Daily Day Trading Plan
Daily Day Trading Plan
Gatherplace will be used to place all of your trades. You will be using the 5 minute chart
for the trade setup and the 1 minute chart for your entry, stop and trailing stop.You will
be viewing these currency markets in this order from left to right. The Euro 5min and the
1 minute. The British Pound 1 minute and 5 minute. You can scroll down to a third
viewer on gatherplace to view the 5 and 1 minute Austrian Dollar once you become great
at these 3 setups. The 4th setup will be my E-book 830am setup. You will use the
momentum dots with the 830am setup. The trading setups will be the same for all three
currency markets. Let's first look at my top setups. Then I will break the charts down one
indicator at a time.
1. 5 MINUTE MA TONE WITH 1 MINUTE BAR COUNT ENTRY OFF OF 1 MINUTE SETUP
5 MINUTE WHITE MOVING AVERAGE IS BELOW THE MAGENTA. THE SPREAD IS WIDE AND
BOTH MA'S ARE RUNNING PARALLEL WITH EACH OTHER. PRICES ARE BELOW BOTH MA'S.
TREND IS STRONG DOWN. ONLY LOOKING FOR SHORTS OFF OF MY 1 MINUTE CHART WITH 5
MINUTE TONE. MY 1 MINUTE CHART PURPLE SYMMETRY DOTS ARE SETTING LOWER HIGHS
CONFIRMING A HARD DOWNTREND AND THE SAME CHART SHOWS PRICES ARE BELOW MY
YELLOW MA. INDICATING MAJOR WEAKNESS NOW. I HAVE THE 5 MINUTE MOVING
AVERAGE TONE DOWN, SYMMETRY DOTS ARE SETTING LOWER HIGHS AND PRICES ARE
BELOW MY YELLOW MOVING AVERAGE ON MY ONE MINUTE. THE MARKET IS CURRENTLY
TRADING BELOW MY BLUE INSTITUTIONAL NUMBER TO REALLY MAKE THE TONE DOWN. I
WILL CONCENTRATE ON MY 1 MINUTE CHART AND LOOK FOR ANY RED BAR 9 COUNTS
IGNORING ALL GREEN COUNTS DUE TO THE DOWNTREND. I WANT THE MARKET TO
RETRACE BACK UP SO I CAN GET SHORT THE MARKET. THE BAR COUNTS START TO COUNT
RED. 123456, WHEN THEY REACH 7 MINUTE I WILL BE LOOKING TO GET READY TO SHORT
THIS COUNTER RETRACEMENT. I WILL LOOK FOR MY 3 CANDLE STICK PATTERNS AND START
WATCHING FOR DIVERGENCE. DIVERGENCE IS NOT NEEDED BUT ADDS POWER TO THE
TRADE. ONE OF MY CANDLESTICK FORMATIONS COME UP. A DOJI. I'M NOW READY TO
SHORT. I'M GETTING READY FOR MY MAGENTA SELL DOT. SELL DOT POPS UP AND I ENTER
AT THE MARKET. I LOOK FOR THE MOST RECENT SWING HIGH BEFORE THE DOT AND PLACE
MY HARD STOP 2 TICKS ABOVE THE SWING HIGH. MY FIRST INITIAL TARGET WILL BE MY
CYAN SYMMETRY DOTS TO SCALE OUT OF CONTRACTS FROM MY SHORT. I WILL THEN
ADJUST MY STOP TO BREAKEVEN FOR A FREE TRADE ON THE REST OF MY CONTRACTS. I
CONTINUE TO SCALE OUT ON MY CYAN DOTS AS THE MARKETS MOVE LOWER UNTIL I HAVE
REACHED MY NEXT INSTITUTIONAL LEVEL.
