Trendy edges and all other lines (LIS, targets, etc.) can be played in the same fashion on different timeframes. The timeframe you play determines the expectations and patience needed for the move. The bigger the timeframe, the bigger the move and more patience you will need, and vice versa.
Exactly when to enter the trade depends on the trader's aggressiveness. Refer to the "Entry Timing" tab to learn more.
Setup:
1. Wait for price to reach an edge. (Ideally, price will cross to the other side of the edge before reclaiming the edge.)
2. If you're aggressive, you can take a starter position the moment the edge is touched. Alternatively (i.e. conservatively), wait for an "inside" candle to form on either side of the edge.
3. You can take a starter position (or add) as price breaks the body of the inside candle. Place your stop on the opposite side of the edge.
4. If price moves in your favor, trim, close, or add to your position at targets.
The PMZ (Pre-Market Zone) forms about 10 minutes before the opening bell. The zone is determined by measuring a certain range of overnight price action. The PMZ becomes a risk-defined playing field for intraday trading or for starting swing positions.
The LIS is determined by a certain candle formation near the previous day's close. Together with the PMZ, the LIS becomes a clear, high-probability entry point OR target for intraday plays.
Exactly when to enter the trade depends on the trader's aggressiveness. Refer to the "Entry Timing" tab to learn more.
Setup:
1. Wait for price to reach the top or bottom of the PMZ using a 5, 10, or 15 minute timeframe. Depending on the current trend, you can play either the top or bottom of the PMZ (long or short), using the opposite side of the PMZ as your risk level.
2. If you're aggressive, you can take a starter position the moment the top or bottom is touched or broken. Alternatively (i.e. conservatively), wait for an "inside" candle to form on either side of the PMZ. Examples: If the current trend is up, waiting for an "inside and up" candle formation over the PMZ is the ideal play. If the current trend is down, waiting for an "inside and down" candle formation under the PMZ is the ideal play.
3. You can take a starter position (or add) as price breaks the body of the inside candle. Place your stop on the opposite side of the PMZ.
4. If price moves in your favor, trim, close, or add to your position at targets.
The AC/DC setup, occurs when price is in-between the "Accelerator" and "Decelerator" arrows on any Edge script. Once price breaks and holds either arrow to the upside (or downside), it tends to "accelerate" with an explosive move toward the upper (or lower) edge of that timeframe.
Exactly when to enter the trade depends on the trader's aggressiveness. Refer to the "Entry Timing" tab to learn more.
Setup:
1. Find tickers where price is in-between the green and red accelerator and decelerator arrows on either a Monthly, Weekly, or Yearly Edge script.
2. Wait for price to claim and hold one of the arrows. (You can front-run this by entering a starter position before it claims and holds an arrow.)
3. After entering a position, place your stop on the opposite side of the accelerator or decelerator.
4. If price moves in your favor, trim, close, or add to your position at targets.
5. The upper or lower edge is your main target.
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The custom Trendy Fibonacci measurements are not so much a setup, but rather a tool to help determine probable price action based on trend channels, as well as targets.
You can learn about how to setup and use the Trendy Fibs in the Video Library.
While the Trendy Bands script helps indicate possible entry and exit points, their greatest feature may be keeping you in winning trades longer and removing your from losing trades faster by clearly showing you where trend is on any given timeframe. They can also help you be more patient before entering a trade.
The general rules of using the Trendy Bands:
1. If candles are green and above the bands, think long.
2. If candles are red and below the bands, think short.
3. If candles are white and in the middle of the bands, be patient - it could be choppy.
4. If an inside and up (or down) candle formation happens an arrow will appear to indicate the formation. If the arrow appears in the same direction of the trend and near the bands, consider entering or adding.
5. If in a winning trade, stay in the trade by "riding the 9" EMA (the green band).
6. If price starts breaking or closing on the opposite side of the 9 EMA (or the other two bands), it could be sign of an imminent change in direction - be cautious. Consider trimming or closing.
Every Trendy setup is a high-probability strategy. While there are several variables to take into account to make the probabilities even higher, what you wait for or don't wait for before entering a trade is maybe the greatest variable. (i.e. "Timing")
Depending on what type of trader you are, here are a few entry options to consider when price is setting up:
1. Most Conservative: Wait for a close of candle over or under a Trendy Edge, The Lis, PMZ or EMA Cloud
2. Aggressive: Only wait for a break of the levels and then execute
How to Trade Using IAUs and IADs
