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Owners 14-DVD System Handout

Supplements: Proprietary Trading
Techniques & Patterns

VOLUME 1

Future Volumes Will Be Emailed

To You In The Months Ahead
And Posted In Your Members Area
As A Special Complimentary Bonus
Contact: Ken@DaytradingUniversity.com

Participant Workbook

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To make this a fast-paced, comprehensive and successful seminars,

I ask for your help in following these guidelines during the session:
- Come prepared to learn with an open and active traders' mind.
- A valid photo ID is required for admittance. You will be required to sign a
disclaimer and waiver/legal agreement prior to attending the seminar. No ID, no
admittance. No exceptions.
- Because of the huge volume of tips and trading content we will be covering (think
"3+ days worth of seminar in 2 days"), we will need to limit questions to times during
our interactive Table Activity sessions, which will be fairly frequent during the
seminar, as well as during lunch and after the sessions each day.
- We will stay as late as you need following each seminar day to answer all of
your trading questions that you may have. We are there for you, I just need to
ask you to not interrupt each session's topic with a lot of questions, or we won't
have time to cover everything. I am an expert facilitator, having trained 28,000
people in my career, and will facilitate everthing successfully to keep us on schedule.
- Absolutely no personal recording devices allowed.
- Absolutely no cell phones, laptops, pagers or other annoying electronic devices
allowed. These will be taken from you at the door if you bring them, kept at the
front office of the Sheraton, and returned at the end of the session.
- Absolutely no 'heckling' or negative comments allowed.
- No competitors or their affiliates/agents/partners allowed: absolutely nobody who is
affiliated with, owns, works for or is compensated in any way by any person or
company that delivers stock trading related seminars, online chat services or stock
educational services is allowed to attend, and agree to liability damages if they do.
- Absolutely no food, soft drinks, bags of chips, candy will be allowed in the main
seminar room. This is annoying and distracting. We will provide coffee, lunch and
other food to you during the seminar.
- No exceptions to any of these guidelines will be permitted. They are for the
success of the seminar.
NOTE: Daytrading is a speculative and risky activity, and you are encouraged to seek the guidance of a qualified financial advisor
prior to trading and security. We are not a registered financial advisor nor investment advisor and make no warranties as to the
suitability of the techniques contained herein. You assume full liability and responsibility for the outcomes of all of your trading
activities, including but not limited to loss of capital. Charts found herein are 2006 eSignal http://www.esignal.com Used with
permission. All other materials are 2006 Ken Calhoun/HBTG. All rights reserved. DISCLAIMER : U.S. Government Required
Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large
potential risk. You must be aware of the risks and be willing to accept them in order to invest in the equities, futures and options
markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks, futures or
options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on
this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. By using
Daytrading University's services you hereby agree with all terms in our disclaimer.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN
ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE
TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF
ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE
ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS
BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
You hereby agree to be bound by all terms of our disclaimer, located on our website, at
http://www.daytradinguniversity.com/disclaim.htm We wish you success!

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved Worldwide.

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved Worldwide.

