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Rocket Trades – Trade Fearless

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  1. Rocket Trades – Trade Fearless Rocket Trades - Trade Fearless

  2. Basic Technical Analysis Complied by Team “ROCKET” Rocket Trades - Trade Fearless

  3. Market Keeps moving from One stage to another in Following Order Accumulation >> UPTREND >> Distribution >> DOWNTREND MARKET STAGES Rocket Trades - Trade Fearless

  4. Rocket Trades - Trade Fearless

  5. Market Stage ONE • This stage follows after a severe downtrend (stage 4), which is usually characterized by extreme fear. • Sellers are losing dominance quickly and bulls are gaining momentum. But at the same time Both buyers and sellers are in a relative equilibrium. • On a chart, the first hint of the beginning stage 1 is a break of major resistance (refer to support and resistance section). Usually, range bound trading follows. Rocket Trades - Trade Fearless

  6. Rocket Trades - Trade Fearless

  7. Market Stage TWO • During accumulation phase (Stage 1), professional traders are usually getting out of their short positions • Therefore, Markets enter into stage 2 uptrend, when bulls gain dominance and are able to push prices beyond the range bound trading characterized in stage 1. • On a chart, the stage 2 is characterized by a series of higher lows and higher highs. Rocket Trades - Trade Fearless

  8. Rocket Trades - Trade Fearless

  9. Market Stage THREE • As stage 2 uptrend progresses, professional traders are with long positions. Eventually, the market reaches a point, when there are no more buyers left to buy at still higher prices. • A sell off follows and when there is a break of major support, the market enters stage 3 distribution phase. • This market environment is characterized mostly by uncertainty similarly as stage 1. Rocket Trades - Trade Fearless

  10. Rocket Trades - Trade Fearless

  11. Market Stage FOUR • Stage 4 completes the entire cycle. After a break of major support, we can consider stage 2 uptrend over. • Stage 4 usually lasts shorter and is more severe than stage 2 uptrend. • The reason is that fear (Stage 4) is more powerfully motivating emotion than greed (Stage 2). Rocket Trades - Trade Fearless

  12. Rocket Trades - Trade Fearless

  13. Market Stage SUMMARY • Stage 1: Accumulation phase - Buy and Sell • Stage 2: Uptrend - Buy only ! • Stage 3: Distribution - Buy and sell • Stage 4: Downtrend - Sell only ! Rocket Trades - Trade Fearless

  14. ALWAYS, BUY ON SUPPORT & LOOK TO SELL AT RESISTANCE… ! SUPPORT RESISTANCE Rocket Trades - Trade Fearless

  15. Various Kind of SUPPORTS • First level of support is previous 3-5 bar`s low. • Second level of support is minor Support (mS): area of overlapping bars directly to the left of current prices. • Third level of support is Major Support (MS): it is a pivot low: bar with higher lows on both sides. Major support develops only after a prior high is overcome. Rocket Trades - Trade Fearless

  16. Rocket Trades - Trade Fearless

  17. Various Kind of RESISTANCE • First level of resistance is previous 3-5 bars’ high. • Second level of resistance is minor Resistance (mR): area of overlapping bars directly to the left of current prices. • Third level of resistance is Major Resistance (MR): it is a pivot high: bar with lower highs on both sides. Major resistance develops only after a prior low is overcome. Rocket Trades - Trade Fearless

  18. Trading Success lays in Identifying the Correct Stage of on-going Market Example of STAGE ONE Rocket Trades - Trade Fearless

  19. Rocket Trades - Trade Fearless

  20. Market Offers Trading opportunity… WHEN Indictors and Prices disagree Divergence TRADING STYLE Rocket Trades - Trade Fearless

  21. Rocket Trades - Trade Fearless

  22. Hidden Divergence Trading RULES • There was a clear up trend leading up to our trading setup, which is crucial for continuation trades. • To find hidden divergence, pay attention to the last low of MACD. Once MACD descends past it, you turn your attention to price. If price is above the last swing low, you have a hidden divergence. However, if price continues down below the last swing low, the hidden divergence becomes invalid. • After the hidden divergence, we had a reversal bar that showed its strength as it turned into an outside bar. We entered a tick above its high for a nice swing upwards. Rocket Trades - Trade Fearless

  23. Rocket Trades - Trade Fearless

  24. Rocket Trades – Trade Fearless Rocket Trades - Trade Fearless