We trade the re-emergence of momentum out of consolidation areas in a series of well-defined steps that make a consistent process. The main steps are as follows:

1. Identify a consolidation area within a trend that is likely to continue. Note that while 90% of this step is identified by the mathematical calculations done by our software and shown, in the form of colours and prints, on our charts, so the heavy lifting is done for you. That said, it can help to put your own 10% to this in the form of your own insight and experience. No algorithm can fully replace the well-trained eye or substitute the human mind.

2. Identify what level price must break for you to enter the trade (aka the trigger). No trigger, no trade. Triggers (also known as signals) are mathematically defined by our software (see the arrows on the charts), which the experienced trader may optionally fine-tune.

3. Define your stop loss, that is the point which, when violated by price, will tell you you were wrong and must get out. The stop loss must be defined prior to the entry and cannot be increased while in the trade. (It’s also good practice not to risk more than a given percentage, say, 2.5%, of your account at any one time, and size accordingly.)

4. Define your target. This will be the same distance as your stop, just on the profit side, giving you the parameters of a 1R (reward = risk) trade.

5. Plan the execution of the trade idea: how will you capitalize on this opportunity? How will you act on your trade ideas day in and day out, consistently? What timeframe(s) will you be operating on? How will you manage your trades? How will you tighten stops and remove profits? In what circumstances will you stop trading? What is your process of ensuring your edge is intact? What will you do to keep you disciplined? And probably a few other questions, the answers to which will make up your trading plan!

Our software can help you with consistent execution, our trader development service can help with learning to identify opportunities daily. See it all in real time in the above video, from our Premium analyses of Jun 16 and 17, and find thousands of other real-time 1Rs in our educational archives.