From Jim M. of Columbia, MD

(Nov 30) I am very impressed
by the amount of good
information your course
contains, and find it to be an
especially great value for what
you are charging members.
You have obviously put a lot of
time and effort into your
course development...great
job!
Ralph B. I've read tons of books, attended the online trading expo in NY, tried a few trial web trading rooms. I think
your web site is one of the best educationally so I'm really looking forward to the live room.
Hussain A (3/16) I just subscribed to your great site and already went through two lessons. I am liking it so far, I
have learned a lot.
Rusty M. (3/12) I've read alot about daytrading and feel that finally your course is just what I need. Thanks for filling
the void. You seem very knowledgable and I think I can learn alot from your course.
John C. (3/11) The transcripts are really interesting. Can't wait to try it live. Looking forward to completion of the
course modules. The content of DTU has been outstanding and extremely rewarding. I sincerely appreciate the
effort.
Kathy C. (3/6) Just wanted to let you know how helpful DTU is for me so far. What's great is to have some real
guidelines around the specifics (eg which MAs work best). I also really appreciate no banner advertising. Anyway,
thanks for helping to ease one daytrader's entry into this demanding and, to a beginner, bewildering field.
Sam G. (2/28) My wife Rufina is actual student, and she speaks very highly of your leadership in your teaching.
She has learned so much from you in these months, I want to thank you! It is changing her life in most positive way.
Dave L. (2/27) Ken--I have been a DTU/TTO member since approximately Dec. /Jan. 2001, and I have learned an
incredible amount of invaluable information from both of these sites. I have totally immersed myself in the study of
your system and have paper traded very successfully along with you on a full time basis for some time.
Robin V. (June 18) I just enrolled in DTU. And I must say that it was well worth every
dollar. The tips and techniques that you give are very specific and detailed to the point of
being useable. I have read several books and none have come close to the information
that you give in the modules. THANK YOU for making all of these available to us. (Sept
18) I like DTU so much because it gives me an in depth, detailed knowledge of how I can
be a successful professional day trader someday! (10/3/00) I have never come across any
material that comes close to the level of thoroughness that you have. Many many thanks
once again for the thorough answers you gave on going short on swing trades. I am really
impressed at how you can still find time to answer all your e-mails in such a high quality
manner.

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved Worldwide.

from Nixon C. (May 15) very useful help Ken, i will soon be a Master at trading with a US broker at the rate i am
picking up knowledge! (thx to you)
from Manfred G. (May 13) I am really glad I found you - by chance - on the web. After reading several books "how to
get started" in daytrading now I have the real tool to get into this business. Thank you very much! (11/11/00) Would be
very glad being in your classes / working through your lessons, they are not only helpful, they are decisive becoming a
good trader.
from Chris K. (May 11) Thanks for the newsletter and thanks for your site! I have learned more in the last 3 weeks
reading and trying out the ideas you present than I did in the prior 12 months reading the many generic 'day-trading'
books that are out there.
from John D. (May 8) I am currently a subscriber to your site. I am incredibly happy to have access to real scenerios
instead of just the theory taught in most books on day and swing trading.
from Lee L. (May 6) I've learned so much straight forward, easy to understand info from your site. Keep up the good
work! You Rock!!
from Chris D. (May 6) I'm very impressed by the standard of information made available in your course. Thanks for an
excellent and affordable service.
from Tim M. (May 4) You've got a great site ... glad I signed up for the course!
from Victoria A. (April 30) I have to say, once again, how greatful I am to have found your online course.
from Raghee H. (April 30) THANKS for a great site! I am thoroughly enjoying it.
from Man F. (April 26) thanks you are really help. your company courses are very excellent...i am very appreciate your
advice. You are very good instructor
from Johann M (April 23) Thanks for the great daytrading course, you offer your members. I am member since 03/05/
and I love your site. It's really what you 've promised your members. Information for Daytraders you really need for
succesfull daytrading. I 've to congratulate to myself that I 've found your site.
from Terry N. (April 22) I am very impressed with this course...
from Vincent L. (April 21) I have benefited a lot from the course. Thank you very much. The course is well organized
and designed.
from Eugene W. (April 17) Very exciting...thanks for the T&S advice in the modules, very helpful to catch the drift of
what the market is doing in the moment. You're the only day trading writer emphasizing the importance of T&S in
relation to L2 and other data...You have been helpful and prompt... I find myself reading, and re-reading the DTU
website when I have new questions that come with my ever expanding knowledge of day trading. DTU is an excellent
resource and a fine value!
from Moses A. (March 27) I was at the oakland on line traders world expo yesterday. I attended Mark Seleznov's level
II seminar and towards the end of the seminar, he highly recommended your daytrading website...
from Joseph T. (March 25) The price was affordable compared to other places but what really got me hooked was the
format of your site...informative and down to earth. I enjoyed the signing up process, your quick email replies, and most
of all the site...Keep up the great work and I will recommend it..
from Eric A. (March 25) Dear Ken, As someone who is relatively new to day trading I have spent an enormous amount
of time researching various books and sites. DTU is clearly the winner!!! Well designed and easy to apply I think you
have cut my learning curve in half. (9/30/) Just renewed my membership. Money well spent!
from Herb B. (March 19) Hello. As one of the newer subscribers to Daytrading University let me say how pleased I am
with your service. As a day trader who has been at it for a year, I have a library of books on the "science" of
daytrading....Your hands-on, practical lessons are not only pertinent but immediately applicable.
from Allen W. (March 18) Thanks for your time and your site is great. I have refered many of my friends to you.
from Richard S. (March 17) keep up the good work, you have a great site and I am learning a lot.
from Keith B. (March 17) Thanks again Ken, took a quick look around the University today and hope to begin my
studies this weekend. Look forward to a very PROFITABLE learning experience.... BTW, I am half-way thru Module 2
and am very impressed with the information presentation. It's great! Consise and very comprehensive
from Rick P. (Mar 10) First of all, just want to say great training course. I paid $3K to go to a broker's training class and
this training course is better! ...Just noticed you are putting information about shorting in one of your new modules.
Looking forward to it. I am very happy that I enrolled into this course as I believe that the content is excellent. I have
read quite a few books on this subject and haven't found any that "cut to the chase" like your notes.
from Jim J. (Mar 7) ...you're doing a great job,...and you are a credit to the trading profession. Though I'm still paper
trading, I feel , after doing DTU, I'm on the edge of something beautiful. later
from Tim A. (Mar. 2) I have learned a lot already from DTU. I am a new trader who has an immediate goal of earning
$1000 per week and raise it as I gain knowledge. Thanks- you are a very good instructor- keep up the good work!!
thanks so much for your course, I see it will save me much $ in the future in losses by teaching proper money
management
from Dolores M. (Feb. 22) One thing I want to say. You strike me as a person with a generous spirit and your
materials bespeak you as an excellent instructor (I have taught science at the college level for over 23 years). I'm
happy to be aboard. Your program is incredible - a person' has got to be an idiot not to subscribe to your teachings.
Never saw so much for so little!
PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved Worldwide.

