DirectionTrader.com Day Trading Strategies

Welcome to our Live Trade Room!

We will be starting very soon…

Trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the markets. This trade room, our videos, and all comments by our moderator(s) are neither a

solicitation nor an offer to Buy/Sell futures or options. The past performance of any trading system or methodology is not

necessarily indicative of future results.

Good Morning!Your questions are important, please ask them

First Time here?– ‘Education’ on the Blog – I do NOT expect you to trade along with me today (as a guest) – You need the tools, training, and

techniques before you can begin.Please remember...

– Live trade room is not intended to be a trade calling service •demonstrate our trading methods to our

members in real time to solidify the learning process. •Read it.....See

it....Execute it... Practice it...Master it!– Many people see great results shadow trading as a guest, but this is not recommended until you speak to someone you trust about the risk associated with trading without proper training.

– Our members are trained on risk, patterns, entries, trade management, and discipline.

My Morning Routine

- Wake up at the same time everyday. * Take a shower, brush my teeth, take the dogs out, get some food, etc.

- Start up my computer, load my charts, check the news

* Then I’ll draw major S/R lines and set an alarm for news announcements

- Trading DOM, Daily worksheet, drawing tool

- Pre market mental prep:* Review my entry rules* Review my notes from yesterday* Review my chart patterns* How can I improve my trading from yesterday?* Let my rules trade for me* Be patient and let the market come to me

Slow Timeframe* Previous days major price levels* Major support and resistance* Identify major channels, wedges, etc.* MACD momentum indicator

Medium Timeframe* Watch for price to enter major price levels* Identify shorter term trend* Watch price structure develop

Fast Timeframe* Enter trades with trade pattern set ups* Manage trades with price structure* Watch Time and Sales for big money * Look out for price exhaustion patterns

Beware of the chop zone in the middle of a bracket!

High of trading range

Low of trading range

Chop Zone

When price is trading in the middle of a channel or rangethe buyers and sellers are fighting to gain control over thetrend which causes the market to become choppy and lesspredictable causing additional layers of risk.

Our 2 High % Set-Ups

Stair Step Set-Up: 85%* Trend Continuation pattern* Buying off of previous S/R

* Moving average slopping in direction of the trade

Elevator Set-Up: 75%* Counter Trend

*Must have a swing high/low

Elevator Set Up- Counter Trend- Bounce off previous S/R price level- Momentum Divergence moving in the direction of trade- Enter 2 ticks above/below previous high/low swing- Stop - 2 ticks below previous lows- Target - Minimum of 1.5:1 reward to risk (ex: 10 tick stop : 15 tick target)

The sequence to building price structure for our set-ups

Precise entry for Stair Step trade

Stair Step Set Up- Trend continuation trade- Moving averages sloped in direction of the trade- Momentum Indicator in direction of the trade- Pullback/Retracement off previous high/low- Enter off the bounce of 38/50% Fibonacci- Stop - 2 ticks below 61.8% Fibonacci- Target - 1 tick in front of -23% Fibonacci

Trade Management (Examples)

Stair Step Trade: 4 contractsInitial stop: 6-8 ticks

Target 1: 2 contracts off at +2 ticksTarget 2: 1 contract off at precious high/lowTarget 3: 1 contract left for runner or profit

at major S/R

Elevator Trade: 4 contractsInitial stop: 4-6 ticks

Target 1: 2 contracts off at +2 ticksTarget 2: 1 contract off at + 6 ticksTarget 3: 1 contract left for runner or profit

at major S/R

Market Internals

Moving Averages (Trading Timeframe)

Stochastic Momentum- only buy when market is oversold

- only sell when market is overbought

MACD- used to determine market strength and

weakness- great tool to identify divergences in the market

- also used as an exit management tool