Trading Plan

Today I would like to outline the 4 main entry rules for trading decision point areas (Note: No entry shall be done if the profit at the first target is not bigger or equal to the initial risk):

1. DP Reversal a typical sell entry below red bar that is inside a green decision point area
2. Re-Entry often times after news or after the US cash market open or if prices came back to yesterdays entry level the re-entry method can be used.
   
3. Direct Entry after a massive rally (often extended by a news event) prices suddenly reach a decision point area, at those areas its more profitable to enter directly without waiting for confirmation
   
4. DP Continuation provide a way of entering the market with low risk if the prior move just paused at the decision point area and there is a re-entry signal (red bar for short) that would break the pause area. A clear target and the correction of a prior move (for exampe 2 upswings where corrected by just 1 down swing now there is a chance for the 2nd down swing)

The 5 main exit rules are:

• The last swing high is the initial risk only at Dp continuation trades the high of last red bar defines the risk.
  
• At the last minor swing low is the first target, at that last minor support point the stop is trailed to breakeven
• Then at the last intermediate swing low the 2nd target at which the stop is trailed to the high of a red bar
• Then at the decision point area that is projected using last intermediate swings low the stop is again trailed to the high of a red bar
• Then at the last major swing low the 4rd target the stop is trailed the high of a red bar.
• Finally at the decision point area that is projected using the last major swings low the 5th target the stop is trailed the high of a red bar. From that point a higher timeframe will provide more targets.
  

Sometimes market dont bounce of immediatly of the decision point area, news events can stop you out so a later entry would have been more profitable, so its wise to be mentally prepared for the kind of market that you are trading.

What ever entry and exit method is used its important to stick to the plan and play the game of probabilities, then in the long run you make millions of dollar just like they do in Las Vegas (House edge on Roulette Double Zero is just 5,26%)