Ahg Reference - Hk 001

8/11/2019 Ahg Reference - Hk 001

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Anek's Holy Grail v 1.0 or AHG for short.

Good working strategy for Day trading, principles can be applied to most time periods and instruments.This strategy works in most trending markets.

TABLE OF CONTENTS

STEP 1 DETE!"#$E T%E T!E$D &'p, down, sideways( ))))))))))))...) pg *

STEP + $-E T!E$D DETE!"#$ED, % T P/0 #T &entry( ))))))))))) pg *'ptrendDowntrend &The E2il Twin(-hange f TrendTrendlines 3 45 Trend linesPi2ots

6re7uency-hannels6ibonacci !etracement /ines

STEP * 8 #$D#-0T!S ))))))))))))))))))))))))))))). pg 9'PD0TE: fficial /ist of 0llowed #ndicators for 0%G &1;;


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P0TTE!$ T!0D#$G ))))))))))))))))))))))))))))). pg 19Double Tops 3 Double ?ottoms!ectangle3%oriBontal breakouts6lagsTriangles6ailed head and shouldersDragon Pattern

" and patterns-onsolidation and -ongestion

P!#-E %ES#T0T#$ ))))))))))))))))))))))))))))).. pg 1>

"$E "0$0GE"E$T 8 0d2anced )))))))))))))))))))))). pg 1>Scaling out02eraging up

Tips ))))))))))))))))))))))))))))))))))))) pg +*6utures o2er e7uities

$C3ES3E!+3"6rustration, !isk and the 0cceptance of Small /ossesPatiencePatience 'pdate &11+;;=(The ?est Trades

-onclusion of 0%G Phase # Summary ))))))))))))))))))))))) pg +=

0ppendiA To 0%G Phase #-harts annotations ))))))))))))))))))))))) pg +!ecommended !eading /ist0dditional utilities!ecommended ET "embers to !esearchCuestions on ad2anced techni7ue ))))))))))))))))))).... pg 91

0dditional Cuestions 8 "iscellaneous#ndi2idual Study ork assignment &111


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hen looking for entry, say a long or e2en reentry, you want strength to return in the pullback and whenthat happens make sure price did not 2iolate the current highs and lows.

$e2er go against the trend. hen the trend is strong buy a pullback. hen the trend is weak short a popup. The market can not be predicted consistently and consistency is what we want, so be smart about this.$o eAceptionsNNN

#f STPPED 'T, meaning, a -%0$GE of a trend, stay $ T%E S#DE/#$ES until a $E"E0$#$G6'/ T!E$D is defined and we take our stop like responsible traders.

!EME!S0/S are the enemy, they stop us out. /uckily, they are not 2ery common which is eAactly whythis strategy works. Some days will be filled with them and sadly # donOt know how to o2ercome this. ndays like this, you will lose money.

! lower low without a lower high is not the same as a lower low with a lower high.... and a higher low

without a higher high is not an uptrend.

CHANGE OF T#EN"

Trend must go from a downtrend to an uptrend or 2ice 2ersa. &+ %%Os + %/Os or + //Os +/%Os(

The eAception is if one of the two swings is a double bottom or a double top but the neAt swing must

be a %%3%/ or //3/%.

#f nothing of that kind, then you stay out and let a clear trend de2elop.

Trend line breaks are usually more aggressi2e when the last high was not a higher high, especially if it

was a /E! high.

The steeper a trend line the higher chances of a T/ break, they simply ha2e much higher chances of

losing control of the trend

$e2er call a top, ne2er call a bottom, it is #"PSS#?/E to predict accurately on a consistent basistherefore the best approach is to eAamine what is happening $, attempt to profit from possible2olatility and situate yourself in a strategic place, with patience and con2iction.

0 bottom is ne2er confirmed until you see higher lows and higher highs, with a subse7uent low that

is also a higher low hinting towards yet another new, higher high.

The Tren* (*ate &11!0!0,

The statement eAists for a reason. Fthe trend is your friend'

"any of you seem to be playing G.#. Qoe with your own capital thinking that you ha2e predicti2eabilities that will make a trend change on a consistently basis before it actually does. %ere is a tip,' D $TN

%ere is a simple 0%G rule that is simple but it does not seem to be 2ery clear.

'nless a 2onfir3e* reversal for3ation has completed you do not trade against the trend, e2er. $ot

e2en as a fun scalp because the odds will be against you, you want odds in your fa2or.

# ne2er e2er do it unless # see multiple confirmations supporting the stunt and thatOs taking into

consideration that #Om fairly adept at reading the tape

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"ou should make it a post it note and stick it in #our monitor$

Tren*lines

0s many as you need to determine the current trend. &%and placed preferred(

45 R trend lines are eAtremely useful. #f you donOt ha2e complete pi2ots to guide you, you can

anticipate the second one by using a 45 R trend line.o ou will be amaBed at the number of times price rebounds on them if there is a trend.

o hen an engulfing signal forms around there an opportunity for low risk potential rewards

usually presents itself.o nce the second pi2ot forms, you no longer need estimate readust it.

ivots

0re both subecti2e and obecti2e, thatOs where skill and eAperience comes into place.

The pi2ots plotted by the software are 7uick areas of reference but not necessarily written in stone as

they ha2e fiAed parameters that might work for some scenarios and not for others.

Fre45en2y

'se fre7uency displacement or wa2e length to gauge one pi2ot from the other.

a. -onfluence in distance helps.

Channels

#f price is trading in a channel, for the sake of argument, lets say a downtrend channelK eApect it tobounce up and down with a bearish tendency. $ow, to ensure your stops are small, e2en in a downtrendyou want to short high, and in an uptrend you want to buy low, this is where the trend lines of the channel

help. This is not the same with formations, a solid confirmed re2ersal formation is 7uite alright forentering at the lows but this is not the case of channels. %ence why # suggest the trend line channels usageas guidance. The formations price will form at the eAtremes do tell good info, so make sure you payattention. #n yesterdayOs case the downtrend channel formed a bear flag as it broke the channel to thedownside, # was almost certain price was ready to fall, but it failed miserably. $aturally # took my smallstop and realiBed that price was not ready to go to lower lows because if a confirmed bear flag failed,which is one of the most reliable formations for downside, the failure should be applied accordingly. Thesubse7uent mo2e was higher lows from the bear flag pattern until it finally broke out of the channel.%owe2er, that was predictable. 0s eAplained in the past, failures are sometimes as powerful as or e2enmore powerful than patterns themsel2es.

$otice that during rectangle consolidation, where price is bouncing off support and resistance there is nopredominant side to choose between the two, in this case, look at the whole day and choose the side thathas been winning all day long, if no clear definition, simply stay out and wait for better setups or wait fora confirmed breakout that aligns with the predominant intraday trend.

Fi6ona22i #etra2e3ent Lines&0nekOs fa2orite(

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5;L from last swing low3high pro2ides an eAcellent entry point. Problem is sometimes the trend is so

strong it wonOt e2en gi2e you your wish and you miss the fill.

'sed to (re*i2t tar7ets not tren*s, for the trend you ha2e price.

STE 8 9 %N"%CATO#S

Only TA tools for re45ire* for tra*in7

%ighs

/ows

Double Tops

Double ?ottoms

Time and Sales

Trend lines

Support3!esistance

There are so3e 5sef5l for stren7th : +eakness referen2es) entries an* e;its. E;a3(les as follo+s-

"ATE- Offi2ial List of Allo+e* %n*i2ators for AHG &10!0

Support and !esistance 2isual aids &T! indicators are eAcellent( www.kreslik.com

o tro dynamic sr.Bip chart.pg

o dynamic s3r is not an indicator. Simply an application for marking the swing highs and lows.

Trend lines, better if hand placed.

%ighs and /ows 2isual aids

Molume based bars, tick based bars

Time and sales &tape reading(

Paint bars to accentuate price action -andlesticks to find eAtra confirmations

"arket internals, optional &useless to me, maybe # donOt how to use them(

ig ag indicators to enhance patterns

6ibonacci !etracement percentages

o 5;L is the best kept secret in trading

%oriBontal /ines

0%G Emotion &Dynamic 6ib retracement( 8 see appendiA

(atalo% of &eld files and paint bar code to be found in appendi

!n#thing else unless it%s a deri&ati&e to enhance an# of the a'o&e withoutadding lag to it is pro'a'l# a waste of time.

