NEXGEN DEMO RULES

All trades that you will do using the Nexgen Software will meet these 4 basic rules 1. Small Trigger Positioning relative to Large triggers- ABOVE = BUYS ONLY BELOW = SELLS ONLY 2.Price Bars at entry must close in proper direction and " HAVE STACKED CONDITIONS TRUE" meaning price bars, small triggers and at least one other indicator all touch the price bar. 3. Small Triggers and Macd BB lines must have an angle that is favoring the trade setup. 4. You must not have any "lines" "indicators" in your way. Successful trades typically move in path of least resistance. In summary, you want MANY indicators protecting your trade from entry price to stop price and few if no indicators in the way between your entry price and your profit target area. MOMENTUM TRADE RULES SHOW SUSTAINED MOMENTUMParallel Small triggers that are WIDE apart. Macd BB dots outside Bollinger Bands for at least 3-4 bars. Bollinger Bands Widening - exception I will allow for tiny loss of momentum for bar or two then trade can happen. IF small triggers lose momentum, if Bollinger bands come together , no trades. STACKED AREA- Combination of price bars ( high to low including tails if present) plus small triggers & one of the following (Fibonacci areas , the Mid Band or Large Triggers). ONE TO SKIP - Many times the first Momentum Trade following a very large move in the opposite direction reverse quickly. These setups are to be avoided with the momentum trade. A normal move in the opposite direction is ok, or the second hit of mid band is ok. ENTRY TIME - Longs on UP bars , Shorts on DOWN bars at close of bar, not before. Small Triggers must be at or cutting through my areas at time of entry. STOPS- placed below or above entry bar ( AND OR indicators ) for maximum protection and minimum risk in your position. TRAILING STOPS- Stops trailed to break even after both small trigger lines pass entry point. Stops can be trailed behinds new bars with "tails" that are inside small triggers. EXITS Profit taken at areas of Fibonacci or Outer Bands. Loss of Momentum Exit - if loss of momentum happens, close beyond small triggers and Macd dots rolling AND no indicator protection available, GET OUT NOW!

TREND CONTINUATION TRADES

FROM AREA- Typically the move in price will originate from an area of Support or Resistance indicators . If you have Divergence (helpful but not needed). When the price bars make a strong move from the "area" with price action pulling away from that area it will create the proper MACD condition for this setup. MACD BB CONDITION MACD BB LINES must make STRONG MOVE followed by a "weak retracement" that does not cross opposite Bollinger band during the retracement. SETUP- Price Bars Small Triggers and an " AREA" must stack up and then you get to next step, Price must close up inside or beyond small triggers with MACD bb lines breaking the Bollinger bands again showing strength and continuation of the trend. STOP PLACEMENT-Optimal stop is behind pivot that was high or low prior to entry. Indicators that "protect" the position should be used if possible. EXITS- Exits at targets or; Divergence in Macd BB lines after double top or bottom , or an immediate failure of your small triggers and Macd bb lines to continue with the trend. TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop or breaking indicators that will help your position.

TREND TRADE
DEFINE TREND 1. Position of small triggers above or below large triggers. 2. Strong trend days. Wait on strong days for large triggers to roll over to change trend. 3. Trend exceptions if small trigger don't pass the mid band or Fibonacci and LT's still strong with direction of trend .. then trend still intact with large triggers. Watch for small triggers clearly on new the correct side of the Large triggers so trend is easily determined. SETUP - Small trigger MUST BE TIGHTLY STACKED with the areas that I wish to trade from , price bars and small triggers " ATTACHED" to the area. ENTRY- Small triggers MUST be rolling and Macd dot rolling ( most of time the color change is a good indication of rolling) to initiate the entry of the trade. Price Bar must close beyond the small triggers by at least 1/2 of a bar. STOP PLACEMENT - INITIAL STOP BEYOND PIVOT DO NOT GET IN AGAINST STRONG MOMENTUM- - if Macd is outside LOWER Bollinger band NO LONGS until it rolls inside. - if Macd is above UPPER bb then NO SHORTS until it rolls inside. DELAY TRADE IF... IF Strong move on Macd and small triggers into the areas , delay the trade until the small triggers roll. MAKE SURE BEFORE TRADE . If Divergence or targets already in place or satisfied prior to the setup NO TRADE. ROOM TO TARGET IS OK ? You must have room to target areas so your risk will be well rewarded. GRACEFUL EXIT if outer Bollinger is not exceeded and bounce from weak retracement on Macd when price closes above the trigger lines. NO exceptions, you can always get back in later. Study the Failure of the trend trades so you can properly control risk. TRAILING STOPS- Wait for pullbacks then new highs or lows to trail stop. EXITS - AT targets... or IF divergence