7 Day Master Trader Program - Ifund Traders

Page 1
7
7-Day Master Trader Program
Program
una introduccin a
trading
g for a living
g
CAPTULO 1
Page 2
Disclaimer
Copyright 2007- 2011 iFundtraders
Published iFundtraders
All rights covered
Reproduction or translation of any part of this work beyond that permitted by section 107 or 108 of the 1976 United States
Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information
should be addressed to the Permissions Department at iFund Traders, LLC.
iFund Traders
Traders, LLC is advising anyone to trade or use any system illustrated in this course.
course These are educational
examples of science of system testing and development that iFundtraders, LLC want to share with you. None of the
information illustrated in these examples is to be construed as offers to buy or sell commodities, stocks, or any other
financial instrument. None of the information presented purports to be a complete statement of all material facts related to
trading.
Also, simulated performance results have certain inherent limitations; the results do not represent actual trading. Since
many off the
th trades
t d in i this
thi series
i have
h nott been
b executed,
t d the
th results
lt may have
h under
d or over compensatedt d for
f the
th impact,
i t
if any, of certain market factors, such as lack of liquidity. No representation is being made that the systems, methods or
ideas shown in this course will produce the results that are described or illustrated.
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is
sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other
professional services. If legal
p g advice or other expert
p assistance is required,
q , the services of a competent
p professional
p
person should be sought.
From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of
Publishers.
Active trading is an activity that possesses a high level of risk and may not be suitable for everyone.
ISBN 1-59280-253-2
Printed in the United States of America.

Page 3
iFundtraders.com
Page 4
iFundtraders.com
Page 5
Las velas iluminan el camino

Mercado
4 Marcas Principales
CAPTULO 2
Cada transaccin simple es tanto una compra como una venta, y por lo tanto
es neutral. La transaccin de apertura o tic, para cualquier marco de tiempo es
la ms importante para los operadores de iFund Oliver L. Velez
Versin traducida por Luis Mari G.
Page 6
La 'Apertura' es Todo
Compradores
Por encima de lo
mandan
abierto es verde
Vendedores mandan
82% del tiempo, la accin continuar o acompaar el color slido de su ltima barra
iFund Traders Tip: La apertura de un perodo de tiempo determina el punto de partida.

Cuanto ms sube una accin por encima de la apertura, ms fuertes son los toros. Cuanto
ms caiga una accin por debajo del precio de apertura, ms fuertes sern los osos.
Page 7
La Barra Elefante
High High
Low Low
Los toros ganan Los osos ganan
Cada barra individual representa una batalla que fue librada por dos grupos, los
toros y los osos, los compradores y los vendedores. Cuando el cierre est muy por
encima de la apertura, los toros ganan, produciendo el color verde. Cuando el
cierre est muy por debajo de la apertura, los osos ganan, produciendo el color
rojo. Cunto gana cada lado est determinado por cunto verde o rojo producen.
En otras palabras, cuanto mayor es la distancia entre abrir y cerrar, mayor es la
ganancia. Cuando la barra es grande, en relacin con las barras recientes en el
grfico, se llama barra de "elefante".
Page 8
Barras Elefante
Ves una barra de elefante (s)? Debera
ser obvio, as que si ninguna de las
barras se destaca como barra de
elefante obvia, entonces deja de buscar
4
una, est all o no est, no se esconden.
12
13
5
6 11
10
3
2 9 14
1 8
7
Page 9
Barras Elefante
4 12
13
5
6 10 11
3
2 14
9 Ves una barra de elefante (s)? Debera
1 8 ser obvio, as que si ninguno de los
barrotes se destaca como barras de
7 elefante obvias, entonces deja de buscar
una, est all o no est, no se esconden.
Page 10
Barras de Elefante de
Ignicin o de Agotamiento
AGOTAMIENTO
EXHAUSTING
IGNICIN
IGNITING
IGNICIN
IGNITING
AGOTAMIENTO
Las barras de Elefante (tambin conocidas como barras de amplia EXHAUSTING
gama de WRB) que inician una nueva movida o activan una nueva
entrada en la continuacin de una tendencia tienden a encenderse en
la naturaleza y se espera su seguimiento. Cuando estas mismas barras
aparecen despus de que un movimiento ya ha comenzado,
representan el ltimo empujn, el ltimo hoorah, y a menudo
conducen a una pausa o cambian el impulso en la direccin opuesta
Page 11
Control Absoluto
High High
Low Low
Toros en control absoluto Osos en control absoluto

El control absoluto existe cuando una barra de color muy slido se negocia en su extremo.
Cuando una barra verde slida se cotiza actualmente en su mximo absoluto, los toros tienen el
control absoluto. Cuando una barra roja slida se est negociando actualmente en su mnimo
absoluto. iFund Traders Tip: los operadores que usan un estilo de impulso buscarn entrar en la
barra despus de una fuerte barra "ganar", pero no en la apertura. Se necesita ms que abrir para
comprometerse con el comercio. La barra siguiente debe confirmar la fuerza de la barra "ganar"
original al producir primero una pequea cantidad del mismo color que borre la barra verde (alta) o
la barra roja (inferior) de la barra "ganar"
Page 12
Manteniendo el control - La regla 2/3

High
High
2/3
2/3
Low
Low
Toros en absoluto control Osos en absoluto control

Cuanto ms grande y slida sea la barra, mayor ser el grado de control que se muestra.
La barra ideal es aquella que muestra un control absoluto con una gran barra slida y sin
mechas. Las barras que muestran un control absoluto durante la formacin no siempre se
completan con el mismo nivel de control que una vez demostraron. Puede haber varias
etapas de control y no se considera perdido hasta que se hayan borrado 2/3 o ms del
color del comps. iFund Traders Tip: si se borran repentinamente ms de 2/3 del
color de una barra, se anula la ley de seguimiento. Usamos la marca de retroceso 2/3
como punto de inflexin.
Page 13
Control Total
High High
2/3
2/3
Low Low
Toros en control total Osos en control total

El control total existe cuando una barra de color muy slido se negocia un poco fuera de su extremo.
Cuando una barra verde relativamente slida se ha retirado de la altura, pero la barra sigue siendo
predominantemente verde, los toros tienen el control total. Cuando un rojo relativamente slido se ha
movido desde lo bajo, pero la barra sigue siendo dominantemente roja, los osos tienen el control total.
iF
iFundd Tradders Tip: Repito, es el extremo superior de una barra verde y el extremo inferior de
una barra roja lo que realmente determina la potencia o la falta del mismo del grupo que
actualmente produce el color.
Page 14
Buen Control
Mximo
High
High
2/3
2/3
Mnimo
Low Low
Los toros todava tienen el control Los osos todava tienen el control
Existe un buen control cuando una barra de color slido se ha movido muy lejos del extremo, pero no lo
suficiente como para justificar que la barra se haya destruido o est dbil. Cuando una barra verde se ha
alejado bastante, pero la barra sigue siendo verde, los toros tienen buen control. Cuando un rojo se ha
movido bien desde la parte baja, pero la barra sigue siendo en su mayora roja, los osos tienen buen
control. iFund Traders Tip: Esto es a menudo lo que un barra har despus de que el operador ya se
haya comprometido con una jugada. Estas barras no deberan necesariamente intimidar a los
operadores o hacerles dudar del poder del grupo que produce el color... no en este momento. Esta
barra representa tpicamente la posicin en cuclillas antes de que la bailarina vuelva a la fuerza.
Page 15
Control Dbil
High High
2/3
2/3
Low Low
Debilitamiento del control Debilitamiento del control
de los toros de los osos
El control dbil existe cuando una barra de color slido ha perdido aproximadamente la mitad del color
que alguna vez tuvo. Cuando una barra verde ha cado desde lo alto para eliminar aproximadamente el
50% del verde que una vez tuvo, los toros podran tener problemas. Cuando una barra roja se ha
desplazado bastante hacia arriba para eliminar aproximadamente el 50% del rojo que alguna vez tuvo,
los osos podran tener problemas. iFund Traders Tip p: Este escenario no garantiza que se materialice
una prdida total de control, pero si el mercado est detrs del movimiento del color del contador,
es probable que el control vaya a cambiar.
Page 16
Perdi el Control
High High
2/3
2/3
Low Low
Los toros pierden el control Los osos pierden el control

de los osos de los toros
El control perdido existe cuando una barra de color slido anterior pierde 2/3 o ms del color
que alguna vez tuvo, dejando la cola como la parte ms dominante de la barra. Cuando una
barra verde muy slida se ha alejado tanto de la altura, dejando atrs ms cola que color, los
toros han perdido su poder. Cuando una barra roja muy slida se ha alejado tanto de la parte
inferior, dejando atrs ms cola que color, los osos han perdido su poder.
Page 17
El Retroceso 2/3
High High
2/3
2/3
Low Low
La idea es poder ver claramente cuando una gran barra slida ha perdido 2/3 o
ms de su color, el primer signo de ralentizacin o cambio en el impulso. Esto
debera ser obvio, no debera tomar ms de una fraccin de segundo y no
requiere que mida o calcule nada.
Page 18
Totalmente terminado!!
100%
100%
Osos en control permanente Toros en control permanente

Recuerde, cada barra representa una batalla entre los toros y los osos (compradores y vendedores).
Cuando el cierre est por encima de la apertura, los toros ganan, produciendo el color verde. Cuando el
cierre est por debajo de la apertura, los osos ganan, produciendo el color rojo. Cunto gana cada lado
est determinado por cunto verde o rojo producen. En otras palabras, cuanto mayor sea la distancia
entre apertura y cierre, mayor ser la ganancia, y cuando esos tipos de barras se borren por completo,
mayor ser la ganancia para el grupo opuesto.
Page 19
Control para Siempre!!

100%
100%
Osos en control para siempre Toros en control para siempre

Recuerde, cada barra representa una batalla entre los toros y los osos (compradores y
vendedores). Cuando el cierre est por encima de la apertura, los toros ganan,
produciendo el color verde. Cuando el cierre est por debajo de la apertura, los osos
ganan, produciendo el color rojo. Cunto gana cada lado est determinado por cunto
verde o rojo producen. En otras palabras, cuanto mayor es la distancia entre abertura y
cierre, mayor es la ganancia, y cuando esos tipos de barras se borran por completo, y el
otro grupo produce su propio color, se vuelve an ms grande la ganancia para ese
grupo !
Page 20
Control Total
High High
2/3
2/3
Low Low
Toros al control Osos al Control

Cada barra representa una batalla entre los toros y los osos (compradores y vendedores).
Cuando el cierre est por encima de la apertura, los toros ganan, produciendo el color
verde. Cuando el cierre est por debajo de la apertura, los osos ganan, produciendo el
color rojo. Cunto gana cada lado est determinado por cunto verde o rojo producen. En
otras palabras, cuanto mayor es la distancia entre apertura y cierre, mayor es la ganancia.
Page 21
Buen Control
High High
2/3
2/3
Low Low
Los toros todava tienencontrol Los osos todava tienen control
Sigue existiendo un buen control cuando se ha formado una barra de color slido y la barra
siguiente se mueve contra ella, pero no lo suficiente como para justificar la llamada a la
barra anterior arruinada o dbil. Tip de iFund Traders: Esto es a menudo lo que una barra
har despus de que el operador ya se haya comprometido con una jugada. Estas barras no
necesariamente deben asustar a los operadores o hacerles dudar del poder del grupo que
produce el color... no en este momento. Esta barra representa tpicamente la posicin en
p cuclillas antes de que la bailarina vuelva a la fuerza.
Page 22
Control Dbil
High High
2/3
2/3
Low Low
Los toros debilitan el control Los osos debilitan el control

El control dbil existe cuando una barra de color slido tiene la siguiente barra de borrar
aproximadamente la mitad del color de la barra anterior. Cuando una barra verde tiene una barra
roja que sigue, retrocede y elimina aproximadamente el 50% de la barra verde anterior, los toros
podran estar en problemas. Cuando una barra roja tiene una barra verde siguiente retrocede y
elimina aproximadamente el 50% de la barra roja anterior, los osos pueden estar en problemas.
iFund Traders Tip: este escenario no garantiza que se materialice una prdida total de
control, pero si el mercado est detrs del movimiento del color del contador, es probable que
el control cambie.
Page 23
Perdi el Control
High High
2/3
2/3
Low
Osos recuperan el control Toros recuperan el control
El control perdido existe cuando una barra previamente slida tiene la siguiente barra que borra 2/3 o
ms del color de la barra anterior. Cuando una barra verde muy slida tiene una barra roja siguiendo el
siguiente 2/3 o ms de la barra verde anterior, los toros han perdido su poder. Cuando una barra roja
muy slida tiene una barra verde siguiendo el siguiente 2/3 o ms de la barra roja anterior, los osos
han perdido su poder.
Page 24
Totalmente Acabado para Siempre!
High 100%
100%
Low
Los osos cogen el control Los toros cogen el control

Recuerde, cada barra representa una batalla entre los toros y los osos (compradores y vendedores).
Cuando el cierre est por encima de la apertura, los toros ganan, produciendo el color verde.
Cuando el cierre est por debajo de la apertura, los osos ganan, produciendo el color rojo. Cunto
gana cada lado est determinado por cunto verde o rojo producen. En otras palabras, cuanto mayor
sea la distancia entre apertura y cierre, mayor ser la ganancia, y cuando esos tipos de barras se
borren por completo en la siguiente barra, mayor ser la ganancia para el grupo opuesto!
Page 25
Ley Velez de mercado 1

CAPTULO 3
No estoy seguro de si Sir Isaac Newton alguna vez jug en el mercado,

pero muchos de sus descubrimientos y realizaciones se prestan a un
juego de mercado apropiado.. - Oliver L. Velez
Page 26
Ley Velez de mercado #1

