FRIENDS OF THE TRADER

 The herd mentality  Algorithmic trading  Common indicators  Habitual behavior  Fear and greed

ANTICIPATE WHATS ON THE HORIZON

 Dont get caught in the past actively engage into the future  Dont be afraid of acting on best estimations  Use the sniper scope approach, not the shotgun splatter  Nothing beats superior preparation  Prepare for worst case scenarios

Just a little reminder

A simple Fibonacci retracement Where do we expect this chart to go? Evidence that suggests direction? Relative support Moving average breakdown Negative trending chart

See the new candlestick? What does this tell us?

SUPPORT AND RESISTANCE LEVELS ARE MUCH MORE IMPORTANT THAN MOVING AVERAGES OR ANY OTHER LAGGING TECHNICAL INDICATORS

Do we see a swing decision point on the horizon? What should we see as decision points? Where might we put a stop?

Can we see new levels as we become more granular ?

Can we see new levels as we become more granular ?

Reasons to go long: Price holding support Bollinger band formations signal reversal Moving average inflection: Confirmation candles printing above the 8ema and 20 sma

Reasons to go short: Overall trend is negative 61.8 % Fibonacci test from beneath often fails Two tests of this 61.8% level were unsuccessful: 50 sma is resistance

DECISIONS MEAN THAT WE MUST IGNORE SOME INDICATORS IN THE FACE OF OTHERS Because we know the power of the golden ratio we cannot decide without an element of coin if entering in a certain direction Therefore, we should let the chart resolve, or toss enter small

HOW TIME FRAMES HELP US MAKE BETTER DECISIONS The picture of resolution appears more quickly What is happening to our general downtrend at this level of Can we granularity? decision make a better Is there anything else we should here? be waiting for? HAVE WE PROPERLY ASSESSED RISK?

OUR LONG TRIGGER ARRIVES Stops? Targets? What are the worst case scenarios? Biggest mistakes traders make

we dont set targets we put on size that is too big we over estimate our success we underestimate possible disaster

THE POWER OF THE GOLDEN RATIO Stock prices are always in a space of discovery in an attempt to recapture Their trajectories are not arbitrary but defined within probabilities Always ask yourself where is the MOST LIKELY direction for the Well usuallystock ? discover we often bet on the outside chance

MOVING STOPS Pros and cons of trailing stops Easy to set and forget Volatility Why relative stops are smartest They are tailored to general stock rhythm Where do we begin to take profits? The all or none mindset What is our strategy for re entry? PULLBACKS INTO RELATIVE SUPPORT

TREND REVERSAL AND THE DAY TRADER We day traders need the overall daily chart trend if we trade timeframes that are greater than 30minutes Countertrend trades do not deserve the same patience that trending trades do Lets drill down for the day trader

THE LONG TRADE THROUGH THE GOLDEN RATIO SUCCESSFUL

Notice the test and rest at 50% but still upside resolution

As the trend goes, so does the stock What pattern formation is obvious here? The channel my most favored formation

QUICK CHAT THROUGH FAILED CHANNEL BREAKOUTS Best new short entry on the swing trade

Broken trades largely ignored in these venues

Do not give these trades too much room Since stocks often test their breakout regions, stops should be just inside the channel

REVISIT YOUR SETUPS

Best new short entry on the swing trade

Failed breakdown does not mean failed strategy

Where is the stock going to retest? Where should your target be? And what do Fibs tell us is the most likely action at the retest of our level?

