So how many points is this method worth? Who
remembers? (Laughing) How many points is this method worth? Just a point, right? 4 ticks.
One point. That means when I get to here, I will set 4 ticks. Okay, so short 1944, right?
So now, if this is the case, to go short here, for just
a point, my stop has to be 2 ticks above that. I can move my pivot stop. Ah, it’s already
there. Move this out of the way, here. 45.25, 45.75, it’s already there, okay. Agree, disagree?
Anybody have any questions? Okay, so, it should be very clear. I try to make it as straightforward
as possible. I’d like to see this go immediately into my target. I’d like to see that, but
it may take longer than expected. Now, another thing I think is important. If this touches
1943, and I don’t get filled, I don’t want this to turn into a loss. If it starts to
climb back up, my recommendation is let’s not lose money on this trade. It hit the target
that I wanted and I don’t want to lose money on the trade. You’ve got to get out at break-even.
The other thing I recommend is looking at what else is here. Is there anything else
here that can potentially help us define this trade? And so, it’s always good to have multiple
methods combine. I also see, up here, that it’s acting as a Blueprint (as well, although
not perfect). To me, a little extra goes a long way. You’re not using the X-5 method
alone, you’re adding more validity with another confirmation. Anyone have any questions? Swami?
Ron? Dion? Brent? Yes, you can – if it hits the target, go ahead and get out. Nothing
wrong with that. When practicing these methods, I recommend doing so in simulation until you
gain more and more confidence with what you’re doing. In my opinion, practice goes a long
way. Swami says here, “If the first bar misses the X-5 by a tick, do you still enter?” Can
you clarify that, Swami? Which bar would that be – the setup bar? The setup bar – no, I
wait. It missed it by a tick, then it still went to the move. So you have to wait for
it. Better to wait if it hasn’t happened, or if they front-run it, just let it go. Okay,
so, let’s move this out of the way. Next week, I want to start on the Blueprint method. I
know that some of you may already have already been trained on it, but I think it’s best
to start from the beginning. I’d like to talk about false breakouts, filtering with very
large, extended moves, big moves on a weekly chart, the Stair-Step pattern. The Stair Step
is when the market is slowly “grinding” higher and higher or lower and
lower. I don’t like to see a day that is slow and grinding, however, these days exist. You
can look back on the day and say, “What a great trending day.” The day was excellent
because it just kept on going higher and higher, but it’s very difficult to identify this type
of day as it’s happening. This Stair Step pattern is basically is first understanding
the conditions – is the market slow as determined by the ATR? Is the market moving, popping,
and stalling multiple times like a staircase all in the same direction throughout the day?
You can decide if you don’t want to trade a day like that, but at least learn to recognize
it and understand what type of day it is to help make a better decision. Under Stair Step
conditions, you will have to hold trades longer. Let’s see if this occurs here… All right.
See how the target was hit? Were you guys able to get filled? Swami? Everyone else?
Ross? Dion? You guys are great (laughs) – that’s okay, I understand. I hear ya. It’s really
difficult to hold a trade at times for as long as it takes. As long as you have the
stop in place, the more you see it, the more confident you’re going to get. Check out more
trading news and videos on our website, DayTradeToWin.com.