Setting Up Trades With ProTrader

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Traders look for specific setups to enter their trades. Exits are sometimes based on pure profit targets or specific indicators that signal an opportunity to flatten their position.

RSKsys uses the following methods to setup excellent relatively short term trades.

Premium (PREM) with Group Reversals (GR)

Short Term Divergence (STD)

Gaps (GAP) or Support & Resistance levels (SR) and Group Reversals (GR)

Group Reversals on slower charts (GPsl) in a well established trend.

Gaps preceding divergence (GPD)

Left click on the pics for higher resolution. This is a very typical representation of what actually happens every day.

June 9, 2009 5 points down.

This was a simple divergent pattern STD, accompanied by group reversals on both the short and the exit.

Notice that the exit trade also shows gaps before divergence at the bottom.

June 9, 2009 Prem predicts retracement back to 945.25 or better.

This is a simple PREM set up where the PREM predicts the retracement and all we need is a basis to go long.

June 9, 2009 Long entry.

A long group reversal (GPsl) from Chart #9 at 937.25 is taken in a relatively flat 30 minute period where the GR is accompanied by MACD agreement on both a 25 and 50 tick bar chart. The long trade was a must in the light of the 8:46am new high on the PREM. That was the setup. The market should retrace back to 945.25 or better and it does.

June 9, 2009 Long Exit 7 points up.

Just as expected the market retraces. Right at 945.25 we see divergence on ES, VIX, and ADSPD along with group reversals for our first exit signals. However, it is noteable that gaps preceding divergent are conspicuously absent. The market then moves another point higher and the gaps show up for a better exit at 946.

June 9, 2009 Short entry. June 9, 2009 Support line.

Short based on GPD. Target is 940.75 based on Support line.

June 9, 2009 Short exit based on GR and SR. 5 points down.

Easy 5 point short based on GPD and SR

June 10, 2009 Short setup and Entry

There was a brief GAP that appeared on the 7 Tick Vix Chart (green horizontal line). This is the setup. Where the Verticle line shows is approximately when the Gap is closed and the Strategy issued a Short Signal.

June 10, 2009 Short exit based on GPD 6 points down

The short trade is exited based on ADSPD gaps preceding divergence on both the ES (green bar) and ADSPD (white bar)

June 10, 2009 Short setup (GRsl) and Entry

Notice there are no other group reversals anywhere on the chart. No false signal!

June 10, 2009 Short exit based on GPD 7 points down.

Again we have gaps preceding divergence on the Vix and shortly thereafter a very momentary gap on the ADSPD.

Notice the emergence of unfilled gaps (green horizontal lines) above the exit.

June 10, 2009 Long setup based on GPD with exit on GAP fills 6 points up

Here we have multiple long entries. The first is a well defined GPD trade where an existing ES gap (red line) is directly above the long trade. This trade while great for a scalp didn't last. The next two long entries are based on simple ES and ADSPD divergence. Holding the long trade until the gap fills is the objective. The Strategy is set up to exit the long trade using a Short Term Divergence setting which does not recognize the existence of the gap line. The Trader would use discretion to exit the trade in the presence of a signal on a new high after the gap is filled. The Strategy shows multiple short trades at various times but in this case the point is that the trader is best off waiting for the gap fill before the exit. The last trade is the best exit at 935 where the gap is filled followed by a short trade at a higher high.

June 10, 2009 Better long exit with Vix Gap Fills 10 points up

This shows the 7 Tic Vix chart with two prominent green gap lines below the Vix. The first gap line is filled at 14:35 pm cst which is almost exactly when the last ES gap line appears on the previous chart. The second gap fills later where the spoos have run up to 940 for a great 10 point move up.

June 11, 2009 Divergent long with GPD exit. Easy 5 points in 5 min

June 11, 2009 GPD entry with two possible exits at 936am 4 points short . ES Support . ADSPD gap

June 11, 2009 PREM setup to go long. New high on the PREM at 11:12 says go long on a pull back.

June 11, 2009 GR long right after the PREM high.

June 11, 2009 Long exit on Vix Gap Setup 10 points up. See below

June 11, 2009 Vix Gap Setup for long and short trade.

June 11, 2009 GR long exit on gap fill works better than GR alone. The Setup is important. 5 points up

June 11, 2009 Vix Gap Setup using GPsl for both entry and exit. 15 remarkable points.

June 12, 2009 GRsl long setup

June 12, 2009 GPD long exit 3.5 points, If short entry next GR exit was 2 points

June 12, 2009 GRsl long setup

June 12, 2009 GPD long exit 6 points