La ley del Momentum (impulso)
En el entorno de los mercados en MOVIMIENTO, las acciones y otros artculos
comerciables tienden a seguir o continuar la barra codificada por colores completada
ms recientemente, el 80% de las veces, siempre que se haya mantenido la mayor
parte del color.
Sir Isaac Newton: "Un objeto en movimiento tiende a mantenerse en movimiento".
Diferentes maneras de comunicar la ley:

1) Despus de una barra verde slida, espera que otra continue el 80%;
2) Despus de un slida barra roja, espera que otra continue el 80%
3) Cuanto mayor sea la barra verde o roja, mayor ser la probabilidad de continuacin,
lo que significa que usted ver la continuidad cerca del 90% de las veces
4) Una pequea cantidad de verde o rojo no le da a los iFund Traders suficiente para
continuar. Se necesita ms informacin en ese caso.
Page 27
Las 13 Barras (velas)

del mercado
Solo hay 13 barras que el mercado puede formar. Representan el alfabeto del
mercado. Conozca estas barras y lo que significan y podr operar el resto de
su vida (Trade for Life). Oliver L. Velez
Page 28
Las 10 velas de colores

1 2 3 4 5
Alcista normal
2 Mas alcista
Alcista neutral
Menos alcista
Ms alcista
6 7 8 9 10
Menos bajista
Bajista neutral
2 Ms bajista
Bajista normal
Ms bajista
El primer grupo de barras lo ganan los toros en diversos grados, y la ltima barra es una prdida real.
El ms alcista est a la izquierda, el menos est a la derecha. Lo mismo ocurre con el oso gana. El
comienzo ms bajista a la izquierda, el ms cuestionable est en el extremo derecho.
Page 29
Las 3 velas sin color

11 12 13
Todo verde se perdi
Todo rojo se perdi

Empate
Tip: Si bien tcnicamente nadie gana, debido a que el abierto y el cerrador son parejos, el
ltimo grupo que tiene el control del stock se considera el ganador. Barra 1, es
completamente un empate, Barra 2 es ganado por los osos y Barra3 es ganado por los toros
dominan toda esta rea
dominan toda esta rea

Los compradores
Los vendedores
Topping Tail (TT)
Bottoming Tail (BT)
Bottoming tails (BTs) and Topping Tails (TTs) ofrecen a los iFund Traders
algunas oportunidades comerciales increbles, que veremos en breve.
Page 30
Los tres grficos

de negociacin
CAPTULO 4
Los siguientes tres marcos de tiempo son utilizados por los iFund Traders para
ganarse la vida en los mercados. Estos marcos de tiempo son generadores de
ingresos, no constructores de riqueza. Se utilizan para implementar el enfoque de
ATM de alto octanaje para ganar dinero a diario que Oliver Velez ha hecho tan
famoso.
Page 31
Tres marcos de tiempo de negociacin

(Time frames)
1) 5-minute Chart Este marco de tiempo es el principal del iFund Traders. Si hubiera un solo marco de tiempo
para ganarse la vida, sera este. Se encuentra perfectamente entre los 15 minutos, que puede ser un poco demasiado
largo, y los 2 minutos, lo que puede ser un poco demasiado ruidoso a veces.
Los patrones que comercializamos en iFund Traders aparecen con la frecuencia suficiente en el intervalo de 5
minutos para mantenernos activos, aunque con la poca frecuencia suficiente para evitar que nos canjeemos en
exceso. Este es "el" uno, "el" marco de tiempo para dominar.
2) 2-minu Ch t Este grfico de movimiento rpido es un envo de dios cuando el mercado no est
i te Chart
produciendo seales claras en los 5 minutos o ms de accin deseada. Tambin es til si los puntos de entrada
y / o salida dictados por el cuadro de 5 minutos estn muy lejos o no estn claros. Bajar al grfico de 2
minutos para una entrada, salida o parada ms fina generalmente brindar la mejor alternativa. A esto lo
llamamos "caer al grfico de 2 minutos", tomar una radiografa o mirar dentro del stock.
3) 1-minute Chart Este marco de tiempo de movimiento sper rpido se convierte en un foco principal cuando
se requiere el mximo nivel de precisin. Ofrece la posibilidad de tomar una radiografa de rayos X, que a
menudo se requiere cuando las barras en el grfico de 2 minutos son demasiado anchas y se desarrolla un
mercado plano, como suele ser el caso durante el perodo de inactividad del medioda. Al reducir al 1 minuto,
los iFund Traders pueden usar periodos de temporada para generar ingresos extra, mientras que otros se
quedan sin opciones o se ven afectados en los perodos ms largos y poco confiables.
Nota: El promedio mvil de 8 periodos (8ma), el promedio mvil de 20 periodos (20ma) y el promedio mvil de 200
periodos (200ma) se utilizan en los tres cuadros de 5, 2 y 1 minuto. Tenga en cuenta que el 20ma y el 21ma son
intercambiables. Es una eleccin personal.
Page 32
El Grfico de 5-Minutos
El grfico de 5 minutos debe mostrar siempre la s20ma e a s200ma
Trading Tip: iFund Traders buscan compras cuando la r20ma

est por encima de la 200ma. Que buscan ventas cuando la
d20ma est por debajo de la 200ma
Cierre del da anterior
iFund Traders buscan compras

cerca de la r20ma. Ver los
crculos.
Cuando una accin logra superar el precio promedio de sus ltimas 20 barras, es una fuerte indicacin de que la accin
est bajo enorme acumulacin institucional.
Chart Courtesy of iFund Traders

Page 33
El Grfico de 2-Minutos
iFund Traders Tip: Compra aqui

Un stock ascendente en un aumento de
8 y un aumento de 20 ma representa
una de las tendencias ms POTENTES
que existen. Rara vez debera ser Compra
peleado. El iFund Trader busca
cualquier buy set up para entrar.
Gran ruptura
Page 34
El Grfico de 1-Minuto
Crculos muestran oportunidades de compra bien

definidas para el iFund Trader entrenado.
Usted entender estas tcticas conforme avanzamos en el curso.
Observe que los promedios de 8 y de 20 se utilizan en este grfico,

lo que tambin discutiremos ms tarde.
iFund Traders Tip: Este tiempo grfico ofrece buenas oportunidades para capturar
tendencias a corto plazo completamente utilizando la 8ma para entrar o para trail.
Page 35
Los tres marcos de

tiempo analticos
CAPTULO 5
Los siguientes tres intervalos de tiempo ayudan a los iFund traders a

establecer un sesgo para el mercado y las acciones que comercializan. Saber
cmo determinar qu direccin es ms probable durante el da siguiente, el
grfico de hora o el de 15 minutos es una de las verdaderas claves para la
precisin como trader Oliver L. Velez
Page 36
Tres marcos de tiempo analticos

1) Daily Chart (DIA) Este marco de tiempo es clave para determinar qu acciones tienen sesgos
alcistas y cules tienen sesgos a la baja para el da siguiente. Ciertos patrones de precios que se
forman en el grfico diario tienen una alta probabilidad de moverse en una direccin
predeterminada a la maana siguiente. Esto resulta muy valioso para los iFund traders y, a
menudo conduce a ganancias rpidas en los primeros 30 minutos de negociacin. Adems,
muchas acciones con patrones de grficos diarios bien definidos producirn un sesgo
direccional de varios das que ahora puede enfocarse durante varios das.
2) 60-minute Chart Este tiempo casi nunca se utiliza para el comercio, pero al igual que su
hermano menor de 15 minutos, es imbatible en encontrar los puntos de reflexin principales,
reas de mayor significancia que a menudo llevan a paradas abruptas y reversiones durante el
da. Los iFund Traders utilizarn el grfico de 60-min simplemente para referenciar esos puntos
y evaluar la tendencia principal de las accines subyacentes.
3) 15-minute Chart Este marco de tiempo se utilizar principalmente para anlisis de
tendencias y puntos de referencia de soporte y resistencia. Si bien iFund Traders lo
comercializar de vez en cuando, su uso como indicador del poder de las acciones y su
sobrecompra o sobrevaloracin no tiene rival. Dicho esto, los intercambios en el grfico de 15
minutos tienden a ser los ms limpios y verdaderos. En cierto sentido, para el trader profesional
que se gana la vida a travs de los mercados, este marco de tiempo se considerara como el
"corecore", para intercambios a ms largo plazo durante el da.
Nota: Las MA de 8, 20 y 200 se usan generalmente para los diagramas diarios de 60 y 15 minutos.
Page 37
El Grfico Diario
iFund Traders Tip: Cada da, nuestros traders

rastrean el mercado despus del cierre para montar
una pequea lista de acciones que tienen un sesgo
hacia arriba o hacia abajo para los prximos varios
das, basado en el grfico diario.
Los crculos muestran cuando los iFund Traders deben tener un sesgo definido hacia
arriba. Utilizar tiempos de grficos ms grandes (diario, 60 min y 15 min) para
determinar su "sesgo" (bias) te da habilidad y confianza en tomar las seales en los
tiempos grficos ms pequeos cuando estn en sintona con ese sesgo.
Page 38
El Grfico de 60-minutos
Tip: Durante los perodos declinantes en el grfico de 60

Tip
minutos (grfico de 60 minutos en un 21ma decreciente),
los operadores de iFund tendran un sesgo corto definido
en los marcos de tiempo ms pequeos (grficos de 2, 5 y
15 minutos). Lo mismo se aplica a la inversa.
Cuanto ms cerca la accin est de la 21ma declinante, ms fuerte el sesgo de baja.

Ver el crculo.
Nota: La 20ma y la 21ma son intercambiables.
Page 39
El Grfico de 15-minutos
El grfico de 15 minutos debe tener siempre las 20 y

200ma. Aadimos la 8ma tambin.
iFund Traders Tip: Traders buscan compras cuando la

r20ma est por encima de la 200ma. Ellos buscan ventas
con la d20ma debajo de la 200ma.
iFund Traders deben buscar compras en

el rea de la r20ma (crculos).
Cuando una accin es capaz de consistentemente superar el precio promedio de sus ltimas 20 barras,
es una fuerte indicacin de que
la accin est bajo enorme
acumulacin institucional.
Page 40
Las Tres medias Mviles

para el Trading
CAPTULO 6
Hay tres medias mviles que los iFund Traders monitorean todo el tiempo. "Los
promedios mviles forman la base de muchas de nuestras estrategias que ms
dinero hacen - Oliver L. Velez
Page 41
Tres medias mviles principales

1) 8-period Moving Average (8ma) Este promedio mvil simple es superior para capturar y
respaldar los movimientos ms poderosos del mercado. Si una accin se mueve con furia (hacia
arriba o hacia abajo), es esta media mvil a la que la accin reaccionar a menudo. Tambin
utilizamos esta media mvil como la base de uno de nuestros mtodos de final de recorrido ms
efectivos, que discutiremos en breve. Los operadores de iFund tienen el 8ma en cada grfico que
ven.
2) 20-period Moving Average (20ma) Este promedio mvil simple es el elemento bsico
nmero uno para iFund Traders. No se mira ningn grfico sin la ayuda del 20ma. De hecho, no
considero que un grfico sea vlido a menos que est acompaado por el 20ma. Revela el sesgo
direccional de una accin, acta como un imn y le dice al trader dnde se encuentran reas
significativas de soporte y resistencia. Tenga en cuenta que el ms puro usara un MA de 21
perodos. Llegamos a 20, sabiendo que los promedios mviles son simplemente reas, no precios
especficos.
3) 200-period Moving Average (200ma) Este promedio mvil simple pero importante es el
abuelo de todos ellos. Es casi mgico con qu frecuencia las acciones y el mercado en general
obedecen a esta lnea de movimiento lento. Muchos de los intercambios ms exitosos de iFund
Traders tienen su origen en el 200ma. Siempre est a la vista y se le da el mayor respeto.
Page 42
Las Poderosas 8MA & 20MA

1) 1) Medias Moviles Simples de 8 & 20 Las medias de 8ma y de 20ma (o el 21ma) son tan importantes para
iFund Traders que ningn grfico es estudiado o visto sin ellos. Su poder y fiabilidad no tienen rival, por lo que NO
es un grfico a menos que vaya acompaado de estos indicadores tcnicos de suma importancia. Los usamos en cada
marco de tiempo o grfico que miramos. Tip: iFund Traders puede ganar literalmente toda su vida en el mercado
con 8ma y 20ma. Estas son las cosas ms importantes que debe saber sobre el 8ma y 20ma y su uso adecuado:
a) Opere con las medias 8ma y 20ma, no contra ellas:- La mayor parte de sus operaciones deben estar en
sincrona con la 20ma. Si las 8 & 20ma suben de forma suave, su enfoque debe ser casi siempre buscar compras. Por
el contrario, si las 8 & 20ma estn declinando suavemente, su foco debe ser casi siempre buscar ventas. Si la 20ma
es plana (flat - f20ma), su enfoque debe ser en tradiciones de liquidez con el enfoque de "bid y oferta" (ofertas de
compra y venta - comprar debajo de la 20ma y la venta por encima de la 20ma).
b) Utilice las las medias de 8ma y 20ma como soporte y resistencia Si y cuando la(s) medias de 8 y / o el 20ma
estn subiendo, le servir como soporte fuerte. Si la(s) medias de 8 y / o el 20ma estn disminuyendo, servir como
una fuerte resistencia area. Busque compras en o cerca de un r8ma o r20ma. Busque ventas / cortos en o cerca de
un 8ma o 20ma.
c) Utilice la media de 20ma como una lnea mediana: cuando una accin se est consolidando en un patron de
lado, la 20ma ser plana y normalmente se colocar justo en el medio de la tendencia lateral. Si y cuando es el caso,
colocar rdenes de compra en un rango por debajo de la 20ma y colocar rdenes de venta en un rango por encima de
la 20ma es el siguiente plan. Siempre est atento a qu lado el 20ma eventualmente detiene el stock o accin.
d) Utilice la media de 20ma como un imn Las acciones no pueden permanecer extendidas muy por encima o por
debajo de la 20ma durante mucho tiempo. Si y cuando la accin queda muy distante, una reversin violenta para la
20ma es inminente. Es cuando el iFund Trader puede inteligentemente buscar sacar ventaja de un movimiento contra
la tendencia. Tendremos ms de ese concepto "contra las reglas" ms adelante en el curso.
Page 43
The Daily Chart
El mercado NUNCA ha tenido XITO con una solo barra!
Los crculos muestran cundo los

operadores de iFund tendran un sesgo
alcista definido en los marcos de tiempo
ms pequeos.
La potencia de la media de 20ma es evidente

cuando sube a un ritmo suave
y constante.
Si bien los iFund Traders no intercambian el diario, lo usan todas las noches para compilar una lista
corta de acciones que deberan tener sesgos alcistas o bajistas para el da o la semana siguiente.
Chart Courtesy of iFund Traders Pro

Page 44
Ley Velez de mercado 2

CAPTULO 7
El nmero 1 nunca ha sido ni nunca ser un nmero popular para el mercado.