Confused about how to trade during the first hour of the market? You won't be after this
comprehensive clinic, designed to teach you step by step trading strategies.
Learn exactly how to trade the open breakout plays in leading-sector volume stocks using specific
candlestick patterns and market internals. You'll get to follow and learn from both live market opens
and learn from Ken's specific strategies, asking all your questions and getting realtime live answers
with other traders!
In this special half-day trading clinic, you'll learn:
Premarket Gameplan: Learning How to Develop 5 Key Parts of your Daily Trading Plan during the
8amEST-9amEST timeframe and follow it using live market indicators.
3 Steps to Determining Market Volatility during the First half hour: assessing your trading "odds" for
each sector and chart pattern, assigning probabilities
Chart Pattern Clinic Part I: Scanning Charts, Filtering, and deciding what and where to trade using
alerts and how to decide conservative vs aggressive triggers for each chart.
Price Elasticity and setting Long/Short triggers using specific chart patterns and trading ranges
Starting with a KISS: Keeping it Simple and Straightforward. The 5 indicators all traders must follow
each morning as they develop their day's trading plan in realtime.
Chart Pattern Clinic Part II: Determining 2nd and 3rd entries, how to spot whether a chart is
exhausted or likely to continue
How to Use TRIN, ADX and tape speed along with candlestick patterns to confirm entries
Recognizing significance of candlestick size and engulfing pattern breakouts with volume
Confirming candlestick pattern entries with western technical indicators: ADX, TRIN and volume
Spotting Pivots and Fade Plays: Chart Examples of Fade and Fibonacci Retrace Entries
"The Desirable Dozen": 12 Chart Pattern Drills - Where to Set Long/Short Triggers for Each Chart?

