three-step day trading method combines
the daily, hourly and the three-minute charts. Instead of breaching
the top-down day
principle, one is using three times
frame. Each time frame has its own purposes.
First Step Day Trading Tips
and identify bullish and bearish high probability day
set-ups on the daily chart. Advanced technical traders will validate
set-ups on the weekly chart or higher. One will thoroughly analyse
each price structure before going to step two. The step one is more
important than the second step. Once, one confirms a daily chart high
one will implement the second step.
should always have two watch
bullish and the other bearish. Day
must always be ready to sell or buy.
speed up the search of those high probability day
opportunities, one can use stock screening software with a
criteria. Once the software fetches the search
one must manually filter out useless ones, and keep the best day
is essential that one does not rush or skip steps.
Second Step Day Trading Tips
time, one will switch to the hourly chart, and patiently wait for a
signal. One will make sure that a bullish day
signal is near a support level, and bearish direct trading signals in
the vicinity of a resistance. Note that only the price gives
direct trading signals.
master this day trading method, it is essential to understand that
the hourly chart is the medium term trend of the daily chart (daily
chart is the long
day trading purposes). The next thing one should also grasp is that
either technical or fundamental generates the trading signal.
Therefore a useless day
is more likely to produce unreliable day
signals. Nevertheless, if the signal
fails after one has placed the
trade, one will close the trade as
soon as possible.
Third Step Day Trading Tips
third step consists of switching to the three-minute chart where a
will select a low risk entry point.
that the trade entry is a secondary confirmation of the signal on the
short term time frame (3M). At this stage, one will re-examine the
overall risk, and only take day
that comply with one own risk tolerance. For example, if both the
and signal are adequate,
but the risk is too high, one can stay out. One is not obliged to
take risky day
ought to do is to manage the day
after the entry.
Day Trading Test
is day trading?
is a specialist day trader?
is a top-down day
is it essential?
is a fractal day
is a direct day
is an indirect day
do some technical
prefer the 20 hours
others prefer two-day chart instead
of daily chart?
time do the pros generally start day trading?
is it essential to wait until the first thirty-minute candle bar
formed before one
is a day
would you validate a two-hour chart day
would you validate a daily chart trade set-up?
some traders prefer the three minute chart to 5-minute