Siempre es necesario algo ms que uno, o una vez, o un tiempo. En otras palabras,
el mercado le gusta la confirmacin. 'Una vez' nunca basta. Oliver L. Velez
Page 45
Velez Market Law #2

The Law of 2
The market never accomplishes anything with just one bar. It needs at
least two bars to regard something as being real or significant.
Follow-through by a second bar is crucial, otherwise the one bar
event, no matter how
h apparently l significant,
i ifi is
i not yet real.
l
Different ways to communicate the law:
1) A one bar breakout is only significant if followed through by a

second up bar;
2) A one bar breakdown is only significant if its followed through by

a second down bar;
3) One bar events with no follow through tend to eventually produce

strong moves in the opposite direction.
Page 46
The power of the 20 MA

Page 47
Once the stock gets above the 20ma and a subsequent

decline is held in check by the 20ma, the Bull Picture of
Power (+POP) is in full effect and the iFund Trader can
look to p
play
y several more 20ma Retest p plays.
y
The stock is held in check by the 20ma here for the first time.
iFund Traders would look for several more successful retests.
Charts Courtesy of iFund Traders Trader Pro

Page 48

Page 49
The 20ma Halt!

Page 50
The 20ma Halt
iFund Traders Tip: After the

first 20ma Halt, the iFund
Trader assumes there will be
several more to exploit.
Page 51
The Power of the 20 MA

Page 52
The Mighty 200 MA

2) 200 Period Simple Moving Average (200ma) The 200ma is so universally watched, in
all time frames, that for all practical purposes, it has become a self-fulfilling prophesy. So
rarely do stocks fail to obey (get halted by) the 200ma that weve given it the highest nick-
name of all, Goliath. Its power, force, and reliability are so great, that it truly is goliath-
like. We use the 200ma on all time frames (1-, 2-, 5-, 15-, 60-min and Daily charts). Here
are a few things that you must keep in mind regarding this mighty moving average:
a) Flatness is king: - While the 20ma is most powerful when it is rising and
declining (trending), the 200ma is most powerful when it is flat (trend-less).
b) Use as support Whenever a stock declines to a flat 200ma, it will almost

always experience some form of rebound, particularly if the 20ma is far away.
c) Use as resistance Whenever a stock rallies to a flat, overhead 200ma, it will

almost always experience some form of retracement back down, particularly if the
20ma is far away.
d) Use as a magnet a) If a stock gets too far above or below its 20ma, and b)
its 20ma gets too far above or below the 200ma, then c) a major reversal is usually
very close at hand. This is when the iFund Traders Trader can look to
take advantage of a counter trend move. In other words, its this scenario that
allows
ll for
f iintelligently
t lli tl goingi against
i t the
th prevailing
ili trend.
t d There
Th will ill be
b more
on this rule-breaking concept later.
Trading Tip: iFund Traders know that flat 200ma plays call for bigger positions
Page 53
The Flat Mighty 200ma

Page 54
200ma Resistance
Page 55
200ma Resistance
Page 56
200ma Resistance
Page 57
Flat Mighty 200ma

Page 58
The Flat Mighty 200MA

Page 59
The Flat Mighty 200MA
A iFund Trader Buy Set-up

w/ a bottoming Tail
Page 60
Velez Market Law #3

CHAPTER 8
iFund Traders Quote: All markets have statistical limits. The trader who
thoroughly understands when markets are statistically at or near the outer
bounds of their norms will become a master, and possibly even rich!
- Oliver L. Velez
Page 61
Velez Market Law #3

The 3,
3 5,
5 8 Bar Max
During NORMAL market environments, stocks and other tradable items
cannot move in the same direction more than 5 to 8 bars in a row; however,
stocks tend to stay trapped in a 3 to 8 bar max cycle 80% of the time. 20% of
the time, a stocks moves can top and bottom outside of this zone. But 5 bars is
truly the pivotal number.
1) After a 3 to 5 bar run (up or down) the market/stock

tends to sharply reverse, creating a nice trading opportunity. Every now and
again,
i stocks
t k can slip
li into
i t the
th nextt 5 to
t 8 bar
b zone.
2) Neither the bulls nor the bears can consistently win more than 5 battles
(bars) in a row. After a sharp 3 to 5 bar rally, the bears usually
quickly regain control. After a sharp 3 to 5 bar decline, the bulls
usually quickly regain control. These moves can move to the 5 to 8 bar
zone at times.
3)) Lastly,
y this law can be said this way:
y After 3 to 5 ggreen
bars in a row, the iFund Trader should look to take advantage
of an upcoming series of red bars. After 3 to 5 red bars in a
row, the iFund Trader should look to take advantage of an
upcoming series of green bars.
Page 62
The 3 to 5 Bar Buy Rule
In each of the scenarios above, the iFund Trader would be looking for a tradable rebound to the upside, once the
high of a prior bar has been taken out. How much of a rebound would depend on the answers to several key
questions such as: a) is the 3-5 bar dip occurring in an up trend, down trend or sideways trend; b) are any of the
most powerful reversal signs present; c) how far away is the nearest area of resistance; d) was there a volume
surge that took place toward the end of the decline; e) where is the dip in relation to the 20ma; and f) is the
current decline potentially bottoming at or around one of the key reversal times? The answers to all these
questions are covered in the many trading concepts taught in upcoming chapters and through out our 5-day live
trading labs
Page 63
questions such as: a) is the 3-5 bar dip
q p occurring
g in an up
p trend, down trend or sidewaysy trend; b) are any y of the
most powerful reversal signs present; c) how far away is the nearest area of resistance; d) was there a volume surge
that took place toward the end of the decline; e) where is the dip in relation to the 20ma; and f) is the current
decline potentially bottoming at or around one of the key reversal times? The answers to all these questions are
covered in the many trading concepts taught in the future chapters and through out our 5-day live trading labs
Page 64
questions such as: a) is the 3-5 bar dip
q p occurring
g in an up
p trend, down trend or sidewaysy trend; b) are any y of the
covered in the many trading concepts taught in up coming chapters and through out our 5-day live trading labs
Page 65
questions such as: a) is the 3-5
3 5 bar dip occurring in an up trend, down trend or sideways trend; b) are any of the
covered in the many trading concepts taught in up coming chapters and through out our 5-day live trading labs
Page 66
The Picture of Strength
To find stocks in play throughout the day, iFund Trader would first look for sectors experiencing
the picture of strength, then delve into those sectors to find the top stocks with the same picture.
Page 67
The 3 to 5 Bar Sell Rule
In each of the scenarios above, the iFund Trader would be looking for a tradable rebound to the down side, once
the low of a prior bar has been taken out. How much of a rebound would depend on the answers to several key
questions
ques o s such
suc as:
s a)) iss thee 33-5
5 bar
b rally
y occu
occurringg in an up trend,
e d, down
dow trend
e d oor ssideways
dew ys trend;
e d; b) aree any
y oof thee
most powerful reversal signs present; c) how far away is the nearest area of support; d) was there a volume surge
that took place toward the end of the rally; e) where is the rally in relation to the 20ma; and f) is the current rally
potentially topping at or around one of the key reversal times? The answers to all these questions are covered in
the many trading concepts taught in up coming chapters and through out our 5-day live trading labs
Page 68
In each of the scenarios above, the iFund Trader would be looking for a tradable rebound to the down side, once
questions such as: a) is the 3-5
3 5 bar rally occurring in an up trend, down trend or sideways trend; b) are any of the
potentially topping at or around one of the key reversal times? The answers to all these questions are covered in the
many trading concepts taught in up coming chapters and through out our 5-day live trading labs
Page 69
In each of the scenarios above, the iFund Trader would be looking for a tradable rebound to the downside, once
questions
ques o s such
suc as:
s a)) iss thee 33-5
5 bar
b rally
y occu
e d, down
dow trend
e d oor ssideways
dew ys trend;
e d; b) aree any
y oof thee
Page 70
In each of the scenarios above, the iFund Trader would be looking for a tradable rebound to the downside, once the
low of a prior bar has been taken out. How much of a rebound would depend on the answers to several key
questions
ques o s such
suc as:
s a)) iss thee 33-5
5 bar
b rally
y occu
e d, down
dow trend
e d oor ssideways
dew ys trend;
e d; b) aree any
y oof thee
Page 71
3 to 5 Bar Sell Rule
The iFund Trader can often

count his way to profits
Page 72
Velez Market Law #4

CHAPTER 9
Quote: Market failures tend to cause major problems for most ordinary traders,
but they can serve as major money making opportunities for well trained iFund
Traders! In other words,
words we are always prepared to profit from the markets
market s
failed attempt to do something highly expected.
- Oliver L. Velez
Page 73
Velez Market Law #4

The Failed New Low/High Law
If a stockk ffails
il to make
k a new low,
l after
f iti has
h already
l d made d 3 or more lower
l
lows, it will make a new high. Conversely, if a stock fails to make a new high,
after it has already made a series of higher highs (3 or more), it will make a
new low on the next move.
move.

1) The first failed attempt to make a new low in a well established downtrend
is the first sign that the balance of power has shifted from the sellers back to
the buyers. The trend has likely changed and the first low in the new trend
has been identified.
2)) The first failed attempt

p to make a new high
g in a well established uptrend
p
is the first sign that the balance of power has shifted from the buyers back to
the sellers. The trend has likely changed and the first high in the new trend
has been identified.
3) The first failed attempt to make a new high or low in a well established
trend is the first sign that the back of the existing trend has been broken and
the opposing side is ready to regain control.
Page 74
The Fibonacci Sequence

Page 75
The Fibonacci Swing
Your stocks become p playable

y once theyy begin
g to swingg in 3,, 5 and 8-bar cycles.
y If your
y
stocks are not providing at least three bars of the same color, then they should be left alone.
1 to 2 bar cycles are no-follow-through markets that generate a lot of whipsaws and
losing trades. Tip: The first time your stock produces a 3-bar rally or decline of the same
color, it should become part of your focus list.
Page 76
iFund
iFund Traders
Traders
The Three Major
g Stop
Trailing p Methods
CHAPTER 10
The idea is to get out fast when a trade goes against you.
- Jesse Livermore
Page 77
iFund Traders Trailing

Stop Method 1
iFund Traders Bar-by-Bar Stop Method
Once the iFund Trader has entered his long, and placed his initial stop, its a boom or bust scenario, meaning that
either the trader will hit his anticipated target or get out at his initial stop. Once there is a two bar lift (this includes
th entry
the t bbar if it ends
d hi
higher
h ththan th
the bbuy price),
i ) ththe ttrader
d would ld llaunch
h iinto
t TRAILING STOP mode. d During
D i
which, the trader maintains a mental stop $0.01 below the prior bars low at all times. As each new bar begins, the
TRAILING STOP is moved up, always staying only one bar behind the bar currently trading. The same would
apply in reverse, as evidenced by Figure 2.
Page 78
Bar-by-Bar
y Trailing
g Stop
p
Page 79
Bar-by-Bar Trailing Stop
The numbers show each one of the TRAILING STOP moves made by
the iFund Trader.
Tip: Remember, begin TRAILING STOP mode only AFTER you have
two bars of profitability.
Before that, its the initial stop(s) that serves as your line in the sand.

Page 80
iFund Traders
Trailing Stop Method 2
2) iFund Traders 8ma Momentum Stop Method This is by far the most dynamic TRAILING STOP method we deploy, but
requires nerves of steel to put into practice. It represents one of my personal favorites because of its superior ability to keep the
trader in a trade during the sweetest (strongest) part of the move. Bar-by-bar noise is eliminated, allowing the trader to focus on
what counts
counts, the force of the trend
trend. What must be kept in mind is that when stocks are not in a trending mode,
mode this stop method
will result in frequent whip-saws. But, with proper timing, it (like its bigger brother, the 20ma trailing stop method) is unrivaled
when it comes to milking the best part of a stocks move. Note: We allow iFund Traders to use this stop method right from the
beginning stages of their trading.
Figure 2
a
Buy (1)
B (2)
Buy
Short (2)
8ma Short (1)
a
8ma
Figure 1
In the above Figure 1, the iFund Trader would simply buy at point 1, and sell into the initial rise, anticipating a
pullback
llb k before
b f the
th secondary
d leg.
l At buy
b point i t 2,
2 the
th iFund
iF d Trader
T d could ld try
t andd hold
h ld on tot the
th stock
t k as long
l as
it remained above the r8ma. Essentially, at that point, the 8ma would become the iFund Traders TRAILING
STOP. Everything would be handled in reverse for Figure 2. The method applied to 1- 2- and 5-minute charts
works extremely well.
Page 81
The 8ma Bull Run

iFund Traders Tip
Page 82
The 8ma Bull Power
Tip: iFund Traders add to winning plays by buying at each iFund Trader Buy Tactic.
Page 83
8ma Bull Run

iFund Traders Tip:
Page 84
Taking
g the 8 Train
Charts Courtesy of iFund Traders Pro

Page 85
8ma Bear Run
iFund Traders Tip: The 8ma is an iFund Traders number one trailing stop guide.
Circles show three iFund Trader Sell Tactics.

