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Services Disclaimer (for full disclosure, see “Disclaimers” section of website)

▪ Information

▪ Contained within our website and affiliates is not a substitute for professional advice (e.g., stock broker, financial advisor,

personal banker).

▪ Provided by us does not constitute legal or financial advice nor is it meant to be.

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the materials shall be considered legal, financial, or actuarial advice.

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▪ No warranties or guarantees of stock market success are offered of any kind.

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▪ TED will provide you with the tools to improve your trading skills.

▪ How you use the tools is up to you.

Don’t make trading…complicated!

Keep It Simple and Look For Quick Profits

Mass

Psychology

Moving

Averages

Law of

Large Numbers

Gaps

Japanese

Candlesticks

Chart

Patterns

Why Are You

Trading?

Market

Hours

Chart

Analysis

Human

Biases

Individual

Psychology

Technical

Analysis

Chart Types

Support &

Resistance Multiple

Time Frames

Breakaway

Momentum

Myths

Trade

RangeStochastics

Engulfing

Patterns

2-Bar

Patterns

Topping

Tail

Pre-Market

YOU

What to use

Flags

What Is

Price Action?

Neglected

Essentials

VolumeUndercapitalized

LifestyleSelf-

Fulfillment

Simple

Trading

Survival

Paper

Trading

Learning

Curve

Mass

Psychology

Moving

Averages

Law of

Large Numbers

Why Are You

Trading?

Market

Hours

Human

Biases

Individual

Psychology

Technical

Analysis

Momentum

Myths

Stochastics

Pre-Market

YOU

What to use

What Is

Price Action?

Neglected

Essentials

Undercapitalized

LifestyleSelf-

Fulfillment

Simple

Paper

Trading

Learning

Curve

Chart

Analysis

Trading

Survival

Support &

Resistance Multiple

Time Frames

Gaps

Japanese

Candlesticks

Chart

Patterns

Chart Types

Breakaway

2-Bar

Patterns

Topping

Tail

FlagsTrade

Range

Engulfing

Patterns

Volume

PHASE I

TRADING TACTICS

Range bound; Buy on dips &

Sell on tops

Consolidation; Buy Breakouts

& Sell Breakdowns

Congestion; Don’t Trade

PHASE II

TRADING TACTICS

Major market uptrend & Phase II match,

Buy bottom of dips & breakouts.

Sell tops of rallies

OPTIMAL BUYING ZONE OR

SHORT COVERING

OPTIMAL SELLING ZONE OR

SHORT SALE

PHASE IV

TRADING TACTICS

Major market downtrend & Phase II match,

Sell or Sell Short rallies & buy back on dips.

PHASE III

TRADING TACTICS


Sell on tops


& Sell Breakdowns


PHASE I

TRADING TACTICS


Sell on tops


& Sell Breakdowns


SIDEWAYS TRADING PATTERNS

RANGE CONSOLIDATION CONGESTION

Expansion of movements

Up Trend1

Down Trend2

Sideways Price Action3

Up Trend breakdown

4

Down Trend breakout

5

Breakout6 Breakdown7

Expansion of movements

Up Trend1

Down Trend2

Sideways Price Action3

Up Trend breakdown

4

Down Trend breakout

5

Breakout6 Breakdown7

Mini Market Cycles

Up

Down

Up

Up

Down

Down

Natural pullback

Natural pullback

Up-Down-Up Down-Up-Down

upper third of bullish bar

lower third of bearish bar

FASTER On Mini Market Cycles

Transition Among PhasesM Patterns

W Patterns

Breakaway Gaps

Exhaustion Gaps

Common Gaps &Runaway Gaps


Breakaway Gaps

Exhaustion Gaps

1

2 3

B

A

C

Flags1

2

3

1

32

B

AC

Flags

Parallel

12

3

1

2 3

STOP

ENTRY

TARGET

LONG Entry•Up trend•Higher Highs & Higher Lows

Price Action

REWARD

RISK

(1R)

(multiple R)

Entry areas

Natural Pullback

We often move the stop to fast!

