SWING TRADE PRO

SWING TRADING SETUPS & ENTRY TECHNIQUES

with Frank Ochoa
COURSE AGENDA
PART I: PART II: PART III:
FOUNDATIONAL SWING TRADING TRADE AND RISK
SWING TRADING SETUPS AND ENTRY MANAGEMENT
CONCEPTS TECHNIQUES
Four Market Phases The Importance of Forecasting Accurate
Trade Location Targets
Understanding Value
Pro-Style Entry Scaling and Trailing
Identifying Value Techniques
Techniques
Opportunities
Intraday Entry Defining Trade Risk
Pivot-Based Moving
Techniques 5 Rules of Risk
Averages
Indicator-Based Setups Management
Pivot Range Analysis
Candlestick Setups Proper Position Sizing
Volume-Weighted
Average Price Range-Based Setups Defining Portfolio Risk
IMPORTANCE OF
TRADE LOCATION
THE MARKET IS A MARKET!
While traders often call it “The Market”, many fail to realize that it is
indeed a market. Trading is a game of inches, and every tick counts.
• We’ve become accustomed to
paying “fixed” prices for our goods

• However, the Stock Market is a real

market, without fixed pricing

• Just as you would negotiate price at

a farmer’s market or artisan market,
you should negotiate your pricing in
the Stock Market, as well

• Every tick saved adds up over time,

thereby increasing your profitability
IT’S AN AUCTION!
Negotiate your trade like you’re bidding at an auction. Be picky, bid low
and always try to get the best price possible.

• Novice traders routinely enter a trade and watch price go

immediately against them

• Instead, let price “go against you” before you enter the trade

• Never rush to enter a trade; sitting on your hands is an option

• Bid low, and patiently allow price to come to you

• Pro traders bid low, and aren’t always filled

• But when they are filled, they’re typically great entries

ALL ABOUT LOCATION!
The secret to making more money out of each trade is...
TRADE LOCATION! Make money on the “front end” of the trade.
• Better entries (Trade Location)
means more profit potential

• Better entries means less risk

• Less risk means smaller losses

• Negotiating your entry (with Limit

Orders) eliminates slippage

• Defining your trade location

requires discipline; discipline leads
to profitable trading
NEGOTIATE THE ENTRY

A bullish Outside Day setup develops;

rather than enter at the open of the
next session, place a buy Limit at the
LMT
midpoint of the candle ($32.70)

H: 33.12
L: 32.28
M: 32.70
EXECUTION

Novice
traders
Next day’s Open is $33.19, while our
fill here
entry is $32.70. Made 49 ticks on the
“front end” of the trade (+1.5%)

LMT

Pro traders filled

here: $32.70; 9 ticks
from the low
NEGOTIATE THE ENTRY

Bullish gap from an Accumulation phase;

rather than enter upon a break of the recent LMT
high, place a buy Limit at the midpoint of the
candle ($19.30)

H: 19.50
L: 19.10
M: 19.30
EXECUTION

Instead of entering upon a new high,

we filled at $19.30. Gained 20 ticks
on the trade’s “front end” (+1.0%) Most traders
fill here

LMT

Limit Filled: $19.30;

2 ticks from the low
PRO-STYLE ENTRY
TECHNIQUES
PRO-STYLE ENTRY
TECHNIQUES
Pro-Style entry techniques provide a solid approach to consistently
triggering great entries in any timeframe.

• They force you to be disciplined

• They help create more profit

potential; make money on “front end”

• They reduce slippage and risk

• They provide reliable ways to trigger

entries in any timeframe and any type
of setup or opportunity
PRO-STYLE ENTRY
TECHNIQUES
AMBUSH RETEST THRESHOLD
ENTRY ENTRY ENTRY
Placing a Limit Order at a Placing a Limit Order at a Placing a Stop Market
level where price has yet to level where price recently order beyond a recent high
trade traded or low
1. High risk factor 1. Med risk factor 1. Lower risk factor
2. Triggers upon a Reversal 2. Triggers upon a Reversal 2. Triggers upon a
3. Must have high 3. Forces you to practice Breakout
confidence factor to use discipline and patience 3. Forces you to practice
this entry 4. Set Limit order toward discipline and patience
4. Best used at high the center of the prior 4. Set SM order beyond a
confluence zones, or candlestick or wick recent high/low, or
established supp/resis 5. PivotBoss Preferred beyond supp/resis
THE AMBUSH ENTRY
Pros deploy the Ambush Entry by placing a Limit Order at a level where
price has yet to trade, in anticipation of a reversal.
AMBUSH
ENTRY
Placing a Limit Order at a
level where price has yet to
trade
1. High risk factor
2. Triggers upon a Reversal
3. Must have high
confidence factor to use Set Ambush Limit to buy
this entry at an area of established
4. Best used at high support or confluence
confluence zones, or prior to a price test
established supp/resis
AMBUSH EXAMPLE

