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.

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.