with Frank Ochoa

PRECISION SWING TRADINGAFTA SIG

MAY 25, 2013

Swing Trade Pro

PART II: SWING

TRADING

SETUPS AND

ENTRY

TECHNIQUES

The Importance of

Trade Location

Pro-Style Entry Techniques

Intraday Entry Techniques

Indicator-Based Setups

Candlestick Setups

Range-Based Setups

PART III: TRADE AND

RISK

MANAGEMEN

T

Forecasting Accurate Targets

Scaling and Trailing Techniques

Defining Trade Risk

5 Rules of Risk Management

Proper Position Sizing

Defining Portfolio Risk

PART I: FOUNDATIONAL

SWING

TRADING

CONCEPTS

Four Market Phases

Understanding Value

Identifying Value Opportunities

Pivot-Based Moving Averages

Pivot Range Analysis

Volume-Weighted Average Price

the Four Market

Phases

Four Market Phases

• Gives traders a “heads-up” on the

potential upcoming market phase

• Allows you to anticipate, and prepare

for, upcoming price movement

• Traders that can recognize market

phases are able to identify the best

profit-making opportunities

• Tailor your approach to the phase

The Four Market Phases were pioneered by Richard D.

Wyckoff and help to provide understanding of the various price

cycles, which allows for better market timing.

FOUR MARKET

PHASES:

1.

ACCUMULATION

2. DISTRIBUTION

3. MARKUP

4. MARKDOWN

Four Market Phases

1. Accumulation

Accumulation

Re-Accumulation

3. Distribution

Re-Distribution

2. Markup

4. Markdown

Best Times to Trade

Markup

Markdown

Markup

Oftentimes the safest or best

times to trade are during the

Markup and Markdown phases

These phases offer highly

confirmed unidirectional

trending price movement

Accumulation

• Institutions buy large amounts of stock

over long periods of time, so as not to

drive up the price

• A large trading range, or base, develops

as Institutions build their position

• Recognizing the Accumulation phase

gives insight into future opportunity

• Wyckoff: believes this phase is the

“force” behind the upcoming move

The Accumulation phase occurs when institutional investors begin

buying up substantial supply of a given stock, which creates

compression, and usually leads to a Markup phase.

Contraction

before

Expansion

Accumulation is Fuel

The Accumulation phase should be

seen as a “necessity” in order for an

established Markup phase to

develop; the bigger the Accum, the

bigger the Markup

Once in the Markup phase,

every pull-back becomes a

high probability value

opportunity

Markup The Markup phase occurs after a period of Accumulation, and

usually leads to a sustained, trending move. This phase provides

the BEST opportunity for trading.

• Price breaks out of the Accumulation

phase, and begins trending higher

• The big money bought during the

Accum phase, now retail money joins in

• This is the most profitable time to buy,

and also the “safest” time to buy

• Wyckoff: believes this phase is the

direct result of the Accumulation phase

Expansion

after

Contraction

Best Trading Opps

Many techniques and tools can be used to

identify pull-back opportunities, like moving

averages, VWAP, candlestick setups, and more!

Distribution

• Institutions begin selling large amounts of

stock over long periods of time, so as not to

disturb price

• A large trading range develops, as Institutions

liquidate their position

• Recognizing the Distribution phase gives

insight into future opportunity

• Wyckoff: believes this phase is the “force”

behind the upcoming move

The Distribution phase occurs when institutional investors begin

slowly liquidating (selling) their inventory of a given stock, thus

creating compression, which typically precedes the Markdown

phase.

Contraction

before

Expansion

Distribution

While the Distribution phase can be

tricky to decipher (from Accumulation), a

series of lower highs are usually a “tell”

Markdown The Markdown phase occurs after a period of Distribution, and

usually leads to a sustained, trending move. This phase provides

the BEST opportunity for trading.

• Price breaks out of the Distribution phase,

and begins trending lower

• The big money sold during the Distribution

phase, now retail money joins in

• This is the most profitable time to sell short,

and also the “safest” time to sell

• Wyckoff: believes this phase is the direct

result of the Distribution phase

Expansion

after

Contraction

Markdown

Do you need a setup to trade this?

No, you just need an understanding

of market structure and value

Identifying value

opportunities

PROFESSIONALS

UNDERSTAND VALUE Professionals rely upon their ability to identify value opportunities, and

exercise discipline to only trade when good value is present.

