7 Ticks of Risk / 40 Ticks of Profit!!

Hello Traders,

Dec,19th,2009

We had a great question emailed to us today and would like to answer it in the blog so everyone is aware of the answer. The question was "Does your indicators and methods work on Range Charts?". The answer is YES, all of our methods and indicators work on all time frames with any style of chart meaning; they will work on second, minute, tick, range, volume, daily, weekly and Monthly charts.

Here is a example of a 4 Range with the TF (Russell) on Dec 18th.

The blue bars came in at the low of the move warning us that a big move was about to happen. Once the move started and we see that is a up move we wait for the 2nd set of Green bars for our long entry. Using a 4 Range chart we know that are stop will be MAX 8 ticks which is 2 bars. No matter if there are 5 red bars or just 1, as soon as the bars go back to green we know that is our defined signal to enter the trade long.

Notice how the bars stayed green all the way up and so does our Moving Average, this will give us a visual that we are trading in the proper direction and it is easier to hold the trade. From the Blue bar low telling us a big move is going to happen then the price goes up 45 Ticks, then we ultimatley get stopped out of the trade with 40 Ticks as we move our stop to the low of each now blue bar that is printed. This gives us a defined exit just like we had a defined entry. Once a bar closes it will never turn back to a different color meaning; once the bar closes green it will always be green FOREVER, we know allot of systems change the bar back to another color even after 3 or 4 more bars have been printed. Our system does not do that.

The 4 main things to look at on this chart is (1) How big the stop was (2) How much drawdown we took on the trade (3) the blue bars gave us a great "heads up" as to when the move was starting and ending (4) the risk to reward on the trade. Seeing how the bars stay green and red for confidence in realtime is also another great thing to take note of.

If you have any questions regarding our indicators or trading methods feel free to email us at anytime at trade@eminischool.com

Happy trading!