Posted on September 2nd, 2009 at 1:00 PM

I wanted to take a few minutes and wrap up some of the trades I have been highlighting in the New Zealand Dollar / US Dollar pair over the past few weeks. During the 2-day event, we spend some time covering what is called "The Progression of the Trade". This process is designed to illustrate how each Advanced GET trading strategy is designed to flow from one market phase to another.

Let's pick up the process from Monday night on the 60-minute chart. In this setup, we are dealing with a Type I Buy. All the elements of this trade are in place and we have good reward to risk. I am using a more aggressive entry technique that we teach at the higher level classes.

After the success of this Type I Trade, we have now completed (potentially) the Wave 5 upward. Because we know that 68% to 74% of the time, the market terminates on the second attempt, we can now trade this as a Type II Sell. Good divergence in the Oscillator (students in mentoring will remember this as the pretty factor) and the MOB acting as overhead resistance.

Now, because the Type II Trade is seen at both the beginning and end of a trend, I am using what is happening on the 60-minute chart as a catalyst for a Type II Sell on the daily. It has to happen on the lower time frames first!

All of the mechanics and technical indicators in the world won't make you a better trader unless you have a practical money management plan. Make sure that whatever you do in your trading, you always work to protect profits and reduce risk to the smallest possible amount. When you shift your mindset to thinking of the risks firsts and ways to reduce the risk, the profits have a way of taking care of themselves.

Trade Smart....

~Duane Gott 

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