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Ta(e #ea*in7

Tape reading takes time, more so than reading price action on the chart.&11+*;=(6or some basic ideas filter your time and sales window to highlight market buying and selling &that means0T "0!IET( mostly because this is a sign of re7uiring speed before precision. hen price is at keyareas on the chart, say support, resistance, trendlines, wedges contracting, anything meaningful watch thetape 2ery carefully.

#n fact today, when price broke out of the symmetric triangle all # did was read the tape, was not e2enlooking at the chart. # could tell most of the pressure was on buying, the anAiety to sell did not start until itreally fell, not e2en on the retracement. That was ust free fills for the longs. 0ll 2ery 2ery telling. Seeprice can go down as the buying pressure increases, it is possible and thatOs how you use time and sales to

get killer entries.

E2entually you will start noticing when price is going down how it is bought on the way down and howaggressi2ely or if the pressure continues, are the siBes increasing on the way down, is the market buyingoutnumbering the market selling is it the selling. 0ll these details are 2ery telling but this is all happeningli2e and 2ery fast so will take lots of practice. #t does not matter if its buying or short co2ering, whywould a short co2erH ?ecause he thinks price is going higher now rightH

# canOt teach you tape reading, this one you must do on your own, it is without a doubt the most powerfulthing out there but your eyes will get 2ery tired until it starts making sense as it happens. $ot trying todiscourage you ust warning you that this one takes an effort and a lot of screen time but its the absolute

trampoline to the neAt le2el.

6orget /e2el ## /e2el ### and /e2el #M. 'nless a trade happened the information can be decei2ing.

Fut of bid3ask range large siBe transactions indicates that traders are getting stopped out or wanting

to get in or out in a hurry.o /et me put it this way, on the tape, whoOs panickingH hoOs desperate to get in or get outH The

trend of panic inside the tape is it balanced or is it fa2oring a specific side....o !emember short co2ering is buying)

ou must watch the tape at critical points not ust when a sporadic below bid or abo2e ask shows up.

o %ighlight the following:

A6ove Ask

Belo+ Bi*

hen looking for Ubelow bidU and Uabo2e askU at critical points keep in mind the cumulati2e numbers

between them.o &as translated by ilu2+trade from 0neks email( &11+=;=(

o add the abo2e ask transactions &buys(

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o add the below bid transactions &sells(

o compare the numbers to see which side is winning...

note: useful at critical points, may be useful 3 may not be at others

Ti3e an* Sales ! Filtere*

atching the tape for big orders, feel tape can be better read with less distraction when # only payingattention to the big orders and eAclude the little people.

Sample of how clear price action was filtered on tape tape.pg

To eliminate noise suggested settings

o $C V =5 &5;(

o E!+ V 5;

o ES V +5;

o " V 4; lesser car siBes in the tape J noise

Avoi* the follo+in7 te2hni2al in*i2ators- death.to.cci.pg

Any in*i2ator that is not 100= 6ase* on (ri2e a2tion.

Di2ergence ne2er found to be 2ery reliable so stopped looking for it.

STOCHAST%CS: (not recommended for !)

o 0 cross can be a powerful tool when you are looking for an entry in a strong trend. &5,*,*(

BOLL%NGE# BAN"S-(not recommended for !)

o (olatility indicator only, everythin% else it*s not that hot)

o ith +.5 Standard De2iation. &+.; gets hit far too often and distracts with noise(

o hen price is continuously hitting a band, pay attention. #tOs trying to tell you which side is

stronger. #f you are ha2ing difficulty identifying the current trend or suspect a re2ersal, theprice hugging a particular band can pro2ide great info as to where momentum is headed,

$AC"- (*ot recommended for !)

o EAtremely slow, late entry by *4 bars, lea2ing profits behind on entries and eAits.

o #ts di2ergences signals are good approAimately 5;L of time, random, and useless.

o #t is nothing but the deri2ati2e of two /0GG#$G indicators &"o2ing 02erages(.

o ?etter off learning --#, in fact you are better off with price action alone, no stochastic either.

Te2hni2al in*i2ators are la77in7 in nat5re) as they only in*i2ate (ast (erfor3an2e.

Price action is all that is needed and when using tick3share charts, 2olume indicators are unnecessary.

Molume indicators pro2ide little information.

Time and Sales is in2aluable and pro2ides all the 2olume information needed. This is widely known as

reading the tape. &screen time(

DonOt complicate things, it all comes down to what is big 2olume doing, buying or selling.

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STE > ! $ONE $ANAGE$ENT

C!+,-!L +S/!-,O*8 %ighest priorityNNN

DO *O- !/! DO0*unless attempting to get fills for your intended car siBe, ne2er

surpassing it.

0d2anced money management techni7ue, an a2erage up approach is highly recommended.

o see ad&anced section11 until then1 use the same car si2e on e&er# pla#

/inners an* Losers.o There are only fi2e possible outcomes in trading:

?ig /osses (Stay away from the first one and the rest will $+-!$ you&)

Small losses

?ig inners

Small inners

?reak e2en

o 0%G attempts to accomplish

Small wins

Small losses

?reake2en trades

/etting winners run &big wins(

STE ? ! "%SC%L%NE

Trading is not for the irresponsible. ?reak the rules and you will e2entually lose big, period. Trading willforgi2e you if you were wrong on a play e2en se2eral playsK it will not forgi2e or tolerate stupidity.

STE @ ! CHA#T TES

/ong bars are e2il, highly recommend tick3share charts, pro2ide ability to split the data and eAamine itwith care. 6or the " recommend =5 or tick charts. This differs greatly from one instrument to theother, the greater the 2olume3acti2ity it has, the greater the ticks siBe you will need. 0dust tick3share2olume depending on how current day is de2eloping. #f low 2olume day, may e2en go down to 15;, 1;;.etc) 0dust for best 2iew and what you are most comfortable with.

Tick and 2olume bars, you need to be able to kill the possible long bars in time based charts that hidewhat could be important to obser2eK at least as a scalper.

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Molume ?ars suggested settings: &adust for low 2olume(

ES J +5;;35;;;

E!+J=5;31;;; 91; tick anchor

$CJ1;;;315;;

$ote: Tradestation does not display Molume bars correctly 0nek not concerned, been using TS for a while now. ould rather use tick charts than learning a

whole new platform at this point

0nek does not like time based charts, other than for 0nchor reference

Hi7her ti3e fra3es 3 An2hor Charts

'se two charts, one for a clear understanding of the main trend, if any, and one for low risk good

reward entry.

%elp determine the big picture or maor trend. 0lways trade in the direction of the big picture and to

be aware of possible of key le2els that can and will produce congestion.

%igher time frames also help alert if the breakout or breakdown was meaningful enough to merit

a2eraging up on retracement. Dual confirmation

There is no correct chart frame, whate2er fits your risk3style3goals. 0nchor 4A base chart is good

EAample of what is referred to as a "ulti Day -hart.

o $otice current wick high on last bar, reason decided to take profits around that area.

o #t has UyetU to break out3down.

o #nteresting thing is that # think the key to the market &all eminis( lies on this chart right here.

o The ++;5 and +19; areas are eAtremely important in the neAt de2elopment phase.

o /earn to recogniBe the bearish hemisphere from the bullish one and whatOs the line in the sand.

o !emember, the $0SD0C is leading.

o #t is eAtremely important, always, at all times, be aware of the big picture, without it, youwould not know how far your good trades can go.

o multi.day.pghigher time frame ne2ermind.pgprimary and anchor chart

# use two anchor charts, one regularly and one # eAamine late at night.

The regular one is 91; ticks, and the other +5;; ticks.

Can*lesti2ks

candlestick 7uick reference guide ;;1.pdf candlestick.pdf &reference(

Pro2ide one more confirmation, not a signal.

#mportant candlestick formations for 0%G:o %ammers at the 2ery end of a downtrend with wicks piercing support

o Shooting stars at the 2ery top signaling that bulls got trapped.

o ?oth preferably with good 2olume.

0dditional attention gi2en to:

o Doi, as they mark indecision, particularly at S3! areas

o Engulfing patterns.

o (.he rest not cared for)

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6or instance, say a bar pierces through trend line support and closes as a hammer. to see a tick below

the lowest area of the bar that closed before shorting is preferred.

