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The 123 entry happens after an unambiguous directional move that makes a clear reversal pattern in the other direction.

Ken's rule of thumb criteria for entering a second position in a positive trade.  Criteria for entering a third position are 6R in hand plus momentum. Momentum is confirmed by looking at a momentum in...

Your action learning journal. Create a  Master learning Journal workbook containing: 1) Trade Log + Trading journal of trades that you are actively managing 2) Market Classification worksheets & journ...

Market Mosaic indicator that provides an indication of the intermediate trend strength (i.e. Average Directional Index for the last 14 days).   Indicator value greater than 25 indicates a trending mar...

A method of comparing relative ATR values that are adjusted for stock price. Calculation = ATR/price.

Analysis method which consists of looking at each and every bar on a given interval, such as 1 minute for day trading or 1 day for swing trading to analyze the conditions of the trade.  This method ca...

An indicator used in the RLCO trading framework.  The 30 period simple moving average (SMA) is the BBmean which forms the centerline of the Bollinger Bands with standard settings

Placing a Bollinger Band on the 270 period regression line (RL270) is an advanced technique for improving your timing on the longest time frame, the “Long Term Fair Value”. The “ribbon” on the RL270 h...

"Below is a list of chart indicators and their settings used for intraday, swing, hybrid, and core trading. Baby Dragon: T he Simple Moving Average 3 calculated on the Regression Line 10 (RL10). (Colo...

The Collapsing Dragon (CD) is Ken's favorite trade.   There are 3 potential entry levels to go short for the CD: RL10 or Dragon makes a lower high and reverse Possible entries RLxD short in the pocket...

Metaphor for the River where you get chewed up if you’re trading close to the Bollinger band mean. Caution not to enter trades that are close to the Bollinger Band mean, but rather far enough away for...

External Reference: https://www.investopedia.com/terms/p/pivotpoint.asp

Potential for large intraday moves compared to the size of the range. (Rangestat/myrisk > 2).

The Darvas box theory is a trading strategy developed by Nicolas Darvas to target stocks using highs and volume as key indicators. Darvas developed his theory in the 1950s while traveling the world as...

A doji has two essential qualities: the open/close prices are in a narrow range (80% or less of Average Range) and,

An indicator used in the RLCO trading framework used to illustrate the fast trend of the BBand.  Typical settings for the dragon are (10, 0.5, -0.5). The dragon will typically move from one side of th...

See also: Also known as the mechanical range risk. Execution Risk is a concept that Ken uses for mental state control for your monkey mind. Execution risk is usually one-fifth of your Position Sizing ...

Expectancy refers to the mean (average) R-multiple (positive and negative) of your system. This tells you what you can expect in terms of R on average over many trades. If you risk the same % of your ...

When the market goes into one direction then abruptly reverses.  A stop and reverse strategy could be considered to avoid missing out on these trades.

A tool for personal learning and development based on a daily reflection on planning, preparation and execution.  The Learning Journal is completed periodically to capture four pieces of information: ...

An indicator used in the intraday Frog trading framework.  The purpose of the indicator is to discern price action which is part of a directional move rather than price action that is noise.  Once pri...

Entering before the formal signal is fired to gain a better risk:reward ratio.

A method of mechanically framing swing trades in both directions. The green zone begins $0.05 above the previous day’s high and extends to the profit target; traders want to be long in the swing posit...

External Reference: https://school.stockcharts.com/doku.php?id=technical_indicators:hull_moving_average

Kata 1 is trading only the Supported Spring Crossing (SSC) on 1 min charts on symbols EWZ and DIA as per the instruction sheet (see embedded document below). Do not trade any other patterns or symbols...

Kata 2 uses any time frame charts and follows the following steps: Trade your most extreme movers (either extremely overbought or oversold in the NDX10) from your stock list. Establish the PSAR Flip B...

The space where you go to practice the Kata’s.  The Dojo is also any place where you are prepared to perform perfect practice and engage in live trading to standard.

This is the MACD indicator modified to be based on Regression Line 10 (RL10), Fast Length 10, Slow Length 30, MACD - EMA Length 5. Winter: the MACD line is below the Zero line and falling Spring: the ...

The section of the daily report that classified current market conditions based on four criteria: Type (Bull, Bear, Sideways) determined by Price relative to 200 day MA, Volatility (Volatile, Normal o...

Market health check

A set of eight indicators that measure the nature of the current market.  Many of these indicators are coded Green-White-Yellow-Red using descriptive statistics: Green: more than 1 Standard deviation ...

A screen that highlights symbols that have lost the most on a percentage basis compared to their peers.  In addition, today's range is compressed like a spring.  These candidates may be more likely to...

The size of uncertainty you can manage plus the size of the adverse price that “proves” the hypothetical move is over. MMRB is the Execution Risk that you can estimate and manage without ever taking a...

A price pattern which occurs in the first hour of trading.  After gapping down at the open, price will continue to decline to a statistically improbable level before stalling and reversing to return t...

A process by which Ken looks at his favorite trading symbol on various timeframes(monthly, weekly, daily, 2h and 30 minutes) through the lenses of various indicators and trading frameworks such as the...

