Many of the procedures I use to create the prep and the context of the terms used are proprietary in nature. This means that I will not always publicly explain certain aspects of my work.
I believe the information that is provided will be extremely helpful to the reader and also contribute to the learning process. Projections are not trading advice so please use your own judgement.
The prep has 3 main components. the areas of support and resistance, the written premise/notes for the day, and the grey arrows.
The areas of support and resistance are specific price levels defined by blue or magenta lines where I expect the price to hold or extend. Ranges will often be established between these zones and clarified with orange arrows.
The written premise/notes for the day is generally in the upper right hand portion of the prep. It will contain key levels to watch and a range to work with for the day. There will often be a primary scenario and a backup scenario in case the primary fails. This will be a description of what I am actually expecting the market to do.
The grey arrows are my attempt to help you visualize how I project the price action moving forward. There will often be an initial projection and a secondary in case the price extends its range or moves sideways from a trending market.
The grey arrows are not meant to be traded. Even though they tend to be accurate, they are solely a visualization.
The morning prep is key to my success as a trader. It is prepared without the use of special software, proprietary oscillators, moving averages, or Fibonacci tools. Creating the morning prep is a skill that can be acquired.
Without the morning prep, I would be entering trades without context to the direction of the market or expectation of distance for the price to travel from my entry point.
Please see the chart below. The red arrows and text provide explanations for the key areas on the prep. It looks crowded but everything you need to interpret is here:
Hello Brian,
ReplyDeleteThanks for sharing your blog.
I am assuming you learned about the proprietary support and resistance levels you use at Pride. If so, do you generate those levels on your own now with what you learned or are you dependent on Pride to get those levels?
Thanks in advance,
Miles
Hello Miles. You're welcome and thanks for your note. I did learn to do the morning prep from Alexander at Pride Trading. I prepare the morning prep on my own everyday. Alexander does his own prep and shares it with clients but most prefer to do their own since they have the skills now to make the projections. It is easier to bet on your own work once you see it work consistently.
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