Come back later to identify each one.
one

Page 86
8ma Trailing Stop
Circles
Ci l show
h wellll d
defined
fi d entries
t i ffor th
the iF
iFund
d
Trained Trader.
Note how effective the 8ma keeps the trader in the

stock during
g the strongest
g p
part of the move.

Page 87
The 8ma Retest
iFund Traders Tip:

After the first successful retest of an iFund
Traders moving average, always assume
another will occur. The circle shows the
successful retest of the 8ma.
Page 88
iFund Traders
Trailing Stop Method 3
3) iFund Traders 20ma TRAILING STOP Method This is by far the most basic TRAILING STOP method we
deploy, and the easiest to put into practice. In many ways, it is the most superior method of all, as it forces the trader to
focus on the trend, instead of the bar-by-bar noise, which can be quite confusing at times. However, its superior nature
only works in trending stocks and markets and it loses all of its luster when stocks and markets are not trending. But,
with proper timing, it is unrivaled when it comes to milking a stocks move for all its worth. Note: We ONLY allow
iFund Traders to use this method AFTER they have graduated to level 4.
Figure 2
a
Buy (1)
Buy (2)
Short (2)
20ma Short (1)
a
20ma
Figure 1
In the above Figure 1, iFund Traders would simply buy at point 1, and sell into the initial rise, anticipating a
pullback
llb k before
b f the
th secondary
d leg.
l At buy
b point i t 2,
2 iFund
iF d Traders
T d could ld try
t andd hold
h ld on tot the
th stock
t k as long
l as it
remained above the r20ma. Essentially, at that point, the 20ma would become the iFund Traders TRAILING
STOP. Everything would be handled in reverse for Figure 2. The method applied to 2- and 5-minute charts
works extremely well.
Page 89
The 20ma Trailing Stop

Once the 20ma begins to halt the price declines,
the iFund Trader confidently buys subsequent
retests.
The 20ma serves as a trailing stop for those who

don't mind the bigger swings.
Circles show trading opportunities.

Page 90
The 20ma Trailing Stop
The iFund Trader has multiple opportunities to

enter a short in INTU and add to it, while riding
each open position for maximum gains using
the 20ma as the trailing stop.
Note: The iFund Trader is still holding all open

positions.
Page 91
iFund
iFund Traders
Traders
The Markets
Three Trends
CHAPTER 11
You can beat a horse race, but you cant beat the races.
- Unknown
Page 92
The Markets Three Trends

1) The Up Trend The up trend, by far the most popular of all, is usually defined by a series of
higher highs and higher lows. Our definition is a bit more involved. In addition to higher highs
and lows, we want an up trend to posses a smooth rising 20ma above a 200ma.
Tip: In Up Trends, iFund Traders buy

1) Uptrend dips toward the 20ma, buy breakouts
away from the 20ma and short
climactic runs too far from the 20ma.
2) The Down Trend The down trend, by far the most feared of all, is usually defined by a
series of lower highs and lower lows. Our definition is a bit more involved. In addition to lower
highs and lows, we want a down trend to posses a smooth declining 20ma below a 200ma.
Tip: In Down Trends, iFund Traders

2) Downtrend short rallies toward the 20ma, short
breakouts away from the 20ma and
buy climactic declines too far from
the 20ma.
3) The Sideways Trend The sideways trend, by far the most frustrating, is usually defined by
a series of relatively equal highs and lows. This stage can be wide, usually when it forms after
an advance, or it can tight and narrow, usually when it is just a pause or after a sharp decline.
Tip: In Sideways Trends,
3) Sideways Trend iFund Traders buy/bid dips
and short/offer rallies.
Page 93
The Markets Three Up Trends
1) The Regular Up Trend This uptrend, defined as a rising stock above a smooth rising 20ma,
is a iFund Traders bread and butter trend. This trend will be played more than an other.
Tip: In Regular up trends, iFund Traders

1) Reg. Up trend buy dips toward the 20ma, buy breakouts
away from the 20ma and short climactic
20ma runs too far from the 20ma.
2) The Power Uptrend This uptrend, defined as a rising stock above a rising 20ma which is
also above the 200ma, is a step above the regular uptrend. An overhead 200ma represents
clouds in the sky, somewhat. When the 200ma is below all the action, its typically clearer
sailing for the stock.
2) Power Uptrend
20ma Tip: In Power up trends, dips are no
concern and can be used to
g positions.
accumulate larger p
200ma
3) The Super Uptrend The uptrend, defined as a rising stock above a rising 8ma, which is also
above a rising 20ma, is the most powerful one in existence. Its emergence signifies pure
unadulterated buying power that one can trust absolutely. It does not get better than this!
3) Super Uptrend 8ma Tip: In
Ti I SSuper up ttrends,
d
buying anywhere and anytime
during the trend works
20ma amazing well.
Page 94
The Markets Three Down Trends

1) The Regular Down Trend This downtrend, defined as a declining stock below a smooth
declining 20ma, is a iFund Traders bread and butter short trend. This trend will be played on
the short side more than an other.
20ma Tip: In Regular downtrends,
downtrends iFund Traders
1) Reg. Downtrend short rallies toward the 20ma, short
breakdowns away from the 20ma and buy
climactic runs too far below the 20ma.
2) The
Th Power
P D
Downtrend d This
Thi downtrend,
d d defined
d fi d as a declining
d li i stockk below
b l a declining
d li i
20ma which is also below the 200ma, is a step above the regular downtrend. A 200ma below
the stock represents a floor of support. When the 200ma is above all the action, the stock is
typically freer to fall.
200ma
2) Power Downtrend 20ma
Tip: In Power downtrends, rallies
are no concern and can be used to
build larger short positions.
3) The Super Downtrend The downtrend, defined as a declining stock below a declining 8ma,
which is also below a declining 20ma, is the most powerful one in existence. Its emergence
signifies pure unadulterated selling power that one can trust absolutely. It does not get better
than this for bears!
20ma
Tip: In Super downtrends,
shorting anywhere and
8ma anytime during the trend
works amazing well.
Page 95
iFund Traders
Super Uptrend
iFund Traders Tip:

A rising stock above a rising 8ma and
20ma represents one of the most Buy Here
potent uptrends in existence. Rarely
should it be fought. Rather, the iFund
Trader looks for any excuse to fall in
or enter.

Page 96
15-Minute Up Trend
When stocks are in strong up trends on the 15-minute chart, buying dips and
breakouts on the 2-minute and 5-minute charts have better odds of working.
Charts Courtesy of Realtick
Page 97
15-Minute Down Trend
When stocks are in strong down trends on the 15-minute chart, shorting rallies and
breakdowns on the 2-minute and 5-minute charts have better odds of working.
Chart Courtesy of Realtick

Page 98
5-Minute Up Trend
If the iFund Trader Up

p Trend
1 Rising Stock above the
2 Rising 20ma (r20ma)
3 r20ma above the 200 ma
Tip: iFund Traders can buy dips and breakouts

that occur (originate) at or near the r20ma
(or 21ma)
Page 99
5-Min Downtrend
VBSs
Circles show iFund Traders Opportunities

Page 100
2-min Up Trend
Come back after the course to name these iFund Traders Trades
This dip back to the r20ma was a bit

too sloppy. In addition, it occurred
too close to the end of the day for the
iFund Traders to take.
Page 101
2-min Downtrend
Weve seen this chart several times,

already, but it communicates so much
that it taught by iFund Traders,
youll see it several more times.
Come back sometime after the course to

name these iFund Traders Set
Set-ups
ups
(events).

Page 102
5-Minute Sideways Trend

Page 103
1-Minute Sideways Trend

Page 104
Section
S i III
The Trading Patterns
CHAPTER 12
Do not have an interest in too manyy stocks at one time.

It is much easier to watch a few than many.
- Jesse Livermore
Page 105
iFund Traders Buy Setup (VBS)

Page 106
iFund Traders Buy Tactics

Page 107
Page 108
iFund Traders Buy Set-up (VBS)
iFund Traders Buy Set-up:

3 or more lower highs and
3 or more lower lows or
3 or more red bars
Rising 20ma or 21ma
iFund Traders Buy Action:

Buy above prior bars high
Stop below entry bars low
Trailing stop after 2 up bars
Ultimate target above Peak

Page 109
Page 110
The iFund Trader is now in T3

Territory and is still in the
trade.

Page 111

Page 112
VBS off the rising 8ma

Note the two entry possibilities. The first
one is the 55% retracement of a red bar.
The second is the 100% entry method.
iFund Traders Tip:

Some iFund Traders take both entry
signals, meaning they buy twice.

Page 113
iFund Traders Tip:

The second move,
move after a solid
breakout, is the big one. Dont miss
it. But make sure the pullback does
not break the 20ma.

Page 114
iFund Traders Buy Set-up: VBS

3 or more lower highs and
3 or more lower lows or
3 or more red bars
Rising 20ma or 21ma
iFund Traders Action:

Buy above prior bars high
Stop below entry bars low
Trailing stop after 2 up bars
Ultimate target above Peak
Page 115
iFund Traders Sell Set-up (VSS)

Page 116
iFund Traders
Sell/Short Tactic
1) iFund Traders Sell Set-up: VSS This is the main sell set-up we use at iFund and it will represent anywhere
from 65% to 80% of your shorts. It is comprised of only a few basic criteria and can be used in all time frames. To
make it as a iFund Trader
Trader, this tactic must be mastered
mastered.
200ma 200ma
d20ma d20ma
Stop
Alert Short
T1
T2
Ultimate Target Area T3
Pattern Set-up Short Action
Trading Note: The location and time of occurrence of this main stay trading pattern are the major keys. The iFund
Trader wants to essentially focus on the Sell Set-ups that occur at or near multiple support levels and key reversal
times. The ones accompanied by NRBs are my personal favorite. Well talk more about these as we move forward.
Page 117
iFund Traders
Sell Set
Set-up
up (VSS)
iFund Traders Covers

Page 118
iFund Traders
Sell Set
Set-up
up (VSS)
Page 119
iFund Traders
Sell Set
Se Set-up
up ((VSS)
SS)
iFund Traders Sell
Opportunities
iFund Traders Tip:
Circles show iFund Traders Sell Opportunities

Page 120
iFund Traders
Sell Set-up
p ((VSS))
iFund Traders Tip:

WRBs after 3 or more
up/down bars tend to mark
the end of a move.
Bear Wide Range Bar:
When these happen after an
already extended move down, you
can be rest assured yyou are close to
the bottom. I start to bid very
aggressively at the current inside
bid/price and multiple levels below
Page 121
THE GIFT
The GIFT Buyy
Click to add subtitle
Copyright 2010 * iFundTraders, LLC. * 2576 Broadway, #158, NY, NY, 10025
The GIFT Buyy
The GIFT Buyy
The GIFT Buyy
The GIFT Buyy
The GIFT Sell
The GIFT Sell
The GIFT Sell
The GIFT Sell
Pg 127
IGNITING BARS
THE MOMENTUM BUY
AND MOMENTUM SELL
Do y
you know what yyou are supposed
pp to do, and iff so, do y
you actually
y do what
you are supposed to do when you are supposed to do it?
- Dr. Daniel Mielcarski
The Momentum Buyy
Once you have indentified an igniting bar, the momentum buy is made
once the high of the igniting bar is cleared and a stop is placed under
the low of the igniting
g g bar.
The best igniting bars most closely resemble those with Absolute
Control and also have a price void (empty space) above on the current
time frame and the larger
g time frames.
In other words we do not want to buy right into the face of immediate
or very near by resistance. In that instance it is better to wait for the
resistance to be cleared and retested,, as support,
pp , or cleared and another
buy trigger forms to confirm the follow through of momentum.
Only a one bar lift is needed to begin using a Bar-By-Bar trailing stop .
If a momentum bar is to be entered before completion, the TIF Rules

(covered in the next section) must be followed
The Momentum Buyy
Igniting Bar
The Momentum Buyy
Entry
Igniting Bar
Stop
The Momentum Buyy
Current bar still forming
Trailing Stop
Igniting Bar
The Momentum Buyy
Trailing Stop
Igniting Bar
The Momentum Sell
Once you have indentified an igniting bar, the momentum sell is made
once the low of the igniting bar is cleared and a stop is placed above the
high
g of the igniting
g g bar.
The best igniting bars most closely resemble those with Absolute
Control and also have a price void (empty space) below on the current
time frame and the larger
g time frames.
In other words we do not want to sell right into the face of immediate
or very near by support. In that instance it is better to wait for the
support
pp to be cleared and retested,, as resistance,, or cleared and another
sell trigger forms to confirm the follow through of momentum.
Only a one bar lift is needed to begin using a Bar-By-Bar trailing stop .
If a momentum bar is to be entered before completion, the TIF Rules

(covered in the next section) must be followed
The Momentum Sell
Igniting Bar
The Momentum Sell
Stop
Igniting Bar
Entry
The Momentum Sell
Igniting Bar
Trailing Stop
The Momentum Sell
Igniting Bar
Trailing Stop
Page 142
iFund
iFund Traders
Reversal Signs
Bottoming Signals & Topping Signals
CHAPTER 13
I learned very
y early
y on that brokers are always
y wrong;
g analysts
y are always
y
wrong; and clients are always wrong. But the tape is never wrong.
- Jesse Livermore
Page 143
Green Bar Reversal (GBR)