• Quickly and accurately determining value

directly affects profitability

• Patience and discipline are the keys to

consistently trading value opportunities

• Requiring good value for EVERY trade

dramatically improves odds for success

• Trading value reduces risk and maximizes

the potential gain

TOOLS OF THE TRADE Identifying value opportunities can be quite easy,

especially when using the right tools in the right way.

PEMA

Pivot-Based Exponential

Moving Averages visually

reveal value

opportunities during

trending markets

•Simple; accessible

•Multiple moving

averages easily identify

the trend, and its value

opportunities

•“Stacked & sloped”

offers the best way to

use this method

PIVOT

RANGE

The Pivot Range reveals

a value area each month,

which is used to identify

value opportunities

•Simple, accessible

•Pivot range trend and

width analysis can help

identify great value and

breakout opportunities

•“Buy dips, and sell rips”

at the pivot range during

trending markets

VWAP

Volume-Weighted

Average Price is a

classic indicator that

clearly reveals a real-

time value line

•Simple, semi-accessible

•VWAP offers a real-time

view of value, and

over/undervalued price

levels are easily

identified

•“Buy dips, and sell rips”

at VWAP during a

trending market

TOOLS OF THE TRADE

Accumulation

During the Markup phase, every

pull-back to the 1st and 2nd levels

of the PEMAs offers great value

opportunities

MAs are stacked &

sloped, meaning they are

all trending higher in

unison

Premium

Discount

TOOLS OF THE TRADE

Accumulation

During the Markup phase, every test at

the Pivot Range is the market testing

prior value; if buyers defend value, then

another wave of strength occurs

Price finds support at the

Pivot Range during a

trending market

TOOLS OF THE TRADE

Accumulation

During the Markup phase, price will “test”

VWAP to reaffirm direction, which usually

welcomes responsive buyers that are eager

to buy at a discount

Pull-backs to VWAP during

a strong Markup phase offer

great value opportunities

setups

The PEMA Pull-Back setup is used to identify value opportunities

during trending markets using pivot-based moving averages.

PEMA PULL-BACK

PEMA

PULL-BACK

Finds value opportunities

during the Markup and

Markdown phases

•Value opportunity setup

•Trend-confirmed setup

•Only trade when moving

averages are “stacked and

sloped”

•Trade during Markup and

Markdown phases

Buy and Sell pull-backs only within

established Markup or Markdown phases

Can use all entry types:

OR Breakout, OR/VA Reversal,

Ambush, Retest, or Threshold

13

34

L: 13/34/55

M: 13/21/34

H: 8/13/21

55

PEMA PB EXAMPLE

The “safest” way to get great trade location

is to allow price to test your trigger zone

before placing an entry; a successful test is

the “all clear” to negotiate your entry

Place a Retest entry

at the center of this

wick

LMT

PEMA PB EXAMPLE

A reversal candlestick

that forms after a test

indicates the market

will likely defend that

level

Place a Retest entry

at the center of this

wick

LMT

The VWAP Pull-Back setup is used to identify value opportunities

during trending markets using Volume-Weighted Average Price.

VWAP PULL-BACK

VWAP

PULL-

BACK

Finds value opportunities

during the Markup and

Markdown phases

•Value opportunity setup

•Trend-confirmed setup

•Only trade when VWAP

is moving higher/lower

•Trade during Markup

and Markdown phases

Buy and Sell pull-backs only within

established Markup or Markdown phases

Use the Retest or Ambush

entry techniques as close to

VWAP as possible (or lower) VWAP

VWAP PB EXAMPLE

A healthy advance usually precedes a

pull-back opportunity; this allows traders

that missed the train to join the ride

Enter on the 3rd bar

after the gap by

placing a Retest

entry at the center of

the prior candlestick.

LMT

Best case scenario: a reversal

candlestick forms after testing VWAP;

place your Retest entry at the center of

the wick

VWAP PB EXAMPLE

You don’t have to be a hero placing

Ambush entries; instead, allow price to

test your trigger level, then place an

entry using the “test” info

LMT

The Higher and Lower Value setups help identify value

opportunities during the Markup and Markdown phases.

HIGHER/LOWER VALUE

HIGHER/Lo

wer

VALUE

Finds value opportunities

during the Markup and

Markdown phases

•Value opportunity setup

•Trend confirmed setup

•Current PR must be

completely higher or lower

than prior month’s

•Trade during Markup and

Markdown phases

Allow price to test the

Value Area, then use a

Retest entry trigger or

intraday entry technique

Pivot Range must be completely higher,

and prior month’s close and current month’s

open must be above current month’s Pivot

Range

LOWER VALUE EXAMPLE

Always try to get the best trade

location, even if it costs you an entry

LMT

LMT

HIGHER VALUE ENTRIES

There are many ways to enter a trade; use the entry

that provides the best trade location and makes the

most sense for the scenario

importance of

trade location

While traders often call it “The Market”, many fail to realize that it is

indeed a market. Trading is a game of inches, and every tick counts.

