BEGIN YOUR LCM TRAINING HERE
LCM BEGINNERS TEMPLATE
VIDEO I — TEMPLATE# 7 BVS 4 – 3 BAR SUP-RES & PIVOTS TEMPLATE -VIDEO
I – A – THE STRENGTH – TEST PATTERN SINGLE BAR SUPPORT RESISTANCE.
VIDEO II — WHY I DON’T MAKE OPEN TRADE ALERTS
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you want to pay attention to the email lessons but we also want you to learn in a certain sequence because, one block of information set’s you up for the next. The email lessons are actually geared for those who have understanding of the concepts in the Laws of Charts and Men book.
Getting in on a pivot reversal and getting and taking profit at 3 bar support/resistance, with stop below the swing bar.
1. Pivot-Price reversal signal tells us when the direction of price momentum has switched
2. 3 bar-Target at – 3 bar resistance overhead and 3 bar support below are the first places we look to take profit
3. Swing bar stop loss- First level stops go above the swing bar high and below the swing bar low
Those are the 3 price elements that set you up for understanding how to apply the volume material…The purpose of volume is to confirm the signal and direction of the price move.
A. The 7 Principles of volume- Show how to apply volume to specific price action to confirm the conclusions reached from our price analysis.
Any materials that cover any aspects of the above mentioned items are what you should focus on mastering first. The other materials expand upon this basic knowledge but apply the same principles.
The principles are expanded based upon on the basis of expanding the levels of support and resistance.
The direction of any trade is determined by a reversal signal or a breakout signals which occur at support or resistance levels. All of the types of support/resistance are valid in their own right and you only need to specialize in one. You don’t need to look for all of them but, knowing how to project each type of support/resistance tells you what your expected risk to reward basis will be and that tells you which one you would be best to specialize in based on your own individual factors of time and monetary resources.
Each time of support/resistance will be larger or smaller based upon the average distance between resistance overhead and support below.
A signal based upon a 3 bar target may be say…50 pips while, a trend target may be several hundred pips. Your pick of location/real estate is usually based upon what you can afford. Zones or support and Zones of resistance are real estate.
They are neighborhoods. The best neighborhoods usually have the biggest houses ( the larget range in pips between resistance and support.
The larger the range means you have a larger potential profit and of course, that always comes along with a larger potential stop. There is more risk in a larger house because of higher mortgage and tax payments along with higher maintenance for larger square footage. You also needed a larger down payment to get into the house. So, if you lose the house you have more to lose than someone with a lesser house. Support and resistance are like that…Larger range is like the larger house and a smaller range is like a smaller house.
In order to know what house you are best able to afford you are in a better position the more options you have to choose from but, simply because you have more options does not mean you have to use all of them.
It is important to know what you stand to make compared to what you stand to lose on a trade and you can’t know that until you know the locations that separate one neighborhood from another in order to choose which neighborhood I can afford.
3 Bar support/resistance is the low rent zone where everyone can afford to live. Trading trend support resistance is the high rent district. In the high rent district you have more to lose if property values fall rather than rise. But you gain more when property values rise. In the high rent district the property value dropping 10% is $100,000. The low rent district may not even be worth $100,000 so lose no more than $10,000. However, when property values rise the same applies to an increase in value of 10%.
So, choosing your support/resistance is like choosing your house. You live in the house you can afford to live in.
Therefore, the chose of the support/resistance level tells you where you should enter and exit trades and what position/contract sizes you should take..The focus in not on how much you stand to gain on a trade if prices rise. The focus is on how much you can afford to lose on a trade
The first 5 levels listed below are listed in order of expansion from smallest to targets.
Single bar is the seed… That grows into the 3 bar fetus…That grows into the swinging baby…Whose growth trends into a man…The man grows taller until there are more people willing to sell his product than buy it so, there is too much supply. He makes less money so he eats less causing his weight to fall until, there is a shortage of his product causing a greater demand for it.
We need to know how to choose the neighborhood we can afford and wait until that neighborhood has more people looking to buy than sell. Price stats show that prices did not rise last year ( a stopping bar) however, they did stop falling. You may now consider a good time to buy a property in the neighborhood and you will make your decision to buy if property prices actually increase ( a swing pivot in prices) this your to reverse the trend in property values from down to up.
Once you have decided to buy you must decide on what is the maximum price you are willing to pay and what type of purchase contract you will submit. Will it be a typical mortgage or will it be a lease with option to buy?
Okay, my analogy may not be perfect but it gives you the picture of why I teach so many different type of support and resistance. If you search the internet you will find that most trading systems promoted will be all about just ONE of the levels listed below. This is what I mean when I say I do not teach a system…I teach the principles that must be applied to any type of trading you are engaged.
Our principle of choosing direction, and entry are the same regardless of what support/resistance level we use. The only real variables are how we choose to enter using one of our entry types we learn in the course.
So, do not get so lost in the material that your efforts are scattered. Practice does not make perfect. PERFECT practice makes perfect. Or perfect study makes perfect. It is not how much material you cover or how much time you spend on the material. It is about covering the materials according to the logical flow of growth and that is from smallest to largest.
1. Single bar support/resistance
2. 3 bar support/resistance
3. Swing support/resistance
4. Trend support/resistance
5. Supply/demand zones support/resistance
6. Fibonacci support/resistance
7. Trend line support/resistance
8. Volume support/resistance
9. Time support/resistance
10. Moving average support/resistance
Signals
We have two categories of signals. Reversal signals and continuation signals.
A. Reversal signals and .
1. Squeeze price / volume reversal
2. Pivot reversals
B. continuation signals
1. Breakout signals
2. Breakin signals
Entries
1. Fade entry
2. Breakout entry