& Red Bar Reversal (RBR)
1) Green Bar Reversal (GBR) This bottoming sign is one of the most obvious in existence, as the
change in power from the bears back to the bulls has already fully occurred. Tip: Whenever a
GBR forms after a steady 3 to 5 bar decline, the odds of a bottom are greatly increased. iFund
Traders would look to Buy the green bar if and when it retraces the prior red bar and/or
when the high of the green bar is violated on the next bar, or the very next time a previous
bars high is violated. Stops are placed just below the entry bars or prior bars low.
20ma
RBR
3-5 Bar Decline w/ GRB
GBR 3-5 Bar Rally w/ RBR
20ma
2) Red
R dB Bar R
Reversall (RBR) This
Thi topping
t i sign
i isi one off the
th mostt obvious
b i in
i existence
it from
f the
th sell
ll side.
id Tip:
Ti
Whenever a RBR forms after a steady 3 to 5 bar Rally, the odds of a top are greatly increased. iFund Traders would
look to Short the red bar if and when it retraces the prior green bar, and/or when the low of the red bar is violated by the
next bar, or the very next time a previous bars low is violated. Stops are placed above the entry bars or prior bars high.
Page 144
Green Bar Reversal (GBR)

& Red Bar Reversal (RBR)
T d
Traders wouldld llook
k tto Buy
B the
th green b
bar if and
d when
h it retraces
t th
the prior
i red dbbar and/or
d/
Alternate Stop
3-5 Bar Decline w/ GRB Stop

Entry
Entry
Stop
3-5 Bar Rally w/ RBR
Alternate Stop
2) Red Bar Reversal (RBR) This topping sign is one of the most obvious in existence from the
sell
ll side.
id Tip:
Ti Whenever
Wh a RBR forms
f after
ft a steady
t d 3 tot 5 bar
b Rally,
R ll theth odds
dd off a ttop are greatly
tl
increased. iFund Traders would look to Short the red bar if and when it retraces the prior green
bar, and/or when the low of the red bar is violated by the next bar, or the very next time a previous
bars low is violated. Stops are placed above the entry bars or prior bars high.
Page 145
(GBR) & (RBR) as TRIGGERS

T d
Traders wouldld llook
k tto Buy
B the
th green b
bar if and
d when
h it retraces
t th
the prior
i red dbbar and/or
d/
Stop
3-5 Bar Decline w/ GRB
Entry
Entry
3-5 Bar Rally w/ RBR

Stop
2) Red Bar Reversal (RBR) This topping sign is one of the most obvious in existence from the
sell
ll side.
id Tip:
Ti Whenever
Wh a RBR forms
f after
ft a steady
t d 3 tot 5 bar
b Rally,
R ll theth odds
dd off a ttop are greatly
tl
increased. iFund Traders would look to Short the red bar if and when it retraces the prior green
bar, and/or when the low of the red bar is violated by the next bar, or the very next time a previous
bars low is violated. Stops are placed above the entry bars or prior bars high.
Page 146
VBS w/
/ GBR
Page 147
Narrow Body
y ((NB))
1) Narrow Body Bottom (NBB) This bar, as a bottoming sign is not quite a potent as its former brother, but its
significant
g enough
g to take notice when it does form. The narrow nature of the colored ppart of the bar ((either ggreen or
red) signifies that a change or shift in the balance of power is nearly complete. Tip: Whenever a NB forms after a
steady 3 to 5 bar Decline, the odds of a Rally are increased. iFund Traders would look to Buy the very next time
a previous bars high is violated. Stops are always placed just below the entry bar or the prior bars low.
20ma
RBR & NB
3-5 Bar Decline w/ GRB & NB Would be the
same if it was
a Green body
GBR & NB 3 5 Bar Rally w/ RBR & NB

3-5
Would be the same
if it was a Red body
20ma
2) Narrow Body Top (NBT) This bar, as a topping sign is not quite as potent as its former brother, but its significant
enough to take notice when it does form. The narrow nature of the colored part of the bar (either green or red) signifies
that a change or shift in the balance of power is nearly complete. Tip: Whenever a NB forms after a steady 3 to 5 bar
Rally, the odds of a Decline are increased. iFund Traders would look to Short the very next time a previous bars
low is violated. Stops are always placed just above the entry bar or the prior bars high.
Page 148
Narrow Body
y ((NB))
1) Narrow Body Bottom (NBB) This bar, as a bottoming sign is not quite a potent as its former brother, but its
significant
g enough
g to take notice when it does form. The narrow nature of the colored ppart of the bar ((either ggreen or
red) signifies that a change or shift in the balance of power is nearly complete. Tip: Whenever a NB forms after a
steady 3 to 5 bar Decline, the odds of a Rally are increased. iFund Traders would look to Buy the very next time
a previous bars high is violated. Stops are always placed just below the entry bar or prior bars low.
20ma
Alternate Stop
RBR & NB
Stop
3-5 Bar Decline w/ GRB & NB
Entry
y
Entry
Stop
3 5 Bar Rally w/ RBR & NB
3-5
GBR & NB
20ma Alternate Stop
2) Narrow Body Top (NBT) This bar, as a topping sign is not quite as potent as its former brother, but its significant
enough to take notice when it does form. The narrow nature of the colored part of the bar (either green or red) signifies
that a change or shift in the balance of power is nearly complete. Tip: Whenever a NBT forms after a steady 3 to 5
bar Rally, the odds of a Decline are increased. iFund Traders would look to Short the very next time a previous
bars low is violated. Stops are always placed just above the entry bar or prior bars high.
Page 149
Narrow Range
g Bar ((NRB))
1) Narrow Range Bottoming Bar (NRB) This bottoming sign is one of my personal favorites. Firstly, the narrow
range nature of the bar makes for the lowest risk possible with this trade. The NRB makes for very tight stops.
Secondly, the markets biggest moves tend to ignite from its smallest bars. Remember this. Tip: Whenever a NRB
forms after a steady 3 to 5 bar Decline, the odds of an explosive rally are greatly increased. iFund Traders would
look to buy the very next time a previous bars high is violated. Stops are placed just below the low of the NRB.
20ma RBR & NRB
3-5 Bar Decline w/ GRB & NRB
GBR & NRB 3-5 Bar Rally w/ RBR & NRB

20ma
Note: The NRB can be any color and still be powerful

2) Narrow Range Topping Bar (NRB) This topping sign is one of my personal favorite. Firstly, the narrow range
nature of the bar makes for the lowest risk possible with this trade
trade. The NRB makes for very tight stops.
stops Secondly,
Secondly the
markets biggest moves tend to ignite from its smallest bars. Remember this. Tip: Whenever a NRB forms after a
steady 3 to 5 bar Rally, the odds of a violent decline are greatly increased. iFund Traders would look to Short the
very next time a previous bars low is violated. Stops are always placed just above the high of the NRB.
Page 150
Narrow Range Bar (NRB)

1) Narrow Range Bottoming Bar (NRB) This bottoming sign is one of my personal favorites.
Firstly, the narrow range nature of the bar makes for the lowest risk possible with this trade. The NRB
makes for very tight stops. Secondly, the markets biggest moves tend to ignite from its smallest
bars. Remember this. Tip:p Whenever a NRB forms after a steady y 3 to 5 bar Decline,, the odds of
an explosive Rally are greatly increased. iFund Traders would look to Buy the very next time a
previous bars high is violated. Stops are always placed just under the low of the NRB.
Stop
3-5 Bar Decline w/ GRB & NRB
Entry
Entry
3-5 Bar Rally w/ RBR & NRB
Stop
Note: The NRB can be any color and still be powerful
2) Narrow Range Topping Bar (NRB) This topping sign is one of my personal favorite. Firstly, the narrow range
nature of the bar makes for the lowest risk possible with this trade
trade. The NRB makes for very tight stops.
stops Secondly,
Secondly the
markets biggest moves tend to ignite from its smallest bars. Remember this. Tip: Whenever a NRB forms after a
steady 3 to 5 bar Rally the odds of a violent Decline are greatly increased. iFund Traders would look to Short the
very next time a previous bars low is violated. Stops are always placed just above the high of the NRB.
Page 151
Velez Market Law #5

NRB
CHAPTER 14
If
If you think education is expensive,
expensive try ignorance
ignorance.
- Unknown
Page 152
Velez Market Law #5

Market Law # 5:
The markets biggest moves ignite from its smallest (tiniest) bars.
1)) Explosive
l i moves almost
l always
l originate
i i from
f narrow range bars.
b
2) The market is a breathing mechanism. It inhales (contracts) and

exhales (expands). When it inhales (contracts) deeply, a major exhale
(expansion) will be the result. Narrow range bars (NRBs) are the sign
of a deep inhale. A major exhale usually is the result.
3) A cluster
l t off smallll bars
b signifies
i ifi the
th calm
l before
b f the
th storm,
t th
the
sleep before the awakening.
4)) The iFund Traders Trader will look to commit more to trades that
involve NRBs. The combination of lower risk and bigger potential
reward warrants it.
Page 153
VSS @ 20ma w/ NRB

Page 154
Bottoming Tail (BT) & Topping Tail (TT)
1) Bottoming Tail (BT) This bottoming sign is one of the most compelling in existence.
Whenever a BT forms after a steady 3 to 5 bar decline, a bottom is almost eminent. iFund
Traders would look to buy if the tail represents 2/3 or more of the bar
barss range and/or the very
next time a previous bars high is violated.
TT makes up
2/3 or more of
20ma
the bars range
3-5 Bar Decline w/ BT
BT makes up 3-5 Bar Rally w/ TT

2/3 or more of 20ma
the bars range
2) Topping Tail (TT) This topping sign is one of the most compelling in existence from the
sell side. Whenever a TT forms after a steady 3 to 5 bar rally, a top is almost eminent. iFund
Traders would look to short if the tail represents 2/3 of the bars range and/or the very next
time a previous bars low is violated.
Page 155
Bottoming Tail (BT) & Topping Tail (TT)
1) Bottoming Tail (BT) This bottoming sign is one of the most compelling in existence.
Whenever a BT forms after a steady 3 to 5 bar decline, a bottom is almost eminent. iFund Traders would look to buy if
the tail represents 2/3 or more of the bars range and/or the very next time a previous bars high is violated.
Alternate Stop
20ma
Stop
p
3-5 Bar Decline w/ BT

Entry
Entry Point
3-5 Bar Rally w/ TT

Stop
20ma
Alternate Stop
2) Topping Tail (TT) This topping sign is one of the most compelling in existence from the sell side. Whenever a TT
forms after a steady 3 to 5 bar rally, a top is almost eminent. iFund Traders would look to short if the tail represents
2/3 of the bars range and/or the very next time a previous bars low is violated.
Page 156
Playing (BT) as a TRIGGER
A B C
Prior bars high

Entry Point
100% or more
Entry Point
2/3 Entry Point
Stop Stop Stop

Examples A and B : When the BT bar is going to be used as a trigger and is somewhere in formation
between the 2/3 retracement up to and including 100% or more retracement, but has not yet cleared the
prior
i bars
b high
hi h th
the rules
l ffor TIME IN FORMATION mustt be b ffollowed.
ll d
Example C : When the BT has cleared a prior bars high the rules for TIME IN FORMATION can be
ignored
Page 157
Playing (TT) as a TRIGGER

A B C
Stop Stop Stop
2/3 Entry Point

100% or more Prior bars
bar s low
Entry Point Entry Point
Examples A and B : When the TT bar is going to be used as a trigger and is somewhere in formation
between the 2/3 retracement up to and including 100% or more retracement, but has not yet cleared the
prior
i bars
b low,
l the
th rules
l for
f TIME IN FORMATION mustt be b ffollowed.
ll d
Example C : When the BT has cleared a prior bars low the rules for TIME IN FORMATION can be
ignored
Page 158
TIME IN FORMATION (TIF)
One Minute There is no early entry for TIF, the bar must be completed
Two Minute There is no early entry for TIF, the bar must be completed
Fi Minute
Five Mi t The
Th bar
b mustt beb 4:52
4 52 or more b
before
f
a TIF entry can be taken
Fifteen Minute - The bar must be 14:30 or more before

Sixty Minute The bar must be 57:00 or more before

Page 159
VBS with BT
The flat 200 ma offers iFund Traders some of the most reliable opportunities in existence. When the 200
ma is flat, its power as support or resistance is unrivaled. Note the BT on the VBS.