Clearly marked areas of support

and resistance make for great
areas to place Ambush Limit orders

LMT
AMBUSH EXAMPLE

LMT

Well-defined support or
resistance levels work best
AMBUSH EXAMPLE

Use the Ambush sparingly;

only use it at an area
of clear significance

LMT

LMT
THE RETEST ENTRY
Pros deploy the Retest Entry by placing a Limit Order at a level where
price has recently traded, in an effort to attain better trade location.
RETEST
ENTRY
Placing a Limit Order at a
level where price recently
traded
1. Med risk factor
2. Triggers upon a Reversal
3. Forces you to practice
discipline and patience Let price test an area of established
4. Set Limit order toward support or confluence, then place a
the center of the prior buy Limit order toward the center of
candlestick or wick the “testing” candlestick or wick
5. PivotBoss Preferred
RETEST EXAMPLE

LMT

Let the signal bar fully develop;

then set retest Buy Limit at the
center of the signal bar
RETEST EXAMPLE

There’s no magic formula or secret recipe;

the point is to always try to attain better
trade location, even if it’s by a few ticks

LMT

You can also set the retest Buy Limit

at the midway point of the prior wick
THE THRESHOLD ENTRY
Pros deploy the Threshold Entry by placing a Stop Market Order just
beyond a prior high or low, in order to capture a breakout entry.
THRESHOLD
ENTRY
Placing a Stop Market
order beyond a recent high
or low
1. Lower risk factor
2. Triggers upon a
Breakout
3. Forces you to practice
discipline and patience Place a Stop Market buy order
4. Set SM order beyond a a few ticks past the recent high or low
recent high/low, or
beyond supp/resis
THRESHOLD EXAMPLE

Threshold entry allows for a more

“confirmed” entry, while allowing
you to control your price

SM

This is a solid entry approach

that I usually deploy if I’ve missed
a better entry via a failed Ambush
or Retest entry attempt
THRESHOLD EXAMPLE

SM

In addition to breakout entries, the

Threshold can also be used for
“confirmed” reversal entries
INTRADAY ENTRY
TECHNIQUES
Intraday entry techniques provide a systematic approach to entering
trades, regardless of which timeframe the setup originates.
• Allow for additional confirmation;
provide one last “step” before entry

• Can be used when an opportunity

exists, but direction remains unknown

• Provide a structured approach to

entering trades; consistency

• Can also be used as intraday

“setups”; setup within a setup
INTRADAY ENTRY
TECHNIQUES
Opening Range Opening Range Value Area
BREAKOUT Reversal Reversal
Placing a Stop Market Placing a Limit Order at Placing a Limit Order order
Order beyond the 30-min the 30-min OR low (to within the Value Area for a
OR high (buy) or low (sell) buy) or high (to sell) reversal entry
1. Lower risk factor 1. Med risk factor 1. Med risk factor
2. Triggers upon a 2. Triggers upon a Reversal 2. Triggers upon a Reversal
Breakout 3. Trickier entry, but 3. Trickier entry, but helps
3. Regarded as “safe”; creates more profit create more profit
confirmed entry potential potential
4. 30-min Opening Range 4. 30-min Opening Range 4. Must be Higher/Lower
is standard, but 15-min is standard, but 15-min Value relationship;
and 60-min also used and 60-min also used triggers inside the range
OR BREAKOUT ENTRY
Pros use the OR Breakout entry to time intraday entries for higher
timeframe trading opportunities.
Opening Range
BREAKOUT Set a Stop Market order to
buy just beyond the 30-min
Placing a Stop Market Opening Range high
Order beyond the 30-min
OR high (buy) or low (sell)
1. Lower risk factor
2. Triggers upon a 30-min
Breakout OR
3. Regarded as “safe”;
confirmed entry
4. 30-min Opening Range
is standard, but 15-min
and 60-min also used
OR BREAKOUT EXAMPLE

Once you’ve found a higher

timeframe setup that you’re ready
to trade, drop down to an intraday
timeframe for an entry...

