Using Triggers In Day Trading

How to make $$ with this work: Day Trade entries

Let’s simplify this……You don’t need to know how to DO Fibonacci analysis to make money with it!! CB is giving you key support and resistance decisions based on Fibonacci ratios that you can trade against with trigger entries.  

The way you make money with this work is with this FORMULA:

Setup + trigger = trade entry then you manage it

(NO trigger = no trade)

If you WANT to use single levels to trade against that’s your choice, but ideally you have one of my 3 setups that I run all day long.     

  1. Price Cluster Setup – 3 or more price relationships
  2. Symmetry setup – at least one symmetry projection in the direction of the trend
  3. Two-step pattern setup (these are less common but they do show up)

 

Identify your setup: price cluster setup, symmetry setup or two-step setup

If price tests and RESPECTS the setup zone, for A TRIGGER GO TO A LOWER TIME FRAME

CHART for an entry as it will signal an entry closer to where your RISK is defined!!!

TRADE SETUP CHARTS TO USE FOR DAY TRADES

Daily, 120 minute, 30-minute, 15-minute or 5 minute setups

Trigger time frames to use with the SETUPS:

day trade 1 - 5 min chart trigger can be good for stocks  

For Index futures I would suggest a 1 min or 377 tick chart 

Buy Trigger for a Day Trade Entry: (After you choose your trigger time frame, go to that

chart and watch for the following:)

8 ema crosses above the 34 ema AND a prior swing high is taken out

(if you have trouble identifying a prior swing high you can just use the crossover to start

with)

Sell trigger for Day Trade Entry:

8 ema crosses below the 34 ema AND a prior swing low is taken out

***Either take the initial trigger or the next pullback after the trigger***

Initial stop for BUY setup :

1st option

Place a stop below the low made prior to the trigger firing off for buy side

2nd option

Place a stop just below the low end of the price cluster setup (30-50 cents below on stocks

for example

Initial stop for SELL setup:

1st option

Place a stop above the high made prior to the trigger firing off on the sell side

2nd option

Place a stop just above the high end of the cluster for sell side

(Option two may risk a little more initially, but if also gives you two chances for the trade

the work out if the risk is not unreasonable)****

 

VIDEO EXAMPLES of triggers:

https://www.youtube.com/watch?v=kCXaOv14q-I

https://www.youtube.com/watch?v=rrZlQfNkVbc&t=7s

https://www.youtube.com/watch?v=wcOkwwqXJh4&t=11s

 

EXITS and TARGETS

Option 1 Exit partial position at 1.272 target and continue to use a trailing stop on the balance

Option 2 Use a trailing stop on the full position and see what the market gives you

(If you do not already KNOW the target, run the 1.272, 1.618 and 2.618 extensions of the swing into

the setup zone)

PROTECTION of profits:

moving a stop to breakeven when possible (this will depend on the risk tolerance of the individual)

Use a trailing stop using symmetry projections, or moving averages, or prior swing lows or highs

There are videos on the site that discuss trailing stops in the free video section of the site

and one in the Members Webinar section. ****Use the search feature if needed.***

***Note that you can also use other TRIGGERS like RAF and other moving average combos.

Just be sure to test them first and then remain consistent when you choose one. ***

As far as trailing up stops, this depends on how much you are willing to risk to try to stay in

for a bigger move. It needs to be tested by the individual paper trading first and then

applied to real money trading!!

An ATR trailing stop might be ideal. I would use this on a lower time frame chart that can

be chosen according to the trader's risk tolerance.

 

FOR swing trades, we typically wait for a 15-minute or 30-minute chart to trigger before considering taking the trade overnight.  The 3rd video explains more of this.

Carolyn Boroden, who is renowned for her expertise in Fibonacci price and timing analysis, hosts the Fibonacci Market Analysis service at ElliottWaveTrader.