The main types of market conditions are Trending, Correcting, Reversing and Channeling.
My system gives you trade setups for each market condition, that work in any market with sufficient liquidity and volatility.
Prudence Trades & Rules
PRUDENCE TRADE SETUPS - Trend Following
Description: Prudence trades embody the trade setups that utilize the ACD method. The A and C value lines are the key to identifying the trade setups, which consistently deliver excellent risk reward ratios. As the first Cardinal Virtue, Prudence guides the other virtues through right reason. Similarly, if you understand the basics of the ACD method, you will be able to identify all other trade setups and the opportunities they offer.
The Technicals: My indicators show you the support and resistance levels, through the Daily Pivot, Pivot Range, the Opening Range along with the A value lines and C value lines. These indicators, with the rules, give you the means to identify the high probability trade setups in any market.
Justice Trades & Rules
JUSTICE TRADE SETUPS - Trend Following
Using the Opening Range and Pivot Range levels, these setups can offer some of the best risk reward opportunities. The second Cardinal Virtue, Justice, seeks to create harmony and fairness. The support and resistance for these trades are significant, so winning with this trade setup can feel like your account size is rapidly gaining Justice, especially if you’ve experienced a series of losses.
The Technicals: The price is in a sideways action above or below the Pivot levels and Opening Range levels for a minimum period. My indicators, in conjunction with the rules, show you where to enter and where to place your stop loss, including trailing stops for maximizing profit in the trend.
Fortitude Trades & Rules
FORTITUDE TRADE SETUPS - Reversal
Description: This reversal trade requires price pattern confirmation in conjunction with the Opening Range or the Pivot Range. Fortitude, the third Cardinal Virtue, gives you firm conviction over fear. With clear rules to follow you’ll have the capacity to recognize the opportunity and seize it with Fortitude.
The Technicals: Market shows hammer or hanging man candle pattern on a key support and resistance of Pivot high/low and/or Opening Range high/low.
Temperance Trades & Rules
TEMPERANCE TRADE SETUPS - Channel
Description: To take small bites out of the market we need Temperance, our fourth Cardinal Virtue. Enforced by a narrow range channel, we are obliged to temper our appetites for more and adhere to the rules that will allow for smaller and more frequent trade opportunities with good risk reward ratios.
The Technicals: Channeling price action within the Opening Range, Pivot Range or combination of these key support and resistance levels. With my indicators, stop loss levels are also easily identifiable above or below channel highs and lows.
Prudence | Justice | Fortitude | Temperance
The 4 Cardinal Virtues