Inside Day
OR BREAKOUT EXAMPLE

Once the 30-min Opening Range

has developed, use a Threshold
entry to trigger a Long position
upon a crossing of the 30-min High
SM

30-min OR

Inside Day
OR BREAKOUT EXAMPLE

Another setup looks enticing,

but direction remains up in the air;
jump into an intraday timeframe for entry

Inside Day
OR BREAKOUT EXAMPLE

Inside Day The 30-min OR helps

confirm directional
conviction and allows
for a confirmed entry

*Caution: avoid this SM

entry if the 30-min
OR is too wide
OR BREAKOUT ENTRIES

1. Use a Stop Market order

Can use a Retest after 2. Require close below OR
a close below OR

Retest
SM
Can place an Ambush
Limit back at OR low
Can require
a close below OR

3. Require close below OR, then use a Retest entry (Preferred)

4. Use Ambush at OR low after confirmed break (Preferred)
OR REVERSAL ENTRY
Pros use the OR Reversal entry to time intraday entries for higher
timeframe trading opportunities, which offers better trade location.
Opening Range
Reversal
Placing a Limit Order at
the 30-min OR low (to
buy) or high (to sell) 30-min
OR
1. Med risk factor
2. Triggers upon a Reversal
3. Trickier entry, but
creates more profit
potential
Set a Limit order to buy
4. 30-min Opening Range
upon a reversal of the
is standard, but 15-min
30-min Opening Range low
and 60-min also used
OR REVERSAL EXAMPLE

Price gaps up and begins a potential

transition from Accumulation phase
to Markup phase; drop to lower
timeframe for entry

Gap Play
OR REVERSAL EXAMPLE

The OR Reversal can be

difficult to trigger, and
often requires patience
and quick thinking, as you LMT
never know if an OR Gap
Reversal opp will occur. Enter upon a reversal
Integrity from the 30-min low

Only use the OR Reversal

entry when there is solid
directional conviction
OR REVERSAL ENTRIES

Couple any of the 3 Pro-Style entry

techniques with the OR Reversal

Threshold
Retest
Ambush
VA REVERSAL ENTRY
Pros use the VA Reversal entry to time intraday entries for higher
timeframe trading opportunities, which offers better trade location.
Value Area Pivot Range must be completely higher,
and prior day’s close and current day’s open
Reversal must be above current day’s Pivot Range
Placing a Limit Order order
within the Value Area for a
reversal entry
1. Med risk factor
2. Triggers upon a Reversal
3. Trickier entry, but helps
create more profit
potential
4. Must be Higher/Lower Allow price to test the
Value relationship; day’s Value Area, then use
triggers inside the range a Retest entry trigger
VA REVERSAL RULES

Ideal Rules for Entry:

1. Current pivot range is
completely above prior day’s
2. Prior day’s close is above
next day’s pivot range 3
3. Current day’s open is
above the pivot range 2 4
4. Use any Pro-style entry

1
VALUE AREA REVERSAL
STRUCTURE
The goal is to enter anywhere
within the value area during a
retest of the prior day’s range

Buy the Dips

The shaded areas show

when the market is
retesting the prior day’s
price range before new
price discovery occurs
VALUE AREA REVERSAL
STRUCTURE
Visualize the intraday movement
within a daily bar structure

Your goal is to buy

within the “wick” of the
upcoming day
VA REVERSAL EXAMPLE

Daily Bar overlay

Intraday
Inside Value
setup

Get great trade location

by triggering entries
within the pivot range
VA REVERSAL EXAMPLE

After direction is confirmed,

use a VA Reversal entry to get *
great trade location

Inside Day
w/breakout

* The goal is to enter Short upon

the wick of the upcoming candlestick
VA REVERSAL EXAMPLE

The goal is to enter anywhere

within the value area
Lower Value

The Pivot Range visually represents value in the

chart; triggering within this zone offers great
trade location during a trending market
SWING TRADING SETUPS
SWING TRADING SETUPS