• We’ve become accustomed to paying

“fixed” prices for our goods

• However, the Stock Market is a real

market, without fixed pricing

• Just as you would negotiate price at a

farmer’s market or artisan market, you

should negotiate your pricing in the Stock

Market, as well

• Every tick saved adds up over time,

thereby increasing your profitability

THE MARKET IS A MARKET

Negotiate your trade like you’re bidding at an auction. Be

picky, bid low and always try to get the best price possible.

• Novice traders routinely enter a trade and watch price go

immediately against them

• Instead, let price “go against you” before you enter the trade

• Never rush to enter a trade; sitting on your hands is an option

• Bid low, and patiently allow price to come to you

• Pro traders bid low, and aren’t always filled

• But when they are filled, they’re typically great entries

IT’S AN AUCTION

The secret to making more money out of each trade is...

TRADE LOCATION! Make money on the “front end” of the

trade.

• Better entries (Trade Location) means

more profit potential

• Better entries means less risk

• Less risk means smaller losses

• Negotiating your entry (with Limit Orders)

eliminates slippage

• Defining your trade location requires

discipline; discipline leads to profitable

trading

ALL ABOUT LOCATION

NEGOTIATE THE ENTRY

LMT

A bullish Outside Day setup develops;

rather than enter at the open of the

next session, place a buy Limit at the

midpoint of the candle ($32.70)

H: 33.12

L: 32.28

M: 32.70

EXECUTION

LMT

Next day’s Open is $33.19, while our

entry is $32.70. Made 49 ticks on the

“front end” of the trade (+1.5%)

Pro traders filled

here: $32.70; 9

ticks from the low

Novice

traders

fill here

NEGOTIATE THE ENTRY

LMT Bullish gap from an Accumulation phase; rather

than enter upon a break of the recent high, place a

buy Limit at the midpoint of the candle ($19.30)

H: 19.50

L: 19.10

M: 19.30

EXECUTION

LMT

Instead of entering upon a new high,

we filled at $19.30. Gained 20 ticks

on the trade’s “front end” (+1.0%)

Limit Filled:

$19.30;

2 ticks from the

low

Most

traders fill

here

pro-style entry

techniques

Pro-Style entry techniques provide a solid approach to

consistently triggering great entries in any timeframe.

• They force you to be disciplined

• They help create more profit potential;

make money on “front end”

• They reduce slippage and risk

• They provide reliable ways to trigger

entries in any timeframe and any type

of setup or opportunity

PRO-STYLE ENTRY

TECHNIQUES

AMBUSH

ENTRY

Placing a Limit Order at a

level where price has yet to

trade

•High risk factor

•Triggers upon a Reversal

•Must have high confidence

factor to use this entry

•Best used at high confluence

zones, or established

supp/resis

PRO-STYLE ENTRY

TECHNIQUES

RETEST

ENTRY

Placing a Limit Order at a

level where price recently

traded

•Med risk factor

•Triggers upon a Reversal

•Forces you to practice

discipline and patience

•Set Limit order toward the

center of the prior candlestick

or wick

•PivotBoss Preferred

THRESHOLD

ENTRY

Placing a Stop Market order

beyond a recent high or low

•Lower risk factor

•Triggers upon a Breakout

•Forces you to practice

discipline and patience

•Set SM order beyond a

recent high/low, or beyond

supp/resis

Pros deploy the Retest Entry by placing a Limit Order at a

level where price has recently traded, in an effort to attain

better trade location.

THE RETEST ENTRY

RETEST

ENTRY

Placing a Limit Order at a

level where price recently

traded

•Med risk factor

•Triggers upon a Reversal

•Forces you to practice

discipline and patience

•Set Limit order toward the

center of the prior candlestick

or wick

•PivotBoss Preferred

Let price test an area of established

support or confluence, then place a

buy Limit order toward the center of

the “testing” candlestick or wick

RETEST EXAMPLE

LMT

Let the signal bar fully develop;

then set retest Buy Limit at the

center of the signal bar

RETEST EXAMPLE

LMT

You can also set the retest Buy Limit

at the midway point of the prior wick

There’s no magic formula or secret recipe;

the point is to always try to attain better

trade location, even if it’s by a few ticks

Intraday entry techniques provide a systematic approach to entering

trades, regardless of which timeframe the setup originates.