Page 160
The Power of the BT

200ma
Prior
i Days Close
l (PDC)
( )
20ma
VSS w/ RBR
4 Red Bars
Bottoming Tail (BT)
This chart demonstrates the power of the bottoming tail (BT), even in the midst of a
strong downtrend. Later in the course, you will come to learn that this set-up is a near
perfect countertrend CLIMATIC DECLINE BUY.
Page 161
The Power of the BT
The Bottoming
g Tail (BT) puts in the final low of the day.
y
WRB
20ma
BT
Notice how the volume comes in after the

switch (from bears to bulls) has been made.
BT
Big Volume
Page 162
Bottoming & Topping Tails

Page 163
7 Buy
y Reversal Signs
g
Plus any of the iFund Traders Bottoming Signs:

Page 164
7 Sell Reversal Signs

g
Plus any of the iFund Traders Topping Signs:

Page 165
7 BUY Reversal Signs

g
BT Bottoming Tail
r20ma
Page 166

g
BT Bottoming
B tt i Tail
T il
r20ma
Page 167

g
GBR Green
G Bar
B Reversal
R l
r20ma
Page 168

g
NBB Narrow
N B
Body
d BBar
r20ma
Page 169

g
NBB Narrow
N B
Body
d BBar
r20ma
Page 170

g
NRB Narrow Range Bar
r20ma
Page 171

g
NRB Narrow
N R
Range B
Bar
r20ma
Page 172
7 SELL Reversal Signs

g
d20ma
d20
TT Topping
opp g Tail
Page 173

g
d20ma
d20
TT Topping
T i Tail
T il
Page 174

g
d20ma
d20
RBR Red Bar Reversal

Page 175

g
d20ma
d20
NBB Narrow Body Bar

Page 176

g
d20ma
d20
NBB Narrow Body Bar

Page 177

g
d20ma
d20

Page 178

g
d20ma
d20

Page 179
iFund Traders
Buy Set-up (VBS)

Page 180
VBS Power Play

y

Page 181
Section IV
The Location Items
CHAPTER 15
Page 182
iFund Traders
Support &
Resistance Points
iFund Traders Quote: There is nothing more important

than your emotional balance. - Jesse Livermore
Page 183
Price Support Types

1) Prior High Support This form of support occurs when a current low (dip) revisits or retests a
prior high/peak. Often, this support point coincides with the 50% retracement level.
Prior High 40
38
37 Low Retests Prior High

36
2) Prior Low Support This form of support occurs when a current low (dip) revisits or retests a
prior low
low. In essence
essence, this is a 100% retracement of the prior rally.
rally
24 24
22
Low Retests Prior Low(s)
iFund Traders Buy Rule #1: Any of the four iFund Traders Bottoming Signs that
occur at or near these support points have very high odds of success. Limit all your
buys to some area of price support.
Page 184
MA Support Types
3) Trending Moving Average Support This form of support occurs when an up trending stock
pulls back to or near the rising 20ma or 8ma and stabilizes (forms one of the four bottoming signs).
Often this support point becomes stronger after the first successful rebound off the r20ma.
Often, r20ma
20ma
20ma Retests
4) Flat Moving Average Support This form of support usually occurs when there is a flat 200ma
beneath the price. It is not often that a stock falling back to a flat 200ma fails to at least stall for a
period of time. The first move to a flat 200ma will usually result in some form of rebound, if only
temporarily.
Flattish 200ma
Fl 200ma
Flat 200 S
Support
iFund Traders Buy Rule #2: Any of the four iFund Traders Bottoming Signs that occur at or
near these MA support points have very high odds of success. Limit your Buys to some form of
MA support.
Page 185
Retracement Support Types

5) 55% Retracement Support This form of support occurs when an up trending stock gives back about
of its recent gain, then stabilizes (forms one of the four bottoming signs). Tip: The 55% Retracement Level
often coincides with Prior High Price Support. When it does, the 50% Support Level is even more
solid. $40
$38
$36
50% Support Level
6) 33% Retracement Support This form of support occurs when an up trending stock mildly
gives
i back
b k only
l 1/3 off it
its recentt gain,
i then
th stabilizes
t bili (forms
(f one off the
th four
f bottoming
b tt i signs).
i ) Tip:
Ti
The 33% Retracement Level, while more minor than its 50% brother, it signifies that there is
very high demand for the shares..
$40
My Personal Favorite 33%

$38
50%
$36
33% Support Level
iFund Traders Buy Rule #3: Any of the four iFund Traders Bottoming Signs that occurs at or near these
Retracement areas have very high odds of success. Limit your Buys to one of them.
Page 186
Specialty Support Types

7) Prior Day Close Support (+PDC) This form of support occurs quite often, as the prior closing price
of a stock is heavily remembered by traders and investors. If and when a stock rises above yesterdays
close, and subsequently Dips back to it intra-day, a bounce of some kind is very likely if it stabilizes
(forms one of the four bottoming signs).
$40
PDC $38
$36
Prior Days Close (PDC)
8) Far Below 20ma Support This form of support is powerful but somewhat subjective
subjective. If a stock gets extended
too far below the 20ma, the odds of a strong rebound become very high. If any one of the four reversal/bottoming
signs occur after a stock has dropped far below its 20ma, iFund Traders look for a sharp Rally. We cover more of
this concept in a future chapter.
20ma
20
Far below 20ma

iFund Traders Buy Rule #4: Any of the four iFund Traders Bottoming Signs that occurs at or near these
locations/areas have very high odds of success. Limit your Buys to one of them.
Page 187
Price Resistance Types

1) Trending Price Resistance This form of resistance occurs when a current high (Rally) revisits
or retests a prior low/dip. Often, this resistance point coincides with the 50% retracement level.
High Retests Prior Low
Prior Low
2) Prior High Resistance This form of support occurs when a current high (Rally) revisits or
retests a prior high. In essence, this is a 100% retracement of the prior Decline
High Retests Prior High(s)
iFund Traders Short Rule #1: Any of the four iFund Traders Topping Signs that
occur at or near these resistance points have very high odds of success. Limit your
Shorts to some form of Price Resistance.
Page 188
MA Resistance Types
3) Trending Moving Average Resistance This form of resistance occurs when a down trending
stock Rallies back to or near the Declining 20ma or 8ma and stabilizes (forms one of the four
topping signs). Often, this resistance point becomes stronger after the first successful Decline off
the d20ma.
20ma Retests
20ma
4) Flat Moving Average Resistance This form of resistance usually occurs when there is a flat
200ma above the price
price. A stock that rises to a flat 200ma will rarely fail to experience some form of
resistance. The first move to a flat 200ma will usually result in some form of price lapse, if only
temporarily.
Flat 200ma Resistance
Flattish 200ma
iFund Traders Short Rule #2: Any of the four iFund Traders Topping Signs that occur
at or near these MA resistance points have very high odds of success. Limit your Shorts to
these MA areas.
Page 189
% Resistance Types
5) 55% Retracement Resistance This form of resistance occurs when a down trending stock
Rallies back about up its recent decline, then stabilizes (forms one of the four topping signs).
Tip: The 55% Retracement Level often coincides with Prior Low Price Resistance. When it
does, the 55% Resistance Level is even more solid.
$40 50% Resistance Level
$38
$36
6) 33% Retracement Resistance This form of resistance occurs when a down trending stock
rallies back to its down trend line and stabilizes.
stabilizes The down trend line often coincides with 20ma
resistance, and like many other forms of resistance, it can coincide with other forms of resistance,
like Prior Low, Moving Average and the 50% level.
$40 33% Resistance Level

50%
$38 33%
$36
iFund Traders Buy Rule #3: Any of the four iFund Traders Topping Signs that occur at
or near these Retracements areas have very high odds of success. Limit your Shorts to
one of them.
Page 190
Specialty Resistance Types

7) Prior Day Close Resistance (-PDC) This form of resistance occurs quite often, as the prior
days closing price of a stock is heavily remembered by traders and investors. If and when a stock
has declined below yesterdays close, and subsequently rallies back to it intra-day, a pullback of
some kind is very likely if it forms one of the four topping signs.
$40 Prior Day Close
PDC $38
$36
8) Far Above 20ma Resistance This form of resistance is powerful but somewhat subjective. If a
stock
t k getst extended
t d d too
t far
f above
b the
th 20ma,
20 the
th odds
dd off a strong
t sett back
b k becomes
b very high.
hi h If any
one of the four reversal/topping signs occurs after a stock has rallied far above its 20ma, iFund
Traders look for a sharp decline. We cover more of this concept in a future chapter.
Far above 20ma
20ma
iFund Traders Sell Rule #4: Any of the four iFund Traders Topping Signs that occurs at or
near these locations/areas have very high odds of success. Limit your Sells to one of them.
Page 191
The Power of Doubles

Page 192
Prior Low Support (PLS)

Page 193

Page 194

( )
iFund Traders Tip:

Page 195
Major
j Price Resistance

Page 196
Prior High
g Resistance ((PHR))

Page 197
Prior High Resistance (PHR)
iFund Traders Tip:

The harder the fall, the
stronger the PHR.

Page 198
Support & Resistance

Page 199
33% Retracement @ 8ma

Page 200
The Prior Days Close (PDC)

Page 201
Prior Days Close (PDC)
iFund Traders Tip:

St k often
Stocks ft fi d major
find j resistance
i t
at or near the PDC if the rally
towards it has been extensive.
The same goes for the PDC
serving as support in reverse.

Page 202
Section
S ti V
Micro Reversal Times
CHAPTER 16
iFund Traders Quote: II am one of the few speculators who has never cared in
which direction a stock is going. I simply go with the line of least resistance.
- Jesse Livermore
Page 203
The Major Reversal Times (RTs)

1) 10:00 ET Reversal Time Individual stocks as well as the market as a whole
tend to react in some form or another around the 10:00 time period. While none
of the RTs should be regarded as too precise, the 10:00 RT is by far one of the
most powerful.
f l If a stockk or the
h market
k advances
d right
i h into
i the
h 10:00
10 00 time
i zone,
iFund Traders should look for some type of reversal or stall. Conversely, a sharp
drop into the 10:00 area should produce some type of rebound or stall.
2) 11:15 ET Reversal Time This marks another major reversal time, as it denotes
the end of the markets first phase and kicks off its second. It is around this time
that the number of active market players dwindles as many start leaving for their
lunch break. We call the second phase of the day, the Mid
Mid-day
day Doldrums. During
this period many stocks begin to go flat and sluggish due to the growing lack of
participation created by the lunch phase. The iFund Traders Trader would look
for major stoppages of up and down trends to occur around this time.
3) 2:15 ET Reversal Time This time marks the end of the Mid-day Doldrums
period and kicks off the start of the markets third and final phase. In some
markets, the third phase is the most lucrative. The directional bias of the day is
often
ft already
l d established,
t bli h d resulting
lti ini truer
t patterns
tt andd trends.
t d It isi aroundd 2:15
2 15
or so that the market will often begin to pick up steam (volume) and volatility.
Stocks and the overall market will also tend to continue the move they began in
phase one if a trending phase is being experienced.
Page 204
The Minor Reversal Times (RTs)
1) 10:30 ET Reversal Time Individual stocks as well as the market as a whole can experience
some form of reaction around the 10:30 time period. Pullbacks to major areas of support that
coincide with this time frame offer nice buy opportunities. The same works in reverse.
2) 12:00 ET Reversal Time This marks another minor time at which stocks can either stall or
reverse. If 11:15 kicks off the start of lunch for some, 12:00 officially begins it for all. All
stocks which have not be affected by the first phase of lunch, will usually begin to go dead at
this time period.
3) 1:30 ET Reversal Time This time marks a period that can occasionally be quite significant.
Every now and then a stock or the market can turn or get kick started around 1:30 ET. It does
nott always
l happen,
h but
b t when
h it does,
d its
it normally
ll significant,
i ifi t whichhi h calls
ll for
f my mention
ti off it.
it
4) 3:00 ET Reversal Time This time denotes when the bond market closes. There are days
during which bonds are the major support for equities. When bonds are stock friendly and the
stock market loses its friend at 3:00, a change
g for the worse can be ignited.
g Conversely,
y there
are days during which bonds are a major nemesis for equities. When bonds, which were
proving to have a bearish effect on stocks, close at 3:00, a turn for the better can material.
5) 3:30 ET Reversal Time This time marks the final boarding call for all who either want to
get
get in
in or get
get out.
out Consider it the last
last call
call for market players
players, or the last chance to make or
remove a significant position. Many stocks, and at times the entire market, can experience
either an abrupt halt, reversal or acceleration of what it was doing before around 3:30 ET.
Page 205
Charts Courtesy of Sterling Software, Inc.

Page 206
Buy Here

Page 207

Page 208
Section
Section VI
VI
Climactic Buys
& Climactic Sells
CHAPTER 17
iFund Traders Quote: II never try to predict or anticipate the market

market. I only
try to react to what the market is telling me by its behavior.
- Jesse Livermore
Page 209
Climactic Decline Buy (CDB)

PATTERN SETUP
1. 5 or more consecutive Lower Highs

g or,, 5 or more Red Bars.
Note: Having both makes the setup more potent.
2. BT, GBR, NRB, or NB (one or more of the four reversal signs) WRB as well
3. Far below 20ma or prior support area (this is a visual concept); Best if far below 8ma
4. Volume Surge (this is not a requirement however)
5. Reversal Time: 10:00; 10:30; 11:15; 12:00; 1:30; 2:15-2:30; 3:00; 3:30
BUY ACTION
Buy .01 above the prior bars high or drop to the next lower time frame. Note: Only
use the next lower time frame if prior bars high is too far away. Keep in mind that
this alternative entry does increase the odds of premature stop outs.
Place a stop .01
01 below the entry bar
barss low
low, or the prior bar
barss low
low.
Set minimum target at 20ma or the 50% Retracement Level.
After 2 bars, place a trailing stop .01 under each prior bars low until
a) Price objective is met; or b) a major RBR has occurred.
NOTE: The first iFund Traders Sell Set-up after

a Climactic Decline possesses low odds.
Page 210

iFund Traders Climactic Decline Buy Set-up This is the pattern that we use to buy within the
context of a down trend. While bucking the trend is normally a recipe of disaster, there are moments
in time when doing so is intelligent. We only allow our traders to buy in a downtrend under very
strict criteria, which are listed below. Note: If you find yourself bucking the trend more than
10% of the time, you are likely doing something wrong.
T3 Area
20ma Target
20ma Target
T2
T1
Alert
Entry
Volume Surge
g Stop
Pattern Set-up Buy Action

Trading Note: The overhead 20ma and/or the most recent area of price resistance becomes the iFund
Traders primary target. While a trailing stop can be used after a two bar lift, many iFund Trained Traders opt
to go for a boom or bust approach with a breakeven stop once they get the two bar lift. The reason for this is
because this tactics success in ultimately getting to the 20ma is very high.
Page 211

