• Understand High Probability Trades
Understand High Probability Trading Rules.
Last updated
Understand High Probability Trading Rules.
Last updated
Live, 5 days a week, Nexgen will teach you three rules on only two charts to give you the skills to recognize advantages and turn them into trades. Each rule is discussed individually, helping you master how to enter the highest probability trend trade taught.
The advantage of momentum is defined through strong trigger lines.
The advantage of a clear path is defined by NO termination conditions present.
The advantage of entering where the trend is most likely to continue using a combination of Fibonacci and triggers for low-risk precision.
These two concepts alone are enough to create a trading plan that is consistent and profitable. Study them, learn them, commit to them, and once the recognition is second nature you will find YOUR best entry. Until you do, the High probability trend trade gives you a trade that embraces the advantages and has the potential to win 70-80% of the time. It is a trade that helps you recognize the advantages of momentum and a clear path through rules one and two and it is a trade that will build confidence in those advantages. The HPTT is NOT your only trade, it’s your first trade. Learn it and the possibilities will seem endless.
Nexgen High Probability Trend Trade-Three rules on Two charts.
Rule one, strong triggers, lets you know the market is moving with momentum. A simple comparison between small and large triggers will let you know if you have that advantage, or if you need to be patient. Strong triggers are universal no matter what chart you are using. Let yourself be very black on white on whether you have strength or weakness. Only one provides the advantage needed to go on to rule two.
Rule #2, the advantage of a clear path, comes from NOT having any termination conditions present. A clear path assures you have room to reach profit targets. A termination condition is a Fibonacci-based indicator that has the potential to stop or reverse the market.
1. Allow Dynamic Renko bars to reach any of the areas.
2. Ask, “Where are my triggers?” Triggers will let you know the status of the area and if you need to wait a minute to gauge the reaction in the area.
Any area that is defined as a termination condition has an unpredictable future. It could create a fight between buyers and sellers you won’t want to be a part of. This is when consolidation and chop affect your trades.
It could break and the market may continue beyond the area.
It may reverse completely, changing market direction. Any termination condition that reverses the market is deemed
Termination conditions will force patience. There will be times when you must simply wait. It takes $400/day in a typical trading year to surpass $100,000 in profits for the year. It’s not necessary to be in every move.
The high probability trend trade uses a smaller, faster chart to refine the advantages the large chart gives you. Inside ONE bar on the large chart is typically 20-30 smaller, faster bars on a small chart. This refinement allows risk reduction and large profits. Your rules will have you buying or selling a pullback (this is a small retracement counter to the underlying trend) at an area (Fibonacci support or resistance, midbands, or yellow one to ones) INSIDE of trigger lines.
Repetition is key to understanding. Practice your entries on the simulator but even more importantly do a historical study to be sure you trust and understand what you’re looking for.
To gain a comprehensive understanding of this concept, reviewing the provided video, which provides a detailed explanation of these high-probability trend trades, is advised. The video will offer valuable insights into the principles and techniques underlying these trades, further enhancing your understanding and proficiency.