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 1

5 Key Parts of your Daily Trading Plan

1. Long and Short Triggers for 8-12 Stocks done by 9am
2. Assessment of Premarket Volatility : hot or not? (Nas futs, qqq)
3. Risk Management Strategy by Stock (dollar P&L, AITR)
4. Pacing, Expectation based on prior day OHLC COMPQ config
5. Develop Gap and Breakout s/r levels, look for breadth vs isolated

3 Steps to Determining Market Volatility during the First half hour

FIRST (Starting at 9:30): SPEED OF SECTOR MOVES/% Change
SECOND: COMPQ Candlestick Pattern relative to prior day OHLC
THIRD: TIER 1 Lead stock and Gap Moves, speed of price moves

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 2

CHART PATTERN Clinic Part I

Scanning Charts, Filtering, and deciding what and where to trade using
alerts and how to decide conservative vs aggressive triggers for each
chart.
1. Price Elasticity and setting Long/Short triggers using specific chart
patterns and trading ranges (examples discussed)
2. The 5 indicators all traders must follow each morning as they develop
their day's trading plan in realtime:
a. Market Internals Profile: e-mini/TRIN/COMPQ 2d/sector %ages
b. Volume Bar Progression/Slope
c. Time & Sales Relative Strength
d. Visual Patterns: Cups, Triangles, Consolidation/congestion
e. Signal strength on 2nd move after initial market-open reaction 9:38am+

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 3

CHART PATTERN Clinic Part II

How to Use TRIN, ADX and tape speed along with candlestick patterns to
confirm entries, setting 2nd/3rd entry triggers:
1st :

Candlestick Pattern the Top Level Indicator, 1-minute at a time

2nd, drill down into Time & Sales

2nd:

Recognizing significance of candlestick size and engulfing pattern

breakouts with volume: Must be validated against current COMPQ

3rd:

Confirming candlestick pattern entries with western technical

indicators: ADX, TRIN and volume, now check vs time/sales

Spotting Pivots and Fade Plays: Chart Examples of Fade and Fibonacci
Retrace Entries
Tip: Stock should be near edge of trading range after 3-line break/fast
run/sharp slope, all within first 20-30 minutes of the opening bell
"The Desirable Dozen": 12 Chart Pattern Drills
Where to Set Long/Short Triggers for Each Chart?

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 4

From Now On, Ill do MORE OF:

Which strategies do you feel will be most useful in helping

improve your personal trading skills during the next 6 weeks?

How will you TEST each strategy to measure its effectiveness?

From Now On, Ill do LESS OF:

What have you been doing in your daily trading that you now see
is probably costing you stops, that you will now Avoid doing?

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 6

Breakout trading, both on 2-day highs as well as intrarange entries, is a core staple for any
professional trader. Learn specific micro-patterns for the current market, as well as confirmation
signals using multiple indicators and much more in this exciting session.
In this second powerful half-day trading clinic, you'll be learning:
Planning for Breakout Trades Each Morning: How to Set Entry Triggers in the Premarket
Opening Bell Mayhem: How to Spot Breakout Opportunities as They Develop in Realtime
After 10am: Using intrarange pattern breakouts and breakdowns
Learning How to Spot Breakout Trade Entries at least 20 minutes ahead of time
Cup Pattern Breakouts, 3 Line Breaks, Volume Breakouts, and other core Breakout Charts
Time and Sales Part I for Breakout Play Recognition
Time and Sales Part II for Breakout Trading Mastery
Using ADX, Advanced Tick Chart, and Volume Breakout Candlestick Patterns
Managing Multiple Positions: How to Participate in Rallies and Selloffs for Breakout Trade
Leverage
Risk Management for Breakout Traders: Strategies to Avoid False Breakouts and How to Trail
Stops

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 7

Breakout Trading Planning

Planning for Breakout Trades Each Morning:
How to Set Entry Triggers in the Premarket
1. For 2-Day High/Low Breakouts:
Visually determine risk/chop region outside of prior days high/low
(.2 over the whole number? The .7 within? .8 under whole number?)
2. For Intrarange Entries:
- Look for interior prior day close value as hook
- Scan for interior s/r levels and patterns (cups/consolidations)
- Visually estimate what specific trigger will be likely to continue
Opening Bell Mayhem:
How to Spot Breakout Opportunities as They Develop in Realtime:
1. Validate against e-mini and COMPQ pattern, every time
2. Look for sector-broad moves vs isolated patterns

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 8

Breakouts by Time of Morning:

Differences in Breakouts on Opening Bell vs post-10am breakouts
- Strongest pattern is post-10am major 2d high/low continuation trend
- Fast clips inside 10-minute windows during the 9:30-10am timeframe

How to Spot Breakout Trade Entries at least 20 minutes ahead of time:

- Breakout Slow-Build patterns:
-Consolidation all morning then break (inside range following
wide range prior day, or gap n consolidate)
- Breakout Continuation patterns:
- These are 2nd/3rd cup breakout continuations in volatile stocks

Cup Pattern Breakouts, 3 Line Breaks, Volume Breakouts, and other core
Breakout Charts: Examples reviewed

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 9

Time and Sales Part I for Breakout Play Recognition

- Recognizing interior strength vs churn in the tape
Time and Sales Part II for Breakout Trading Mastery
- How You can spot volatility continuations vs walk-away patterns
Using ADX, Advanced Tick Chart, and Volume Breakout Candlestick Patterns
- Charts Reviewed, examples

Managing Multiple Positions: How to Participate in Rallies and Selloffs for

Breakout Trade Leverage

Risk Management for Breakout Traders:

Top Strategies to Avoid False Breakouts and How to Trail Stops

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 10

Having a tough time finding good gap stocks, then deciding which ones are worth trading? How
about "where do I set the entry trigger, and do I go long or short? When? Help is on the way!
In this special 2-hour trading clinic, you'll see:
Over 12 different gap chart patterns from previous actual live room plays as well as whatever's
currently gapping in Friday's premarket, for pattern recognition training.
An easy way to combine your CNBC premarket gap scans with core trading basket scans
How to differentiate between stock patterns that are "tradable", vs gap stocks to leave alone.
Four techniques for finding premarket entry support/resistance levels, whole number and entry
triggers.
How to do "Trading Gaps in the Premarket, Trading Gaps During 9:30am til 10am, and How to
Trade Gap Stocks after 10am" for both day and swingtrades.
How to integrate ADX, stochastics, time and sales, and volume with Gap Entries for confirmations.

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 14

12 different gap chart patterns

- Pattern Recognition Training Activity: Prior + Current Examples

Combine your CNBC premarket gap scans with core trading basket scans

How to differentiate between stock patterns that are "tradable", vs

gap stocks to leave alone:
- Price of stock + premarket pattern differences (wide/clean cups vs not)
- 10% gap rule
- Volume increase on whole number s/r breakout move or not?

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 15

Four techniques for finding premarket entry support/resistance levels, whole

number and entry triggers.
1st: Simple nearest whole number box ranges
2nd: Half-point away from whole-number ranges (use when caution/red flags)
3rd: Initial Exit targets using Fibonacci 50% lines: how to set these
4th: How to Set 2nd/3rd entries after initial ones have been taken out
Multiple Timeframe Gap Trading -- How to do:
- Trading Gaps in the Premarket
- Trading Gaps During 9:30am til 10am, and
- How to Trade Gap Stocks after 10am for both day and swingtrades.

How to integrate ADX, stochastics, time and sales, and volume

with Gap Entries for confirmations.

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 16

Figuring out what Not to trade is just as important to learn as what To trade, right? In addition to all
the tips that have been shared already, you'll learn how to recognize additional "Red Flags" to help
you stay clear of iffy trades!
In this special 2-hour trading clinic, you'll be learning:
How to See if a Market is a Gap and Trap vs Gap Continuation, and how to trade it
Differentiating Between high and low-potential chart patterns: which ones are best for trading?
5 Patterns That I Avoid trading at All Costs
How You Can develop a red-flag checklist to keep you out of iffy trade situations and charts
Time and Sales caution signs: tape reading mechanics for avoiding entries and false breakouts

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 19

How to See if a Market is a Gap and Trap vs Gap Continuation, and

how to trade it.
- Expect a post-10am Pivot, use that as the default (10:00-10:10am)
if premkt futures > +/- 12.00 in magnitude
- Function of the degree of COMPQ Gap outside of prior days trading
range and pattern given specific nasdaq premkt futures value
- Have your decision points clearly mapped out, eg S1/S2 + R1/R2
point values in the COMPQ