Heikin Ashi Bars &fro3 %nvesto(e*ia,

U0 type of candlestick chart that shares many characteristics with standard candlestick charts, but differsbecause of the 2alues used to create each bar. #nstead of using the openhighlowclose &%/-( bars like

standard candlestick charts, the %eikin0shi techni7ue uses a modified formula:

Close J &pen W %igh W /ow W -lose(34O(en J Xpen &pre2ious bar( W -lose &pre2ious bar(Y3+Hi7h J "aA &%igh, pen, -lose(Lo+ J "in &/ow, pen, -lose(The %eikin0shi techni7ue is used by technical traders to identify a gi2en trend more easily. %ollowcandles with no lower shadows are used to signal a strong uptrend, while filled candles with no highershadow are used to identify a strong downtrend.

Solid uptrend with superb momentum let the %eikin 0shi bars guide you &for runners not for entries(.

Then the eAit is second nature. #f you stick to that simple strategy you will obtain some monstrous

wins whene2er the opportunity presents itself if you happen to be in the trade or spot an entry.

DonOt use %eiken 0shi &%0( bars for entry, only for eAit. %0 bars for entries are counter producti2e.

&They go red when you should be going long(.

%0 bars help for the runners, the best trades always tend to work from the start causing 2ery little heat.(-his techni3ue should 'e used in com'ination with standard candlestick charts or other indicators)

Closin7 Bars

-losing bars &not wicks( are used for confirmation when breaking support or resistance. closeisall.pg The close is important because not e2ery trader uses the same chart type

6or additional confirmation, the closing bar TPE matters as well.

?reaking of support

o ?earish indicators: ?ig red body or gra2estone (not a hammer, lon% le%%ed do/i or dra%onfly)

?reaking of resistance

o ?ullish indicators: strong green body, nothing indecisi2e &short body, long wicks(

ou can apply this to support, resistance, trend lines, symmetric triangles, etc.

To bring some clarity to price action discussions 0%G will refer to the following as:

o ?ars closing abo2e pre2ious bar high are referenced as Stron7 Bars

o

?ars closing below pre2ious bar low are referenced as /eak Bars. #f in a downtrend, you want to find the weak bars in the pop ups.

#f in an uptrend, you want to find the strong bars in the retracement.

Strong and eak bars used as entries for retracement and as alerts when scaling out or

getting back in.o 0 strong bar or a weak bar is basically an UengulfingU signal.

The Close of the 6ar &a3en*3ent,

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Someone posted about why the close of a bar is of no importance when we all use different charts and

chart types during intraday trading so in theory it is only rele2ant to you and not to the neAt guy.

Discussion with another trader took this further with new concepts and philosophies.

o 6or instance if you ha2e a stop at say +1;; and price hits +1;;.+5 but closes at +1>


13/70

hen looking for a retracement in a clear uptrend you also want some sort of strength confirmation toa2oid buying a falling knife or a retracement that is not yet complete. &b2iously, re2erse for shorts(

#n order to facilitate this task, suggest waiting for a bar closing abo2e pre2ious bar high as a sign ofstrength and a bar closing below pre2ious bar low as a sign of weakness. 0gain, e2erything with the trend.

#s there a trendH 8 Fes

hat is the trendH 8 F%t's lon7

#s it retracingH 8 Fes

%as it printed a bar closing abo2e pre2ious bar high &strength( after retracing considerably without

breaking maor support or pi2ot swingH 8 Fes

Stop placementH A fe+ ti2ks 6elo+ the stron7 6ar sho5l* *o

o (0ou can always re1enter in case of noise or fake&)

o (-emember2 small stops, as it is not about bein% ri%ht but about makin% money

Price action is used to increase the odds when looking for an entry during retracement.

"ote3 !nek does not use the 45+ for order entry (617819:)

Sto(s

Price action always dictates the stop goes, then compare to notes and decide if itOs something you

should take or not.

Stop needs to be strategic for whate2er reason but strategic, not some fiAed number.

Protect capital with small losses and break e2en trades while adusting stops in your fa2or, ne2er

against it. (*e&er loosen a stop)

0ssuming long, when the price runs in your fa2or, consider placing stop below the low of last +*

bars, re2erse for short.

Placing at break e2en is ust a common saying, using the lows of pre2ious bars is much more astute.

nce trend line established, mo2e stop to protect capital, use the T/ for placement guidance. #nitial stop placed at time of trade for security reasons. 0/0S

0fter order fill, adust stops strategically base on support3resistance and3or complacency le2els.

'se %eikin 0shi to adust trailing stops3targets or otherwise known as riding the winners.

f using S in Trade station, manually mo2e this in the "atriA as price mo2es in your fa2or.

o ?asically auto places stop&s(3target&s( based on predetermined fiAed 2alues.

o There is no 6etter trailin7 sto() this is 352h 3ore (re2ise than a fi;e* sto( 6e2a5se it's

6ase* on re2ent lo+s or hi7hs.

#f you are ha2ing trouble with the runners3stops consider mo2ing stop to low or high of the last +* bars&depending on 2olatility and3or how fast your chart of choice is( once price has left the initial S3! area,

which is usually where your initial stop should be. This will allow you to catch more runners than you canimagine using a mechanical way and pre2ents your emotions from taking profits too soon. 0dusting stopsis more desirable than simply selling or co2ering. The idea is to be in control of your emotions whilemaintaining logic in check.

Sto(s &a**itional notes,

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Stops on intraday swings are usually initial stop and or break e2en then starts to scale out. 'nless

a2eraging up, then simply use pi2ot highs and lows for strategic points.

/ook out for pre2ious pi2ot high3low areas and place strategic stops and3or lookout for re2ersal

formations.

Small stops, unless playing a pattern, then thatOs a whole new set of rules because they are not scalps

and by definition the car siBe is ob2iously smaller at the beginning of the play.

Stops depend on the candle, the smaller the candle the bigger the stop. $ot sure if that makes sensebut some room must be gi2en.

#f trade re2erses you, take your small loss and mo2e on.

hen your trade premise is correct your stop should be big enough to handle noise but not much else.

Molatility rules the market so some room must be gi2en to your stop.

o (However, if your eamination is correct, no need to use volatility as insurance)

&.his stop mana%ement techni;ue lowers your accuracy rate, but increases profits&)

'se small stops and possible multiple entries &failures( in comparison to a bigger stop because a

second reentry encompasses multiple confirmations which leads to greater probability than risking itall on ust one confirmation and a big stop.

Bi7 Sto(s eason a7ainst for *ay tra*in7,&this applies to day trading not swing trading or in2esting(

0 big stop by definition indicates you are not sure of your entry signal

0 big stop promotes hoping and praying and not trading

0 big stop is gambling

0 big stop is for those refusing to take a loss, when losses are necessary in successful trading

0 big stop creates the illusion of higher accuracy but in the end it only results in a negati2e P3/

0 big stop pre2ents you from loading up because the drawdown can be monstrous

0 big stop is for those who fail to realiBe they can always get back in a trade

?ig stops are for the insecure, they make laBy traders o2ertrade$$-ook a long time to learn this1 hope it takes #ou onl# a fraction$$

E;it s577estions (not inclusi&e)

Define profit targets, &8-1 risk vs. re+ar* ratio,minimum

o 6or training purposes suggest to trade with a 1:1 risk 2s. reward ratio to Forceyou to trade

well, then as you impro2e you can increase the rewardK

E2ery single play "'ST ha2e a target greater than the risk but if price action says otherwise we

take what we can.

#f long before last known resist area #f short before last known support area

#f scaling out and trade happens to break out in your fa2or then watch the neAt time it makes a %% or a

// depending if you are short or long.

%0 bars help determine M#S'0// in a 7uick manner if you should trail your stop because

momentum is there.

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/earn to read momentum. EAtremely powerful, when price is on fire and not looking back, there is no

reason to lea2e the roller coaster, ride it until you see hesitation. nce again, price action, price hasmood swings, beha2ior, and characteristics, learn to read them. #tOs 2ery 2aluable.

hen price is close to %D, look for a pullback to sell "ST below the %D and lea2e a bit on the

table for a possible run. hen price is close to a /D, look for a pop up, to short it back and co2eraround the /D with again, a runner for home runs.

$e2hani2s in a 2on2ise 3anner

1. Study highs and lows+. #f a trend forms, eAamine entry opportunities.*. nce in a trade gauge S3! for stops3eAists4. !ide the winners with the %0 bars if the trade gets solid momentum.