• Allow for additional confirmation; provide

one last “step” before entry

• Can be used when an opportunity exists,

but direction remains unknown

• Provide a structured approach to entering

trades; consistency

• Can also be used as intraday “setups”;

setup within a setup

INTRADAY ENTRY

TECHNIQUES

Opening

Range

BREAKOUT

Placing a Stop Market Order

beyond the 30-min OR high

(buy) or low (sell)

•Lower risk factor

•Triggers upon a Breakout

•Regarded as “safe”;

confirmed entry

•30-min Opening Range is

standard, but 15-min and 60-

min also used

INTRADAY ENTRY

TECHNIQUES

Opening

Range

Reversal

Placing a Limit Order at the

30-min OR low (to buy) or

high (to sell)

•Med risk factor

•Triggers upon a Reversal

•Trickier entry, but creates

more profit potential

•30-min Opening Range is

standard, but 15-min and 60-

min also used

Value Area

Reversal

Placing a Limit Order order

within the Value Area for a

reversal entry

•Med risk factor

•Triggers upon a Reversal

•Trickier entry, but helps

create more profit potential

•Must be Higher/Lower Value

relationship; triggers inside

the range

VA REVERSAL ENTRY Pros use the VA Reversal entry to time intraday entries for higher

timeframe trading opportunities, which offers better trade location.

Allow price to test the

day’s Value Area, then use

a Retest entry trigger

Pivot Range must be completely higher,

and prior day’s close and current day’s open

must be above current day’s Pivot Range Value Area

Reversal

Placing a Limit Order order

within the Value Area for a

reversal entry

•Med risk factor

•Triggers upon a Reversal

•Trickier entry, but helps

create more profit potential

•Must be Higher/Lower Value

relationship; triggers inside

the range

VA REVERSAL RULES

Ideal Rules for Entry:

1. Current pivot range is

completely above prior day’s

2. Prior day’s close is above

next day’s pivot range

3. Current day’s open is above

the pivot range

4. Use any Pro-style entry

1

2

3

4

VALUE AREA REVERSAL

STRUCTURE

The goal is to enter anywhere

within the value area during a

retest of the prior day’s range

The shaded areas show

when the market is

retesting the prior day’s

price range before new

price discovery occurs

Buy the Dips

VALUE AREA REVERSAL

STRUCTURE

Visualize the intraday

movement within a daily bar

structure

Your goal is to buy

within the “wick” of the

upcoming day

VA REVERSAL EXAMPLE

Intraday

Inside Value

setup

Daily Bar overlay

Get great trade location

by triggering entries

within the pivot range

VA REVERSAL EXAMPLE

After direction is confirmed,

use a VA Reversal entry to get

great trade location

Inside Day

w/breakout

* The goal is to enter Short upon

the wick of the upcoming candlestick

*

VA REVERSAL EXAMPLE

Lower Value

The goal is to enter anywhere

within the value area

The Pivot Range visually represents value in the

chart; triggering within this zone offers great trade

location during a trending market

forecasting

accurate targets

• Average price movement provides a

price-based method to forecasting targets

• Trading to high-probability targets yields

consistent results

• Using profit targets allows you to more

easily incorporate risk management

measures

• Trading to profit targets is the PivotBoss

preferred approach

FORECASTING TARGETS

The PivotBoss approach to taking profits relies upon forecasting targets

based on average price movement and utilizing actual profit targets.

PRO-STYLE TECHNIQUES

FOR TARGET FORECASTING

ADR SWING

TARGETS

Utilizes multiple-day ranges

to forecast reliable targets

•Simple; effective

•Can be used for any style of

trading and in any timeframe

•Price-based; self-adjusts to

current volatility

•Success rates over 70%

ADR

WEEKLY

TARGETS

Utilizes weekly price range to

forecast reliable targets

•Simple; effective

•Great for swing trading and

range forecasting

•Price-based; self-adjusts to

current volatility

•Uses average weekly ranges

for targets

ADR SWING

TARGETS

Utilizes multiple-day ranges

to forecast reliable targets

•Simple; effective

•Can be used for any style of

trading and in any timeframe

•Price-based; self-adjusts to

current volatility

•Success rates over 70%

ADR Swing Targets use average price movement and multiple-day

ranges in order to forecast reliable and accurate targets.

