Monthly Archives: May 2012

Traps at the Higher Structural Level

One of the basic concepts underlying Technical Analysis, the YTC way, is that of traps. (See here and here for example. And of course here!)

Usually in these articles when I've discussed traps it's been in terms of short timeframe setups or trigger entries. However the same concept applies at the higher timeframe structural level. You may find it useful in establishing your market bias.

One simple way to use the concept is as follows: a failed structural break in one direction will often lead to a successful break in the other direction.

trapped trader

(more…)

A Strategy Implementation Plan

Do not jump straight into live trading!

Success with any trading strategy should follow a graduated implementation plan, to allow you to increase risk ONLY as you have proven sufficient knowledge and skill at each risk level.

YTC PAT Vol 5 discusses deliberate practice and provides a detailed example of a graduated learning plan. YTC Scalper offers a similar (but much summarised) version, which I will share with you here as an example.

Consider implementing a similar plan for your own trading, adapting of course for your preferred market, timeframe, strategy, risk tolerance and financial situation.

1. Post-Session Learning

Implement a 20-session period of chart review.

If you happen to have access to historical data that can provide 1-range price bars, then you can fast-track this stage. If not, you’ll need to do it in real-time.

For 20 sessions of chart data, review the price charts at any of the following times:

  • Euro – One hour following the UK session open
  • Euro – One hour following any UK/EUR news reports (High or Medium Impact)
  • Euro – One hour following the US session open
  • Euro – One hour following any US news reports (High or Medium Impact)
  • E-mini Russell – One hour following the session open

 

Note: Reviews are completed post-session, not live.

This is a period in which you learn to see the scalping channel opportunity, with the benefit of hindsight.

(more…)

A Passion for Trading

Let me share a recent email from a YTC reader that I absolutely loved.

I just would like to share with you this chart…it is amazing how the upper part is almost a perfect mirror image of the lower part… (it is Wyckoffian with 123 patterns both at Accumulation and Distribution)…offering among others 2 great setups…fall into support and failed rally into resistance that you speak of.

breakout pullbacks

(more…)