5. !inse and repeat.(


16/70

*. #isk 3ana7e3ent : r5*ent an* intelli7ent sto(s8 Inow trade can be entered with absolutecertainty of success. ou are taking a trade that appears that it will work. hen wrong, which is a5;L probability, your stop should be prudent.

4. Entry refine3ent ! Strate7i2 entries !2ery important. 0llows stops to be smaller and targets wider.'nfortunately, be prepared "E$T0// to miss eAtremely good trades that refuse to gi2e you a goodfill because well, they had no plans on stopping for youN

5. E;it refine3ent8 Difference between good traders, great trader, and sometimes e2en master trader.

0ll of the abo2e are eAtremely important, once the basics mastered, concentrate on Z4 and Z5. Z5 makesthe difference between profitability and abundance but itOs last for a reason...(=8 bein% the most difficult)The swing high3low method works, and it works in all markets, as price is always oscillating, andtherefore, is always trending.

The har*est (art of AHG is i*entifyin7 the 2ho( an* stayin7 on the si*elines) the rest is tra*in7 +ith

the tren* 5sin7 s3all sto(s an* lettin7 the +inners r5n (5rely on (ri2e a2tion.

attern tra*in7

ith a solid understanding of price action Pattern Trading is an eAtremely powerful techni7ue.

/earn to spot the following important pattern formations before you place a trade:

-onsolidation

'ptrends

Downtrends

Double tops

o &one of the most powerful, if played correctly are by far the most rewarding and safe patterns(

Double bottoms double.bottom.pg

o &one of the most powerful, if played correctly are by far the most rewarding and safe patterns(

edges

Symmetric Triangles symm.png

o &0 fa2orite trading pattern, and one of the most powerful, they gi2e birth to trends.(o !e7uires two higher lows and two lower highs. &minimum(

o Price gets trapped, when it finds a direction and escapes, you ha2e a breakout and ride it.

o 0 breakout with the trend has greater chances of success than one against it.

o !ate of success is abo2e 5;L and their targets can be eAponentially bigger than the stops.

o "ost powerful when close to /D or %D areas.

o hen price stalls, itOs a sign of loss of momentum which could mean a re2ersal or congestion.

&start looking for options(

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o The stop should be strategically placed below or abo2e resistance.

o #f using 5;L fib retracement area, watch the 91.


18/70

"ra7on attern 9 &a*van2e*,

dragon.pg

dragon.played.pg how played....

watch.out.if.short.pg Possible dragon formation &1115;=(

http:33www.tradingnaked.com3QerrysDragonPattern.htm &Piscuy(

$ an* / (atterns for3 *5rin7 2on7estion) es(e2ially if s2attere* aro5n* the intra*ay.

The $!to( an* /!6otto3 are 2o33on&easy(. kindergarden.pg

o Treat an "top or a bottom as a re2ersal formation once the middle swing is taken by a

closing baro Mery similar to double tops and double bottoms but re7uire a bigger stop because the resistance

area is not as ob2ious and the stop actually goes at the other side of the pattern due to theirpeaks not being identical, otherwise they would ust be DTOs and D?Os.

o The 1st target is the first maor point of S3 ! then price action based on trend lines, etc)

The $!6otto3 an* /!to( are e;tre3ely rareand also another re2ersal signal if found at the

eAtremes the.7uest.pg

$ For3ation at the 6otto3 &rare, m.bottom.pg

o The " is completed after *swingsK the two outer swings are higher than the middle swing.

o ou know how a head and shoulder has the middle swing higher than the outer onesH ell this

is eAactly the opposite.

/ For3ation at the to( daily.es.pg

o &sometimes known as the -rown pattern(

o The in the middle of a chart is possibly a continuation of the pre2ious trend.

Anek's Sol5tion to the $!6otto3 an*!/ to( as (oste*-o http:33www.elitetrader.com32b3showt...44;Zpost19*444;: &Thread cancelled(

4>*m sure most of you are aware of the +1top and W1bottom formations& .hey represent reversals with

small risk and decent rewards& Well, the fact that +1formations at the very bottom rarely form and Wformations at the very top rarely form sparked the followin% idea'

Search for the rarest patterns in tradin% and trade lo%ically a%ainst them efficiently eliminatin% one of the

possibilities&'

Why? ecause when we have half of an etremely rare pattern formed we have a pretty %ood idea of

where price will probably not %o first when it*s about to complete itself&'

Consoli*ation an* Con7estion

hen price reaches the %D or the /D congestion, hesitation is to be eApectedK eAamine it from the

sidelines unless you are already in a trade and ust managing your eAit. (@nfortunately, easier saidthan done because there is massive uncertainty at those areas&)

-ongestion is when you see a %% and // or %/ and /%. i.e. -onsolidation, Symmetric Triangles, etc.

'ncertainty if you will.

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/earn to spot the chop, it will sa2e you 0$D make you money. -hop kills and re2erses us. $o one is

forcing you to trade as the market is always there.

Con7estion at E;tre3e Areas vs. #eversals

"ake an effort to notice the difference between one and the other.

'sually when price de2elops a 2ery strong mo2e once it becomes eAhausted, it must rest and consolidates."ostly because traders are hesitant to ump in at such le2els, they are potentially painful le2els and no onewants to get burned. This is precisely when amateurs start calling re2ersals or opening positions after thefact, turning trading into hopes and fears. Please a2oid this. This is when patience will ser2e you well.

E2en though re2ersals are 2ery much possible and offer great risk 2s. reward this is eAactly why we useand re7uire confirmations. ithout the confirmation it is simply, a gamble and good traders are notgamblers but predators.

Dont fall preys to congestion, congestion offer no hint eAcept the fact that the pre2ious trend is thestrongest but it is also 2ery much tired, at least for now. 6rom a psychological perspecti2e since you

probably missed the whole initial mo2e you feel frustrated and probably want to ride it all back down &orup( because the market mo2es in wa2es right H plus you probably feel frustrated that all this happenedright in your face. ell, thatOs understandable but make sure an actual good potential setup is de2elopedbefore stepping into a train.

This is the time when we eAamine the surrounding support and resistant areas to see where price might beheading neAt after we get confirmation&s( so we can determine our logical targets and see if the riskin2ol2ed in the trade merits opening a position when and if the time comes.

ri2e t5rns for *ifferent reasons an* not every reason is si7nifi2ant.

&+lease remem'er that)

"ifferen2e 6et+een retra2e3ent an* a (ossi6le reversal

The difference between a retracement and a possible re2ersal in theory is a UbetU, which is why itOs hardfor some people to trade this way, they see price going down, e2en if the support is not taken and theysh their pants, or worse they want to short a support that has yet to be broken.

ne way to tell that helps is that retracement usually happen on lower 2olume where re2ersals usuallystart on increasing 2olume. #f you using 2olume bars you will see them print 2ery rapidly in comparisonto when price action was calm.

ri2e Hesitation-

There are many areas that will cause price to hesitate.

GlobeA high

GlobeA low

Pre2ious close

Pre2ious high

Pre2ious low

Pre2ious open

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Pi2ot point

15 min opening range

*; min opening range

S1

!1

S+

!+ eekly Pi2ot

can go on fore2er The 7uestion is, when do you stop cluttering your charts letOs stick to price

#f an area is important for whate2er reason you will see it as support as resistance in your chart, end of

story.

GlobeA low and globeA high can be an area of congestion, support or resistance. et, how is this

different from any other congestion, support or resistance so treat it like any other. Pi2ots the same.Price action skills will prepare you for this, whate2er it might be.

$ONE $ANAGE$ENT ! A*van2e*

"oney management is 2ery personal and many proper methods eAist. Search deep within yourself todetermine which style fits you best. Trading comfortably is important.

0%G: S2alin7 o5tand Avera7in7 5(

0%G: refer Avera7in7 5( $etho*

o (it is hard to beat once you %et %ood at readin% the market)

S2alin7 o5t

Primarily helps the psychological factor as it may releases the pressure of securing profits, especiallywhen trading multiple positions. et) a si3(le strate7i2 trailin7 sto( a22o3(lishes the sa3e.#e3e36er) yo5 2an al+ays 7et 6a2k in a tra*e.

Primary problem with scaling out is when stopped out before reaching first targetK you lose on your fulllot. (However, if your first tar%et has a %ood ratio in comparison to your stop, then by all means, scale outuntil your heart stops poundin%&)

hen the play is going your way, scale out before clear Upre2iousU known resistance and support. #f thereis nothing remotely resembling that, donOt do it unless e2idence of a possible re2ersal formation, thenscale out and adust stop accordingly.

