The entry setup is simple. You wait for the 5 SMA (the Magenta colored line that runs along with the Renko boxes) to break out of the bands along with the Renko Boxes. When the boxes move back inside the Bands AND the PV2 is crossing in the direction of the trade, you take the trade.
This screenshot was taken just before 4 p.m. eastern on Friday (some really great trades tend to set up after 3 p.m. on Fridays, remember?) and you can see two 80+ point moves developed in that last hour after price broke through both sides of the Bands.
I’m getting a lot of feedback from traders who had adopted this method and the feedback has been 100% positive.
In fact, the phrase “holy grail” has been thrown around a time or three (but not by me!)
But here is where a significant discussion went this week with some of the traders:
They own AutoScaler and wanted some guidance on how best to scale in additional trades on these entries. Since these trades run 50+ points in one direction about 95% of the time, these are perfect AutoScaler entries.
As I’ve stated before where AutoScaler was concerned, everyone has to set up the trade sizes and number of extra trades and the Pips Interval number according to what best fits with their own trading psychology (and account size…you can’t scale in 20 trades if your account can only finance 3 of them).
But for something like the US30, where I am using $5 Renko boxes, I would space the trades out 5 points apart and scale in 3 or 4 extra trades whenever I get a “holy grail” entry (sorry, I couldn’t resist!).
Seriously, spacing the trades a distance equal to your box size makes tracking the trades visually a lot easier. And if you run into one of those rare instances where the trade falls apart right after it gets started, you’ll only end up with maybe 2 or 3 open trades, as opposed to someone who scaled in new trades 2 pips/points apart and now has 5 or 6 or 7 open trades all moving into a loss position.
One last thing, and this is solely up to you: I won’t set up any kind of trailing stop on these trades. Instead, I’d be more inclined to just drag my stop to some point 5 or 6 boxes behind the trade, preferably behind the last place price reversed and posted an opposite colored box or two. Use it as an informal point of Support or Resistance. If price does that again and posts up a new opposite box or two further along the chart, once price resumes the original move, drag your stop behind this new level of S&R.
Oh, and when you see price touch the band on the other side of the chart? That means the trade is over and you should exit to maximize your winnings.
Now, for those of you who do not own AutoScaler (the original version, not the Pending Trade version):
I’ve had a few people ask if I am planning to run any sort of sale or discount on AutoScaler any time in the near future.
Since we are in the middle of the summer doldrums, and the charts from earlier this year, where you could throw a dart and find a trade, seem to be gone for a while, let’s make a deal for anyone who doesn’t have AutoScaler yet.
Starting today (right now) and for the next 5 days, you can get AutoScaler for just $49. Go to http://forexautoscaler.com and when you reach the checkout page, use the Coupon Code 130off and your price will be immediately knocked down from $179 to $49, a savings of $130.
This coupon will expire on Friday, July 26th, so you don’t have time to waste on this. If you have PV2 and don’t have AutoScaler, you are missing out on your best chance to knock out consistently massive winning trades on a daily basis.
So put up the PV2 chart with the Bands and the 5 SMA, and see for yourself the kinds of trades you’re already missing. Then multiply that amount by 3, or 4 , or 5 to see how much you’re really leaving behnd on the table by not adding AutoScaler to your trading routine.
Remember: Coupon Code 130off gets you AutoScaler and a lifetime of free updates for just $49 for the next 5 days. Don’t let this one slip past you. Get AutoScaler at a huge discount and start knocking out those Hall of fame sized trades as soon as the market opens tomorrow.
Jeff