Hi everyone,
Here's a set up for consideration. Early entries and exists

A note to my last post,
It takes 3 confirmed swings in the same direction, and then the fourth is the setup and entry. So when questioning why a trade wasn't taken, ask yourself if the complete setup was there. Furthermore, we are not looking to take each and every scenario that "looks" like it might be a setup, we are only wanting to take the cream of the crop that history has shown to provide the best probabilities of success with minimal heat. A break of a three bar reversal where bar 2 has a higher high and higher low than 1 and 3 provides that best signal. There is no need to make twenty so-so trades a day when the market typically offers 3-5 great opportunities most trading days.

Hi ChrisJ
I'm confused at what your trying to say here, is this related to daytrading? & how do we use it?

Hi Romelio,

Yes mate this is a day trading method.Based on price action only it gives us a possible trend reversal, therefore an early entry piont.

Some may call it a scalping method.

I hope this helps:1tu:

Hi Chris,

A bit confusing,” price entered at” on 3rd bar but “trade initiated on 4th bar”??

There are many rules for entering a trade that are easy to come up with but they are not as important as having exit rules or management whilst in a trade as these factors will lose the dollars.

Maybe you can use this as a guide to direction on the daily chart and trade that direction intra-day.



Regards Mike.

Hi Mike,

This is what forums are all about-learning from each other. As traders in ODW I assume we are trying to get that EDGE over the masses?

In the 3bar reversal pattern we are looking for that edge, that early entry. With early entry we try to avoid bad fills and slippage which can be very annoying and costly as you know. Anyway back to the set up ,so when we get that 3rd bar break price is entered now ,this is where it gets tricky because entry is only validated when the 4th bar is broken, now price may hit your entry it may not. If not you sit on the fence again, discipline discipline dont chase the trade. Let PRICE take you in, Let PRICE take you out of a trade.

Money management is a whole different area.

Regards Chris.

If you can master entry and exits to such a fine degree and can manage to muster all your technical analysis skills you will be a champion options day trader.