENT TO AVOID PSYCHOLOGICAL EMOTION WHILE TRADING. THERE IS NO SUCH THING AS HOLY GRAIL. THE MOST IMPORTANT THING IN TRADING IS TO SURVIVE USING PROPER MONEY MANAGEMENT. KNOW WHEN TO STOP BECAUSE YOU ARE TRADING AGAINST A VERY LARGE ENTITY. TRADING IS THE TRANSFER OF MONEY FROM WHO DOES NOT KNOW WHAT HE/SHE IS DOING TO THE ONE WHO KNOWS WHAT HE/SHE IS DOING. NOT EVERY TRADE CAN GUARANTEE YOU A PROFIT, BECAUSE ANYTHING IS POSSIBLE IN THE FOREX MARKET, IT TAKES ANOTHER TRADER/BROKER/BANKER TO OFFSET THE PRICE AND TRADE AGAINST YOU. FOCUS ON 1 PAIR IF YOU ARE NEW AND INEXPERIENCE. IF YOU CAN CONSISTENTLY TRADE WITH 1 PAIR, THEN ITS UP TO YOUR EXPERIENCE TO UP THE ANTE. NEVER EVER EVER GIVE UP IN TRADING. LOSS IS PART OF LEARNING THAT IS NOT TAUGHT IN ANY CONVENTIONAL MEANS OF TEACHING. IT ALSO TEACHES YOU HOW YOU MUST REMEMBER TO REFRAIN AND IN CONTROL YOUR OWN MINDSET. TRADING IS ALL ABOUT THE MIND GAME!

3 CHAPTER 1 MOVE ANTICIPATION TRADE Indicator Files you need to use: Supdem II from Acegazette / Readthemarket CCI Perequisite: Understanding Price action Understanding Demand Supply Basic Understanding Odd enhancer System Rules BUY when: 1. Price inside the Demand level or Touch the level or inside a Failed supply. 2. Price action engulfing or Pin bar. 3. Confirm CCI at oversold or overbought or Bullish divergence or Bearish divergence Odd enhancing system: IF 3/3 scored, that s a high probability setup. Low risk and High Reward. If 1 /3 scored, no trade. SELL when: 1. Price inside the Supply level or Touch the level or inside a Failed Demand 2. Price action Engulfing or Pin bar 3. Confirm CCI at oversold or Overboard or Bullish divergence or Bearish divergence. Trade Management Never Move your SL unless it is moving 3 times your risk or it touches on the opposite level. Then move it to BE. If it has move 6 times your risk, move your SL to 3 times your risk to lock any profit in case it reverse. Locking Profits Close half of your position when it is 80% reaching your target or after price penetrate the opposite level. While the remaining ride it towards your final TP. Or Ride it towards the next reversal price action or opposite level ( highly recommend if you want to catch every move ).

4 Example 1. The Failed supply The initial entry at the sell short on the supply with a confirmation CCI bearish divergence made me enter this trade. As soon it retrace and made a small bullish engulfing against it, I move my SL to Breakeven to protect the trade turn into a loss. This confirms it with a consolidation. Since it was Friday, that will definitely made the trade useless. And the potential that the supply fails. On the Monday open, it gapped up and went for the SL to BE. I waited for a price action sign to either re enter sell or buy. And it shows an engulfing bullish pattern inside the supply already telling me the supply level failed. SO Buy it instead. If you notice that the small bullish divergence at the same time oversold CCI confirms it at the engulfing formation. Hence all 3 criteria met, 1. Inside a level supply failed into Demand. 2. Engulfing bar telling new fresh buyers enter the market. 3. CCI at Oversold with a bullish divergence.

5 Example Trade 2 Closing the deal. Buy out for a fresh selling. As soon as the Price action confirms it with a Bearish engulfing, Price making Higher high with the CCI Lower low ( Bearish Divergence ), Inside the supply level. Close the Buy and start Selling again. Again all 3 criteria met. Hence the trade becomes very high probability as per Rule. Follow the 3 rules, and your trade will definitely be a high probability set up and also when the market move start to turn.

