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Hello and welcome to realityfuturestrading.com.
In today's video I am going to be covering some of the
different things and how I actually use
the Eagle Trend Trader.
I'm going to be showing you this on the NASDAQ, as that is
one of my favorite markets to trade.
And basically what you're looking at is, on the left
hand side of the screen is a 12-tick Mean Renko Bar.
On the right side, we have an eight-tick Mean Renko Bar.
Now the first thing we're going to notice this is.
The setups and the signals, they're all going
to remain the same.
It's just that when you use a smaller bar, it's going to
give you a signal perhaps a little bit sooner.
And it might give it to you a little bit more often than the
12-tick bar.
Now like I was saying in the post, we suggest you use a
12-tick bar.
However, if you find something that works better for you and
better for your trading style, then please, by
all means use it.
All right, let's take a look at this first trade of the
morning here that showed up right around, looks like about
20 after 8:00 Mountain Standard Time.
This is an ideal setup.
We've got a nice green filter.
The band is nice and wide, soft edge up on the top.
We get our warning dot.
We get a long entry triangle.
And then we get our hash mark right here.
And we still have a little bit of room to get to
the high of the day.
And as you can see, it works out for the first and second
profit target pretty easy.
And in this case, had I have entered there, I'd still be in
a runner right now as we speak.
So if we move over here to the 8-range chart, you see that it
doesn't wipe out the noise quite as much as
the 12-range chart.
However, it does produce a signal right here.
And honestly, I would've been pretty tempted to take that
signal because price was moving up
above the Globex open.
Now I do suggest that you be careful around the regular
trading hour and the Globex open.
It's just a personal thing for me.
But I tend to find that I don't like it when it hangs
around the Globex open.
That's just one of my personal hang-ups.
Doesn't mean it has to be one of yours.
Now in this case here, to confirm that we may have a
valid trade on the 8-range, and we'd be getting a better
fill, you could look over here to your Eagle Trend Trader
with the 12-tick Mean Renko Bar.
And you can see in this case, the price was definitely
starting to push its way up through the Globex open.
So here's a case where I actually get a five- or
six-tick better fill then I would have
over here on my 12-range.
Here for my next example of why I like using an 8-range as
well as the 12-range is this.
If we look over here at our 12-range chart, we do get a
valid entry right here.
However, you can see we took a little bit of heat on this.
But the trade does work out for the first and second
profit targets pretty easy.
Now looking over here at the eight-range chart, I get a
cleaner bar pattern with the 8-range.
Price pops, I pull back, I don't break through my hard
edge, and then I continue on up again.
Now this entry right here, it gives me plenty of room to get
from my entry up to the high of the day.
And of course, eventually we see that it does get up there
for first, second targets, and even a runner if you wanted to
hang on to it into the evening hours.
But you're going to notice here with this entry, which is
much cleaner than this entry right here because our bar is
outside of the band, the entry comes at the high of the day.
Also this entry comes just a few minutes before the
extended regular trading hour closed.
So actually, I get a more solid entry right here.
Now what I haven't shared with you yet is one of the biggest
reasons that I opted for the 8-range chart is because even
if I have my entry here at 3450, I survive the heat.
Not a big deal, made my targets.
But if my entry as at 3450, I like to use
the pivots as a stop.
So my pivot needs to be down here at about 2750.
So that's a full seven-point stop to take my entry here on
the 12-range chart.
Now in the case of the 8-range chart, my entry is going to be
here at 37 even.
And my stop is going to be down here, why don't we just
call it 32 to keep it simple, for a five-point stop as
opposed to a seven.
So I like the fact that because I use an 8-range
chart, it gives me a little bit more of an advantage with
a tighter stop.
All right, well I hope you've enjoyed this video.
And I hope you found it to be helpful.
My big point of making this video is this.
Although we suggest using a 12-tick Mean Renko Bar with
the Eagle Trend Trader, you can use whatever size bar
suits your trading style.
Ultimately for trading in my opinion, it
comes down to this.
You're a day trader.
And you are an individual.
And you need to find something that works for you.
I first started tinkering with the Eagle Trend Trader when
one of my students told me he was actually using the Eagle
Trend Trader with a 6-range bar, and he's been pretty
successful with it.
That being said, I hope you found the video to be
informative.
And I hope I encourage you to experiment and branch out.
If you have any questions or you want to discuss any of
this, please feel free to email me at
ray@realityfuturestrading.com.
Thanks, and have a great day.