REMEMBER, THE WIDER THE SPREAD ON THE 5 MINUTE BETWEEN THE MA'S INDICATES
MAJOR WEAKNESS. THIS ALLOWS THESE NUMBER COUNT RETRACEMENTS TO BECOME
VERY VERY POWERFUL. ANOTHER NOTE, IF THE BAR COUNT ERASES BEFORE A SELL OR BUY
DOT COMES UP THEN FORGET THE TRADE. ALSO, ALL BUYS MUST PRINT AT LEAST A BUY 9
THE FACT IT'S THE CONTROL POINT AND MAJOR MOVES OCCUR OFF OF IT. THE MARKET
TENDS TO SLOW WHEN IT APPROCHES MY RED OR GREEN OUTSIDE INSTITUTIONAL
NUMBERS. A BREAK, RETEST OF MY BLUE DAILY NUMBER CAN BE VERY POWERFUL WITH
THE 5 MINUTE TONE. THE BEST TIMES TO LOOK FOR THIS SETUP ARE 2AM-5AM EASTERN
AND 930AM-11AM EASTERN. ONCE THE NEW YORK OPENS THESE INSTITUTIONAL
LEVELS BECOME VERY IMPORTANT LEVELS TO TRADE OFF OF. YOU CAN TRADE MY
830AM E-BOOK TRADE SETUP TO 930AM EASTERN. ALSO, AFTER AN INSTITUTIONAL
NUMBER IS FIRST BROKEN OR RETESTED AND I HAVE MY SYMMETRY DOTS AND MY
MOVING AVERAGES ON THE 1 MINUTE IN LINE, I LOOK FOR THE FIRST 1 MINUTE BUY
GREEN 9 OR SELL RED 9 AFTER THE MARKET JUST STARTS TO GET MOVING. THESE
40-60% SETUP ARE POWERFUL BECAUSE THE MARKET IS JUST HEATING UP AFTER
PUSHING AWAY 15 PLUS TICKS FROM AN INSTITUTIONAL NUMBER. I CALL THIS THE
"SWEET SPOT" TRADE. THIS HAPPENS ALOT NEAR OR RIGHT AFTER THE NEW YORK OPEN
FOR THE FIRST HOUR AND HALF.
THESE 3 SETUPS WITH MY POWERFUL E-BOOK SETUP AT 830AM ARE MORE THAN
ENOUGH TO MAKE A TON OF DAILY AND WEEKLY TICKS/PIPS. I DO GO OVER MY #2
SETUP, BRICK WALL SETUP, TDST'S AND MY WHOLE NUMBER CANDLE STICK TRADES IN
MY LIVE ROOM. MASTER THESE 3 SETUPS AND MY POWERFUL E-BOOK 830AM SETUP
AND YOU WILL TRADING ALONG SIDE OF THE TOP ELITE TRADERS IN THE WORLD AND
YOUR PROFIT AND LOSS STATEMENT WILL SHOW IT.
count completes with the TONE of the 5 minute moving averages. In other words, if the 5
minute ma's are crossed down, you will look for a red bar count to complete at 9. Also,
you will ignore all green bar counts due to the downtrend. Opposite for buys. The area of
the 9 print is very very important. You will notice a green horizontal line at 40% and a
red horizontal line at 60%. These lines are fixed lines that will tell you how strong or
weak the market is on a retracement. The market MUST print a red 9 at or below the 60%
fixed red line for shorts and MUST at least print a green 9 buy at or above the green 40%
line. If the bar count prints outside or does not straddle these fixed lines then NO TRADE
SETUP. The ultimate buy signal will be a green 9 count above the 60% fixed red line. This
shows ultimate strength in the market. The second best 9 green bar count will have to
print at or above the 40% fixed green line. The ultimate sell will be a red 9 count print
below the green fixed 40% line. This show major weakness. The second best trade will
be a 9 red number count at or below the red 60% fixed line. You NEVER take these bar
counts without the moving average direction tone. If the moving average tone is down
on the 5 minute chart, you will look for a 9 red number count below 40% or below 60%.
Below 40% shows that the market is really weak and a major move will be coming. If the
5 minute moving averages are up, you will look for a 9 green number count to print
above 40% and 60%. Above 60% green 9 count shows that the market is ready for an
explosive move to the upside. Remember, only with the direction of the TONE. In
addition to the 9 green and red counts, you will have 9/13 white counts. You will treat
them with the same rules.
LOWER CHART
Solid Red Line at 60%
Solid Green Line at 40%
These lines never change and are the same on every gatherplace chart.
Number Counts -Green 9 used for longs/buys Best when the 9 count is ABOVE the Solid Red Line (60%
line). Second best will be a 9 print above 40%.
Red 9 used for sells/shorts Best when the 9 count is BELOW the Solid Green Line
(40%line). Second best will be a 9 print below 60%.
You will always enter off of the 1 minute with my momentum dots explained below. The
5 minute count will never be used for entry. Only as a count setup with a 1 minute entry.
Explained below in my trade setups.
Remember, NO TRADE SETUP when the green 9 print is below 40% for buys or when the
red 9 print is above 60% for sells. The 9 counts can straddle the lines but MUST not print
outside of them. At times you will notice a 9 or 13 WHITE number count that overlaps the
red or green counts. You will trade these White number counts the same way that you
trade the green and red 9 prints. They cannot violate the 40-60 rule.
