It’s Friday, and the markets are alive with action. Today, I want to introduce you to a powerful method of trading using price action with our innovative Blueprint software, part of our all-inclusive program. Let’s dive into how this method works and how you can leverage it for your trading success.
Understanding the Blueprint Software
When you look at the live chart of the E-mini S&P on TradingView, you’ll notice the market’s fluctuations. The Blueprint software highlights these movements with shaded areas, signaling potential support and resistance levels. These green or red shaded boxes help us identify key ranges where the market might pivot.
How It Works
- Identifying Shaded Areas: The shaded areas on the chart represent zones of potential support or resistance. These zones are crucial as they mark the boundaries within which the market might react.
- Trading Signals: To decide on a trade, we look for two or more consecutive candles closing either above or below these shaded areas. This confirmation is essential to avoid false breakouts.
- Back-End Settings: The Blueprint software offers settings that enhance the clarity and objectivity of your trades. The maximum multiplier setting determines the acceptable distance for entering trades. For instance, a multiplier of 1.5 times or less ensures you’re entering close to the breakout point, avoiding late entries.
Live Trade Example Using Blueprint Software
Let’s look at a practical example from this morning. Around 10:00 AM, a shaded box formed, and we observed the market’s reaction. After three candles closed outside this box, a short signal was generated, as the distance multiplier was within the acceptable range. This strategic entry ensures you’re part of the early move, maximizing profit potential.
Fine-Tuning Your Entries
Adjusting the distance multiplier and the number of consecutive candles required for a signal can refine your entries:
- Two Consecutive Candles: Preferred for avoiding false breakouts.
- One Candle: For earlier entries, though riskier.
- Three Candles: For more confirmation but potentially later entries.
Monitoring the Trade
As the trade progresses, monitor the Average True Range (ATR) to set realistic profit targets. In our example, with an ATR of about three points, aiming for a two-point profit can be a prudent strategy, providing a balance between risk and reward.
Join Our Community
If you have any questions or want to learn more about trading with price action, visit daytradetowin.com. Get a free member account, download free software, and immerse yourself in our comprehensive training resources. Our proprietary tools and live training room are designed to equip you with the skills needed to succeed in the markets.
Conclusion
Trading with price action using the Blueprint software offers a clear, objective approach to navigating market movements. By focusing on key support and resistance zones and confirming entries with consecutive candle closes, you can make informed trading decisions.
Until next time, good trading!
