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Oliver Velez - Tools and

tactics for the master day
trader (swing trading). If you
find a stock that meets strictly the
criteria and definition of an
uptrend (higher highs and higher
lows), your job as a swing trader is
to buy every single decline, not
some of them, not a few of them,
but every single one. The only
Ad.
Johnyou
Murphy
question
have to- High
answer is
Probability
Chart
Reading.
If a
when.
stock breaks its 20 day moving
average, it will normally decline to
its 50 day moving average. So the
50 day becomes the next target. If
it breaks the 50 day moving
average, it will usually drop down
to the 200 day moving average.
And those are the 3 that I use the
Ad.
Pring Technical
mostMartin
frequently.
analysis for short term
traders.
You really just need to pick on four
or five indicators. And thats what
most people would do, I think most
of the time is pick on their favorite
indicators. And, what I do on my
daily charts for example is I look at
the rate of change is the number 1
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indicator
I look at.
wizard (day trading wizard). If
you dont know how to write a full
blown trading plan like I have in the
stock wizards trading book, what I
really recommend doing is: write 2
numbers. Even if youre doing
intraday trading, Write 2 numbers,
write your exit numbers: write your
price target, write your stop loss.
And write them down on paper when
you trade. Because if its written

Ad. Robert Deel - The

inteligent online trader.
Discipline, tools,
techniques and technology.
Each individual stoc k and each
individual market has 3
components: A trend
component, a profitability
component, and a high
probability component. And
what I do is I give these
specific numbers and I store
them, and then I have that list,
remember I told you about,
that propped up of 6 or more
securities? Then I narrow that
Alan
Farley
Author
of Master
down
with this
methodology
to
Swing
Trader.
3.

As we build our skills the

syndrome of buying the tops and
selling the lows starts to fade.
Before the execution were
dealing with time and were
dealing with price. Determining
the exact point in price and time.
A couple minutes on the left side

Opportunity comes in many

many forms. Lets talk about
some key points as far as
swing trading is concerned.
One of the biggest mistake is to
think were in a ranging market
when were in a treding market
and vice versa. Markets trend 2015% of the time and rangebound
75% to 85% of the time. Theyre
3D
market
different
good
for swing
traders, using
scenarios
in
different
support and resistance. timeframes.
Trade example; Using 200 MA
as support (to buy) and 50 MA
as resistance (to sell)
There are many ways of doing this:
some may take 2-3 bars, while
other may take 20-30 bars.
Trade duration depends on
strategy. A sloppy market for
instance gives a reason for not
Many aspects
trade.
holding
trades overnight.
There are many ways of doing this:
some may take 2-3 bars, while
other may take 20-30 bars.

Reward risk
3:1 is a good one. Setting it goes
back to support resistance,
Example with a gap.
SL is adjusted to whole numbers.
Price sensitive execution
One of the problems of following
the crowd, is that they all bought
at a better price and now all want
to get out. We want the affirmation
of our peers so we enter when all

When to enter a trade? We

want Convergence: When price
points to the same execution
point over and over again, in
different ways.
In this case 4 times: gap open
down below support, trendline
broken, price breaks 50, ilan
reversal (very bearish).
Others: broken MA, broken
trendline, retracement,
whatever.
If you dont see
convergence, stand aside.
Look
fordont
execution
If you
pick zone
your and
spots
wait:
In
this
case
bought
at 30
you get crushed.
in the first touch whole number
(also confirmed by high
volume)

Triangle. Lenght after the gap is

the same as before the gap.
Fibonacci set on 50% on the
gap.

Getting ahead of market.

Stepping in in low volatility in
prepartion for high volatility
move. Circle: congestion: on
3rd high,

Steping ahead of the crowd.

Buying in the congestion and
waiting for the crowd to take
you to profit.
(notice the gap in the circle, useful
ahead)

Steping behind of the crowd.

Entering in the pullback to my
price sensitive point.
If never returns to the price
sensitive point: DONT MAKE THE
TRADE. And thats OK in standing
aside.
Pullbacks of continuation gaps
work exceptionally well, and are
hidden secrets of the market
Part of being price sensitive
is: Youre gonna miss a lot of
trades but first advantage: Low
slippage .

Price gap is a 1 bar pattern. In this example left box

corresponds to trade opportunity above bollinger bands
(around 75% on time axis)
Risk and Reward is dynamic on a trade. Sometimes
we need to be exited based on pure time if nothing
happens. Example: in a pullback, if it doesnt go your
way, its lowering your odds.

Pullbacks of continuation gaps

work very well.

Another example, same

Size is strategy. Size is risk

control
This game is about trading
well. Its not about making
money. Specially in your
earlier years. As you build your
survival credentials you
concentrate on improving the
return. But as you build your
survival credentials youve got to
play the music right and not worry

Your
odds
of
jumpin
g into
a nonmovin
g
market
is very
high

NYSE TICK (what is this?) check

Cyclic nature of markets. Your
position for the most part needs to
align with those cycles.
There are opportunities that define
these rules: Best is buy in strong
markets, sell in weak markets,
being careful in flat market.

Process of what we go through

in 4-5 trades in a single day
first we have a setup: parallel
price channel

If you cant see where to get

out, dont get in.

Move stops as strategy builds

up working through perhaps
several pullbacks.

Look at logic of
SLs in 3 and 4.
Taking losses
proactivelly helps
build your sense of
trading power.
Helps build your
You have to addapt
skills.
to changes and
market
inneficiencies
One of our jobs is to determine
what can be minor and major
resistance in the market
(thats a topic for another
couple hours)

Accumulation or
distribution by
insiders is ending.
New disclosure
rules by SEC is
creating these kind
of patterns. (gaps:

Candles are a tool, not a

trading system.
You cannot trade with candles
in isolation.

Traders with higher number of

losers than winners, with good
PnLs:
Let the profits run, cut the
losses short.

As the real body shrinks (japanese call them

spinning tops)
we have small real bodies.

The small real body shows a tug of war between

the bulls and the bears with neither one in control.
What the spinning tops show is : The ability to
move up or down is lacking

DOJI: Japanese say Market is

tired

If the market breaks above it

its a bullish breakout

(zhen zu) A chinese military strategist

from centuries ago:, giving us n
objective view of the market (a great
comment about the wisdom of
perspective): during an engagement a
leader should not be in the midst of his
forces but a little distance apart,
otherwise his outlook will be distorted
and he will misjudge the situation.