Page 212

Page 213
200ma 200ma Resistance
20ma Secondary sell
Initial target is always the 20ma
GBR/NRB are powerful reversal signs
Climactic drops that pull far below the 20 and 200mas tend to result in a violent rebound. Any reversal
sign (BT, GBR, NRB, NB) provides the signal to strike. The 20ma is your first target, but keep in mind
that instituting a trailing stop once the 20ma is met could lead to additional gains.
Page 214
Climatic Advance Sell (CAS)
PATTERN SETUP
1
1. 5 or more consecutive Higher Lows or,or 5 or more Green Bars.
Bars
Note: Having both makes the setup more potent.
2. TT, RBR, NRB, or NB (one or more of the four reversal signs)
3. Far above 20ma or prior resistance area (this is visual)
4. g ((this is not a requirement)
Volume Surge q )
5. Reversal Time: 10:00; 10:30; 11:15; 12:00; 1:30; 2:15-2:30; 3:00; 3:30
ACTION
1. Short .01 below the prior bars low or drop to the next lower time frame.
Note: Only use the next lower time frame if prior bars low is too far away.
Keep in mind that this alternative entry does increase the odds of premature stop outs.
2. Place a stop .01 above the entry bars high, or the prior bars high.
3. Set minimum target at 20ma or the 50% Retracement Level.
4. After 2 bars, place a trailing stop .01 above each prior bars high until
a) Price objective is met; or b) a major GBR has occurred.
NOTE: The first iFund Traders Buy Set-up

Set up after a
Climactic Advance possesses low odds.
Page 215

iFund Traders Climactic Advance Sell Set-up This is the pattern that we use to short within the
context of an uptrend. While bucking the trend is normally a recipe of disaster, there are moments
in time when doing so is intelligent. We only allow our traders to short in an uptrend under very
strict criteria, which are listed below. Note: If you find yourself bucking the trend more than 10% of
the time, you are likely doing something wrong.
Stop
Alert Entry
T1
20ma Target
20ma Target T2
T3 Area
Pattern Set-up Short Action

Trading Note: The below 20ma and/or the most recent area of price support becomes the iFund
Traders primary target. While a trailing stop can be used after a two bar decline, many iFund
Trained Traders opt to go for a boom or bust approach with a breakeven stop once they get the
two bar drop. The reason for this is because this tactics success in ultimately getting to the
20ma is very high.
Page 216
5 or more Green Bars

Far from the 20ma
Far from the 8ma
Biggest bars at the end
Volume surge
Key reversal time
RBR

Page 217
stop
5 or more Green Bars
Far from the 20ma
Far from the 8ma Enter
Biggest bars at the end
Volume surge
Key reversal time
RBR

Page 218
Section VII
The Sideways
Break Strategies
CHAPTER 18
iFund Traders Quote: There are times when your trading money should be
i
inactive.
i In
I the
h market,
k time
i is
i not money time
i is
i time
i and
d money is
i money.
- Jesse Livermore
Page 219
Two Main Breakout Facts
Fact 1:
Breakouts
B k t are amongstt some off
the most ppowerful, pprofitable
plays in existence
Fact 2:
72% of all Breakouts Fail
Page 220
Breakout Question 1
Question 1:
So how can breakouts be so
powerful and profitable if most dont
work?
k?
Answer:
The 28% that do work do so in a
major way. Big Profits!
Page 221
Breakout Question 2
Question 2:
So how can one distinguish between those
breakouts that are likely to fail, versus those
which will likely soar?
Answer:
By the end of this educational session, youll
know which breakouts to buyy and which to by- y
pass.
Page 222
The Traditional Breakout

Traders are
waiting to Buy
Here
iFund Traders Tip:

You need a minimum of three relatively equal
highs and lows to have a true consolidating base.
Page 223

Our Traders Buy Here
Stop Here
Page 224
Stopped
Out Here
Whats the culprit? What went wrong?

Page 225
The iFund Traders Breakout
Our Traders Place a

Stop Here
Page 226
The iFund Traders Breakout

Page 227
iFund Traders Breakout Play

y ((BOP))
PATTERN SETUP
1. The sideways base can occur in an established uptrend or after a downtrend
2. The base should be narrow and thin, not wide and whippy
3. The bars in the base should be small and narrow, no wide range
4. The volume during the base should be light, not heavy
5. The 8ma and/or the 20ma should ideally be rising during the bases formation
BUY ACTION
1. Buy the bar that breaks above the last 2/3s of the base
2. Place a stop .01 below the breakout bar (the entry bars low).
3. Project the length of the base upward for target, if there is no prior reference point.
IMPORTANT POINTS
1. The best breakouts occur at or near the point of contact with the rising 20ma/8ma
2. A iFund Traders buyy Set-upp at the bottom of a base can be an earlyy buy
y opportunity
pp y
for the watchful trader, if the VBS is occurring at or the rising moving average.
3. We play BOPs more on 2- and 5-minute charts when scalping
4. A Pause (Base) VS a Top When a Base Is a Top and not a Pause:
a. Pauses ((bases)) are narrow; Tops
p are wide and whippyppy
b. Pauses (bases) have small bars; Tops have big wide range bars
c. Pauses (bases) have light volume; Tops have big volume
d. Pauses usually dont cross the 20ma by much; Tops cross below it.
Page 228
iFund Traders Breakout Play (BOP)
iFund Traders Breakout Play This buy tactic will be the iFund Traders second most frequently
traded event. On many days, it will be the only pattern traded, as stocks tend to spend the majority
of their intra-day time drifting sideways in bases. Therefore, this is a tactic that must be mastered..
b
Tip Top
a
Buy
Alert Buy
Higher lows
iFund Traders Tip
The second move, after a normal
dip, will often be the biggest one.
Volume Decline
Pattern Set-up
Buy Action
Trading Note: Bases that are tight and narrow with declining volume, rising lows and a rising 8ma and/or
20ma produce the highest odds of exploding to the upside
upside, once they clear the over head resistance.
resistance Keep in
mind that these pauses are not negative, despite the apparent loss of momentum. They simply serve as pit
stops on the way to higher ground. In essence, they give the stock the ability to rest and rejuvenate before
another big advance begins. The iFund Traders Breakout Play is a staple amongst our traders.
Page 229
Breakout Play
y ((BOP))
Dont buy
y above this high
g
B Here
Buy
Buy here
h
Last 2/3s
iFund Traders Main Breakout Rule

Buy the bar the clears the last 2/3s of the base.
Buying the break to a new high is often too late.

Page 230
5-min Breakout Play (BOP)

What should you be getting ready to do right now?
20ma
200ma
A tight sideways pause (time consolidation) into a rising 20ma will tend to blast off right at or near the point of the
contact with the r20ma. If the price were to go beyond the 20ma, and the 20ma were to go flat, the odds increase that
the base is a stage 3, not a pause.
Page 231
Breakout Play
y ((BOP))
Buy
Stop
Page 232
Daily Breakout Play
Buy Here

Page 233
Breakout Play (BOP)
Tip: The best breakouts (BOPs) occur at or near the

point of contact with the rising 20ma. See circle
Buy
Stop

Page 234
Breakout Play (BOP)
iFund Traders BOP Criteria

Page 235
Breakout @ 8ma
Buy Break Here

Page 236
Breakout Play (BOP)
Buy BOP Here
Buy BOP Here
Buy BOP Here
Stop Here

Page 237
Breakout Play (BOP)
iFund Traders Tip: Buy Secondary

Breakouts that Break Here
originate near a key
moving average are
the most reliable
Buy BOP
Here

Page 238
Breakout Play (BOP)
Sell at the start of the next bar
Buy Here
Page 239
Breakout Play (BOP)
Buy Here
Buy Here
Stop Here

Page 240
Breakout Play
y ((BOP))
True Breakouts usually offer the iFund Trader two buy

opportunities:
1- The Initial Break away move
2 The first pullback (VBS)

Page 241
5-min Breakout Play (BOP)
Target
g Area
200
200ma
Buy Here
Buy here
S
20ma
Tight sideways patterns above the 20ma during midday doldrums often
lead to breakouts that run to overhead resistance points, such as the
200ma. Chart Courtesy of Realtick
Page 242
Breakout Play (BOP)
iFund Traders Tip:
Buy Buy VBS

Breakout

Page 243
Breakdown Play (BDP)

PATTERN SETUP
1. The sideways base can form in an established downtrend or after a after an uptrend
2. The base should be narrow and thin, not wide and whippy
3
3. The volume should be light during base,
base not heavy
4. The 20ma and/or 8ma should still be declining.
Note: in the downtrend, this is very important, more so than in an uptrend.
SELL/SHORT ACTION
1. Short the bar that breaks below the last 2/3s of the base.
2. Place stop .01 above the breakdown bar or above the entire base. This is your choice.
3. Project the length of the base downward for target, if there is no prior reference point.
IMPORTANT POINTS
1. The best breakdowns often occur at or near the point of contact with the d20ma
2. A iFund Traders Sell Set-up at the top of a base can be an early short opportunity for the
watchful trader, if the base is wide enough.
3. We play BDPs more on 2 and 5-minute charts when scalping
4. A Pause (Base) VS a Bottom:
a. Pauses (bases) are narrow; Bottoms are wide, whippy and long
b
b. Pauses usually
usually dondontt cross the 20ma by much; Bottoms cross below the
20ma, and eventually become one with the flat 20ma (f20ma)
c. Pauses dont tend to form too far below the 200ma, while Bottoms do.
d. Bottoms often bring the 20ma and the 8ma together to form one MA; Pauses dont.
Page 244
iFund Traders Breakdown Play (BDP)

iFund Traders Breakdown Play This short tactic will be the iFund Traders second most
frequently traded event. On many days, it will be the only pattern traded, as stocks tend to spend the
majority of their intra-day time drifting sideways in bases. Therefore, this is a tactic that must be
mastered. In fact most iFund Traders prefer BDPBDPss over BOP
BOPss
Trading Note: Bases that are tight and narrow with declining volume, declining highs and a declining 20ma,
produce the highest odds of collapsing to the downside
downside, once they clear the support
support. Keep in mind that these
pauses are not Bullish , despite the apparent loss of momentum. They simply serve as rest stops on the
way to lower ground. In essence, they give the stock the ability to relax and rejuvenate before another big
collapse begins. The iFund Traders Breakdown Play is a staple amongst our traders.
Page 245
15-min Breakdown Play (BDP)
Short Here

Page 246
Breakdown Play (BDP)
iFund Traders Tip:

1. Always take breaks at or near
a major moving average Short Here
2. Enter the bar that breaks that
last 2/3s of the base
3. Use either a bar-by-bar or
trailing stop.

Page 247
5-min Breakdown Play (BDP)
200ma
Stop
c) Short
c) Short VSS
VSS
a) Short
S o t BDP
Short BDP
b) Cover
d) Cover
Most breakdowns occur in three parts: 1) The initial break; 2) the first pullback; 3) the secondary break. Our traders
look to take the following actions: a) short the initial break (BDP); b) cover before the first pullback materializes; c)
short the iFund Traders Sell Set-up (SS) at the top of the rally; d) cover on the secondary break.
Page 248
Breakdown Play
y ((BDP))
Sell / Short

Page 249
Breakouts & Breakdowns
Buy Breakout
Short GBI
Buy Breakout
Short Breakdown
RED LINES = Stop Points

Page 250
Section VIII
One Bar Strategies
CHAPTER 19
A long watch list leads to

missed opportunities
Oliver Velez
Page 251
Bull 180 Play (+180)

PATTERN SETUP
1. The current bar must represent a very bearish period. This is to say that most of
the bar
barss range should be red.
red
2. The open must be in the top part of bars range.
3. The close must be in the bottom part of the bars range.
4. The further this bar is away from the 20ma, the better.
IMPORTANT POINTS
1. Works accurately on stocks in all price ranges.
2. Works best as a multi-bar trading tactic and can often result in healthy gains.
3
3. Properly used this tactic can enjoy an incredible accuracy rate.
rate
4. When youve found a Bull 180, know that you have just grabbed the absolute
low for a very long period time, relative to the time period.
BUY ACTION
1. Buy the stock $0.01 above the high of the red bar if and when its violated. Tip:
Some traders may prefer to use the 2/3 or greater rule if prior red bars exist
before the most current one, the TIF rules apply in this situation. If the
current red bar is the only red one, however, the trader must use the 100%
entry method.
2. Place a protective stop $0.01 below the entry bars low. If that is too far away,
use the 2/3 stop loss method. Trail after a two bar lift.
Page 252

A B C
Triggered Entry
100% Entry
2/3 Entry
A) When a Bull 180 clears the prior bars high the entry can be made before the bar is complete and
without regard to the TIF Rules
B&C) When a Bull 180 is forming and is between the 100% and 2/3 retracement of the prior
bars high, the TIF Rules must be followed if an entry is to be made before the bar is complete.
Page 253
Fi Minute
Five Mi t The
Th bar
b mustt beb 4:52
4 52 or more b
before
f


Page 254

Page 255

Page 256

Page 257

Page 258

Page 259
Bear 180 Play (-180)

PATTERN SETUP
1. The current bar must represent a very bullish period. This is to say that most of
the bars range should be green.
2. The open must be in the bottom part of bars range.
3. The close must be in the top part of the bars range.
4. The further this bar is away from the 20ma, the better.
IMPORTANT POINTS
2. Works best as a multi-bar trading tactic and can often result in healthy gains.
3. Properly used this tactic can enjoy an incredible accuracy rate.
4. When youve found a Bear 180, know that you have just grabbed the absolute
top for a very long period time, relative to the time period.
SHORT ACTION
1. Short the stock $0.01 below the low of the green bar if and when its violated.
Tip: Some traders may prefer to use the 2/3 entry rule if prior green bars exist
before the most current one, the TIF rules apply in this situation. If the
current green bar is the only green one, however, the trader must use the
100% entry method.
2. Place a protective stop $0.01 above the entry bars high. If that is too far away,
use the 2/3 stop loss method. Trail after a two bar drop.
Page 260