Normal (or Gaussian) distribution is a statistical concept which provides the probability that an observation will fall between any two real numbers.  It is typical for distribution occurrences to fal...

Sideways quiet channel is a RLCO generation 1 pattern.  Three criteria are required for the SQC: Price, RL10 and RL30 must all be inside the river for a minimum of three bars,

Reference: Foundation Course :  Estimating gains, with risk mgt, in all time frames Strategy Podcast 20210121 (Manageable risk box, trader mindset) (starting 8:05)

To share and collaborate with others based on trust and safety. Able to learn about the “Elephant” collaboratively that is not available to us individually. To blend the creativity of multiple minds f...

Checkpoints where the action of price and/or an indicator are used to build conclusions/confirmations of the state of the trend.  These checkpoints include behavior of either RL, the BB2 ribbon or pri...

Strategies 5 & 6

When a position has moved in your favor and is starting to hesitate, a position is exited to preserve profit and prevent the trader giving back all the gains that the market provided.

The parabolic SAR indicator, developed by J. Wells Wilder, is used by traders to determine trend direction and potential reversals in price. The indicator uses a trailing stop and reverse method calle...

How it can help individuals, teams, organizations act from ethics & values instead of feelings Protreptic coaching how to create balance, how to lead through values, and prevent stress Values as the u...

The price difference, the last time the PSAR flipped from down to up or up to down obtained by subtracting the higher PSAR value from the lower PSAR value at the time of a PSAR flip. Qturbo

A method of action learning for continuous linear improvement in only one direction while preventing motion in the opposite direction. Ratchet learning involves the following steps: Lock it in Write i...

A conceptual manta that aligns with the Z-trade.  A stock that has dropped considerably to a low probability zone, the chart prints a doji indicating it is at a critical state deciding where to revert...

External Reference: https://www.mathsisfun.com/data/least-squares-regression.html

An entry signal in the RLCO trading framework is triggered the moment when the fast and slow regression lines cross over each other outside of the 30 period Bollinger band (30, 1) (also known as the r...

The possibility of losing some or all of an original investment. This is also known as 1R. The calculation of risk is as follows:

Takes the calculated value of the Risk Index, and compares it to the statistics of the last 5000 trading days, and finds the Z-score. We then plot the time series of the Z-score over the last 90 days ...

Regression Lines are a straight-line description/simplification of price action. An RL is the “best fit” straight line of prices over the look back period. Moving regression lines are a curved line th...

This is the regression line set to 270 bars. An indicator used to view the fair value in the longer timeframes. It is the slow RL in the “slow pair”, (90, 270) Below is a chart showing the relationshi...

This style of trading is a combination of discretion and rule-based systems. This trader may start with a framework of rules and then apply some discretion in the gray area between the rules. This is ...

Sideways Quiet Channel (SQC)

A discretionary exit taken to protect profits when you have close to 2R execution risk in hand and you see the signs of resistance or hesitation. SQC s ee: Pattern #5

Standard entry/exit

This chart pattern signals a possible continuation of the most recent uptrend. After summer (see MACD Seasons ), the following occurs: RL10 indicator crosses below the Baby Dragon and has a negative s...

This chart pattern signals the initial reversal of the most recent downtrend. The following occurs. After a harsh winter (see MACD Seasons ), the following occurs: Baby Dragon indicator crosses below ...

This chart pattern if successful signals a reversal of the most recent trend. Ideally, a fter a weak spring or weak summer, The MACD Season changes to fall or winter RL10 crosses under the Dragon indi...

A Van Tharp measure of the quality of a trading system.  SQN measures the relationship between the mean (expectancy) and the standard deviation of the R-multiple distribution generated by a trading sy...

External Reference: https://en.wikipedia.org/wiki/Standard_score

Summarizes the key tasks required for trader success: Daily self-analysis Daily mental rehearsal Focus and Intention Developing a Low-risk idea Stalking Action Monitoring Abort Taking profits Daily de...

The four ingredients required to enter a trade. Need all 4 to have a trade. Time: enough time left in the day or the expected swing from a reasonable favorable move to unfold. Will: the emotional ener...

A method of assessing the conditions of stalking or active trades based on changing conditions and risk/reward in both directions. On trade frames, the trader should ask: What do you see? What could i...

Opportunity to self reflect and learn from others in a safe trusted space. From True Storytelling (Foundations course) The 7 Principles: True: You yourself must be true and prepare the energy and effo...

External Reference: https://www.investopedia.com/terms/v/vwap.asp

WMB3 Morning Hook setup conditions as follows for intraday or swing trades: 1)  W   Williams % R (10)                       Price is oversold on Williams % R 2)  M        MACD H (10,30,5)             ...

Videos: Foundations20210417weekly Q A session Foundations20210501weekly Q A session

Z3P occurs when the Z3 lines are squeezed to less than 1 Frog Box (FB) for intraday trading. This is a measure of abnormal squeezitude. Please note that the Frog Box is calculated based on the daily b...

Z3P occurs when the Z3 lines are squeezed to less than 1 Frog Box (FB) for intraday trading. This is a measure of abnormal squeezitude and RL10, RL30, RL90, RL270 are within pinch criteria. Quotes, sa...