- Market Timing Patterns:

Market Consolidations, Market Breakouts, Market Continuations,
Market Pivots: Timing Insights for Experienced Trade Setups

- Integration of Nasdaq-100 E-mini hod/lod continuations with COMPQ

patterns

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 20

Differentiating Between high and low-potential chart patterns:

Which ones are best for trading? (chart examples)

5 Patterns That I Avoid trading at All Costs:

1st: Middle 1/3 of 2-day chart
2nd: Late in day post 11am (unless 2-d continuation market, <5%)
3rd: Consolidation and Churn Pattern 1: Inside near prior day high/low
4th: Consolidation and Churn Pattern 2: Middle Fibonacci line after
breakout and 2nd move/retrace
5th: Sketchy lack of wide/clean pattern after 10am, point range
churn pattern

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 21

How You Can Develop a Red-Flag Checklist to keep you out of

iffy trade situations and charts
Graph out the times of day, sectors and length in trade of most
recent 50 wins vs stops
Develop countermeasures to control for making the errors you
have been making (eg jumping the gun, overtrading, trading
late in session, not doing multiple trades)
Create visual reminders around your trading platform to keep
you on track in avoiding red-flag scenarios, replace habits
Time and Sales Caution Signs:
Tape Reading mechanics for avoiding entries and false breakouts:
- Detect stalls, slowdowns, uncertain patterns where neither buyers
nor sellers can convincingly move stock price through at least
2 subsequent .10 (ten cent) price intervals in sequence w/in 2 mins
- Detect stop n go patterns, where price moves are sporadic vs consistent

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 22

Figuring out what Not to trade is just as important to learn as what To trade, right? In addition to all
the tips that have been shared already, you'll learn how to recognize additional "Red Flags" to help
you stay clear of iffy trades!
In this special 2-hour trading clinic, you'll be learning:
How to See if a Market is a Gap and Trap vs Gap Continuation, and how to trade it
Differentiating Between high and low-potential chart patterns: which ones are best for trading?
5 Patterns That I Avoid trading at All Costs
How You Can develop a red-flag checklist to keep you out of iffy trade situations and charts
Time and Sales caution signs: tape reading mechanics for avoiding entries and false breakouts

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 25

4 useful trailing stop techniques using dedicated time and sales

windows
1st : Dime increments behind current inside market
2nd: More than 25-30 transactions stuck in a given .05-.08 price channel
3rd: Pivot of nas-100 emini accompanied by .10 move against your
position in time/sales
4th: position exit management reviewed using time/sales patterns

Why most traders never learn how to read time and sales correctly
and what to do about it.
- Tape drills on breakouts
- Tape drills on pivots
- Tape drills on high vs low volatility 2d high/low vs intrarange
chart patterns

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 26

The 3-Step Tape Reading Exit Strategy I personally use,

including live examples of how it works.
1st: Decide instantly whether to exit now or not
2nd: Tie together the COMPQ line/emini line and candlestick
1-min chart, glance at these continuously as youre
following the bid/ask pattern in the tape
3rd: Look for any move of .15+ as final signal for exit
How to create a trading plan and process from start to finish to manage
and help reduce potential risk for intraday and swingtrades, using time
and sales with other indicators like ADX and volume pivots.
Elements of a trading plan:
- Average number of trades in and shares in, simultaneously
- P&L + risk tolerances
- Timing and sector analyses for successful trades vs stops
- Time of day, day of week and COMPQ pattern sweet spots
- Technical indicators used: stock chart specific + market internals

NOTES:

PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR

2006 DaytradingUniversity.com All Rights Reserved

PAGE 27

5 specific tape patterns I use to identify trading opportunities and follow the
transaction prints for open range breakouts (9:35am til 9:50am) using
time and sales (examples shown)
1st: speeding up tape
2nd: continuation after .15 pullback
3rd: volume size >400
4th: sizes bid/ask imbalance sustained
5th: countermeasures in the tape discuss strength vs consolidation
patterns, movement out of normal speed/transaction flow

Additional strategy tips and pointers, Q&A

NOTES:

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