Day Trading the Three Bar Reversal Pattern

Three Bar Reversal

The three bar patterns is one of the more common trading setups.  The reason its so common makes it an easy target for newbie traders when they do their scans.  The problem with the three bar reversal pattern when it comes to day trading is the setup can be found all over the place.  So, Read the full article →

Day Trading Bottom Tails for Profits

Goldman Sachs Bottom Tail

The bottom tail formation is a trend reversal pattern that comes at the end of a down move.  Below is the setup for the bottom tail pattern: There is a downtrend in progress Select two popular time frames that are close together (i.e. 1-min & 5-min or 5-min &15-min) Identify a bottom tail candle on Read the full article →

Day Trading Cup Breakouts

day-trading-cup-breakouts

Video Example of a Day Trading Cup Breakout The below video breaks down another working example of the Day Trading Cup Breakout. This article is a review of the day trading cup breakouts strategy presented by Ken Calhoun in Stocks and Commodities Magazine. Let’s lay down the ground rules for the pattern. 1. The pattern Read the full article →

Day Trading Breakouts at the End of the Day

Video thumbnail for vimeo video Day Trading Breakouts -

When you think of day trading breakouts the first time frame that comes to mind is likely the morning.  This is a natural first reaction as the morning presents the greatest odds of volatility with overnight news, morning earning reports, and early morning economic data.  There is however the possibility to make money trading breakouts Read the full article →

Automated Day Trading

Automated Day Trading Definition Automated day trading is when a trading system places orders in the market without any human interaction.  These systems work best for traders who are unable to manage their emotions and or have poor money management techniques.  With a number of direct access brokers providing automated trading, it is no longer Read the full article →

Day Trading Money Management

Day Trading Money Management Day trading as a business can be very profitable. It is probably the safest form of investing, as you are focusing on a small number of positions, you are not holding any positions overnight and you are able to enter and exit trades with pinpoint accuracy. However, many day traders find Read the full article →

Gap Pullback Buy

Our next strategy, the gap pullback buy, is one of my favorite setups.  It allows us to let the morning action play out and enter into a trade with a strong setup and relatively low amounts of risk. Trading Characteristics of a Gap Pullback Buy The gap pullback buy is predicated on the concept that Read the full article →

Symmetrical Triangles & Day Trading

Day trading with the symmetrical triangle formation is a great way to take advantage of late day breakouts.  Some traders will look for symmetrical triangles on a very short timeframe (ie. 30 minutes); however, I like to see this pattern develop over a few hours after a strong morning advance.  Symmetrical triangles are considered to Read the full article →

Early Morning Range Breakout

The first morning trading strategy we will discuss is a very simple, commonly used, and reliable trading pattern; the early morning range breakout. This strategy allows traders to take advantage of the violent whipsaw action that can result from the flurry of buy and sell orders that come into the market on the open, up until Read the full article →

Morning Reversal Gap Fill

The morning reversal gap fill is another great trading setup for the first hour of trading, preferably within the first 20 to 30 minutes of trading. This strategy is a play on a shift in market momentum and is directly tied to market manipulation by the market maker on the open. As we discussed in our introduction to Read the full article →

Day Trading Breakouts

What are Breakouts? When you think of day trading breakouts, what comes to mind?  Stocks making daily highs, two-day highs, weekly highs, all-time highs?  As you see, breakout means a lot of things to a lot of people. So, why do so many people lose money day trading breakouts? Why are traders constantly buying stocks Read the full article →

Day Trade Setup – Three Bar Reversal and Go

three-bar-reversal-and-go

Day Trading Setup - Three Bar Reversal and Go This article is going to discuss a very simple, yet powerful, day trading strategy that is used to capitalize off of the greed and fear from a group of novice traders. I refer to this setup as a “three bar reversal and go“; it can be described Read the full article →

Narrowing Range Bars

narrowing-range-bars

Our next day trading strategy stipulates that a series of consecutively smaller ranging bars occurring in a single direction will lead to a reversal when the proper conditions are met. This setup can be taken with or without a gap and is a counter trade. Just as with the opening reversal gap fill strategy, this trading setup Read the full article →