The 6 MLT Trade Set up’s
1. 50% pullback long/short (HWB) Trade
HWB stands for halfway back or a 50 percent pullback of the previous swing.
2. Retest point of breakout/down (Leg start)
A move up or down in the market is considered a leg. legs can be seen on all time frames from daily to $tick. The “leg start” is the beginning of the move. these levels serve as important support/resistance when tested.
3. Previous hour support lost/gained (Flunk) Trade.
The Flunk trade occurs near larger time frame reversals or breakdowns. In a long trend The previous area of support lost becomes resistance. We assume first test of resistance price will fail to move higher hence the name of the trade FLUNK Trade
4. 78% breakout long or short. (The Dive) Trade
The dive trade is a trade taken only in the direction of the larger time frame (hourly) this is a trade designed around catching a break into the next trading level higher or lower. When properly analyzed price pierces the 78% of the defined range and moves swiftly to the next level. You are basically front running the break of a previous high or low and expecting a continuation. The dive trade can also be used in Stocks, when trading breaks outs.
5. 78% fade long or short (Bully) Trade:
The Bully trade, is a trade that is used when price is reverting to the mean hence the word bully. Bully trades come into play when we are failing to make a new high or low in a range. a 78% represents a lower high or a higher low and should be used on non trend days, or when momentum has run out.
6. 50% long or short (Charge) Trade:
The charge trade is one of my favorite setups. It is triggered when the 3rd bar of the 15min chart closes. If all the first 3 15min bars are the same then you can draw a fib from low-hi/hi-low and trade the 50% retracement following the trend of the first 3 green bars. Use the daily and 1-2 hour hour strikes.