-onfirm first target is 0T T%E ME! /E0ST as big as stop.

Then 7uickly mo2e stop to breake2en and let it ride as much as possible until price loses momentum.

Take profits ?E6!E the neAt resistance &going long( and ?E6!E the neAt support &going short.(

ou may lea2e a small portion of the trade ride for the home run.

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Avera7in7 5(

ith an a2eraging up approach one good day erases multiple losing days and then some.

02eraging up is only pertinent to those with good accuracy and a solid understanding of how the marketand day trading works. $ow, it is possibly the last step to good fortune as far as phases and stages.

The concept of only adding to a winning position is phenomenal because by definition it ensures that yourtrades are only about small losses, break e2ens and small to gigantic wins. $otice this is eAactly how #suggest your money management results should be so itOs highly compatible with 0%G.

$e2ertheless, you need to be able to handle, from a psychological perspecti2e, a streak of small losses andbreak e2ens, in many cases watching small winners become small losses. This is the negati2e aspect ofa2eraging up. The positi2e aspect is the monumental winners it can and will pro2ide if you do it right.

hen # a2erage up, add to a winning position on retracement only if the maor trend is intact and healthyalways keeping a stop for 0// positions, this stop strategically placed at a definite change of a trend. 0s

the trade keeps going in my fa2or, # keep adding to the position and adusting the stop, the stop is thesame for all brothers and sisters in the trade. 0s the trend de2elops the trend pi2otal point ob2iouslymo2es up as well.

hen the trend ends, you take a small loss3break e2en on the last position $/ or the last twodepending on how fleAible you were and all the initial adds collect massi2e returns, especially theoriginal one.

#t is the holy grail of money management systems ?'T for seasoned traders not for someone who has uststarting to get his3her feet wet with a new system.

02eraging up is probably the most important reason as to why # was attracted to futureOs le2erage. #n fact,#O2e reached +;A with this techni7ue and knowing # had secured profits on


22/70

0s the trend keeps running, and new areas of S3! are marked, the stop is continually mo2ed as theadditions start piling into the play.

hen # get lucky to catch a beast of a trend # might go as far as to using full le2erage as # add positions onretracement but always securing profits on the 2ast maority of the additions. This gi2es me the freedomto trade monstrous contracts responsibly without an ounce of fear.

They say trading should be about small losses, break e2ens and small to huge winners, this is eAactly whata2eraging up promotes. $eedless to say on eAtremely choppy days you end up with multiple small losses.#n the long run though, itOs an indisputable winner as far as money management goes.

Fhen its clear resistance has become support or support became resistance you may consider a2eragingup. "omentum must be there, no eAception. 0pproAimately only 15L of trading days are hea2y trendingdays so keep this into consideration, not e2ery day is optimal for a2eraging up unless a potent re2ersalformation after massi2e eAhaustion was spawned.

02eraging up eAample: for.bk.png

o Enormous gain on the first

o Gigantic gain on the secondo Great gain on the third.

o Small loss on the fourth.

02eraging up eAample: aup.pg

o Cuestion: why not start with 1+ and mo2e your stop accordingly as higher highs and higher

lows are madeHo 0nswer is naturally risk management. #f you were wrong from the start you take a full stop on

a full le2eraged position, not eAactly how we want to trade and protect our capital.

(Onl# recommended for experienced traders who dominate to perfection these teachings.)

Avera7in7 ( a((roa2h for reversal for3ation at the LO":HO". ("on eclusive)

Study re2ersal formations 2ery carefully.

o Double Tops, Double ?ottoms, " tops, bottoms, M bottoms, Triple and !ectangles.

'pon confirmation begin a2erage up approach with a minimal position.

0dd on e2ery possible pullback 6eforethe neAt maor support or resistance area as soon as a

strong3weak bar is e2ident once the retracement looks eAhausted.

Sell3-o2er it all around the neAt significant support or resistance point or partial.

#f resistance becomes support or support becomes resistance you can begin all o2er again with your

minimal position or can continue adding to what it is still in play pro2ided that you ha2e a change of atrend trailing stop protecting e2ery add and of course, past profits.

-onfirmation is an insurance card, use it accordingly but make it a re7uirement for e2ery mo2e you

make, whether it is entry or eAit.

E2ery trade should be an educated prediction and e2ery addition should be an additional confirmation.

The more confirmations the more your car siBe should increase because at first we ne2er really know

where price will go but as we get additional data supporting our original trade theory, the story startsre2ealing itself.

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0s you well know this method promotes small losses and all kinds of winners from miniature to

gigantic. #t is no coincidence that it is chop proof because if you get no additional confirmations youstand on the sidelines with your small position. This method will also help you a2oid calling tops andbottoms because in the back of your mind you donOt want it to end, this can be a 2ery powerfulpsychological asset.

The absolute key to mega profitable consistent trading is ha2ing the skill to spot the birth of a new

trend correctly and playing it responsibly with solid money management.

&Note- not (art of AHG,when a2eraging up, use pyramid techni7ue 8 ne2er adding more than theoriginal car siBe. i.e. initial position *cars, +ndposition add +cars, *rdposition add 1car&re2erse pyramid can lose all profits with a small loss.( 8 obtain 0nekOs comments accordingly

Ti(s

!isk management at all times.

6ind one and only one tool to help determine optimal entries. #t is #"PE!0T#ME that you keep it

simple or you will lose focus.

'se trend lines to gauge the big picture and 6ibonacci for prediction.

De2elop the skill in analyBing momentum and the S3! surroundings as price is going.

o hen it stops, why did it stop, should # wait, if so how longH

o #f it retraces, your stop better be there to secure your profits, not too tight, gi2e it room, usepast bars to ha2e a logical eAit.

$e2er attempt to call bottoms or tops, ust trade the trend.

?etter to miss a good entry than force a bad one

rder EAecution, limit orders eAclusi2ely eAcept market orders for emergency stops.

"0SS#ME mo2es, uncertainty usually unfold. &powerful tip(

Statistically speaking, trend patterns outnumber re2ersals

"ornings are superior to the afternoons, and lunch can be a bit tricky.

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GlobeA low and globeA high can be an area of congestion, support or resistance. et, how is this

different from any other congestion, support or resistance so # treat it like any other. Pi2ots the same.

Screen time is at the thousands of hours.

Do not call tops because no one can do it consistently.

Do not call bottoms because no one can do it consistently.

Do not use big stops, if stopped out you ha2e the luAury of reentry assuming the trend is still intact

and you were stopped out due to noise. #f the trend is up, buy low sell high, do not short if the trend is up.

#f the trend is down, short high co2er low, do not buy if the trend is down.

#f no ob2ious trend, sit on the sidelines, patience is rewarded in trading. #f price is chopping you will

only trade for your broker.

?ecome an eApert on price not on indicatorsK in fact donOt use any but bars, trend lines, support or

resistance.

ou will not beat this game unless you allow the runners to run, price has a much easier time going

through pre2iously known areas, new territories should be treated with respect and only foreAamination.

Try to stay out of breakout areas, the in between is far easier to trade because price will either go to

support or resistance and in the middle they are clear and rarely unknown.

Protect your capital at all cost, protect your profits but be 2ery greedy when you are right.

$e2er mo2e your stops unless it is to secure profits.

Small losses are ine2itable and 2ery much re7uired to succeed, large ones your doom.

Go find your edge and do not fall prey to indicators price is and always will be king. #t speaks in highs

and lows, listen to him, he owns the market.

/earn about re2ersal patterns and look for them at maor support and resistance areas.

%oly Grail J nly adding to inning Positions W "astering a simple working strategy W solid

discipline &>1;;=(

The best trader has no ?ias, goes long or short without a single ounce of bias and his decision is 1;;L

based on price action not on fundamentals, economic news or what Qoe Guru @ said the night before

trader should trade both ways, long or short depending on whatOs the predominant trend,

ne of the hardest but most important things to do in trading is sittin7 on yo5r han*s. ork on that

patience. #f no play, no trade.Ti(s 2ontin5e*

0lways assume that support or resistance will hold or reect price, by *efinition.

Triangle breakouts aligned with the side of the pre2ious trend ha2e a higher chance of success.

#n bull markets bottoms and Double tops chance of success increase dramatically.

o #n contrast in bear markets their effecti2eness is reduced but not a great deal.