ADR SWING TARGETS

ADR SWING TARGETS

FDL

+aMDR

TGT

• Helps you forecast targets with a high

degree of accuracy (>70%!)

• Auto-adjusts to current market volatility

and behavior

• Simple; effective - and it works!

• The Real-Time and Swing Editions of

The ADR Method teach the entire

methodology

The ADR Method is a simple, yet powerful, method used for forecasting

targets using average price range in any timeframe.

WHAT IS THE

ADR METHOD?

WHY SHOULD YOU

USE ADR TARGETS?

• Provides a simple, price-based approach that incorporates

recent price behavior

• Self-adjusts to current volatility

• Helps provide reasonable price range expectations for the

upcoming period of time

• Allows you to easily forecast bull and bear targets,

regardless of timeframe

• Allows you to anticipate market behavior, including

breakouts (expansion) and range markets (compression)

Average Daily Range has been used by professionals for years, because it

provides a price-based approach that relies on current price behavior.

• The highest high minus the lowest

low over a given number of days

• The MDR, and its average, is used

to identify great swing targets

• The ADR Method primarily uses a 3-

and 5-day calculation, but other

periodicities can be used, like a 10-

day

A Multiple Day Range (MDR) uses the highest high and the lowest low

over a given number of days to identify the range.

MULTIPLE DAY RANGES

NORMAL

CALCULATION

Projects Avg MDR higher from the

FDL, and lower from FDH

•Uses 100% of Avg MDR

•BULL: FDL + Avg MDR

•BEAR: FDH - Avg MDR

•Accuracy of ~45%

•Use as a secondary target

•Use 3-, 5-, and 10-day ranges

The Normal calculation projects the average MDR higher from the

First Day Low (FDL), and lower from the First Day High (FDH).

NORMAL

The Normal calculation projects

100% of the Avg MDR

FDL

+aMDR

Great secondary target, and also

helps to forecast future price range

TGT

NORMAL APPLIED

Entry:

$32.36

10-day MDR =

1.63

L:

$32.17

Bull:

$33.80

Normal Bull: FDL + aMDR

Normal Bull: 32.17 + 1.63

NORMAL LITE

CALCULATION

Projects 75% of Avg MDR higher

from the FDL, and lower from FDH

•Uses 75% of Avg MDR

•BULL: FDL + (Avg MDR x .75)

•BEAR: FDH - (Avg MDR x .75)

•Accuracy of ~70%

•Use as the primary target

•Use 3-, 5-, and 10-day ranges

NORMAL LITE The Normal Lite calculation projects 75% of average MDR higher from

the First Day Low (FDL), and lower from the First Day High (FDH).

The Normal Lite calculation

projects 75% of the Avg MDR

+aMDR

x .75

Great primary target, with a success

rate of over 70%

FDL

TGT

NORMAL LITE APPLIED

Entry:

$32.36

10-day MDR =

1.63

L:

$32.17

NL Bull:

$33.39

Normal Lite Bull: FDL + (aMDR x .75)

Normal Bull Lite: 32.17 + (1.63 x .75)

ADR

WEEKLY

TARGETS

Utilizes weekly price range to

forecast reliable targets

•Simple; effective

•Great for swing trading and

range forecasting

•Price-based; self-adjusts to

current volatility

•Uses average weekly ranges

for targets

ADR Weekly Targets use Average Weekly Range (AWR) in order to

forecast reliable and accurate targets on a week by week basis.

ADR WEEKLY TARGETS

ADR WEEKLY

TARGETS

WL

+AWR

• Weekly range refers to the High

minus the Low of the week

• AWR refers to averaging the

weekly ranges over a string of

weeks/months

• A 5- or 10-period calculation

works best, as it includes the most

recent price behavior

Average Weekly Range (AWR) is calculated exactly like

Average Daily Range, but uses weekly bars instead.

AVERAGE WEEKLY RANGE

• Use AWR to forecast potential price

extremes for the upcoming week

• Identifying the potential price range for a

given week helps to manage price range

expectations

• Projecting targets from Monday’s high/low

provides solid targets for the week

• Using a confirmed high or low for the week

helps to pinpoint the best targets

Like MDRs, AWR helps temper expectations for price range and

provides a price-based method for forecasting targets for the week.

AWR FORECASTING

AND TARGETS

The base calculations for forecasting with Average Weekly Range are

consistent with all other ADR Method calculations.

