Trading Essentials Framework Market Foundation & Building Blocks

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1 Trading Essentials Framework Market Foundation & Building Blocks Trading Concepts, Inc.

2 Trading Essentials Framework Market Foundation & Building Blocks By Todd Mitchell Copyright 2014 by Trading Concepts, Inc. All Rights Reserved This training program, or parts thereof, may not be reproduced in any form without the prior written permission of Trading Concepts, Inc. No claim is made by Trading Concepts, Inc. that the E-Mini futures trading strategies shown here will result in profits and will not result in losses. E-Mini futures trading may not be suitable for all recipients of this Training Program. All comments, trading strategies, techniques, concepts and methods shown within our Course are not and should not be construed as an offer to buy or sell futures contracts they are opinions based on market observation and years of experience. Therefore, the thoughts expressed are not guaranteed to produce profits in any way. All opinions are subject to change without notice. Each E-Mini futures trader/investor is responsible for his/her own actions, if any. Your purchase of the Trading Concepts Comprehensive EMINI SUCCESS FORMULA 2.0 Mentoring Program constitutes your agreement to this disclaimer and exempts Trading Concepts from any liability or litigation. Important Notice - Risk Disclaimer: E-Mini futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures market. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy or sell futures contracts. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in our training program. The past performance of any futures trading strategy or methodology is not necessarily indicative of future results. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual E-Mini futures trading. Also, since the E-Mini futures trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated futures trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those that may be shown. Trading Concepts, Inc. 2

3 Table of Contents 4 Key Market Foundation Principles for Trading Mastery... 4 The Foundation and Building Blocks to Trading Mastery... 5 Trading Concepts, Inc. 3

4 4 Key Market Foundation Principles for Trading Mastery Before we actually get into the mechanics of each futures Trading Strategy, you need to understand how the markets move and trade completely and what they're doing at all times in terms of the natural flow and rhythm of the markets. What you're about to learn is the natural structure of how all markets trade. The next four (4) Trading Principles are the core to understanding how the markets move and trade at all times. This is really the key to understanding the underlying movements and rhythm of the markets. 4 Key Market Foundation Principles for Trading Mastery: 1. Market Flow Analysis Method (the MFAM) this one market principle is the core price structure and rhythm of how the futures markets move and trade at all times, no matter which instrument you are trading. 2. Fibonacci Retracements this trading principle fits in beautifully with the MFAM price structure of the market. This trading principle also helps in giving fantastic SUPPORT (potential BUY's) in an UPTREND and RESISTANCE (potential SELL's) in a DOWNTREND. 3. Keltner Channel Bands and Key Moving Averages this technical indicator (if you can call it that) is a Channel Band that helps in determining visually when a market is in a TREND (UP or DOWN); it also helps in showing visually when a market is trading SIDEWAYS (i.e. non-trending). The Key Moving Averages used in conjunction with the Keltner Channel Bands help gauge SUPPORT and RESISTANCE along with helping to visualize a TREND. 4. NYSE TICK this market internal is a very short-term indicator that indicates the number of stocks at the New York Stock Exchange (NYSE) trading on an uptick minus the number of stocks trading on a downtick. It is useful for determining market sentiment during the trading day. It is only valid for day trading stock index futures/etfs and/or individual stocks traded at the NYSE. Trading Concepts, Inc. 4

5 The Foundation and Building Blocks to Trading Mastery The following principles form the cornerstone of any and every sound trading methodology or system that exists today. There is really only one major market cycle (movement) in existence; the market can do nothing else but comply with this one basic market cycle. There Are Three Primary Waves (TRENDS) in the Market 1. UPTREND, 2. DOWNTREND, or 3. SIDEWAYS! 1. UPTREND: Defined simply by a series of higher highs and higher lows. Trading Concepts, Inc. 5

6 UPTREND: A series of higher highs and higher lows. Trading Concepts, Inc. 6

7 2. DOWNTREND: Defined simply by a series of lower highs and lower lows. Trading Concepts, Inc. 7

8 DOWNTREND: A series of lower highs and lower lows. Trading Concepts, Inc. 8

9 3. SIDEWAYS: Defined simply by a series of relatively equal highs and equal lows. Trading Concepts, Inc. 9

10 SIDEWAYS TREND: A series of relatively equal highs and equal lows. Trading Concepts, Inc. 10

The Master Trader Counter-Trend Trade Set-Ups

The Master Trader Counter-Trend Trade Set-Ups Trading Concepts, Inc. The Master Trader Counter-Trend Trade Set-Ups By Todd Mitchell Copyright 2014 by Trading Concepts, Inc. All Rights Reserved This training