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What are the six kind of trades?
- (1) Trend
- (2) Regular MA
- (3) Base
- (4) Consolidation
- (5) DTDB
- (6) Far from MA
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How to identify, enter and exit a Trend Trade?
- Identify Set-Up: Establish that the stock is in a trend (draw a trend line)
- Entry: When the stock pulls back to 9EMA(1/3), 15EMA (2/3), enter in the direction of the trend
- Exit: In 3 stages 1/3 at +x, 1/3 at +2x and 1/3 until the trend breaks (trailing SL)
- Case: If only 9EMA gets hit, ride the small trade size until the trend if broken
- Rule 1: Only enter between 9:45am and 3pm
- Rule 2: Use limit order for entry with a stop loss (x)
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How to identify, enter and exit a Regular Moving Average Trade?
- Identify Set-Up: Price running up (not crawling) to 65EMA / 200EMA
- Entry: Enter for reversal at the exact level of the EMA
- Exit: In 3 stages 1/3 at +x, 1/3 at +2x and 1/3 at TSL x
- Rule 1: Use limit order for entry with a stop loss (x)
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How to identify, enter and exit a Base Trade?
- Identify Set-Up: Stock is going sideways for at least 6 candles(30m) within a tight range Y(winding a rubber band)
- Entry: Enter in the direction of the break with a market order. Set SL at the other end of the broken base Y
- Exit: 1/2 at 2Y, 1/2 Trailing
- Rule 1: Use market order for entry with a stop loss (x)
- Rule 2: This trade should be very low risk
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How to identify, enter and exit a Consolidation Trade?
- Identify Set-Up: Stock is in a strong trend and keeps trading far from the 9EMA. Stock forms a consolidation(base) Y and breaks in the direction of the trend
- Entry: Enter in the direction of the break with a market order
- Stop: Set SL at the other end of the broken base Y
- Exit: In 3 stages 1/3 at +x, 1/3 at +2x and 1/3 until the trend breaks (trailing SL)
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