6 Example Trade 3. Being stop out after 3 criteria met But Profit margin reduce due to levels nearby. With this type of trade requires trained eye. I enter a buy off a pin bar touch the demand level. But what I didn t realize was that above it was a small supply ( green box ). Even all the criteria met with Price touching the level, Pin bar reversal and a CCI bullish divergence or at oversold. But if you all notice when this setup occur, with the path of resistance is not the least, then best to either no trade Or use smallest position OR Breakeven early. But the small loss compare to the profit made out of this trade, its reasonably acceptable.

Example 4. The Continous Move ( if your eyes allow you not to sleep ). Lets begin this at Point A. A. A bullish divergence started this move, After the buy a demand Level created even confirms it. B.

7 Example 4. The Continous Move ( if your eyes allow you not to sleep ). Lets begin this at Point A. A. A bullish divergence started this move, After the buy a demand Level created even confirms it. B. The next day, after the rejection price and forms a bearish divergence this led to closing the buy and start selling. C. But the move are compressed all the way ( meaning most of the sellers are cleared ) indicating us a least path resistant. How do we anticipate this? Looking the overall Trend is up, so we look for dip that cause the CCI to be in the oversold territory to buy into the Trend. After a confirm bullish engulfing, Buy is ON.Closing out previous sell. D. After holding the trade the next day, we know we are in the up trend, where a point will meet some sellers in the market. As price tops and forms a bearish engulfing, that Price action tell us fresh sellers just start hammering. SO we close the trade for BUY and Start selling after that engulfing. E. But in the back of our mind, we are in a uptrend so this counter trend move will not last long. SO look for another dip that tell us CCI is in the Oversold territory again. And it did with a bar almost look like a pin bar but not a pin bar. Start Buying on the late Friday. Closing our sell deal. F. ON the Process of Buying, the price keeps on Printing Bullish bar with less pull back, indicating us a strong Buyer Bias market. So Any fresh dip into a demand, will add another position until otherwise tell us to close. At this point, a small bullish divergence was observed inside or after the demand level. Hence Add a buy. G. Once you feel you had enough or continue more that s fine. But in this case I have enough and close all the deal at the divergence for more bearish move.

Chapter 2 Without the CCI with Pure Price action and levels Rules are still the same but you only have 2 criteria. 1. Price is either touch or Inside the level supdem. 2. Confirm a Price action Engulfing or Pin bar.

8 Chapter 2 Without the CCI with Pure Price action and levels Rules are still the same but you only have 2 criteria. 1. Price is either touch or Inside the level supdem. 2. Confirm a Price action Engulfing or Pin bar. This can be checked also on a smaller scale on the 5 min. Example 1 A Closing the Sell at a confirm Demand base on the Engulfing pattern Inside the Demand Indi. Buy here at Market order and held the trade. During those holding, It can surely test one s mind especially along the way it forms large bearish candle. This could be due to news releases. News release never successfully push a level into a failed level but it only push it towards the nearest level for the opposite trade, Always. 2 criteria is met here in the rules. 1. Inside the level 2. Engulfing Bullish candle. B- After monitoring the top was turning. As soon as it start to drop. It forms a fresh supply at Point B. At the same time forms a bearish engulfing. Here I close the buy and start selling. If the price returns back to the supply, I would make additional entry to its current sell. Here the criteria is there is no Level as per Indi. But If you had learned the real Odd enhancer Supply Demand level, that is a level which the indi fail to mark. SO Again, I consider this a 1. A real supply and price is in it. 2. Bearish engulfing. Start selling closing the Buy. C a newly fresh demand from the Indi. With a confirmation Bullish engulfing. Another visit there closes my sell and start Buying again. 1. Price inside the demand level. 2. Bullish engulfing pattern.

Let s assume I am closing it as it is the opposite level and has not been tested or cleared.

