REVERSAL SIGNS YOU MUST SEE PRIOR TO ENTERING!!

Be Very Patient on Reversals and Trades Against The Daily Trend....
MAKING THE MARKET PROOVE ITSELF - Preferrably we want to see multiple signs of Accumulation/Distribution prior to entering any reversal trades.

 

The Signs To Look For :

#1 Price peaks at 7-8:30 bar Hi/Lo (Only take after 7&9bar zones ) 

#2 4500 Probars, at Hi/Lo - Volume must show its hand at extremes. Preferrably before the bottom/Top and at the botton/Top.

# 3 Exhaustion and/or Flush Signals on 1500 tick and/or 5 minute (multiples, usually 2-3)

#4 Divergence in the directing of intended move- I want them to show up on higher time frame, 13,500, 4500, 1500, 5minute.

#5 BB EXTREMES or HALF LINES CONFIRMATIONS - Look at the whole shape of the BB, this will show the current trend but If the shape begans to flatten (move sideways) we can assume Accumulation/Distribution taking place. 
Confirm Price Break above/below 4500 1/2 line BB. usually on high volume. Price Must then test the line.(this is Very Important)

#6 5 minute test of rising/falling market - This is usually the last sign prior to the train leaving the station, when we get a break above/below this test bar price may consolidate or trend slightly prior to being marked up on high or low volume.

(The UP arrows point out test of higher low as price trend up)

Timing EXIT SIGNALS & The Quest for when to REVERSING a TRADE

In Recent Post have been focusing my attention on a very inportant skill that will be the determining factor in deciding when to EXIT a position, Win Lose or Draw. In previous Post I covered the different STOP Loss techniques and clues to Close out trades that may not be performing as expected.

THIS post builds on some those concepts and concentrates on what i feel is a breakthru discovery for me regarding EXITS.

The Skill of Knowing when to EXIT,  is very subtle and rarely spoken of in books, maybe becuase traders dont realize that they either posess or are blocking or ignoring this ability. The typical 2% STOP or x POINT Target is the common theme when discussing Exiting a postion. Very Few people speak of allowing the market to TELL YOU WHEN TO EXIT. And even fewer can offer ways in which to go about it.

EXITING skill is arguably more important than ENTRY skill and can tip the scales to consistent profits. Many people focus most of their attention to proper entry and assume that their target or stop will be there EXIT. As discussed in previous post, A stop will more than likely be your exit if its too close, if you trail the position or move to breakeven.

The Ah-hA moment of clearity was when I discovered that Continued Focus on bar progression is the Key. The more trust and confidence we have in what we understand about market action, the faster and easier it will be to ACT ON MARKET INFORMATION.

FOCUSING ON EACH AND EVERY BAR for tells and clues. This will help me to feel the pulse of the market.

Allowing EMOTIONS and NERVES to SPEAK to you - this means possibly doing the opposite or just letting them give you a feeling of the market pulse.

FEELING THE PULSE OF THE MARKET- means not only following every move but feeling the result of each move. This is what our focus aims to manifest.

ACTING ON WHAT THE MARKET IS TELLING YOU - This is the hard part and the most crucial aspect of trading, actually executing what we see and trusting in our knowledge and ability.

This skill is DISCRESSIONARY and is DEVELOPED with repetition and Focus. This is where my Focused intention should be directed at all times. Ironically trading often leads us to NOT trust our eyes, BUT trusting our eyes is critical to trading success once we have a solide Understanding of Price, Time and Volume.
Trust and Confidence - will eliminate Hesitation which can be the enemy of consistent profits.

Subtle Exit clues and tells
- For Strong Trends we see Vix, INDU and SPX.X consistently at Extremes early. Volume Profile Reacting and Bouncing off POC's.

-On Range Days - The 4500 Swings and clusters and are safe clues to Enter and Exit Positions.