Entry Rules

A. General Entry Rules

Entry Rules Using AbleTrend 

Setting the goals:

In order to achieve these goals, we need to use AbleTrend. As has been mentioned, fully understanding the concept is the base for faithfully exerting the trading rules. Please refer back to the corresponding general concepts as we go on to the practical rules.

B. Trend-Stop Agreement (TS) Entry:

AbleTrend2 and AbleTrend3 are demonstrated by BLUE DOTS and RED DOTS. The values of the RED DOTS or BLUE DOTS can be seen in the Data Window or Status Line. Look for the blue "BuyStop2" value if you use AbleTrend2. Look for the blue "BuyStop3" value if you use AbleTrend3. Look for the red "SellStop2" if you use AbleTrend2. Look for the red "SellStop3" value if you use AbleTrend3.

BLUE DOTS below the lows of the bars indicate two things: (1) the market is in an up-trend, and (2) the values of the BLUE dots are the protection stops or profit target stops (if the position had profit) for the long position.

The RED DOTS above the highs of the bars indicate two things: (1) the market is in a down trend, and (2) the values of the RED DOTS are the protection stops or profit target stops (if the position had profit) for the short position.

For details, please refer AT Trading Manual.

C. Significant Trend Change Entry

For details, please refer AT Trading Manual.

D. Break-Out Entry

For details, please refer AT Trading Manual.

E. Low Risk (LR) Entry:

One of the features of AbleTrend is that it never misses a big move. Once a big move is on its way, the AbleTrend stops do a very good job in optimizing profit, yet keep you in the big move until the end. To test this fact, open a page with AbleTrend stops on and find out how they performed during the big moves in the past. If your parameters are set properly, you should come to the same conclusion, that is, AbleTrend never misses a big move.

The best time for a LR entry is when a trend is established. For example, in an up-trend, you see both blue bars and blue dots as the market moves up. Suddenly, you see the market shift into a counter-trend, moving back very close to the blue dots (stops), but the bar is still blue. As soon as you see the market move up again, go ahead with the LR Entry or add a long position. Since over 75% of AbleTrend stops can not be hit, your chance of winning is very high. Use AbleTrend stops (blue dots) as your protection stops. With this entry your risk is significantly low. Many times, you may even see a $200 stop for day trading, or a $500 stop for position trading. Conversely, a similar rule applies for a down-trend.

For details, please refer AT Trading Manual.

F. ST and LT Agreement Entry

Short Term And Long Term Agreement (SL) Entry

For day trading, if the 30-min and the 15-min bars remain the same color, 5-min bar become the same color as the 30-min and the 15-min bars, and 5-min TrendStop3 dot moves one step up (or down) in favor of the color of the bars, take a position in the direction of the color. You may back test in your historical data for this rule.

For position trading with end-of-day data, only trade in the direction of weekly bars. If weekly bars keep blue, watch the daily bars turning green or red, wait the daily bar coming back to blue to enter the long position. Another way, if both weekly and daily bars are blue, wait the AbleTrend3 stop moves one step up to entry the long position. Conversely, a similar rule applies for a down-trend.

For details, please refer AT 7.0 Trading Manual.

G. Retracement Entry

For details, please refer AT 7.0 Trading Manual.

H. LCC and SCC Entries

For details, please refer AT 7.0 Trading Manual.

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