9 Example 2 A Bearish engulfing inside the supply indi. Common feature, hence short the pair. A nice drop towards the demand. It is a question of closing it or hold it. Let s assume I am closing it as it is the opposite level and has not been tested or cleared. B Go long after a confirmed bull candle. In a 5 min chart within those box you will see its in fact a pbar. A good confirmation in Price action, so we could close the sell and start buying again.

10 C- The point on the arrival on this is that the entire day it was clearing away most of any pockets of demand hence making the area clear of any demand where potential least path resistant is available. I close the long to avoid any unnecessary sudden reversal. As long as I have more than 3 times my risk. Put a pending order at the supply that formed the bearish engulfing initially. It got fill and went for the opposite untested demand all over again.

engulfing or pin bar. Time : 08 00 15 00 GMT What will you find in this time range?

11 Chapter 3 The session Time Entry ( Banks working hours? ) The same rules except You will find an entry setup between the session time not always but most likely it will be there either in the form of engulfing or pin bar. Time : GMT What will you find in this time range? Supply and demand or the turn of a move when it either touch or inside a supdem indicator. Example: Notice that there is an engulfing bullish bar just after it visit demand. Notice the vertical line from 0800 am till 1500 am. Exactly at 15:00 gmt, the bank starts buying. Here Is where I start buying as well.

12 Notice again, between those time range of 08:00 15:00. A fresh demand formed with a bullish engulfing. Here is where I will close my buy for 216 pips. It creates a supply with the bearish engulfing within the time session. Here is where I commence selling.

13 Then here I start closing. Why I close? Because if the price approach Any level, that is where I zoom in the 5 min chart to see the Price action. We are at a demand level at the same time about to be within the session range. Here on the 5 min, you will see a bullish engulfing inside the demand level. Hence close the sell and start buying.

But bare in mind, we are still within the session time where banks could make a move. And it did. The banks start selling again.

14 As soon as we approach the supply level, we zoom in again on the 5 min and watch for any reversal price action, because it is inside the session range which could or anything will happen and print another turn. In this case it didn t and penetrate the supply. But bare in mind, we are still within the session time where banks could make a move. And it did. The banks start selling again. So closing the buy after a close on the Pin bar. Start selling the supply. By the time the price drop, the supdem indi start printing it s a supply! We knew that even before hand!

15 So to summarize this strategy on using the time session, 1. Banks start moving the market between 08:00 15:00 GMT ( thoerectically it s the bank, but it could be anything ). Any print of engulfing or pin bar, that is where the market will likely move. 2. Zoom in on the 5 min when approaching any level to see what price action is responding. 3. Always see that it is within the time range said above! Day Trading can be very demanding and requires you to be available on time. Also making a lot of quick decision daily. The problem with day trading is only IF you over a prolong hours of monitoring the screen, you begin to be in a state of fatigue and can cause confusion making your decision less reliable and performance deteriorate. A symptom of this is you tend to continue after 3 consecutive stop out trade. You are out of sync and best to take the day off. Start refresh again and start from square one. Hence the rules created to avoid this unnecessary judgment. And find it easier to follow when picking to enter a trade. But remember, Higher time frame has a better priority over smaller Tf. It can also increases your Profit by using as a target and also smaller time frame does from time to time help entering the move earlier for a larger time frame trade. The example above is base on a 30 min chart. It can be applied the same on Higher time frame such as Hourly or 4hour swinging continuously. The rules applies the same. Before commiting to live trade, always practice a lot up to a 1000 trade test. This can be achieve by using forextester. You can find them at Forextester.com. If you are using demo, utilize it for 3 months and able to double or triple the account. If not, then it requires you to do a lot of hard work and practice to attain professional skill in reading the market. The Trading Pit Group Master Mind Community Haji warithu

With that, let s dive into the steps. Step 1 Identify range bound markets on Daily or 4 Hour Charts

With that, let s dive into the steps. Step 1 Identify range bound markets on Daily or 4 Hour Charts If you have been trading for any length of time, you have probably noticed that the markets are moving sideways A LOT. Consolidation is a huge part of the market s balance and so it makes sense to learn