Winning Trade but…•You get stopped out•Small profit at best•Psychological “let-down”…you see the rest of the original profits

Trigger

Profit

Stop

Strategysignal Buy ShortSOH SOH

Transition Among Phases



Buy Limit Order

Buy Stop Order

Current market



Sell Limit Order

Sell Stop Order

Current market


Transition Among PhasesBuy Stop Order

Sell Stop Order

Current market

Range Consolidation Congestion

a

b

c e

d f

Equal support & resistance

Breakout

1

2 3 1

Breakdown

32

Mini Market CycleMini Market Cycle

Mini Market Cycle

Mini Market Cycle

20 MA

200 MA

PHASE III

RESISTANCE

SELL POWER

DISTRIBUTION

SIDEWAYS PRICE PATTERN

VOLUME CONSOLIDATION

OVERBOUGHT

PROFIT TAKING

PHASE II

UPTREND/BREAKOUT

HIGHER HIGHS/HIGHER LOWS

BULLS IN CONTROL

BUYERS

VOLUME UP = BULLISH

VOLUME DOWN = BEARISH

GREED

PHASE IV

DOWN TREND//SELLOFF

LOWER HIGHS/LOWER LOWS

BEARS IN CONTROL

SELLERS

VOLUME UP = BEARISH

VOLUME DOWN = BULLISH

FEAR

PHASE IV

DOWN TREND//SELLOFF


BEARS IN CONTROL

SELLERS

VOLUME UP = BEARISH


FEAR

PHASE I

SUPPORT

BUYING POWER

ACCUMULATION



OVERSOLD

PHASE II

UPTREND/BREAKOUT


BULLS IN CONTROL

BUYERS

VOLUME UP = BULLISH


GREED

Faster movement with small time candlesticks

Mini Market Cycles or shorter in duration

More visibility to reversal patterns

Sometimes more difficult setups requiring 3-4-5 bar reversal patterns in

order to enter trades

More noise because of candlestick deficiencies

Can occur inside all four Phases

Expect multiple mini cycles in up trends and down trends

Often inside of chart formation and chart patterns (i.e, Flag patterns)