SUCCESSFUL TRADE AND NEW DECISIONS Failure to hold 38.2% Volatility squeeze and a new channel formation What is the most likely trajectory? Where would you exit? Lets telescope at Fib levels

USING SMALLER TIMEFRAMES DEFINES BETTER ENTRIES AND EXITS Shows resolution much more quickly

Gives us a chance to choose a premium entry TO LET THE PRICE COME TO US Remember, a stock will test the door it just went through to make sure it is closed smaller timeframes assist us with that

The day trading conversation

A NEW SET OF FIBS TRADE DIRECTION AND A CLOSER LOOK MOST OF US TRADE TIGHTER TIMELINES Fibs are fractals They replicate withi themsel es

N tice where ur candles hold support and present congestion these types of patterns replicate no matter how small the timeframe LETS LOOK AT A NEW TRADE

The

What w ul

ur ew targets be?

ersati

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NEW SHORT TERM DAY TRADE OUR TRADE IS ON THE 15 MINUTE TIMEFRAME Orange arrow is our irst observance point A complete retracement of a move is defined by 100% Expand your timeframe so you know stronger forces Whats the countertrend trade? Ask yourself Whats the trend trade? What are e going to ait or to signal the entry? Note the Fi level What are our new targets? Short term? Longer term?

The day trading conversation

OUR SHORT TERM DAY TRADE CONTINUED ON THE 15 MINUTE TIMEFRAME What signals do we have that suggest a long trade?

Would you consider these candlesticks clear or muddy? Is the stock behaving decisively in between the Fibs? Do we have a confirmation candle? What that the confirmation Does it matterare our new targets? candle is red?

The day trading conversation

OUR SHORT TERM DAY TRADE CONTINUED ON THE 15 MINUTE TIMEFRAME Notice traditional behavior of price around the Fib What are some appropriate decisions here? Remember it is not an all or none game Its ok to bank some profits, day traders Especially due to the location of the moving averages Scale down Scale up upon resolution upside Close the position

The day trading conversation

Breach is a signal but what signal Lets think through it A few more things about Fib behavior

Strong Fib Weak Fibs

Strong Fibs Weak Fibs Strong Fib

The day trading conversation

Strong Fib Weak Fibs

Strong Fibs Weak Fibs Strong Fib

Just because a Fib is weak, doesnt mean action doesnt happen there it is trend reversal that is unlikely at these levels

The day trading conversation

Half way point Half way point Weak Fibs

Talking ourselves through the trade will keep us from careening over the edge

The day trading conversation

In the confrontation between the river and the rock, the river always wins Not through strength , but through persistence

You simply cannot expect excellence immediately in the most complex man made

STREAMLINE YOUR TRADING LIFE AND CUT THE CLUTTER CHARTING SOFTWARE STOCK ANALYSIS TOOL NEWS BASED TOOLS STOCKTWITS / TWITTER STREAM THOUGH SPARINGLY Distraction is death by a thousand cuts (or one big cut) to the day trader

CHARTING SOFTWARE STOCK ANALYSIS TOOL NEWS BASED TOOLS TWITTER STREAM THOUGH SPARINGLY -Distraction is death by a thousand cuts to the day trader

CHARTING SOFTWARE STOCK ANALYSIS TOOL NEWS BASED TOOLS TWITTER STREAM THOUGH SPARINGLY -Distraction is death by a thousand cuts to the day trader

TRADING PRINCIPLES ARE EASY BUT TRADING IS NOT IT IS COMPLEX TRADING TAKES PATIENCE PATIENCE TO LEARN PATIENCE TO ENTER PATIENCE TO EXIT THE TRADING WORLD IS THE LAND OF RELATIVITY THE SAME BEHAVIOR IN A DIFFERENT TIME AND PRICE OF THE CHART MEANS SOMETHING DIFFERENT VERY OFTEN REMEMBER TO TAKE OUT THE TELESCOPE DAYTRADERS BEFORE YOU START WITH THAT MICROSCOPE AND MOST IMPORTANTLY MANAGE YOUR RISK CAREFULLY DONT LET THOSE LOSERS RUN

VISIT THETRADINGBOOK.COM FOR INFORMATION ON MARKET ANALYSIS DAILY CHARTS AND DAYTRADING TRIGGERS FUTURES DAY TRADING LEVELS LIVE TRADING CHAT ROOM WHERE I TRADE ALL DAY COVERED CALLS AND NAKED PUT OPTION STRATEGIES MANAGED ACCOUNTS ON DEMAND LEARNING AND LIVE WEBINAR LEARNING EVENTS Contact me directly at annemarieb2001@gmail.com