#n bear markets "tops and Double tops chance of success increase dramatically.o #n contrast in bull markets their effecti2eness is reduced a great deal.

0fter hours trading: limit orders on entry, in 0% this is a golden rule you donOt break

F5t5res over e45ities-

Traded e7uities for four years, they offer ME! little pros in comparison to futures

6rom e7uities slowly drifted into SP3CCC and then finally futures

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25/70

o Day trading 45 years to attain current le2el of proficiency

?etter li7uidity

/ess games &electronic(

"ore le2erage

0round the clock &kind of(

$o research in2ol2ed

/ess slippage $o short up tick rule

-an day trade without +5k

Easier taAation

ES over S &ETF,-

The maor difference between trading the ES and SP &ET6( is fleAibility,

#f swing trading and something catastrophic happens at *0" in the morning. 6utures gi2e you the

option to bail or solidify your position if you are on the right side. #n e7uities or ET6Os you would need

to wait until premarket opens to decide. They e2en gi2e you the option to hedge if you gotin2estments

0s a 2ery aggressi2e a2eraging up trader when things go my way, and panic hits the market hard the

massi2e le2erage pro2ided by futures allows me to keep a2eraging up if the trend continues. #n SP #would be limited to 4@, least last time # checked. That is priceless for my particular style of trading.

ES:N:E# &sto((e* tra*in7 $ *5e to CBOT iss5es,

Molume bars: ESJ+5;;35;;; NJ1;;;315;; E#J5;;31;;; &91; tick(

Molume bars work well, adust accordingly for low 2olume Fafter hours, etc...

#n terms of 2olume ESVNVE#V$&?esides no crappy -?T and occasional li7uidity problems(

ESo2er N, due to Ns Fcommission premium

N Benefits

Nis like $with more 2olume &less slippage( and better mo2es for 0neks style.

Nis twice as li7uid as the $. #tOs no ES, but still the second most li7uid emini of the four,

including E#.

N is Trendy and eAplosi2e &works well with trendlines( compatible with 0%G

N is -"E &not -?T crap(

N Entry Charts

o 1;;; 2olume bars and3or +** ticks &base chart(

o 91; tick for massi2e pattern detection &anchor chart(

o +5;; tick for multiday appreciation of the main trendOs support3resistance areas.

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26/70

o N [+; point per contract

o ES [5; point per contract

o E#+ J [1;; point per contract

o $ J [5 point per contract

The D0@ can and will lead the ES in the early mornings but remember that the chart at hand should

always be enough. Still an eAtra bonus always helps

Fr5stration) #isk an* the A22e(tan2e of S3all Losses

$othing works all the time, # think we can all agree with this. #f you donOt, time to adust because nothingdoes.

ith that in mind donOt bet the house on any setup because we ne2er know for sure if itOs going to work ornot. %owe2er, if your trading allows the runners to run, like 0%G suggests, then a loser here and thereshould not frustrate you, not only should the loss be relati2ely small compared to the winners but as # saidnumerous times they are necessary and ine2itable in profitable trading, notice what # said, profitabletrading.

/osing small is okK donOt be like the rookies who ust hate to be wrong, the first sign of a real trader iswhen you see him3her losing 7uite often, albeit losing small. hyH ?ecause itOs not about being right butabout making money.

atien2e'pdate &11+;;=(

0 good trade does not present itself e2ery three minutes. hen taking this into consideration you

deduct that patience plays an eAtremely important role in trading.

$ot only is patience re7uired to be the predator trader that you should be but itOs also imperati2e for

letting those good trades do their own work. $ot e2erything works in 15 seconds e2en after it hase2ery characteristic of looking great.

-ouple of things you can do to work on your patience.

o Stretch your legs

o 6ool around in ET forums

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27/70

o "usic, # personally ha2e digital music streaming at all times

o Get a snack

o Practice tape reading skills

o # seriously ad2ice against turning on ?loomberg or -$?-, this will gi2e you a bias and screw

with your trading. Those people there know nothing about trading.

The Best Tra*es

The best trades work from the start

The best trades got multiple signal confirmations

The best trades offer no heat

The best trades re7uire small stops

The best trades follow your trading plan

The best trades de2elop momentum and acceleration after your position is in, not before

The best trades are simply when you are 7uick enough to spot the birth of a ne+trend without

actually being a contrarian

$ow, wouldnOt you like most of your trades to be like thatH#f so, shoot for the best trades and skip the rest.

Con2l5sion of AHG hase %

&10!1!0,

ou will find many pieces of the puBBle on this chart.phase.1.completion.pg

Please note the following 0%G key elements at work:

The engulfing paint bars for entries and eAits when riding meaningful trends although plenty of

eAamples are scattered in the ournal in this area

'nnecessary large stops, the option of reentering

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"eaningful Patterns

Pattern failures

!e2ersal Pattern confirmation

Trend lines at work to help you stay with the trend and knowing when it might be o2er

The magic UtickU confirmation after the breakout closing bar when a pattern forms the.one.tick.pg

The powerful synergy between macro and micro charts, knowledge of key areas

The complete elimination of lagging indicators

-omparison of narrow range &yesterday( and wide &today(, more 2olatility is good for traders

"arket E"otion lines for measuring strength of the trend and possible targets plus areas ofcongestion, highly powerful stuff. 0 Swiss army knife, learn this tool well.

Screen time and practice should be the priority now along with a2oiding the root of all e2il, the chop.

AHG (hase 1 2ontin5e* *5e to (o(5lar *e3an* &11!1!0,

!d&anced techni3ues and discussions located in rear of !ppendix

A((en*i; To AHG hase %

Charts annotations &see attached file for downloaded documents, referenced 1.J 0%G chart;;1

1. &=1>;=( ;=.1>.;=.pg Green 2ertical denotes a long signal. !ed short).+. &=1>;=( ;=.1>.;=+.pg main reasons as to why my signals switched from shorts to longs*. &=+;;=( workspace.png /ork s(a2e4. &=+;;=( ;=.+;.;=.pg trades5. &;>;=( n7.pg /orks(a2e for N

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=. &=+;;=(price.action.gif Price 0ction&ghkramer possibly(. &=+*;=( scalp.with.trend.png 0d2antage of scalping with the trend1;. &=+*;=( new.chart.png took 2olume bars chart transition li2e.

o 0fter studying them for 5 months # think # will be able to read price action better this way

11. &=+*;=( countetrend.png Co5nter tren*in7 Tra*es)*efinitely not (art of the syste3.o USupportU ga2e it away.

o notice how price rebounded off the pre2ious UmaorU support on the pre2ious upwa2e. $owdonOt use this info to counter trade ust yet but as eAtra info for your stops3targets3trails etc.

1+. &=+4;=( ;=.+4.;=.png8 trades of the day1*. &=+4;=( cough.png congestion14. &=+4;=( scalp.with.trend.png0d2antage of scalping with the trend.15. &=+5;=( ;=.+5.;=.pngTren* line 6reaks

o $ote1: hen a trend line is broken and the last high is a lower high itOs safe to take a short on a

pop up. 'nfortunately, the pop up ne2er occurred and # could not get my fill, but # wasshooting for a good target there. orked like a charm eAcept could not capitaliBe due to lack ofa pop up. The least you want to do when that happens is chase it.

o $ote+: -hange of a trend. 0t this point you should see why. # took a short there, lost and took a

full stop.o $ote*: 0t the top see those higher high topsH ell as priced tanked # took a long when price

stabiliBed and worked well. $ot sure if it was the most optimal play &high stochs and all( buttook my 7uick profits little bit below resistance and said to myself take your break, your day iso2er.

o 0s always, 2ertical red lines shorts, 2ertical green lines long, with the trend, on the

pullbacks3pop ups. Third short got stopped out. 6ifth short ?E trade. !est did well. /ongs didwell.

o $ot so hard, ust need to polish those skills of constantly eAamining the // %% /% %/.

o /ast but not least maAimum discipline at all times

19. &=+5;=( ;=.+5.;=+.pngnce again, trend line break on lower highs.1=. &=+5;=( ;=.+5.;=*.pngand the conclusion.o The higher lows hinted it and the higher high confirmed it. ptimal co2er point possibly the

higher low formation but as you eat lunch and take the rest of the day off itOs ok to say once ina while, T6 letOs see if it can make a new %%, and well it did.

