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Sunday 1 March 2015

Grand Unified Theory of Trading (GUTT)

Here is my take on putting it all together.

Market can be in 3 modes:
1. Range/channel
2. Trend
3. Impulse

Type 1 usually volume 50-70%, no or small channel incline (less than 3/2 Gann angle), traded at 2nd standard deviation levels as a fade, in a direction of 20/50 MA cross.

Type 2 volume 70-90%, a well-inclined channel with 3/1 or 3/2 Gann angle, protruding BB, pullbacks to EMA20/50. Should be traded at EMA20 and 3T setups with confirmation (entry after third bar on a pullback).

Type 3 volume above 90%, near vertical, pushing through BB during whole impulse duration, can only be traded on breakout with volume, 3T setups either on 3rd bar or on a breakout with volume 2nd bar close.

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