XSO 0.61% 2,943.5 s&p/asx small ordinaries

1) Everything in the market is measured and timed. Markets...

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    1) Everything in the market is measured and timed. Markets expand and contract. Markets follow repeatable templates of which there are two PnD and DnP.
    2) What traders usually search for is huge parabolic setups, where price goes straight up or straight down as price turns the corner after the initial consolidation and expands the range either 100% or 200 % in measured moves. The question becomes how do I know when price is setting up for a range expansion of this magnitude? Usually, these massive parabolic trend trades occur when we see the template for a dump and pump or pump and dump. Everything between the peak formation highs and lows is irrelevant background noise and the only acceptable time to trade inside the trading range is following a coil sideways which invariably precedes a parabolic move. Big parabolic moves come out of large consolidations.
    3) Any timeframe because timeframes are fractal meaning 4 X15 minute charts make an hourly chart and 6Xhourly charts makes a daily chart.
    So whether you are looking at a five minute chart or daily chart, you are looking at the same movement of the same price over the same time during the day
    4). Markets work off levels of price the most significant being 00's, 25's, 50's and 75's. Big moves invariable begin and start at these levels.
    Also significant are daily highs and lows, weekly highs and lows, monthly highs and lows etc. Previous day's closing price should be today's buying price according to Paul Tudor-Jones. Pick a long and short term timeframe and see how price behaves at these important levels. The trick then becomes when is the trend your friend and when is price reversing, and when is price stuck in a trading range.
    5) candles are insignificant the major factor is can you pick a parabolic setup setting up and can you enter where you won't get stopped out and can you scale up to make real money from the trade. Can you rinse and repeat when the pump and dump setups or dump and pump setups present in your basket of tradable instruments?
    6) The real beauty of Heiken Ashi it two fold, it helps to keep you in the trade longer and tells you when the trade is over by presenting a doji top and bottom of the trend but the more you focus on setups and not movement the more the candle type pales into insignificance.
 
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