1. &=+9;=( ;=.+9.;=+.png %ighly more difficult session.

o #n many cases due to re2ersals and congestion # got chopped to death

+;. &=+=;=( ;=+=;=.pgo ent back to T#-I charts for comparati2e reasons and cleaned some aspects of the chart.

'sing Pi2ot %igh3/ow indicator from Tradestation to compare with S3! dots, so far # like mycleaner charts. &Sorry T!(

+1. &=*;;=( ;=.*;.;=.png "ost of the winners were trailed for a splendid day++. &=*;;=( symm.png sy33etri2 trian7le, /%s %/s

o Price gets trapped, when it finds a direction and escapes, you got a breakout. Especially when

close to /D or %D areas. #n this case, it was below %D and made a new one.+*. &=*1;=( ;=.*1.;=.png8 *o56le to(:*o56le 6otto3area led to chop suey

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o signal to stay on the sidelines.

+4. &


31/70

o The answer is naturally risk management. #f you were wrong from the start you take a full stop

on a full le2eraged position, not eAactly how we want to trade and protect our capital.o 02eraging up is great stuff.

49. &


32/70

9*. &


33/70

o !emember that to ump long, and most important after massi2e downside, you need + %%s

and + %/s or a Double ? followed by a %% and %/.o # think this situation is peculiar and merits discussion.


34/70

. &>;5;=( samples.pg %ll5strates ho+ "B's an* "Ts are s5((ose* to 6e (laye*.o Dominant trend is down and see double top, "ay take an aggressi2e short with a minimal stop

as soon as it is around the resistance area.o %owe2er, if the dominant trend is up, donOt play hero, wait for the swing low to be taken out by

a bar closing below that point. 0ggressi2e play: Stop is a few ticks abo2e it

-onser2ati2e play: Stop goes between resistance and entry

o !iding it merits a separate discussion all together but here are a few ideas:

Draw a conser2ati2e trend line, unless broken, stay in

Scale out at support areas and trail stop accordingly

0dd on retracement if the re2ersal de2elops into a strong trend

etc, this is an art actually.

#f it fails, consider possible formation of a triple top

>;. &>;1. &>;+. &>;*. &>;>;=( n7.pgType charts to be used for N&+orks(a2e,>4. &>11;=( gimme.the.stout.pg $C analysis>5. &>11;=( stout.pg>9. &>11;=( ad2anced.scalping.pg ad2anced scalping &not 0%G, this is pure scaling(

o M bottoms draw a down trend line, when broken, scalp the price action and stay on the same

side of momentum as long as momentum does not fade.>=. &>11;=( useful.pg -oded some paint bars to accentuate price action.

o 6airly simple stuff, ha2e not tested it li2e but should be semi useful>1+;=( kinder.pg ay too eAtended, minimal retracement, =1.5; was more in line.

o ou need to let bulls sell and bears co2er after such mo2es.

>>. &>1+;=( n7.pg "orning was optimalo no heat, no losses, nothing but a sweet uptrend with ob2ious entries.

o 0t this pace # donOt see myself returning to ES but too early to tell.

1;;. &>1+;=( n7.afternoon.pg Symmetrical triangle with trend line break1;1. &>14;=( fun.scalps.pg 6un scalps on the $C based on price action during brutally low 2olume

o "omentum called targets

1;+. &>14;=( the.end.pg -losed the last long...1;*. &>15;=(price.action.sample.pgPrice action random $C day

o should help for stop placement logistics.

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1;4. &>15;=( homework.;>.15.;=.pg Ho3e+ork) sto(s an* e;its.o 0ttached please find a random $C chart.

o #t was fairly easy to mark the entries as it was a strong downtrend, so # took care of those. #n

my eAperience, when the indeAes are displaying a strong downtrend, amateur traders tend toshy away and simply become paralyBed. # want to help you eAploit such wonderful days

instead of ust standing still and looking in awe.o The eAercise is to mark the stops and the eAits on all entries and gi2e lo7i2aleAplanations for

each, no eAception.o 0ssume no intraday swings and no a2eraging ups, strictly in and out protecting capital and

milking the market.o %$O#TANT NOTE-!emember that your fill is somewhere on the bar following the entry

as we 2alue close more than open3high or low, no cheating.o Ans+ers to !1?!0 Ho3e+orkanswer can be found on faithbelow.

o n a side note, the reason why # included it the long on U-onfidenceU is because there is a

strong possibility # might ha2e taken a 7uick long scalp there as a mistake.o

The reasoning behind it is that a small mistake canOt kill us, with discipline and confidence inprice action, we are untouchable.o wins and the occasional monster play, your confidence will go from ; to 9; in + seconds.

o &>15;=( my\anek\chart\analysis.png&Techdoodle( Ans+er to ho3e+ork

the stops and eAits are redundant in style. # think thatOs a good thing because they

become well defined rules. F0nek replies Perfect analysis, the part you do not understand is me referring to a

double bottom &against the trend( whose middle high swing was ne2er taken by aclosing bar.

1;5. &>15;=(price.action.pasta.pgo # took another random chart and produced a brain salad surgery on price action.

o #t has more info than you can possibly digest for a single chart but it would help if you makean effort to follow the logic.

o 0%G at an eAtremely micro le2el.

o hen # used to trade in public channels people used to ask me, how do you trade with such

small stops, how do you do it, well this is it, no magic.o Small losses, small wins and the occasional monster play and your confidence goes from ; to

9; in + seconds1;9. &>15;=( confidence.pg Confi*en2e

o ?elie2ing is your system and methodology is eAtremely important in trading.

o %a2ing the discipline, to accept the fact, that when we are wrong the PT#"0/ scenario is the

7uick stop, no 7uestions asked.o #n an effort to build your confidence here is a chart of nothing but losses.

1;=. &>15;=( faith.pg Faitho ou did not really think we could not profit from such a chart, rightH

o inners make the losers look like ants

1;19;=( holy.grail.chair.pg The infamous %oly Grail -hair).1;>. &>1=;=( morning.scalps.pg "orning scalps before coffee)11;. &>1=;=( morning.analysis.pg #ea*ers) (lease tell 3e +hat % see that yo5 75ys *on't.

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o The pre2ious mo2e had eAtended downside, when that happens it is prudent to wait for a pop

up then take the signal.

111. &>1>;=(a.possibility.pg ossi6le AHG A**en*53o ?ullish Scenario

o 'p swing &1%%, 1%/, re7uired(o -onfirmation bar closing abo2e pre2ious bar high &bright green paint bar( after the retracement

while the most recent %/ remains intact.o Areferably not hi%her than half the distance between the last HL and the last HH&

o Target based on price action and neAt resistance or the 2ery beginning of a conser2ati2e

a2eraging up play for the possible upcoming uptrend. #deally target 35stsurpass the risk o2erthe long run, unless price action says otherwise.

o Stop below most recent %/.

o O(en for *is25ssion, needs further eAamination.

o 0 wise3eAperienced trader # know claims the best possible entries are found at the birth of new

trends with the 2ery first confirmation. Easier said than done, this could be a possibility.o $ote: 0n uptrend re7uires +%%s and +%/s, this play anticipates it with minimal risk

o Geometrically similar to 1+* pattern, but the rules are a different story.

11+. &>1>;=(closeisall.pgThe importance of close and not a wick11*. &>1>;=(li2e.play.pg /i2e play on the $C)114. &>1>;=(free.pg $C 0%G 0nalysis

o They donOt teach you this in UTrading 0cademiesU

o Qust like a beautiful breeBe of fresh air, the good stuff comes from the heart, and itOs always

free. Pun 2ery much intended.115. &>+;;=( ahg setup 2er +.+.pg Mis5al referen2e AHG set!5( 2hart &!n+;;=( n7.;>.+;.;=.pg 0%G 0nalysis for $C

o #t was a hard day to trade but as soon as the trend decided to show its face one trade made theday.

o Sitting on your hands and taking small losses was absolutely 7uintessential today.

o eAamine the Double ? failure and how the element of surprise rewards traders.

o Small losses

o ?reak e2ens

o Small wins

o Great wins

o ....only way to beat trading.