INDICATOR- CANDLESTICK RANGE-BASED

BASED SETUPS SETUPS SETUPS
Indicator-based setups that Two-day price patterns Price-based setups that
help identify pull-back and that help identify short- identify range expansion
breakout opportunities term trading opportunities and contraction
1. PEMA Pull-Back 1. Inside Day 1. N-Bar Narrow Range
2. VWAP Pull-Back 2. Outside Day 2. N-Bar Wide Range
3. Inside Value 3. Open Gap Play
4. Higher/Lower Value
INDICATOR-BASED SETUPS
INDICATOR-BASED SETUPS
These Indicator-Based setups are designed to keep you disciplined to
the trend, while remaining focused on value opportunities.
PEMA INSIDE
PULL-BACK VALUE
Finds value opportunities Finds markets ready to
during the Markup and break out from periods of
Markdown phases Accumulation/Distribution

VWAP HIGHER/Lower
PULL-BACK VALUE
Finds value opportunities Finds value opportunities
during the Markup and during the Markup and
Markdown phases Markdown phases
PEMA PULL-BACK
The PEMA Pull-Back setup is used to identify value opportunities during
trending markets using pivot-based moving averages.
Buy and Sell pull-backs only within
PEMA established Markup or Markdown phases
PULL-BACK L: 13/34/55
M: 13/21/34
Finds value opportunities H: 8/13/21
during the Markup and
Markdown phases
1. Value opportunity setup
2. Trend-confirmed setup e
Zon
3. Only trade when moving r
i gge
averages are “stacked Tr
13
and sloped” Can use all entry types:
4. Trade during Markup 34 OR Breakout, OR/VA Reversal,
and Markdown phases 55 Ambush, Retest, or Threshold
PEMA PB EXAMPLE

The “safest” way to get great trade location

is to allow price to test your trigger zone
before placing an entry; a successful test is
the “all clear” to negotiate your entry

LMT

Place a Retest entry at

the center of this wick
PEMA PB EXAMPLE

A reversal candlestick
that forms after a test
indicates the market will
likely defend that level

LMT

Place a Retest entry at

the center of this wick
PEMA PB EXAMPLE

A big test and reversal in

the trigger zone gives you
a great reference point for
a Retest entry

LMT
LMT

The center of this wick provides

a great area for a Retest entry
PEMA PB EXAMPLE

Even if you miss a

“perfect” entry, you
can still participate
in the move using a
Pro-style entry

Start with an aggressive Ambush or Retest

entry location...force the market to fill you;
even if you are not filled, you can always move
your entry lower or use a Threshold entry
VWAP PULL-BACK
The VWAP Pull-Back setup is used to identify value opportunities during
trending markets using Volume-Weighted Average Price.
Buy and Sell pull-backs only within
VWAP established Markup or Markdown phases

PULL-BACK
Finds value opportunities
during the Markup and
Markdown phases
o ne
1. Value opportunity setup gerZ
Tr i g
2. Trend-confirmed setup
3. Only trade when VWAP
is moving higher/lower
Use the Retest or Ambush
4. Trade during Markup
VWAP entry techniques as close to
and Markdown phases
VWAP as possible (or lower)
VWAP PB EXAMPLE

A healthy advance usually precedes a

pull-back opportunity; this allows traders
that missed the train to join the ride LMT

Enter on the 3rd

bar after the gap
by placing a
Retest entry at
the center of the
prior candlestick.
VWAP PB EXAMPLE

You don’t have to be a hero placing

Ambush entries; instead, allow price
to test your trigger level, then place
an entry using the “test” info

LMT

Best case scenario: a reversal

candlestick forms after testing
VWAP; place your Retest entry at
the center of the wick
VWAP PB EXAMPLE

Another reversal candlestick

develops at VWAP, giving us
another opportunity at great
trade location
LMT

Place your Retest

entry at the center
of this wick; move
Retest Limit higher if
you are not filled
VWAP PB EXAMPLE
Place an Ambush entry here; or place a
Retest entry at the center of the candle
to be filled the next day
LMT
SM

You must very VERY confident when using

Ambush entries; they must be used during
established trends or at areas of significant
support/resistance or confluence
VWAP PB EXAMPLE

