I wanted to give you some clarity on my triggers etc. When using the MA tool V2, Squeeze Tool 1.2 A, you have many triggers. Obviously the more of these you have in a cluster the better the trade. Your trade plan should be based on the combination of triggers you have the best success with (if you dont know which signals you have winners with, you should be journaling them so you can). Personally, I use 1,3,5,6,9,10,12 and 14 in different combinations with the others acting as confirmations. If I have these I do a trade - either a long call for the same week or the next or a spread. The strategy is not the decider - its always the set up.
Now, there may be times where i dont have all of these in line so I trade smaller, with less risk and as more conditions are satisfied I add to the trade. I know from my journal that when these conditions align I get a winner. There are some traders who will trade with less signals and some with more (this is a personal choice - there is no right or wrong). Rather than getting fixated on triggers, focus on the set up. Are all the conditions you have said need to be there present so you can trade? Yes? Do the trade. If not, wait. Has the trade broken (ie: are the signals weakening)? Yes? Exit the trade.
Trading can be as complicated or as simple as you make it. Is my method the only way that works? Probably not, however it works for me. Your job as a trader is to constantly refine and improve your triggers and set ups based on results not emotions.
My triggers
all of these must be considered based on time frame you are trading. For example the 4 squeeze pack is a highly efficient scalping tool for intraday trading (1,3,5 min charts) whereas the Squeeze 1.2 is great with 12 min trades and up. The MA tool V2.0 is great in trending environments and the Squeeze 1.2 and 4 Squeeze work together to create a price prediction tool based on momentum. It is critical to use the right tool in the right markets AT THE RIGHT TIME. Dont assume that all markets and signals are the same.
1) Early Warning Dots (Squeeze Tool 1.2A)
2) Change of a vol band (MA tool V2)
3) Red or Green triangle 4) Break above or below a resistance or support level (MA tool V2)
5) Long signal based on tools and setting (MA tool, Squeeze Tool 1.2A or 4 Squeeze)
6) Confirmed break of trend line
7) Single or Double green vol band (MA tool v2)
8) Volume Change (Squeeze tool 1.2A)9) Stochastic angle change (Squeeze tool 1.2A or 4 Squeeze)
10) Stochastic colour change (Squeeze tool 1.2A or 4 Squeeze)11) Divergent high and low (Squeeze tool 1.2A or 4 Squeeze)
12) Alignment of the 4 Squeeze (4 Squeeze)
13) Confirmation on higher time frames (manual)
14) Cross trigger (Squeeze Tool 1.2A)
A successful trade has the following components:
1) A trigger to action (combination of the factors above)
2) A target or destination in price (either for the stock or the option)
3) An exit or stop to tell you the trade is not working and its time to leave (a hard stop, a trailing stop or a risk $$ amount)
These components are your plan for the trade. You need to know when to act, how much you are risking and how to tell if the trade is broken. Understanding your own pattern or trade style is the hardest task of all (because this is affected by confidence and experience more than anything). You dont get experience without having confidence to trade and you dont get confidence without the experience of trading. That is up to you. All traders will trade to their level of self belief. If you believe you are not good you wont be. It really is that simple. If you dont journal your trades you will never see the repeated patterns of failed trades and why they fail.
When i review trades that fail, 90% of the time its a discipline issue around following a plan or a signal. No signal tool set will ever compensate for lack of trader discipline and like anything, you have to work on it. If you dont, your results will always be sub par and frustrating. With no plan, you go nowhere and many times a winning trade will inevitably turn into a loser.
The tools are designed to get you in and out FOR A PROFIT. Thats the goal. Based on feedback from users, when you follow the plan you win, when you dont...well...you lose. When this realisation hits, be consistent and you will see the results.
Now, there may be times where i dont have all of these in line so I trade smaller, with less risk and as more conditions are satisfied I add to the trade. I know from my journal that when these conditions align I get a winner. There are some traders who will trade with less signals and some with more (this is a personal choice - there is no right or wrong). Rather than getting fixated on triggers, focus on the set up. Are all the conditions you have said need to be there present so you can trade? Yes? Do the trade. If not, wait. Has the trade broken (ie: are the signals weakening)? Yes? Exit the trade.
Trading can be as complicated or as simple as you make it. Is my method the only way that works? Probably not, however it works for me. Your job as a trader is to constantly refine and improve your triggers and set ups based on results not emotions.
My triggers
all of these must be considered based on time frame you are trading. For example the 4 squeeze pack is a highly efficient scalping tool for intraday trading (1,3,5 min charts) whereas the Squeeze 1.2 is great with 12 min trades and up. The MA tool V2.0 is great in trending environments and the Squeeze 1.2 and 4 Squeeze work together to create a price prediction tool based on momentum. It is critical to use the right tool in the right markets AT THE RIGHT TIME. Dont assume that all markets and signals are the same.
1) Early Warning Dots (Squeeze Tool 1.2A)
2) Change of a vol band (MA tool V2)
3) Red or Green triangle 4) Break above or below a resistance or support level (MA tool V2)
5) Long signal based on tools and setting (MA tool, Squeeze Tool 1.2A or 4 Squeeze)
6) Confirmed break of trend line
7) Single or Double green vol band (MA tool v2)
8) Volume Change (Squeeze tool 1.2A)9) Stochastic angle change (Squeeze tool 1.2A or 4 Squeeze)
10) Stochastic colour change (Squeeze tool 1.2A or 4 Squeeze)11) Divergent high and low (Squeeze tool 1.2A or 4 Squeeze)
12) Alignment of the 4 Squeeze (4 Squeeze)
13) Confirmation on higher time frames (manual)
14) Cross trigger (Squeeze Tool 1.2A)
A successful trade has the following components:
1) A trigger to action (combination of the factors above)
2) A target or destination in price (either for the stock or the option)
3) An exit or stop to tell you the trade is not working and its time to leave (a hard stop, a trailing stop or a risk $$ amount)
These components are your plan for the trade. You need to know when to act, how much you are risking and how to tell if the trade is broken. Understanding your own pattern or trade style is the hardest task of all (because this is affected by confidence and experience more than anything). You dont get experience without having confidence to trade and you dont get confidence without the experience of trading. That is up to you. All traders will trade to their level of self belief. If you believe you are not good you wont be. It really is that simple. If you dont journal your trades you will never see the repeated patterns of failed trades and why they fail.
When i review trades that fail, 90% of the time its a discipline issue around following a plan or a signal. No signal tool set will ever compensate for lack of trader discipline and like anything, you have to work on it. If you dont, your results will always be sub par and frustrating. With no plan, you go nowhere and many times a winning trade will inevitably turn into a loser.
The tools are designed to get you in and out FOR A PROFIT. Thats the goal. Based on feedback from users, when you follow the plan you win, when you dont...well...you lose. When this realisation hits, be consistent and you will see the results.
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