Dear Traders,
The purpose of the Trader's Trick Entry (TTE) is to get us into a trade prior to entry by most other traders.
Trading is a business in which the more knowledgeable have the advantage over the less knowledgeable.
What we are trying to avoid here is the damage that can be done by a false breakout.
It is important that you study and fully understand both the Law of Charts (TLOC) and the Traders Trick Entry (TTE) as you begin your way to making consistent profits in your trading.
Typically there will be many orders grouped just beyond the #2 point of a 1-2-3 formation, or the point of a Ross hook.
The market movers are very much aware of the grouping of orders at those points.
If they can make it happen, they will move prices to where they see the orders grouped together, and then a little past that point in order to liquidate as much of their own position as possible.
This action by the market movers is called “stop running”.
Unless the pressure from the outsiders (us) is sufficient to carry prices to a new level, the breakout will prove to be false.
The Traders Trick (TTE) is designed to join the market movers as they move prices towards where they see order accumulations.
- Market movers will often create moves aimed at those points where they realize orders are grouped.
- It is that kind of engineering that makes the TTE possible.
For those who are able to move prices to be able to stop us from following their moves, they would have to stop the price action they are trying to create. You’ll soon see why.
Let’s begin our examination of the Traders Trick Entry (TTE).
The TTE and 1-2-3
The Following Provisions Applies
Profits and TTE
Additional Information
Trading The TTE Has Very Simple Rules:
Although we’ve shown you upward movement of prices, the same rules apply to downward movements of prices from 1-2-3 highs, Ross Hooks, and downward breakouts of Ledges and Consolidations.
Let’s look at this slide more closely.
Notice on the slide below that we did not take the first Trick. There was only 1 higher low after the #2 point. For the same reason we did not try the Trick after the Rh.
The slide below, the TTE after the second Rh has 4 bars of higher lows and therefore, we do not take the entry. Although a TTE seems possible for the last 1-2-3, we do not take TTEs from 1-2-3s in sideways markets.
At the last 1-2-3 high we a double low, which counts as 1 bar of correction. Finally, at the last Rh, we have a valid TT following the third bar to make a higher low.
EVERY TRADERS TRICK
CONTAINS ANOTHER TRICK
LET’S LOOK AT THAT NOW
Final Comments on the TTE
The Gann traders also increase the momentum generated by the market mover as he pushes prices towards the #2 and Rh points. They buy or sell 1/3rd, 1/2, and 2/3rds retracements of price movements.
The “Golden Ratio” traders also increase the momentum generated by the market mover as he pushes prices towards the #2 and Rh points. They buy or sell 50% retracements of price movements.
The TTE offers the possibility of using the momentum of others to cover costs and capture some profits, as well as a free trade to the trader willing to use it.
However, the probability for a trend to form is less following a 1-2-3 formation once the #2 point is violated, than it is for a trend to continue after the point of a Rh is violated.
The reason is that 1-2-3s are often followed by congestion.
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Joe Ross wants his students to learn trading.
As a bonus, he is sending you a few trading articles, for free!
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