A bullish reversal candlestick

at VWAP during a Markup
phase can offer great rewards

LMT

Allow the first candle

to fully develop, then
place a Retest entry at
the center of the wick
for the following day
INSIDE VALUE
The Inside Value setup is the most explosive value area relationship, as
it identifies markets ready to break out from periods of Accum/Dist.
Inside Value must occur as a result of Accum or
INSIDE Distribution; and breakout should occur swiftly
or via a breakaway gap
VALUE
Identifies potential
breakouts from periods of
Accumulation/Distribution VA is
narrow
1. Momentum setup
2. Develops due to Range
Contraction
3. Only trade when price
has broken out of a Can use all entry types:
phase of Accumulation/ OR Breakout, OR/VA Reversal,
Distribution Ambush, Retest, or Threshold
INSIDE VALUE EXAMPLE

Ideally, you’ll want a gap to

spark the breakout from an
Inside Value setup

LMT
Use an OR entry on the day
of the gap, or use a Retest
entry the next day
INSIDE VALUE EXAMPLE

Not a very bullish candle after the

gap, so use the Threshold entry for
a more “confirmed” entry

SM
INSIDE VALUE EXAMPLE

The best Inside Value setups occur as a

result of compression/contraction; then
look for a breakout from the range

SM

Inside Day breakout; use OR

B/R or a Threshold entry
HIGHER/LOWER VALUE
The Higher and Lower Value setups help identify value opportunities
during the Markup and Markdown phases.

HIGHER/Lower Pivot Range must be completely higher,

and prior month’s close and current month’s
VALUE open must be above current month’s Pivot Range

Finds value opportunities

during the Markup and
Markdown phases
1. Value opportunity setup
2. Trend confirmed setup
3. Current PR must be
completely higher or Allow price to test the
lower than prior month’s Value Area, then use a
4. Trade during Markup Retest entry trigger or
and Markdown phases intraday entry technique
HIGHER VALUE EXAMPLE

Ideal Rules for Entry:

1. Current PR is completely above prior PR
2. Prior month’s C is above next month’s PR
3. Current month’s Open is above the PR
4. Use any Pro-style entry
3

2
LMT
1
4 Use a Retest entry after the “test” bar
HIGHER VALUE ENTRIES

There are many ways to enter a trade; use the

entry that provides the best trade location and
makes the most sense for the scenario

SM

OR B/R
SM

SM
LMT
LOWER VALUE EXAMPLE

LMT

LMT

Always try to get the best trade

location, even if it costs you an entry
CANDLESTICK SETUPS
CANDLESTICK SETUPS
Candlestick Setups are simple and effective at helping you identify
potential opportunities, but must be used at the appropriate times.

INSIDE DAY OUTSIDE DAY GAP PLAY

Signals a potential Signals a potential Signals a potential
breakout opportunity reversal opportunity breakout opportunity
1. Breakout setup 1. Reversal setup 1. Breakout setup
2. 2-bar pattern; develops 2. 2-bar pattern; develops 2. Develops best when
when current price when current price gaps occur outside prior
range is inside prior range engulfs prior day’s price range/compression
day’s price range price range 3. Pattern signals a major
3. Breakouts from this 3. Pattern signals a major breakout opportunity,
pattern can signal big reversal opportunity, especially when coupled
momentum moves of 3 especially when coupled with increased volume
to 5 days with a big price range and when price
and increased volume maintains gap integrity
INSIDE DAY SETUP
The Inside Day setup develops when the current day’s price range falls
within the price range of the prior day, which can lead to big breakouts.

INSIDE DAY The Inside Day candlestick pattern works

best if the setup forms during a Markup
Signals a potential or Markdown phase; not within congestion
breakout opportunity
1. Breakout setup
2. 2-bar pattern; develops
when current price
range is inside prior
day’s price range
3. Breakouts from this
pattern can signal big
Set a Stop Market order
momentum moves of 3
to buy just above the one
to 5 days
or two day high
INSIDE DAY W/PEMA PB

Candlestick setups should be paired with

another established technical pattern or
setup; this Inside Day developed at the
Trigger Zone of the PEMAs
Use OR Entry
due to gap
INSIDE DAY OR ENTRY

An Inside Day setup can trigger an

explosive breakout; using an OR Entry
is usually the best approach
SM LMT
INSIDE DAY EXAMPLE

Due to swift breakouts that Inside Day

setups can cause, you must be ready
with a Threshold or OR entry

SM

Since price
opened inside the
setup’s range, use
a Threshold entry
INSIDE DAY EXAMPLE

Where a setup develops can tell a lot

about its potential success rate.