A B C
2/3 Entry
Triggered Entry 100% Entry
A) When a Bear 180 clears the prior bars low the entry can be made before the bar is complete and
without regard to the TIF Rules
B&C) When a Bear 180 is forming and is between the 100% and 2/3 retracement of the prior
bars high, the TIF Rules must be followed if an entry is to be made before the bar is complete.
Page 261
Fi Minute
Five Mi t The
Th bar
b mustt beb 4:52
4 52 or more b
before
f


Page 262
Bear 180 & Others

Page 263

Page 264

Page 265

Page 266
Red Bar Ignored (RBI)

PATTERN SETUP
1. Bar 1 must be a bullish green bar. This is the bar that dictates the direction of the trade.
2. Bar 2 must be a red bar. The best red bars stay (trade) within the top 1/3 of Bar 1, without
trading above Bar 1s high, but this is not required.
IMPORTANT POINTS
1. This tactic works amazingly on all times frames, but is even more powerful when used on
th 5-min,
the 5 i 2-min
2 i andd 1-min
1 i time
ti frames.
f
3. This tactic has an amazing accuracy rate.
4. This buy tactic helps traders jump on board strong trending stocks already in motion.
BUY ACTION
1. Immediately buy when Bar 3 (or 4) trades $0.01 above the highs of Bar 2 (red bar). Note:
This signifies that the very brief negativity of the red bar was nothing more than a breather
for the stock. When red bars are ignored,
g , explosive
p moves tend to follow.
2. Place your stop $0.01 below the low of your entry bar. Note: This makes this tactic very
low risk, especially when the red bar is of the narrow range variety.
3. Use a trailing stop strategy until
a. Your objective has been met
b. The low of a reversal bar has been violated, or
c. Your incremental sell approach has led to you running out of shares to sell.
Page 267

Page 268

Page 269
Single Red Bars Ignored the very best bar!
Buy

Page 270
RBI Buy
iFund Traders Buy Set-up

Page 271

Page 272

Page 273
Green Bar Ignored

g ((GBI))
PATTERN SETUP
1. Bar 1 must be a bearish red bar. This is the bar that dictates the direction of the trade.
2. Bar 2 must be a ggreen bar. The best ggreen bars stay
y ((trade)) within the bottom 1/3 of
Bar 1, without trading below Bar 1s low, but this is not required.
IMPORTANT POINTS
1. This tactic works amazingly on all times frames, but is even more powerful when
used on the 5-min, 2-min and 1-min time frames.
3. This tactic has an amazing accuracy rate.
4. This short tactic helps traders jump on board strong trending stocks already in motion
and not deli
delivering
ering sellable rallies
rallies.
SHORT ACTION
1. Immediately short when Bar 3 (or 4) trades $0.01 below the lows of Bar 2 (green
bar) Note: This signifies that the very brief bullishness of the green bar was nothing
bar).
more than a breather for the weak stock. When green bars are ignored, explosive
moves to the downside tend to follow.
2. Place your stop $0.01 above the high of your entry bar. Note: This makes this tactic
very low risk, especially when the green bar is of the narrow range variety.
3. Use a trailing stop strategy until
a. Your objective has been met
b. The high of a reversal bar has been violated, or
c. Your incremental cover approach has led to you running out of shares to cover.
Page 274
Green Bar Ignored

g ((GBI))
This short technique is amongst one of the most powerful

in existence and one of the most frequently occurring.
Tip: iFund Traders can make a living with RBIs and

GBIs alone.

Page 275
Green Bar Ignored (GBI)

Page 276

Page 277

Page 278
Section
Section IXIX
Gap Strategies
& How to Profit from Them
CHAPTER 20
What
What the tape says is far more important than why its
it s saying it.
it
- Jesse Livermore
Page 279
iFund Traders GAP Buy Tactics

Short VSS
if bearish
If the iFund Trader has a bullish bias, he would
look to BUY in one of two ways:
1. BUY above the first 5

1 5-minute
minute high;
2. BUY a VBS if the stock dips first
If the iFund Trader has a bearish bias, he would

look to SHORT in on of two ways:
Buyy above
1. SHORT below the first 5-minute low 5-min high
2. SHORT a VSS if the stock rallies first. if bullish
Charts Courtesy of Realtick

Page 280
If the iFund Trader has a bullish bias, he would

look to BUY in one of two ways:
y
1. BUY above the firs 5-minute high.

2. BUY a VBS if the stock dips first
If the iFund Trader has a bearish bias, he would

l k to
look t SHORT ini one off two
t ways:
1. SHORT below the first 5-minute low

2. SHORT a VSS if the stock rallies first.
After a gap up in the morning off prior days close support, the stock pulls back to give a near perfect
VBS right around the 10:00 RT. A long bias causes the iFund Trader to wait for a buy set-up.
Page 281
Buy
Tip: BUY VBS inside the gap
Page 282
iFund Traders Gap Buy Tactic
iFund Traders Tip

If the r20ma is above the 200ma
the iFund Traders can look for buy
opportunities once the stock has
filled a portion of its gap and
formed a VBS.
Page 283
2-minute Gap Buy
2-min Gap BUY

Page 284
Bull Monster Gap Play (+BMG)
SETUP
1. Bar 1 must be a relatively solid red bar. This is the bar that indicates the a
large number of traders have sold already. Note: The smaller the upper and
l
lower tails
il on Bar
B 1 the
h better.
b
2. Bar 2 must open above the high of Bar 1. Note: This signifies that now every
hedge fund, mutual fund, trader and investor who sold short during Bar 1 is
now in negative territory. All shorts are thrown for a loop and a short squeeze
is underway. y
IMPORTANT POINTS
1. This tactic has a high
g accuracy y rate and usuallyy produces
p an upside
p bias for the
stock over the next (3 to 8 days), but will deliver huge losses when it fails.
2. This long tactic is a derivative of the Gap Up Surprise (GUS).
ACTION
1. Buy .01 (one penny) above the high of the first 2 or 5-minute bar. Place your
stop just below the low of the entry bar.
2. Use the Bar-by-Bar Stop Method or use the 8ma or 20ma trailing stop method
on the 2-minute chart to ride part of the trade for all its worth. The 20ma on
the 55-minute
minute chart can be used to the ride the play once the move has matured.
3. If the stock does not trade up at first, but rather immediately trades down, look
for a VBS on the 2 or 5-minute chart to buy before the 10:00 Reversal Time.
Page 285
Bull Monster Gap (+BMG)
BUY break above the 2- or 5-min high here

Page 286
Bear MG
Bull MG
Page 287
RBI
+MG
Major Price Support

Page 288

Page 289

Page 290

Page 291

Page 292
Bear Monster Gap (-BMG)
SETUP
1. Bar 1 must be a relatively solid green bar. This is the bar that indicates the a
large number of traders have bought already. Note: The smaller the upper and
lower tails on Bar 1 the better.
2. Bar 2 must open below the low of Bar 1. Note: This signifies that now every
hedge fund, mutual fund, trader and investor who bought during Bar 1 is now
in negative territory.
territory All longs are thrown for a loop and a shake out is
underway.
IMPORTANT POINTS
1
1. This tactic has a high accuracy rate and usually produces a downside bias for
the stock over the next (3 to 8 days), but will deliver huge losses when it fails.
2. This short/sell tactic is a derivative of the Gap Down Surprise (GDS).
ACTION
1. Short .01 (one penny) below the low of the first 2 or 5-minute bar. Place your
stop just above the high of the entry bar.
2. Use the Bar-by-Bar Stop Method or use the 8ma or 20ma trailing stop method
on the 2-minute chart to ride part of the trade for all its worth. The 20ma on
the
h 5-minute
5 i chart
h can be b usedd to the
h ride
id the
h play
l once the h move has
h matured.d
3. If the stock does not trade down at first, but rather immediately trades up, look
for a VSS on the 2 or 5-minute chart to sell before the 10:00 Reversal Time.
Page 293
Prior bar must be a

solid green bar. The
majority of the bars
range from high to
low must be green.
Short VSS here
The following morning the stock

must open below the entire green bar.
Short break below the 2- or 5-min low here.
Action: Short below the 5-minute low or short the VSS, whichever happens first.
Page 294

Page 295

Page 296

Page 297

Page 298
Section X
Trading Tactics:
Putting It all Together
CHAPTER 21
Trade For Life

a complete guide to trading for a living
iFund Traders, L.L.C.
Page 299
iFund Traders Buy Opportunities
iFund Traders Tip:
Breakout
BUY
The Three BUYS

BUY 1) Breakout Play (BOP)
BUY 2) iFund Traders 55% BUY Set-up (VBS)
BUY 3) iFund Traders Regular BUY Set-up (VBS)

Page 300
Wide Range
g Bar
iFund Traders Tip:

WRBs after 3 or more
up/down bars tend to
markk th
the near end
d off a
move.
Bear Wide Range Bar:
When these happen after an
already extended move down,
you can be rest assured you
are close
l tto the
th bottom.
b tt I start
t t
to bid very aggressively at the
current inside bid/price and
multiple levels below

Page 301
iFund Traders Tactics

Page 302
Reversal Bar Plays
RBI = Red Ignored RBR = Red Bar Reversal

Page 303
Putting It All Together
iFund Traders Tip:

After the first successful
retest of a iFund Traders
moving average, always
assume another will occur.
The circle shows the
successful retest of the 8ma.

Page 304
Putting
g It All Together
g
Bear 180

Page 305
Putting
g It all Together
g
Sell Here
Buy Here
s = Initial stop ts = Trailing Stop

Page 306
Anatomy
y of a Bottom
TTs begin to grow in

size indicating a pick
up in profit taking
Bearish WRB after

after multiple
Red bars put in a low.
Bull WRB confirms the low

Page 307
Anatomy
y of a Bottom
Buy 2
Buy 1: Breakout
Page 308
Micro Trading Tactics

2. Short
Short
1 - BUY above the first 5-minute high, place stop below the days low.
2 SHORT the
th break
b k off a previous
i bars
b low
l aroundd the
th 10:00
10 00 h
hour.
3 BUY the dip, once the stock trades above a previous bars low.
1 Buy
1.
Page 309
2-minute Micro Trading
Intra-Day Buy Criteria

1. r20ma
2.
r20ma>200ma
_________________
_________ Buy
Buy all VBSs & Buy
BOPs
Buy

Page 310
2-minute Micro Trading
Intra-Day Buy Criteria

iFund Traders Tip:
U stops
Use t att red
d lines
li or
use a trailing stop based on
the r20ma
Buy all Dips and BOs
Buy Dip
Buy Breakout

Page 311
15-minute Trading
g
Note: Buying dips after

climactic run-ups is low
odds proposition.
See circle
Buy Breakout Here
Page 312
iFund Traders Tactics

Page 313
iFund Traders
Appendix Section
CHAPTER 22
Page 314
iFund Traders Services:

Supporting Traders
Page 315
Stay
y In Touch

7 Day Master Trader Program - Ifund Traders

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

7 Day Master Trader Program - Ifund Traders

Enviado por

Direitos autorais:

Formatos disponíveis

Page 1

All rights covered

Printed in the United States of America.

Las velas iluminan el camino

iFund Traders Tip: La apertura de un perodo de tiempo determina el punto de partida.

Los toros ganan Los osos ganan

Toros en control absoluto Osos en control absoluto

Manteniendo el control - La regla 2/3

Toros en absoluto control Osos en absoluto control

Toros en control total Osos en control total

Los toros pierden el control Los osos pierden el control

Osos en control permanente Toros en control permanente

Control para Siempre!!

Osos en control para siempre Toros en control para siempre

Toros al control Osos al Control

Los toros todava tienencontrol Los osos todava tienen control

Los toros debilitan el control Los osos debilitan el control

Osos recuperan el control Toros recuperan el control

Totalmente Acabado para Siempre!

Los osos cogen el control Los toros cogen el control

Ley Velez de mercado 1

No estoy seguro de si Sir Isaac Newton alguna vez jug en el mercado,

Ley Velez de mercado #1

Sir Isaac Newton: "Un objeto en movimiento tiende a mantenerse en movimiento".

Diferentes maneras de comunicar la ley:

2) Despus de un slida barra roja, espera que otra continue el 80%

Las 13 Barras (velas)

Las 10 velas de colores

Las 3 velas sin color

Todo verde se perdi

Todo rojo se perdi

dominan toda esta rea

Bottoming Tail (BT)

Los tres grficos

Tres marcos de tiempo de negociacin

El grfico de 5 minutos debe mostrar siempre la s20ma e a s200ma

Trading Tip: iFund Traders buscan compras cuando la r20ma

Cierre del da anterior

iFund Traders buscan compras

Chart Courtesy of iFund Traders

iFund Traders Tip: Compra aqui

Crculos muestran oportunidades de compra bien

Observe que los promedios de 8 y de 20 se utilizan en este grfico,

Los tres marcos de

Los siguientes tres intervalos de tiempo ayudan a los iFund traders a

Tres marcos de tiempo analticos

iFund Traders Tip: Cada da, nuestros traders

Tip: Durante los perodos declinantes en el grfico de 60

Cuanto ms cerca la accin est de la 21ma declinante, ms fuerte el sesgo de baja.

El grfico de 15 minutos debe tener siempre las 20 y

iFund Traders Tip: Traders buscan compras cuando la

iFund Traders deben buscar compras en

Las Tres medias Mviles

Tres medias mviles principales

Las Poderosas 8MA & 20MA

The Daily Chart

El mercado NUNCA ha tenido XITO con una solo barra!

Los crculos muestran cundo los

La potencia de la media de 20ma es evidente

Chart Courtesy of iFund Traders Pro

Ley Velez de mercado 2

El nmero 1 nunca ha sido ni nunca ser un nmero popular para el mercado.

Velez Market Law #2

Different ways to communicate the law: