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Planning Trades for Entry and Exit
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Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

Jan 03, 2016

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Page 1: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

Planning Trades for Entry and Exit

Page 2: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options

Seminars are provided to you for educational purposes only. No information presented constitutes a recommendation to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as,

an offer, or a solicitation of an offer, to buy, sell, or hold any securities. Pro Market Advisors do not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objections, risk tolerance and liquidity needs.

For more information please visit our website:

www.promarketadvisors.com

Page 3: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TECHNICAL ANALYSISTools of Trading

• Goal: Identify special cause as quickly as possible, not predict the future

• Match the tool to the market

• Keep it simple but robust

• No two markets are ever the same; hone your judgment

• Like fertilizer, more is not always better

Page 4: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

• SUPPORT is a price level where buying becomes stronger than selling and prices rise

• RESISTANCE is a price level where selling becomes stronger than buying and prices fall

SUPPORT AND RESISTANCESupport and Resistance Defined

Page 5: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 1Gap Fill

Gap

Gap defined

Gap fill and reversal

Page 6: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 1Gap Fill

Gap fill and reversal

• Look for reversal candles at fill point

• Watch for volume confirmation

• Protect above fill point

• First target is the gap starting point

Page 7: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 2Channel Breakout

Breakout: any significant move outside an established trading range

Channel

Page 8: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 2Channel Breakout

Breakout

• Closing price outside the channel

• Watch for volume confirmation

• Protect above channel support or below channel resistance

• First target is the channel width from breakout point (measured move)

• Use stop orders to protect entry price

Page 9: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 3Role Reversal

Page 10: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 3Role Reversal

Role Reversal

• Wait for the price pivot

• Look for trend reversal candles

• Protect below role reversal support

• First target is the previous high

• Be prepared for multiple entries if price starts channeling

Page 11: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 4Retracement lines for support and resistance

• Retracement lines from highs / lows

• Applied to multiple time frames

• Based on the Fibonacci sequence: 1, 2, 3, 5, 8, 13, 21…

• Retracements based on the Golden Ratio: .618, (1 - .618) = .382

Page 12: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 4Retracement lines for support and resistance

Page 13: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 4Retracement lines for support and resistance

Retracement

• The key is choosing the correct high and low

• Tighten stops at each retracement price

• May trade breakout or reversal

• Watch for new high/low legs

• May be used for daily, weekly, monthly – weaker when used intraday

Page 14: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 5Trend reversal candles

1. Uptrend

2. Resistance3. Shooting Star

4. Confirmation

Page 15: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

TRADE CONDITION 5Trend reversal candles

Trend reversal candle

• Make sure it meets ALL requirements

• Wait for confirmation if required

• Protect above resistance

• Target is identified support or measured move

• Choose a few key candle patterns to start with

Page 16: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

Session 1:Technical vs. fundamental analysis, analyzing trends, top 6 candle patterns, moving averages, volume, RSI and MACD

Session 2:Option building blocks, stocks vs. options, buying calls, buying puts

Session 3:Income and hedging strategies, spreads and collars, protective put, covered call, buy/write, bull call spread examples

Trading by Numbers:Determine trend and volatility, moving averages, linear regression, ATR and standard deviation, 7 keys for managing risk, 12 core option strategies, Bollinger Bands, Fibonacci, trading earnings and gaps, MACD and channels.

ESSENTIAL OPTIONS VIDEO COURSEwith Trading by Numbers $140

Page 17: Planning Trades for Entry and Exit. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics.

Planning Trades for Entry and Exit