Table of contents
Time Chart...
Configuring Indicators.
Indicators and their Uses.
Counter Trend Trading.
High probability Strategies.
Why Expert traders are Making Profits...
Trading futures involves the risk of loss. Please consider
carefully when trading futures. Only risk capital you can
afford to lose, Past results are not necessarily indicative of
future results. The risk of loss in trading can be substantial,
carefully consider the inherent risks of such an investment in,
light of your financial condition. It is important to test trading
strategies in simulated trades before risking capital
(CommiasIOHRALEAMAEYAA) hypothetical or simulated
performance results have certain inherent limitations. Unlike
an actual performance record, simulated results do not
represent actual trading. Also, since the 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 trading programs in‘general are also subject to the fact that they are designed with
the benefit of hindsight. No representation is being made thet
any account will ors likely to achieve profits or losses similar
to those shown.
1. Make a line connecting two points to make a valid trend line
2. Make an upward trend line connecting low with higher low
3. Draw a downward trend line connecting high with lower highTo map a down trend, connect point #1 with point
#2. Connecting two points makes a valid trend
line. #1 is high and #2 is lower high. The market
is becoming bearish and is selling off. As you cansee #3 followed the trend line and sold off at the
Tesistance point.AE
Ss
3 Valid Points‘S/minute chart: The 5 minute chart shows
how traders are reacting to price in a given 5
minute time frame.2+ Set slow
Standard moving
Deviation period to3
Set 80 for
Bollinger RSI | CCI overbough
Bad = (min |(Smin | Stoeastie t
(Smin chart) chart) (Smi
Set 20 for
chart) chart)
| oversold
2operiod | set75 | Set 200for | set k
ema in5 min | overbough | periodto9
ser ‘ Indicators and their Uses
Useins | set25
min chart | ins min
chart
+ Bollinger bands!/The Bollinger band shows
the volatility of the market; however frommy studies it makes a great price entry and
price exit. When entering a position it is
always best to short the top of the Bollinger
Band and long the bottom of the Bollinger
Band. Profit target should be the opposite
side of the Bollinger Band. The Bollinger
Band should be set to +2/-2 standard
deviation for the 5 minute chart. In addition
to my studies, any candle or bar that is
pierced above and below the Bollinger Band
is consider abnormal and price normally
correct itself forcing the candles/bars inside
the Bollinger Band.
- RSE: The Relative Strength Index is
momentum oscillator that measures thespeed and change of price movements.
Generally, the number “70” is use for
overbought levels and “30” is use for oversold
levels. However, in my studies and back
testing for the last 2 years, “75” is the right
number for overbought and “25” is the right
number for oversold. The reason I use “75”
is because the market generally pushes above
“70” due to amateur buying and last minute
buying, however the professional will start
selling at “75” and start buying at “25”. The
RSI should be use in the 5 minute chart.
i. Set RSI at °75 “ for overbought” and
“25 “oversold”“CCl: The Community Channel Index was
designed to identify cyclical turns in
commodities. Generally, any number above
100 is “overbought” and -100 are “oversold.”
In my studies “+200” is used to show
overbought levels and “200” is used to
show oversold levels. Normally, the market
will push higher than “100” for overbought
levels and “-100” for oversold level. “200” is
the threshold of the market for overbought
levelsand-200"is the threshold for oversold
levels. Set CCl in 5 minute chart.
i, Set at CCI at +200 for “overbought,”
and -200 for “oversold” to prevent
premature buying. Full Stochastic: The Full Stochastic should
beuseas a crossover indicator. When the “K”
line crosses over the “D” line it indicate an
entry price.
i, Entry price: When “K” line crosses
over “D" line
ii, Set “80” for Overbought and “20”
Oversold leveliii, Set Full Stochastic to ema setting
iv. Set “K” at 9 ema period,
v. Set “D"at 3 ema period
vi. Set “slow period’ to“3”
vii. Usein 5 minute chart
nr
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and RSI overbought in 5 minute chart and Full
Stochastic overbought in. Short at top of Bollinger
Band
Sell Target: Sell target should be at the “bottom” of
the Bollinger Band/ support level or opposite side
of indicatorsRSI oversold in 5 minute chart and Full Stochastic
oversold, Long at bottom of Bollinger Band
Sell Target: Sell target should be at the “top” of the LExpert traders are patient and
Bollinger Band / resistance level or opposite side of disciplined.
indicators
2. Expert traders plan every entry and exit
trades.
3. They trade less market, so they know the
market inside out like a book4. They learn how to pass low probability
trades and stick with high probability
trades
5. They know opportunities come all day,
so they wait for the right one
6. They know if they break their rules, they
will lose money
7. They trade without emotion, they don’t
panic buy, and they don’t panic sell when
profiting.
8. They trade very consistently