Triggers and Indicators
In this chapter, the trigger examples I’ve illustrated are only a sampling of what can be used for your entries with Fibonacci time and price analysis. For me, they are only part of the trade entry equation. I need to see a few other things before entering against a trade setup. I have a couple of filters that need to be in place at the same time the swing trigger can be taken. My filters are the 34 EMA and the 14- and 50-bar CCI. I watch these filters on a three-minute chart. For a buy, I need to see the price above the 34 EMA when the market triggers and both CCI readings above zero. For a sale, I need to see price below the 34 EMA when the market triggers and both CCI readings below zero. This is where the ideal trade setup comes in. If you are a day trader and you take only these ideal trade setups in the direction of the next higher time frame, you should be able to consistently extract cash from the market. That is, you can do this as long as you are using a good trigger and reasonable stops, and you have good money management skills. This will be discussed further in Chapter 17, which covers using a trading plan. So what is an ideal setup? I need to devote a whole chapter to this high-probability trade setup.
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