Day trading case scenarios - buy and sell signals

I've just finished listening to yet another awesome pre-recorded day trading session with John Howell in the Planet Wealth trading room. As you read in a previous post, we've been studying day-trades and the best entry and exit points based on peaks, troughs, moving averages and support/resistance/trend lines.

Today John added to the teaching by introducing us to the concept of "Case Scenarios". I guess we can get caught up, trying to fit each trade into a step-by-step mould. But, it's not really that simple. Johnny stressed that each trade is different - and so must be analyzed and executed differently. For each and every trade, a good trader must construct a separate case scenario:

* What is happening right now.
* What is the technical entry.
* What is the technical exit (where are you placing stops).

If you, like me, are just starting out day-trading, then don't expect your next trade to execute the same as the last. It will be different. Construct a case scenario for your trade and be prepared to exit at any time. As the old cliche goes: "plan your trade and trade your plan". Keep your eyes open... and don't leave the screen!

ASX LGL Technical Analysis Trend Lines

Please note I am not a financial expert & anything you see on this blog should not be taken as financial advice! In the trading room yesterday, John taught us how to draw long term trend lines using parallel lines... and how past trendlines become valid in the current market. Using the techniques I learnt just yesterday, I was able to come up with the following bearish view of LGL. There was an LGL entry signal yesterday, I couldn't get in the trade coz my baby woke up right as the market was closing! So, entry signal was yesterday, but I think today's volume is good for entry too. Here's what I've come up with...



Weekly is looking very bearish, breaking past the parallel lines trending resistance... H&S... methinks ripe for a long term trade which I'll be considering today.

I'm factoring in the possibility that there could be a bit more upside to form a bigger right shoulder, but it's still going down IMO!

If you want to learn some of these "crystal ball" technical analysis techniques for yourself, then you can't do better than to check out the amazing Planet Wealth Trading Room. It goes for just an hour a day and you can join up to live sessions or just get the pre-recorded sessions like I do.

FREE PDF On Trading Entry Signals - Bullish Up and Bearish Down Days

Prior to joining the trading room, I would spend ALL day examining the charts for my watchlist... painfully looking for a trading opportunity. I wasted so much time! Then, on just my first session in the trading room, I discovered how to identify potential trading opportunities in a matter of seconds... it's all to do with the day's "price bar".

Basically, what I've learned from John in the trading room is that you need to identify the day as either "bullish up" or "bearish down" or "rubbish day". If it's an up or down day, then you should spend time checking indicators etc. (stuff you learn in the room). If it's a "rubbish day", then the magic word is "NEXT" and you don't need to waste any more time on that stock.

THIS SAVES ME HOURS AND HOURS EVERY DAY!

To help you get the gist of what I'm talking about, check out this PDF written by John Howell - my trading room mentor. NOTE: If you get an Adobe Acrobat error when clicking this link to open... you can work around it by just right-clicking to save the file to your computer and then open it from there... here is the free PDF Trading Room Price Bar Entry Signals. Enjoy.