Within a congestion is
not the best placement
for the setup

Better
placement
OUTSIDE DAY SETUP
The Outside Day setup develops when the current day’s price range
engulfs the prior day’s price range, which signals an impending reversal.
The Outside Day candlestick must
OUTSIDE DAY have a lower low than the prior day
and must close above the prior day high
Signals a potential
reversal opportunity
1. Reversal setup
2. 2-bar pattern; develops
when current price
range engulfs prior day’s
price range
3. Pattern signals a major
reversal opportunity,
especially when coupled
with a big price range Use the Threshold
and increased volume or Retest entry techniques
OUTSIDE DAY EXAMPLE

Candlestick At resistance;
setups are all not as good
about context
and placement

At support; good
OUTSIDE DAY EXAMPLE

Pairing this setup with another established

technical pattern is a good idea; this Outside Day
developed at the Trigger Zone of the PEMAs

Use OR Entry
due to gap
OUTSIDE DAY EXAMPLE

Outside Day forms at PR

during Markdown phase

Use OR or
Value entry
THE GAP PLAY
The Gap Play looks to profit from momentum opportunities that occur
when price gaps out of a phase of Accumulation or Distribution.

GAP PLAY Can use all entry types:

OR Breakout, OR/VA Reversal,
Signals a potential Ambush, Retest, or Threshold
breakout opportunity
1. Breakout setup
2. Develops best when
gaps occur outside prior Accum
price range/compression or Distr
3. Pattern signals a major
breakout opportunity,
especially when coupled
with increased volume
Gap should occur out of a phase of compression,
and when price
and must maintain gap integrity
maintains gap integrity
GAP PLAY EXAMPLE

Preferably, you want your Gap Plays

to break out from a period of
Accumulation or Distribution

LMT

A full-bodied candlestick
after the gap is one of the
best case scenarios
GAP PLAY BULL
ENTRY SCENARIOS
SM BEST ENTRY
LMT LMT SCENARIOS

WORST ENTRY
SCENARIOS
GAP PLAY EXAMPLE

Another best case scenario is for

the open of the gap to be outside
the prior price range

LMT
An open
outside the
Accum phase
is very bullish
GAP PLAY EXAMPLE

If price gaps beyond your Retest or

Threshold entries, or if you want to
enter on the gap bar, use an OR entry

An OR breakout
or reversal entry
can be used
GAP PLAY EXAMPLE

Potential OR
Breakout entry

LMT LMT

Potential OR
15-min bar Reversal entry
opening entries

Getting in on the first day of the

gap can be rewarding, but you
must choose between an OR
entry or a 15-min Retest
GAP PLAY EXAMPLE

A breakout from a clearly established

Accumulation phase can trigger
months of Markup movement

This entry can net you swing

profits, and also become a
longer term winner
RANGE-BASED SETUPS
RANGE-BASED SETUPS
Range-Based setups provide a price-based method for determining
when to expect range expansion or contraction in the days ahead.

RANGE CONTRACTION RANGE EXPANSION

EXPECTED EXPECTED
1. 3-Bar Wide Range 1. 3-Bar Narrow Range
3BWR (10) 3BNR (10)
3BWR (20) 3BNR (20)
2. 5-Bar Wide Range 2. 5-Bar Narrow Range
5BWR (10) 5BNR (10)
5BWR (20) 5BNR (20)
N-BAR WIDE RANGE
The N-BWR pattern develops when the current n-day range is the
widest of the last x-periods, which tends to lead to range contraction.

N-BWR The N-Bar Wide Range setup helps identify

periods when the upcoming price range may
Signals potential range yield a drastically smaller range than average
contraction ahead
1. Predicts contraction
2. Traditionally a 3- or 5-
bar pattern
3. The pattern develops
when the current n-bar
range is the widest of
the last 10 or 20
periods
4. Can forecast a huge
reduction in price range Best used for price forecasting
N-BAR WIDE RANGE
The N-Bar Wide Range price pattern develops when the current n-day
range is the widest of the last 10 or 20 periods, which generally leads
to a phase of range contraction.

