How to confidently enter into a trade on the TC chart once the cyan arrow signals a pending entry

#1

2/26/2015

This morning I recorded a video of myself using the Range Bar chart as an indicator to confirm entry on a Trend Catcher chart. If you want to know how to set this up look to my other post that teaches you how to do that. http://apexinvesting.net/forum/trend-catcher-357/tip-entering-confirmation-line-before-confirmation-arrow-plots-2976.html http://apexinvesting.net/forum/trend-catcher-357/tip-entering-confirmation-line-before-confirmation-arrow-plots-2976.html

Note: Ignore the cyan line that plots on the Range Bar chart. It shows up when live data streams in but does not show in back history. We are using the Trend Catcher Indicator for a different purpose on this chart. ie: creating an entry confirmation indicator on this Range Bar chart. This Range Bar chart is different tick bars than what you are using for your entries and thus the cyan on it plots in the wrong place for you to enter. ONLY use the cyan on your Trend Catcher chart.

Now here is the video showing it in action. (Note: this trade took more than 20 minutes from seeing it develop to the take profit exit, so I cut up the video to speed things up.)

#2

Joseph, I have a couple of questions for you. First, why did you decide to use a 21 tick stop? Is that because the stats show that the average loss is -21 ticks? Second, what was the point of having the TC confirmation indicator at the bottom of your chart since you were using diagnostic bars on your second chart which did not correspond? The 15 tick confirmation bars were green yet the confirmation indicator based on range bars was red. Shouldn’t we be using range bars on the second confirmation chart? Darrel responded to one of my posts that he advises using range bars. I hope he clarifies things today in the webinar. Nevertheless, I am grateful for the time and effort you spent on this video as well as your posts on the subject. Perhaps there is more than one way to skin a cat so to speak. The results are what matter. I just want to learn one way of doing things at the start so that my trade execution is consistent. One last question…what is the purpose of having the TC indicator on the second confirmation chart if we are not going to use any of the information it provides (since we are relying on the TC indicator on the main diagnostic chart)?

Thank you again for your help.

Ned

#3

TheTraderJoe: Thank you for taking the time to record the video of your process.

A question: in the video it states that the crosshair on the range chart is above the open price of the bar. Is it meant the open price of the current bar in the same chart? (the crosshair is above the open price of both the previous bar (Range Bar chart) and both current bars in both charts.

#4

Joe, last week in the elite room I think, you had an interesting take on how to use small scalps to help you get low risk setups for longer term trades, basically free rides on the vast majority of your trades. Any chance we could get to see some more of that in the forum? Thanks.

#5

thanks for all your work. How do I find “the trader joe library” you mention?

thanks