11=. &>+1;=( candy.pg self eAplanatory11++;=( unity.pg 0ll in unity, all the pieces of the puBBles combined at last11>. &>+4;=( too.easy.pg self eAplanatory1+;. &>+4;=( serious.pg Glo2es are off, trading all indeAes at once.

o Double top, symmetric triangle break down. 0nother easy play

1+1. &>+5;=( increase.accuracy.pg %n2rease A225ra2yo ?y now you should know #Om a fan of closing bars to get some kind of confirmation when

breaking support or resistance.o # will eAtend this a bit further, the closing bar TPE matters.

o ou can apply this to support, resistance, trend lines, symmetric triangles, etc.

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1++. &>+5;=( fleAibility.pg ?e fleAible and adapt.1+*. &>+9;=( dragon.pg "ra7on attern1+4. &>+9;=( dragon.played.pg Ho+"ra7on attern (laye*

1+5. &>+=;=( scalping.pg Ba* tra*in7 *ayo Some patterns failed today, the day was 2ery brutal but thatOs 7uite alright because the stops are

nothing to cry home about. # think today was one of the ugliest trading days in a long time.o %owe2er, there are always scalping opportunities.

o The paint bars # use are a close abo2e pre2ious high and a close below pre2ious low. ell,

when you combine this with Trend line support or resistance you get a nice scalping systembecause the stop is 2ery small and the reward is 7uite high.

o 0ttached please find some of the scalps # did today on the $C. "any worked great on E!+

and ES as well and at one point # had the same play on all three indeAes at the same time, feltfunny, but good stuff, minimal risk, great reward, ust like # like it.

o # donOt think # had one fail today

1+9. &>+=;=( er+.scalps.pg E!+ Scalps: 6ew, but real gems.1+=. &>+=;=( es.scalps.pg ES Scalps1++. &1;;+;=( n7.1;.;+.;=.pg and they say ET does not ha2e useful strategies pfttt)

o #f in a downtrend, you want to find the weak bars in the pop ups.

o #f in an uptrend, you want to find the strong bars in the retracement.

1*;. &1;;+;=( the.7uest.pg $!6otto3 an* /!to(1*1. &1;;*;=( m.bottom.pg $!Botto3, rare as >; year old 2irgins1*+. &1;;*;=( daily.es.pg /!to(1**. &1;;*;=(price.action.commentary.1;.;*.;=.pg

o Strength 7uality of the swings, listen to price action

1*4. &1;;*;=( kindergarden.pg /!6otto3s an* $!to(s, look how simple this was1*5. &1;;4;=( es.morning.pg ES morning

o price has a tendency to ump from one key area to the neAt without much problem. The real

obser2ation should be done when it is actually at a key area.o Some people use Pi2ots # like to be more precise and use support and resistance areas instead.

1*9. &1;;9;=( teach.yourself.ahg.in.+4.hours.pgTea2h o5rself AHG in > ho5rs1*=. &1;;=;=( the.one.tick.pg8 $a7i2 ti2k

o $otice how the double top had a close below the middle swing but not tick low after that.

o $ow, notice how the %ead and Shoulders had the close below neckline and then a tick on the

neAt bar below the closing breakdown bar.

o That tick increases accuracy.o That one tip # owe to Suri Duddella.

1*


38/70

o %ere is a taste of the progress on the E!+ with 9 months past data, canOt go any further on TS

using tick charts, unless # buy eAtra data.o -ommission and slippage is accounted for in the results. E2ery trade has three eAit points so

the car siBe is set as its minimum, *. # ha2e not implemented a2eraging up into it yet.1*>. &1;;=;=( cur2e.pg Posted as illustration of automation progress.

o $ot selling, not sharing ust answering why toying with personal indicators all this time

14;. &1;;;=( 1;.;>.;=.pg &daily P/(144. &1;1;;=( failed.head.and.shoulders.pg Ino+ yo5r (atternso AnekDs favorite (atterns to tra*e is not the Hea* an* Sho5l*er itself 65t a faile* one

145. &1;1*;=( triangle.pg 65llish Trian7le 6reako5to dramatic eAample as this one makes a trend re2ersal. Price action also ga2e it away.

149. &1;1*;=( ym.triangle.pg The mighty one)14=. &1;1*;=( fib.illustration.1.pg ?rain candy14


39/70

o # started way early based on an in2erse head and shoulder on the daily charts &sadly not as

early as that shows( and ha2e been adding e2er since, kids future if you will &0nek(o The point of the eAercise is that we must be aware of the big picture in the instrument we trade

and that does not ust mean the daily chart

155. &1;19;=( multi.day.pg $5lti "ay Chart e;a3(leo $otice the current wick high on that last bar, reason # decided to take profits around that area.

o #t has UyetU to break out3down.

o #nteresting thing is that # think the key to the market &all eminis( lies on this chart right here.

o The ++;5 and +19; areas are eAtremely important in the neAt de2elopment phase.

o /earn to recogniBe the bearish hemisphere from the bullish one and whatOs the line in the sand.

o !emember, the $asda7 is leading.

o #t is eAtremely important, always, at all times, be aware of the big picture, without it, you

would not know how far your good trades can go.159. &1;1=;=( ne2ermind.pg %3(ortan2e of An2hor Charts

o n the multi day chart $C 5;;; share bars, 9;ish support trend line was holding.

o n the 1;;; a formation right on that area at the /D.

o formation at maor supportH hat does that spell HDual confirmation.

o Targets using the "arket Emotion line.

15=. &1;1=;=(phase.1.completion.pg Con2l5sion of hase %

o ou will find many pieces of the puBBle on this chart.15


40/70

o 0ttached please find positi2e opportunities that were found intraday.

Some potential entries that resulted on small losses were omitted for the sake of simplicity. 0syou know by now, small losses are a necessity in trading and they should not scare you at all.#ts big losses you want to shy away from. 0ccept them as a trading eApense, like commission,will help you keep your peace of mind. $o one blew up from a day of multiple small losses.$eedless to say, 0%G ga2e you the possibility of many, many winners today, including somehome runs, as it ga2e me and for that, #Om thankful.

15>. &11;1;=( tape.pg Filtere* ti3e an* saleso EAperimenting with only watching the tape for big orders, feel # can read the tape much better

and with less distraction when # only pay attention to the big orders and eAclude the littlepeople. 0fter all, the small car lots are ust noise.

o %ere is a sample of how clear price action was on the filtered tape today.

19;. &11;+;=( n7.update.pg conclusion to the o2ernight swing191. &11;+;=( n7.w.from.hell.pg small chart19+. &11;+;=( n7.big.pgbig chart &reference with small chart

o 0bsolutely brutal, lo2ely, seAy, you name it dual confirmation from bigger chart which had the

2ery same formation so you could easily a2erage up on the eAtra subse7uent confirmations.19*. &11;+;=( n7.11.;+.;=.pg8 $C analysis

o 0maBing day with only two losses, a minimal one in $C trying to catch the falling knife

without confirmation like a rookie and the same play on ES were # ga2e up + points for lack ofdiscipline and thinking # am omnipotent to call a bottom in a strong downtrend, a foolish thingto do.

o The good news is the winners were in the double digits and one incredible home run that made

my day shine. -ouple of a2eraging up plays on retracement during strong trend that ele2atedprofits a bit.

o $eedless to say, # will try to learn from the two dumb mistakes so # can further impro2e my

trading. Trading is a learning process that ne2er ends.o nce again, $C continues to reward me 2ery nicely and days like this confirm that #Om in the

right instrument doing the right things.o $otice that after +* wa2es the odds of working will decrease eAponentially.

194. &11;+;=( n7.week.analysis.11.;+.;=.pgo "y study conclusion shows a bullish $asda7 despite weakness in the other indeAes.

o chart analysis of some recent swings or o2ernight plays taken and key areas identifying the

bull mo2e confirmation including subse7uent confirmations of neAt resistance barriers alongwith support areas that could indicate upcoming consolidation or a change of a trend.

o There is something else important on that chart that # did not mention, waiting to see whoOs

first &readers posts 11;*;=(

o 0nswer: The possible in2erse h and s and the triangle at the edge were the missing patterns inthe chart.

o %owe2er, ust like % and S work better at the 2ery tops, #n2erse % and S work better at

bottoms, so its position is not optimal. The rest is still 2alid.195. &11;*;=( n7.chart.pg ThatOs how # like them199. &11;*;=( n7.in2erse.h.and.s.pg from the daily chart.

o 0nek prefers the head of the in2erse head and shoulders to mark the absolute lowest point

19=. &11;*;=(both.good.pg comparison of tick32olume charts look great for 0%G and $C.19

8/11/2019 Ahg Referen

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Ahg Reference - Hk 001