BASE CALCULATIONS

INITIAL

FORECAST

Projects AWR higher and lower from the

prior week’s closing price

•Uses 100% of AWR

•BULL: PWC + AWR

•BEAR: PWC - AWR

•Used to determine range expectations for

the next week

•Average price range suggests that price

should remain within the projected range

during the week

Base TARGET

CALCULATIONS

The standard Normal and Normal Lite

base calculations are used for targets

•Normal [uses 100% of AWR]

• BULL: WL + AWR

• BEAR: WH - AWR

•Normal Lite [uses 75% of AWR]

• BULL: WL + (AWR x .75)

• BEAR: WH - (AWR x .75)

THE INITIAL FORECAST

AWR = 2.00

PWC: $36.04

T: $38.04 Bull: PWC + AWR = 38.04

Bear: PWC - AWR = 34.04

B: $34.04

The Initial Forecast is designed

to give you the estimated price

range for the upcoming week

ADR WEEKLY TARGETS

AWR = 2.00

L: $35.86

N: $37.86

N Bull: WL + AWR

NL Bull: WL + (AWR x .75)

NL Bear: WH - (AWR x .75)

N Bear: WH - AWR

Use Mon’s H/L to forecast

Weekly targets; update the

targets should a new H/L

form

NL: $37.36

NL: $34.87

N: $34.37

H: $36.37

ADR WEEKLY TARGETS

AWR = 2.00

L: $35.86

N: $37.86

N Bull: WL + AWR

NL Bull: WL + (AWR x .75)

NL Bear: WH - (AWR x .75)

N Bear: WH - AWR

Price traded right into our

forecasted bull targets

NL: $37.36

N: $34.87

N: $34.37

H: $36.37

ADR WEEKLY TARGETS

N: $37.86

The Initial Forecast gave us a

great starting point for identifying

the week’s potential price range NL: $37.36

N: $34.87

N: $34.37

FREE TRADE TECHNIQUE

The Free Trade Technique is a 2-part scaling technique that allows you

to position yourself with a risk-free trade after an initial favorable move.

• A conservative 2-part scaling

technique; defensive approach

• Allows you to eliminate risk from

your trade after an initial favorable

move

• Allows you to “dip your toe” into the

trading waters

• Allows you to proceed with caution

during volatile markets

FREE TRADE

TECHNIQUE

An easy scaling technique that helps position

yourself for a risk-free trade

•Calculate your risk on the trade (Entry price -

Stop Loss price)

•Project this amount higher from your entry

price (Free Trade Zone)

•When price reaches your FTZ, sell half of

your position

•Leave your original stop for the last half of

your position

•You now have a free trade; you lose no

money if you are stopped out

FREE TRADE EXAMPLES

EXAMPLE 1

1. Risk Per Share: $1.50 (Entry Price - Stop Loss Price)

2. Free Trade Zone: $42.50 (Entry of $41 + $1.50)

3. Sell Half: Sell 1/2 the position at $42.50

4. Keep Half: Let 1/2 ride with original stop loss of $39.50

EXAMPLE 2

1. Risk Per Share: $0.75 (Entry Price - Stop Loss Price)

2. Free Trade Zone: $22.50 (Entry of $21.75 + $0.75)

3. Sell Half: Sell 1/2 the position at $22.50

4. Keep Half: Let 1/2 ride with original stop loss of $21.00

Learn

to trade...

...with house

money

FREE TRADE EXAMPLE

ADR Stop:

$104.62

N Bull: $109.96

ADR (10): 1.91

ADR Stop: ADR/2 = .96

FTZ: Entry + Trade Risk = $106.54

Entry: $105.58

FTZ: $106.54 (Sell

1/2)

Once price hits the

FTZ, there’s no risk in

the trade anymore;

frees your mind

FREE TRADE EXAMPLE

Bear: $65.90

E: $67.94

ADR Stop: $68.32

FTZ: 67.94 - .38 = 67.56

ADR (10): .76

ADR Stop: ADR/2 = .38

FTZ: $67.56 (Sell 1/2)

Final Thoughts

• It’s all about Trade Location; remain

disciplined in requiring a great entry

• Know the types of Pro-Style entries,

and when to deploy them

• The setup doesn’t make the money;

knowing when to use it does

• Practice leads to confidence;

confidence is gained through

experience

Discipline, patience, and technique are the most important

aspects of executing successful swing trades.

CONTACT ME!

Frank Ochoa Author, Educator, Trader

frank@pivotboss.com

www.pivotboss.com

Twitter: @PivotBoss

Shop: shop.pivotboss.com

with Frank Ochoa

SWING TRADE PROTRADE AND RISK MANAGEMENT