Setup Chart

Read this first: Four trades off nine transitions

UP FLAT DOWN UP A2, 1CBO, hH1,G2,BT TT W,W1P FLAT BO fBO BO DOWN W, W1P TT A2, 1CBO, hL1,G2,BT BO TRI XT BP fBO WBO rev bar DP TT DT/DB TTR fRev+fA2 1pb 1rev

This chart describes all my setups from the nine transitions. When the trend is up, I'm looking for A2 in a normal trend, 1chbo in a channel move, H1 in a hard trend and G2 in a deep pullback. Im also looking to exit and stay out when the trend ends in a Trend termination (TT) move such as a double top, TTR or weak reversal followed by weak A2. If there is a wedge move and reversal, Im looking for W and W1P entries to reverse. Down trend is very similar except all entries are complementary.

When the movement is flat or trading range, Im looking for trend breakouts. usually these are triangle breakouts, expanding triangle breakouts and breakout pullbacks.

If the range is large enough, I may consider fBO trades. These include a reversal bar on breakout, Double bottom pullback and a two or three legged failed breakout (WBO). Often I will not take these trades and simply take one of the breakout on the other side of the range.

TT is not something to trade but rather a sign to exit your trend positions. A double top or double bottom, a TTR move or a reversal and continuation trade that both do not have follow through are the most common trend termination signals.

In addition to the above, I also trade the first reversal of the day and the first pullback of the day at the open, but those are complex topics that deserve their own posts.