Momentum Breakout Target System
The Trade Entry Trigger for the Momentum Target System is a 1-minute close past the Trade Alert Price
Trade Entry Triggers for the Power Scalper System
For trading the Power Scalper, you can use a basic 1-minute bar chart, (OHLC works best) or a candlestick chart.. Plot and maintain horizontal lines on your chart at the current Dynamic Trigger Range High and Low and watch for a full 1 minute bar to close at least 1 tick past the barrier. You can key directly off this close as your entry trigger OR use it as minimum threshold for further evaluation on a decision to take an entry. (I talk about Variations further down below)
Riding Out Volatility At Point Of Entry
The biggest challenge we face as day traders (after locating the precision entry levels) is being able to Ride Out The Potential Volatility AFTER YOU TAKE THE ENTRY otherwise known as MAE “Maximum Adverse Excursion” i.e. “Drawdown” or “Heat” or with the terminology that I use, NEGATIVE TICK TRACTION. – The Dynamic Trigger Range Barriers represent BATTLE LINES where we can expect to see increased price action, and an attempt to run the price – but it is not always a cake-walk to move price past the barrier.
In a FAST/HOT market price can bust past the breakout points with ease and take off quickly in your favor. In a SLUGGISH/LUKEWARM market price can get hung up at the breakout points sometimes needing several attempts before successfully making it past – or Fizzle And Fail Completely. This is the realm where Market Conditions and Luck-of-the-Draw can come into play influencing a trades final outcome.
Enhancing The Standard Trade Entry Trigger
The Minimum Trade Entry Trigger that I recommend that you watch for is a 1 minute close past the TRADE PRICE BARRIER. You can use a basic 1 minute bar chart, (OHLC works best). BUT – This does not mean that you HAVE TO TAKE every one minute close past the TRADE PRICE BARRIER. Here is the way to think about it.
With a 50/50% statistical follow-through, price is going to end up crossing the Dynamic Trigger Range Trade Barriers in one of 2 ways.
(1.) Price will break past the Trade Barrier in 1 minute bar and never look back accelerating into multi point moves on high volume.
(2.) Price will get hung up right at the Trade Barrier in a tug-o-war battle that drags price back and forth across the Trigger Line by up to a full point or more BEFORE price finally decides which direction it’s going to take.
Trading Off Of Pennant and Wedge Formations
50% of the time price will form a STANDARD PENNANT Pattern right at the Trade Price Barrier on a 1 Minute Bar Chart. You can learn to recognize this behavior and incorporate it into your arsenal of Trade Entry Filters.
Learning To Stay Out Of False Breakouts
When a Pennant, (or Flag, Triangle, Wedge Pattern, etc.) forms AT or AROUND the Trade Price Barrier (which represents a temporary zone of congestion), you can watch for price to attempt to make a secondary breakout attempt FROM THE CONGESTION and base your final Entry Trigger off of this.
Learning To Stay Out Of False Breakouts
Not every Breakout Attempt is created equal. If the market suddenly lurches past the Trade Price Barrier with a long range bar, (i.e. anything greater than 1.5 points) the break should be suspect. The low/high of the long range bar can be used as a secondary trade barrier.
Not every Breakout Attempt is created equal. The low/high of the long range bar can be used as a secondary trade barrier.
Not every Breakout Attempt is created equal. The low/high of the long range bar can be used as a secondary trade barrier.
Example Entry
