Why Trade Price? by Ryan

• Price is the only indicator that doesn't lag
• All indicators are derived from price
• Price is the most reliable "indicator" to trade
• Price is the most important thing to trade and learn (i.e. Candles, Supply and Demand and Trend)

Thought for the Day

Nice Round Numbers can act as potential Supply and Demand Levels

Buying Around Previous Day's Low

As long as you're in an uptrend and it doesn't break the Demand Level around the Previous Day's Low you can enter that trade with the Previous Day's High as your potential Supply Level / Profit Target (and of course vice versa.) - Michelle - 03/17/10

Michelle's Reversal Patterns - 5 Smoke Signals for Uptrend Reversal

1) Break uptrend line
2) Break demand line
3) Reversal Pattern: Double Top, Head & Shoulders, Lower Swing High
4) Decreasing Volume with Increasing Prices
5) Closes below 20 EMA

Michelle's Reversal Patterns - 5 Smoke Signals for Downtrend Reversal

1) Break downtrend line
2) Break supply line
3) Reversal Pattern: Double Bottom, Inverse Head & Shoulders, Higher Swing Low
4) Decreasing Volume with Decreasing Prices
5) Closes above 20 EMA

New Strategy for Confirmation Trades

To establish a confirmation for a Buy entry on the EURO or YEN Futures here is our checklist:

1) Establish good Demand Level where we certain price is out of balance and Demand exceeds Supply.

2) Watch for a Closed Higher Low on 2 Minute Chart.

3) Watch for a 5 Minute Bar Low (5MBL) with the confirmation of a Closed 5 Minute Bar with a Higher Low.

4) Establish True Range of 5MBL Bar to establish Buy Limit Entry. True Range size of 4-14 use an entry 25-33% below 5MBL High. True Range size of 15+ Buy Limit Entry should be 50% of 5MBL True Range.

6) After price trades 1 point above 5MBL High immediately enter Buy Limit Entry at established True Range level with a stop 3-4 points below 5MBH Low but no more than 12 points.