Zen Trading Tech

Premise

This explains how we can use the DAILY chart to help us find swing setups on the open and the rest of the day.

1. Premise
2. Video
3. The 6 Decisions
4. Setup
5. Example 1 Above
6. Example 2
7. More Examples
8. Conclusion

Video

I made a video below with many examples

The 6 Decisions

Towards the end of the bar, traders are finalising 6 decisions.

These decisions are:

• Buy The Close (BTC)
• Sell The Close (STC)
• Buy Above (BA)
• Sell Above (SA)
• Buy Below (BB)
• Sell Below (SB)

By using these on the DAILY chart we can look to position ourselves to some of the variations that will appear during the session.

Setup

• Two charts side by side. I am using the RTH 24hr session and a 5min chart

• Ask yourself, “Is Yesterday a Good Signal Bar”
• Now go through the 6 decisions

Example 1 Above

• BTC – No its a weak bull doji
• STC – No its a bull bar in a bull trend
• Buy Above – Only Bulls with a wide stop would do that, but I don’t think its strong enough
• Sell Above – Bears can with a wider stop looking for a SCALP
• Buy Below – Yes, its a bad sell below so its a better buy
• Sell Below – No, its a bull bar in bull trend

So we have a couple of possibilities:

• Sell Above
• Buy Below

Today that happened to be both swings.

Lets look at where it can go wrong

Example 2

• BTC – No its a strong bear bar in a bear spike
• STC – Yes reasonable with the correct stop
• Buy Above – No its a strong bear bar in a bear spike
• Sell Above – Yes reasonable with the correct stop
• Buy Below – No its a strong bear bar in a bear spike
• Sell Below – Yes reasonable with the correct stop

But what happened?

• Bears got triggered at the close and below but the bar pulled back strongly.
• Traders sold more to get back to their reasonable entry.
• So if you took a loss early in the day, you could have made it back with the afternoon swing back.

More Examples

https://www.tradingview.com/x/Ts0R88Nh/

https://www.tradingview.com/x/lAWVwc4N/

https://www.tradingview.com/x/Owb3SL4S/

https://www.tradingview.com/x/somYgIpq/

https://www.tradingview.com/x/fb72oxDZ/

https://www.tradingview.com/x/icu7xXxz/

Conclusion

I think this is a valuable drill to practice each day. I still do it everyday and I believe it has helped me keep improving as a day trader.