Remember on higher timeframes we look for W & M patterns and then

focus on the first flag patterns after the neckline is broken

With Mini Market Cycles, you have to respect the timing and skip the first

one so you can catch the natural movements up and down

Establish discipline and standards

(trading rules) to follow

Create Trading Triangle

▪ “High Odds” Trades

▪ “Medium Odds” Trades

▪ “Low Odds” Trades

High

Odds

Medium Odds

Low Odds

Let trade quality determine money

management strategies

▪ “High Odds” Trades – bigger stops

▪ “Medium Odds” Trades – normal

stops

▪ “Low Odds” Trades – tighter stops

Pre Market Session

News Events

Overnight Futures

Analysis

Morning Session

Gaps

Opening Range

Reversal Times

News Events

Volume Increases

Mid-day Session

Continuation Moves

Failed Patterns

Reversal Times

Volume Declines

Late day Session

Momentum

Rallies

Reversal Times

Volume Returns

After Hours

News Events

Analysis

Volume Declines

Pre Market Session

News Events

Overnight Futures

Analysis

Morning Session

Gaps

Opening Range

Reversal Patterns

News Events

Volume Increases

Mid-day Session

Continuation Moves

Failed Patterns

Reversal Patterns

Volume Declines

Late day Session

Momentum

Rallies

Reversal Patterns

Volume Returns

After Hours

News Events

Analysis

Volume Declines


Transition Among Phases Opening Bell


W Patterns

Breakaway Gaps

Exhaustion Gaps



Breakaway Gaps

Exhaustion Gaps

1

2 3

B

A

C

Flags1

2

3

1

32

B

AC

Flags

Parallel

12

3

1

2 3

STOP

Initial

ENTRY Signal

TARGET


Price Action

Late entry

Initial Entry Signal missed or

hesitated on…

Contemplation leads to “late” entry

Price action has moved significant

enough that retracement or

“pause” is ready to occur

Anxious money management

tactics and “draw-down” create

anxiety in trader such that he has to

close out the trade

B

A

C

Flags

1

2

3

Good Entry

Preliminary target

Initial Stop

Fibonacci Retracements

TARGET


Price Action

Late entry

Initial Entry Signal missed or

hesitated on…

Contemplation leads to “late” entry

Price action has moved significant

enough that retracement or

“pause” is ready to occur

Anxious money management

tactics and “draw-down” create

anxiety in trader such that he has to

close out the trade

Mini Market Cycle

1

2

3

4

STOP

ENTRY

TARGET


Price Action

REWARD

RISK

(1R)

(multiple R)

Entry areas

Natural Pullback

We often move the stop to fast!

Winning Trade but…•You get stopped out•Small profit at best•Psychological “let-down”…you see the rest of the original profits

STOP

Good Entry

TARGET


Price Action

Late entry

Multiple entry signals missed …trend is

ignored or trader in disbelief of momentum

After frustration of missing the

move…”jumps in”

Entry is extremely late

Price action is now exhausted after several

up “thrust”

Using “big” stop to compensate for “missed

entries” and ease the tension…price action

transitions to down trend and has trader in

quandary for taking setups

Good Entry


Price Action

Late Long Entry

Defines your HH’s and HL’s

Multiple entry signals missed …trend is

ignored or trader in disbelief of momentum

After frustration of missing the

move…”jumps in”

Entry is extremely late

Price action is now exhausted after several

up “thrust”

Using “big” stop to compensate for “missed

entries” and ease the tension…price action

transitions to down trend and has trader in

quandary for taking setups

Mini MarketCycles

M Patterns

W Patterns1

2 3

1

32

1

2 3

1. Skip the first one2. Look for timing3. Reversals define P1’s & P3’s

1. Skip the first one2. Look for timing3. Reversals define P1’s & P3’sIntraday

Daily

Weekly

Monthly

M Patterns

W Patterns1

2 3

1

32

1

2 3



Multiple timeframes is one of the most effective trading tactics for creating

congruency and increasing the odds of a “winning trade”

▪ Day traders should consider one (1) timeframe above (macro) the primary timeframe they

trade

▪ Only consider one (1) timeframe below your primary timeframe to identify the mini market

cycle, improve trade execution and trade management

Goal should be “Trading with the trend”

▪ The stronger the macro trend, the more price action profit opportunities for traders to

participate

▪ Shorter micro trends present “early warning” opportunities to more effectively manage

existing trades and prepare for the next alignment of macro and micro timeframes

Will experience faster movements with small time candlesticks









Most of the time – trend determination is based on the movement of price action

using trend lines, price patterns and moving averages.

Moving averages will focus on smoothing out all the Mini Cycles

▪ Effective when used in basic manner for lower timeframes

▪ Stay away from fancy moving averages and derivatives

Momentum indicators often focus on the depth of strength or weakness of price

action

▪ Rate of Change, Divergences, Relative Strength Indicators, MACD, and Stochastics don’t follow the

Mini Cycles consistently to be used for Buy and/or Sell Signals

Fibonacci Retracements are not very effective because Mini Cycles usually don’t

retrace to “hot-zone” (i.e., 38%-62% area)

Major and Minor Support and Resistance areas can be also be defined by using Mini