*****KEY POINT****Only look for the bar counts with the direction of the 5 minute
moving averages. If the moving averages are down then only look for the red 9 counts
below 60%, below 40% the best on the 5 and 1 minute charts. Opposite with buys. Below
I will go over how you trade the 5 minute tone 9 count setups with the 1 minute chart for
entry.
Out of a 150 different candle formations, you will only need to recognize 3 patterns in my
live day trading room. These patterns dictate what price action will do and will tip you off
when a momentum dot will be coming when these 3 candle formations lows or highs are
broken.
DOJI-A doji candlestick looks like a cross, inverted cross, or plus sign. Alone, dojis are
neutral patterns. Dojis form when a security's open and close are virtually equal. This
tells me as a trader that buyers are neutral in a downtrend or neutral in an uptrend
thus causing price reversals after a retracement. I look for these 3 candlestick patterns
to form after my 9 or 13 count. This will tell me to get ready to enter the market with
my momentum dot explained below.
Hammer/Inverted Hammer - The Hammer is comprised of one candle. It is easily
identified by the presence of a small body with a shadow at least two times greater than
the body. In other words, a small block at the bottom or top of a long stick.
Spinning Tops-A type of candlestick formation where the real body is small despite a
wide range of price movement throughout the trading day. This candle is often
regarded as neutral and used to signal indecision. A spinning top formation is found
after a prolonged uptrend, it suggests that the bulls are losing interest and that a
reversal may be in the cards. On the other hand, if this formation is found in an
defined downtrend, it suggests that the sellers are losing conviction and that a bottom
may be forming. In other word, it looks like a real small box right in the middle of a
stick with the high and low of the stick having equal distance.
I want one or a combo of these three candle sticks to form on my 5 minute and 1
minute chart before entry with my momentum dots. When the 7/8 count is reached on
the 5 minute and 1 minute bar, I start looking for these candle stick patterns before
entering with a momentum buy/sell dot. I will put all of this together below.
5. Symmetry Dots and Triangle Squeeze Indicator
5a. Symmetry Dots
These dots will be used to determine if the market is setting higher lows or lower highs.
This is very important so you do not counter trend trade the tone of the market. Once
these lower highs or higher lows have been established, the dots will act as
support/resistance with the trend. Also, these dots are used to scale out of your first
position after entry to reduce risk and have a free trade to the next institutional number.
...
TRADE (RED 9)
- ... Indicate when to get out or "scale" out WHEN IN A BUY TRADE (GREEN
Purple Dots
9)
Located above candlestick. These dots are the last condition that must
You will only trade off of the 1 minute momentum dots. The 5 minute dots are just used for a
confirmation of a hard trend to enter my 9 and 13 count setups.
shallow retracement for the blow off buy 9 above 60% or 9 sell below 40%.
8. TDST-MAJOR SUPPORT AND RESISTANCE ONLY ON THE 5 MINUTE CHARTS
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GREEN DASHES ON
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RED DASHES ON
you can look for the 3 candle stick formations after the retracement and also look for
divergence at the same time. You can then enter with the first momentum dot. After
entry, you place your stop loss 2 ticks above/below the swing high or swing low. Your
first target will be the symmetry dots to take your initial position off and to get your free
trade to the next institutional level.
READ THESE PDF'S IN ORDER AT WWW.DAYTRADINGTHEFUTURES.COM AND CLICK "GET
STARTED"
1. TOP SETUP
2. MOMENTUM TRADES
3. JAY'S RULES
ALSO, CLICK ON THE "TOP SETUPS TAB" AT THE TOP OF THE WEBSITE AND REVIEW
RECENT SETUPS.
P.S. OMNOVIA WILL BE DISCUSSED IN THE LIVE DAY TRADING ROOM. THE MAGENTA MA
IS VERY IMPORTANT IN MY OMNOVIA ROOM. THE ANGLE WILL TELL ME IF I'M IN A
TRENDING OR RANGE BOUND MARKET. RANGE BOUND MARKETS ARE FLAT MA'S.
TRENDING MARKETS WILL HAVE A 35-45 DEGREE ANGLE AND PRICES WILL BE
ABOVE/BELOW BOTH MA'S. TRENDING MARKETS LINE UP GREAT WITH THE 5 MINUTE
TONE FOR THOSE GREAT 5 MINUTE AND 1 MINUTE 40-60% BAR COUNT TRADES. WHEN
THE MAGENTA MA IS FLAT, THE BAR COUNTS ARE NOT AS POWERFUL. ALSO, ALL MY
S&P500 TRADES WILL BE IN MY OMNOVIA ROOM. CYA IN THE ROOM
JAY