• Toby Crabel price pattern 3DR 1: 45.00

3DR 2: 45.00
• Unusually wide range 3DR 3: 30.75 This 3BWR10
leads to price contraction 3DR 4: 35.00 helped forecast
range contraction of
3DR 5: 42.25
50% over the next 3
• Up to 40% decrease in 3DR 6: 32.50 days in the E-Mini
price range during the 3DR 7: 29.75 S&P 500 (a drop of
test period 3DR 8: 39.50 25.25 points).
3DR 9: 38.00
• Success rate of up to 78%
3DR 10: 50.75
3-BWR

High range MDRs lead to low range

MDRs. Either avoid trading, or trade with
vastly closer targets.

3BWR10
(50.75) Result:
25.25 (-50%)
5-BWR

A 5BWR signal is the “heads

up” to avoid trading in the
upcoming period

Result

5BWR10
N-BAR NARROW RANGE
The N-BNR pattern develops when the current n-day range is the
most narrow of the last x-periods, which can lead to range expansion.

N-BNR The N-Bar Narrow Range setup

Signals potential range helps identify when price may be
expansion ahead ready to see range expansion
1. Predicts breakouts
2. Traditionally a 3- or 5-
bar pattern
3. The pattern develops
when the current n-bar
range is the most
narrow of the last 10 or
20 periods
4. Can forecast huge price Usually a breakout signal;
swings compared to use an OR Breakout/Reversal entry
average
N-BAR NARROW RANGE
The N-Bar Narrow Range price pattern is identified when the current
n-day range is the smallest of the last 10 or 20 days.

• Toby Crabel price pattern 3DR 1: 37.75

3DR 2: 30.25
• Unusually narrow range 3DR 3: 46.50 This 3BNR10
leads to price expansion 3DR 4: 50.00 helped forecast
range expansion of
3DR 5: 43.50
• Up to 74% increase in 115% over the next
3DR 6: 39.25 3 days in the E-Mini
price range during test 3DR 7: 39.25 S&P 500 (move of
period
3DR 8: 32.50 60.75 points).
• Success rate up to 92%
3DR 9: 35.75
3DR 10: 28.25
3-BNR

Low range MDRs lead to high

range MDRs. These are the money-
makers; look to participate in the
expanded price activity.

SM

3BNR10 Result:
(25.25) 55.50
(+120%)
5-BNR

Since the N-BNR setup is a

breakout setup, you’ll need to use a
Threshold or OR entry technique

SM

It’s best if this

setup doesn’t
form too often
5-BNR

SM

The setup forms during a Markdown

phase, helping you anticipate the next
wave of weakness/expansion
RANGE-BASED
STATISTICS
E-Mini S&P 500 (5/10/11 - 7/10/12)
Total % Avg. Avg. % %
3DR # Triggers # Hits % Hits
Days Triggers 3DR NR/WR Change Change
3BNR(10) 289 36 12.5% 40.73 26.85 34.1% 33 91.7% 73.7%

3BNR(20) 279 19 6.8% 35.83 22.82 36.3% 17 89.5% 73.3%

3BWR(10) 289 41 14.2% 42.48 57.86 36.2% 30 73.2% 35.5%

3BWR(20) 279 18 6.5% 47.75 69.19 44.9% 14 77.8% 40.5%

Total % Avg. Avg. % %
5DR Days
# Triggers
Triggers 5DR NR/WR Change
# Hits % Hits
Change
5BNR(10) 287 38 13.2% 55.72 41.73 25.1% 27 71.1% 53.1%

5BNR(20) 277 17 6.1% 52.09 36.16 30.6% 15 88.2% 59.7%

5BWR(10) 287 53 18.5% 61.21 77.08 25.9% 40 75.5% 37.3%

5BWR(20) 277 31 11.2% 64.03 82.94 29.5% 20 64.5% 39.0%

FINAL THOUGHTS
Discipline, patience, and technique are the most important aspects
of triggering successful entries.

• It’s all about Trade Location; remain

disciplined in requiring a great entry

• Know the types of Pro-Style entries,

and when to deploy them

• The setup doesn’t make the money;

knowing when to use it does

• Practice leads to confidence;

confidence is gained through
experience
 SWING TRADE PRO
SWING TRADING SETUPS & ENTRY TECHNIQUES
with Frank Ochoa