Swing Entry Trade Setups - Price Action Only

LONG Swing Entry Trade Setup

SHORT Swing Entry Trade Setup

The Market Cycle (excerpt from TRADING PLAN)

MARKET CYCLE - Trend Phases

MARKET CYCLE - Top-Down Approach


MARKET CYCLE - Trend Reversals

MARKET CYCLE - Trend Retracments

LONG Entry - BULL Trend Reversal

Long Trend Reversal Setup and Entry

1. Price Action Down Trend (Lower Highs / Lower Lows)
2. EMA's pointing down confirms Down Trend
3. Parabolic SAR Above Price Action confirms Down Trend
4. RSI Down Trend (Lower Peaks / Lower Valleys)
5. Trend Price Action Rhythm - typically 3 to 5 Rotations
6. Down Trend Chart Pattern
6a. Typically an Inverted Head & Shoulders
6b. A BULL Wedge (Falling Wedge) may form
7. Identify Resistance and Support in Price and RSI
7a. Price Resistance (BULL Close to BULL Close Swing Highs)
7b. RSI Resistance (Peak to Peak)
7c. Price Support (BEAR Close to BEAR Close Swing Lows)
7d. RSI Support (Valley to Valley)
8. Price and RSI should both be making Lower Highs/Lows otherwise they are not in sync - Heads Up!
8a. Price/RSI Bull Divergence (Triple Divergence)
8b. Price/RSI Bull Chart Pattern (i.e. H&S Bottom and/or W)
9. Look for BULL Divergence in the RSI with RSI compressing (Lower Highs and Higher Lows) with Price at a reasonable identifiable Support
10. LONG ENTRY on break and close above Price and RSI Down Trend Resistance

RSI Paradigm Shift Explained

Trade Setup Examples - 377 Tick Chart (Shorter Time Frame)

Trade Setup Examples

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Trade Setup Examples - 987 Tick Chart (Longer Time Frame)

Trade Setup Examples - 377 Tick Chart (Shorter Time Frame)

LONG Entry Trend Reversal / BULL Swing

Trade Setup

LONG Entry Trend Reversal / BULL Swing Trade

YM (Mini-Sized Dow) Analysis - 06-09-2008

Mini-Sized Dow June 2008 (987 Tick Chart)

Mini-Sized Dow June 2008 (377 Tick Chart)

YM LONG and SHORT Trading Strategies

TradeStation





TRADING STRATEGIES:

Trend Reversal LONG Entry

• Down Trend, RSI Confirms Down Trend (Lower Peaks/Troughs)
• RSI BEAR Divergence or RSI H&S Pattern at Beginning of Down Trend preferred
• Identify Resistance on Price Action (Bull Close to Bull Close) and RSI (Peak to Peak)
• Consider using Andrews Pitch Fork in help determining S/R of Down Trend
• Any Down Trending Chart Pattern (Inverted H&S on Angle?)
• Price Action should be approaching known Support (Pivot/Longer Trend/200SMA)
• Look for RSI BULL Divergence to indicate imminent Retracement/Reversal
• BULL Entry after BULL Divergence and RSI Cross Above 30
• Aggressive BULL Entry on Bounce up after Triple BULL Divergence
• BULL Entry after RSI and Price Cross/Close Above Down Trend Resistance
• Aggressive BULL Entry after RSI Cross/Close Above Down Trend Resistance before Price

Trend Swing LONG Entry

• Up Trend, No Significant RSI Bear Divergence preceeding
• RSI Cross and Close Above 50 (RSI Higher Low Below 50 preceeding Preferred)
• Price Action Cross and Close Above 21 EMA

Trend Reversal SHORT Entry

Trend Swing SHORT Entry

• Down Trend, No Significant RSI Bull Divergence preceeding
• RSI Cross and Close Below 50 (RSI Lower High Above 50 preceeding Preferred)
• Price Action Cross and Close Below 21 EMA

Trade Management

• Parabolic SAR Stop Strategy

YM (Mini-Sized Dow) Analysis - 04-02-2008

Mini-Sized Dow JUNE 2008 (3 Minute Bars)

My Trading Layout

My Trading Layout

Charting/Trading Platform: Trade Navigator Gold

YM (Mini-Sized Dow) Analysis - 03-31-2008

Mini-Sized Dow JUNE 2008 (3 Minute Bars)

YM (Mini-Sized Dow) Analysis - 03-27-2008

Mini-Sized Dow JUNE 2008 (3 Minute Bars)

More to come!

YM (Mini-Sized Dow) Analysis - 03-18-2008

Mini-Sized Dow JUNE 2008 (10 Minute Bars)

Mini-Sized Dow JUNE 2008 (3 Minute Bars)

YM (Mini-Sized Dow) Analysis - 03-17-2008

Mini-Sized Dow JUNE 2008 (10 Minute Bars)

Mini-Sized Dow JUNE 2008 (3 Minute Bars)

YM (Mini-Sized Dow) Analysis - 03-14-2008

Mini-Sized Dow JUNE 2008 (10 Minute Bars)

Mini-Sized Dow JUNE 2008 (3 Minute Bars)

High Probability Trade Setups

Consolidation / Trend Reversal
Triple RSI Bear/Bull Divergence in Overbought/Oversold Areas
RSI H&S/Inverted H&S in Overbought/Oversold Areas
RSI Bear/Bull Divergence in Overbought/Oversold Areas

Trending
Bull/Bear Trend/Swing Setup
(21 EMA Pullback, Entry at 9 EMA/Bounce off Trend Force Line)

Floor Trader Daily/Weekly Pivot Points/Previous Close/High/Low

YM Trades/Risk Management

YM - Mini-Sized Dow Futures Contract

Trade/Risk Management
Initial Stop: -20 to 25 Ticks (approx 10% of Daily ATR14)
Profit #1: +5 Ticks (Mechanical Exit Profit of $25)
Profit #2: +10 Ticks (Mechanical Exit Profit of $50)
Profit #3: +25 + Ticks (Discretionary Exit "Runner")

Minimize Risk with Protective Stop at Break-Even or -10 Ticks when Profit #2 is Filled (Discretionary). Move Protective Stop to "lock-in" Profits based on candlesticks and/or Parabolic SAR (Discretionary). Monitor shorter time-frame chart for potential reversal.

YM 3 Lot Long/Short
Initial Risk (Stop -20): -$300
Risk at Profit #1: -$175
Risk at Profit #2: None (Minimum $25 Gain or $75 Gain)

YM (Mini-Sized Dow) Analysis - 02-29-2008

YM (Mini-Sized Dow) Analysis - 02-28-2008

YM (Mini-Sized Dow) Analysis - 02-22-2008