The Trade Framing Process: Standard Questions for Preparing a Trade By, Ken Long

Ken 2021Trade Framing is our name for constructing a decision-support framework to trade symbols that are in a critical state.

A Critical State is a moment when there is an abnormally large probability of:

            1. A larger-than-normal move,
            2. In either direction with a reasonable probability,
            3. In a Shorter-Than-Normal period of time,
            4. And where the “execution risk” is much smaller than the reasonably available gain, in both directions.

When we find a critical state, we frame the trade in both directions by systematically answering the following standard questions:

For a trade frame:

  • What do you see?
  • What could it do?
  • Which way would you trade?
  • Where would you enter?
  • Where would it fail?
  • Would you stop and reverse?

On a win:

  • Where would it stall?
  • Where would you preserve?
  • Where would it then go?
  • Would you stop and reverse?
  • Where would you re-enter?

In this video, Ken discusses trade framing and the power of Hybrid Trading to find opportunity where other people only see boring, routine price movement on daily charts.

1065 KL Video1 1https://youtu.be/fYrRdEn-0lY

Leave a Comment

Your email address will not be published. Required fields are marked *

Shopping Cart
Scroll to Top