Personally I like entering with the big players model which is really the transition candle.
To do this I need to know what the market type is. My Kings Box box strategy is really about trading the Transitions from Sideways quiet around monthly resistance areas to Bull Normal or Bear Normal. The Candle I attempt to trade is that large transition candle which shows the big players entering.
The secret sauce – Market type transitions.
- Bull Normal
- Bull Volatile
- Bear Normal
- Bear Volatile
- Sideways Quiet
- Sideways Volatile
Markets are like the ocean.
The primeval forces of human emotion drive the ebb and flow of the price just as the wild and unpredictable forces of Mother Nature drive the tides of the seas.
Like the ocean, the market transitions from calm to restless.
A stormy night clears into a sunny day.
Choppy foam settles into a peaceful blue-green glaze… or morphs into a squally and dangerous tempest.
Just as sideways volatile settles into sideways quiet and then transitions into a strong bull.
There is an edge if you understand market types, but there is a greater edge if you understand the probability of what the next market type will be.
If you know that historically more often than not a bull volatile ends in a bear volatile then you can plan accordingly.
Similarly if you understand that a sideways quiet usually results in a break out to a bull or bear then you could develop a system to capitalize on this knowledge.
Trading is a statistical game and knowing probabilities is important. ( Van Tharp )
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Personally I like entering with the big players model which is...
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