Cycles

1

2 31

32

Breakdowns for SHORT signals

Breakouts for LONG signals

Look for reversal pattern in Mini Market Cycles beforeGoing Long

Look for reversal pattern in Mini Market Cycles beforeGoing Short

1

2 31

32

Lower time frame Breakdowns for SHORT signals

Lower time frame Breakout for

LONG signals

Buying Signal

Short Signal

1

2 3

Buy Signals

1

32

Short signals

REWARD

RISK

STOP

ENTRY SIGNAL

TARGET

Buy Zone

Price Action

Looking for entry in lower timeframe

Higher timeframe entry signal is more potent

Tighter stop are usually inherent with lower timeframe entry signal – potentially more traders getting stopped out

Beginning of Phase 2

Bullish up trend• Macro uptrend•Complete Mini Market Cycles

Macro Timeframe

Micro Timeframes

1. Trend trading increases the odds

of trading success and profits

2. Trade bullish mini Market Cycles

P2 in bullish up trends and

bearish mini Market Cycles P4 in

bearish down trends

3. Improve trade quality by trading

setups when the macro and micro

timeframes align

4. Avoiding trading the macro trend

causes insurmountable obstacles

for scalp trading

Lower timeframe

Phase 2 Entry

#3

#2

#1

We want to analyze each pullback in Phase 2 to

evaluate pivots for uptrend

On lower timeframes…one approach is to constantly

review swing pivots for higher highs and higher

lows and similar in Phase 4’s

Faster movement with small time candlesticks









Preliminary Mini TARGET

Higher Timeframe•Up trend•Higher Highs & Higher Lows

Price Action

2/3 Br Reversals

Mini Market Cycle Setups often will be the

Swing Pivot Lows from the higher time

frames

Mini Cycle Phase 1’s will be the same as or

similar to the 2/3 Br Reversal and Swing

Pivot Lows

Higher timeframe will proved clarity by

looking at Higher Lows

Mini Cycle Phase 4’s will establish the Higher

timeframe flag patterns

Consider Scaling-In each Mini Cycle setup

with small position

Mini Market Cycle

P1

P2

P3

P4

Preliminary Mini TARGET

Higher Timeframe•Up trend•Higher Highs & Higher Lows

Price Action

2/3 Br Reversals

Mini Market Cycle

P1

P2

P3

P4

Micro Up Trend

Early 3 Br Reversal setup

Retrace50 %

Mini Market Cycle

stop

Macro Timeframe

Micro Timeframes

Setups on Mini Market

Cycle

Micro Up Trend


Retrace50 %

Mini Market Cycle



stop



Macro Timeframe

Flag pattern on highertimeframe is the

same as the lower timeframes Phase 4

1. Trend trading increases the odds

of trading success and profits

2. Trade bullish mini Market Cycles

P2 in bullish up trends and

bearish mini Market Cycles P4 in

bearish down trends

3. Improve trade quality by trading

setups when the macro and micro

timeframes align

4. Avoiding trading the macro trend

causes insurmountable obstacles

for scalp trading

Lower timeframe

Phase 2 Entry

Minor Phase 1’s

▪ Bottoming Tails

▪ Reversal Patterns

▪ Narrow Range Bars

▪ Novice Gaps

Minor Phases Minor Phases

2

2

2

1

4

4

3

3

1

Major Bullish Phase 2

Trading Tip

Traders buy when the Minor 2 matches the Major 2. Herein lies the master key

to stock market accuracy on the buy side. The question of “when” to buy is now

answered. A buy is triggered each time there is a phase to phase “MATCH”.

Don’ miss this concept. It is Priceless!

Buy

Buy2

2

2

1

4

4

3

3

1

Bullish Phase 2

Minor Phase 3’s

▪ Topping Tails

▪ Reversal Patterns

▪ Narrow Range Bars

▪ Novice GapsMajor Bearish Phase 4

Minor PhasesMinor Phases

2

24

1 4

43

3

1

Trading Tip

Traders short when the Minor 4 matches the Major 4. Herein lies the master

key to stock market accuracy on the short side. The question of “when” to

short is now answered. A short is triggered each time there is a phase to phase

“MATCH”. Don’ miss this concept. It is Priceless!

Sell

Sell

4

2

2

1

4

4

3

3

1

Bearish Phase 4

NO Setups

Swing Pivot

3 Br Reversal

Stop

2 Br Reversal BUY signal

StopSwing Pivot

Low

5 Br Reversal

Open

Stop

Swing Pivot High

SHORT signals

Stop

2 Br Reversal Short Signal

Stop

Swing Pivot High

5 Br Reversal

Stop

NO Setups

Macro Timeframe

Micro TimeframesSetups on

Mini Market Cycle

Micro Up Trend


Retrace50 %

Mini Market Cycle

Higher Timeframe

Phase 2


stop

Stop

Stop

Stop

Stop

Stop

Macro Timeframe


Mini Market Cycle

Micro Up Trend


Retrace50 %

Mini Market Cycle

Higher Timeframe

Phase 2

Leave stops until prior Flag Pattern high is broken for Mini Market Cycles

stop

Stop 1

Stop 2

Stop 3

Stop 4

Stop 5

Macro Timeframe

Micro TimeframesSetups on Mini Market

Cycle

Micro Up Trend


Retrace50 %

Mini Market Cycle

stop

Trailing Stop 1

Trailing Stop 2

Trailing Stop 3

Leave stops until prior two (2) Flag Pattern highs are broken for Mini Market Cycles

HH1

HH2

B

A

C

1

2

3

Good Setups

Mini Market Cycles / Pullbacks

Macro Timeframe


Cycle

Look for flag pattern setups only in the Hot Zone when using the Fib Retracements

Macro Timeframe


Cycle

P2

P4

P2

Mini Market Cycles / Pullbacks

Stop

Stop

Stop

Stop

Stop

Stop

Stop

Stop

Macro Timeframe

Micro Timeframes


Cycle

Micro Up Trend


Retrace50 %

Mini Market Cycle

Higher Timeframe

Phase 2


stop

Stop

Stop

Stop

Stop

Stop

Target

Target

Target

Target

Macro Timeframe


Mini Market Cycle

Micro Up Trend


Retrace50 %

Mini Market Cycle

Higher Timeframe

Phase 2


stop

Trailing Stop

Trailing Stop

Trailing Stop

Range Consolidation Congestion

a

b

c e

d f

Equal support & resistance

Breakout

1

2 3 1

Breakdown

32

Mini Market CycleMini Market Cycle

Mini Market Cycle

Mini Market Cycle

1 2 3 4

1 2 3 4

Major Support

Major Resistance

Phase 2 Setups

Phase 4 Setups

Mini Market Cycles

20 MA

200 MA

PHASE III

RESISTANCE

SELL POWER

DISTRIBUTION



OVERBOUGHT

PROFIT TAKING

PHASE II

UPTREND/BREAKOUT


BULLS IN CONTROL

BUYERS

VOLUME UP = BULLISH


GREED

PHASE IV

DOWN TREND//SELLOFF


BEARS IN CONTROL

SELLERS

VOLUME UP = BEARISH


FEAR

PHASE IV

DOWN TREND//SELLOFF


BEARS IN CONTROL

SELLERS

VOLUME UP = BEARISH


FEAR

PHASE I

SUPPORT

BUYING POWER

ACCUMULATION



OVERSOLD

PHASE II

UPTREND/BREAKOUT


BULLS IN CONTROL

BUYERS

VOLUME UP = BULLISH


GREED

PHASE IV

DOWN TREND//SELLOFF


BEARS IN CONTROL

SELLERS

VOLUME UP = BEARISH


FEAR

PHASE I

SUPPORT

BUYING POWER

ACCUMULATION



OVERSOLD

PHASE II

UPTREND/BREAKOUT


BULLS IN CONTROL

BUYERS

VOLUME UP = BULLISH


GREED

P4 or P1

ENTRY

1

2

3


W Patterns

Breakaway Gaps

Exhaustion Gaps



Breakaway Gaps

Exhaustion Gaps

1

2 3

B

A

C

Flags1

2

3

1

32

B

AC

Flags

Parallel

12

3

1

2 3

Losing Trades

Break-even Trades

Winning Trades

Tenacity for staying in “wrong and bad” trades

Very suspicious of “winning trades”

Unwillingness to detach from old trades

Distrust for the current trending price action

Consumed by anticipation of next trending move

Excessive sensitivity to loses

Lack of remorse during account draw-downs

Disregard of feelings in loosing trades

Impulsive and irresponsible decision-making

Strong emotions of anger, anxiety, or depression

that last for hours

Unstable trading behaviors…chasing markets,

entries…

Technical Analysis Based Stops

▪ Trend line

▪ Pivot points

▪ Channels

▪ Previous Day High or Low

▪ Fibonacci Retracement

▪ Indicators

Trailing Stops

▪ Volatility stop

▪ Fixed amount trailing

Fixed Stop

▪ Percentage of capital

▪ Fixed points

Price Action Stops

▪ Measured Moves

▪ Chart patterns

▪ Support & Resistance levels

▪ Pivot Points

▪ Previous Day High/Low

▪ Pre/Post Market support & resistance levels

▪ Volume spikes

Exit Tactics and Tools

▪ Scaling Out

▪ Exit All Out

Risk Management

▪ Single stop-loss

▪ Pivots

▪ Support & Resistance

▪ Prior Day Highs & Lows

▪ Trailing

▪ Congestion Areas

▪ Multiple stop-losses

Money Management

▪ Exit All Out

▪ Partial Exits & Scaling Out

▪ Targets

▪ Single

▪ Multiple

Identify strategies and trading styles that provide high odds trading

For example, using multiple timeframes and trading in the trend direction

increases your odds of a favorable trade

Determine which trading style fits your demeanor

▪ Low % of winning trades (Being Wrong more…)

▪ High % of winning trades (Being Right more…)

Understand the requirements for having a profitable system or strategy for the

style chosen.

Your Daily Preparation Actually Starts the Day Before –After the Prior Day’s Close.

Study the impacts on existing or new trader opportunities – including post-market news

and movers.

Write entries in your Trading Journal, including trades taken and not taken; good, bad,

and ugly trades; state of mind; distractions; entries, exits, stops; etc.

Review trades, charts, and watch list items for potential impacts to the next day.

Analyze and study trend, support, resistance of broader markets, sectors, market

internals, and set alerts at key levels.

Always Start Again With a Clear Head and Fresh Eyes!

Examine the gap size of the stocks and/or futures of your choosing, and mark it for

future reference.

Your first suggestion of direction in the first 15 to 30-minutes.

Unless a longer time frame supports it, don’t‘ take trades based on 2-minute charts.

Based on net change from open, sort your market minder of stocks, then condense

the Focus List into a separate minder.

Focus and work from your condensed list when/where scanning should be done.

Prioritize your list and be prepared/confident to execute your plays.

Review Your List of SetupsFrom Your Trading Plan

Volume Spikes

Wide Range Bound at Supply and/or

Demand

Breakouts

False Signals

Engulfing Bars

Gaps

Prioritize the List

Based on the following:

Quality vs. Inferior

Moving Averages

Relative Strength

Sector Strength

Support/Resistance

Supply/Demand

Trend on Multiple Time Frames

Price Voids

No pending News

Don’t make trading…complicated!

Keep It Simple and Look For Quick Profits


W Patterns

Breakaway Gaps

Exhaustion Gaps



Breakaway Gaps

Exhaustion Gaps

1

2 3

B

A

C

Flags1

2

3

1

32

B

AC

Flags

Parallel

12

3

1

2 3

services disclaimer - amazon s3€¦ · services disclaimer (for full disclosure, see...

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