MTF price action indicator-secret to high gain and high-probability Trading

Monday, November 15, 2010

Multiple index action value Time frame is the key to realizing high probability trades. High probability Trading is when you bet in your stack and provide each trade to favor the best chance of being profitable using risk loss low interruption and a dynamic high reward. Accomplish this by using price action 8 time frame: 5, 15, 20, 30, 60, 120, 240 and daily. When the majority of these 8 different times all headed in the same direction the odds be stowed in your favor for a strong and profitable business.

Necessary for high probability trading makes an entry low risk compared with high profit potential. Using a low risk, high reward ratio will improve dramatically gains focus. I recommend targeting risk reward ratio 1: 3 or even higher.This means the ratio of 1: 3 with just 25 percent winning distribution, not counting Commission and slippage, you're in a break even by 40 percent or higher winning trades, will produce a very substantial profits.

Here is how the price action indicator MTF can significantly reduce the risk.For example, we'll use the eMini futures contract with Russell $ 150,000 in merchant account using 1% of your account balance stop loss risk per trade means risking US $ 1500 for each trade. function to calculate the number of contracts Division 1,500 $ risk by 2 times the average daily bar area (measuring volatility), and this tells us to our trading 1 contract on the daily chart.

Compare the above example in this second example is a stop loss low risk entry by using a chart 5 minutes with the index action value MTF to stack the higher timeframe biased your favor.

With only $ 15,000 in merchant account (1/10th the capital requirements in the first example) and using 1% of your account balance stop loss per trade within our risking $ 150 for each trade (1/10th of the risks set out in the first example). to calculate the number of contracts divide the amount 150 $ risk to be 2 times the average 5 minute bar area (measuring volatility), and this tells us we can trade 1 contract about a 5-minute chart.

The key to using 10 times lower capital and risk using the chart 5 minutes to help you refine your trade entries on a smaller chart time but also transactions using 7 higher timeframe price action lines to make a higher commercial timeframe. this phenomenal difference allows the trader to run 1/10th the money and still benefit from the larger timeframe size trade gains. This is exactly what big chance-trading risk loss low stop can do for you.

Multiple index action value Time frame is crucial to perform high-probability distribution of low risk; remember, the key is negotiated in Chart 5 minutes to reduce the risk to 1/10th of the risk of transactions in a chart on a daily basis, but it actually sell 7 larger timeframe action price movements to make large profits from trading higher timeframes.

To summarize high probability-low-risk transactions:

Using Multiple time frame price action indicator, which displays the value action across 8 different time frames, significantly improves the odds in your favor over trading on one single hour chart using a low risk-high reward focus ratio 1: 3 or higher maintains dealers focused making low stop distributing risk loss while targeting larger timeframe sized profits using this approach, traders can get an entry transactions with 1/10th the account balance and 1/10th of a risk per trade.

Welcome to the exciting opportunities that are created by using high probability-low stop loss Risk trading. Mastering this approach post transactions will result in very small stop loss exits when compared with taking extremely large commercial profit exits.


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