Advanced Chart Lesson: Emini S&P Jan 17 to Jan 31, 2014 Waterfall Formation (Part 1)

By Lawrence


Half of the battle in trading successfully is developing good trading habit. What happened to Emini S&P during Jan 17 to Jan 31, 2013 is an excellent case study on what proper chart reading can do for you.

Chart readers often find it difficult to find good trading opportunities as they fail to utilize their chart reading skills properly. This lesson focuses on the proper application of anticipation based on pure chart patterns with confirmed entry.

Lesson Requirement

  • familiar with basic chart patterns
  • know the basics of the complex patterns
  • know the multiple timeframe principles

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  • mel February 1, 2014 at 11:12 pm

    This is just great ! LC Can you also explain chart management if there is such a thing… I always finds that the various scenarios may unfold, sometimes at certain juncture these are still valid due to possibilities of FBO so when do we really throw out that few few scenarios or patterns – why I ask this is that the chart can be so cluttered making it difficult to see…

    • Lawrence Chan February 2, 2014 at 10:28 am

      On daily basis, you should have done the homework on the weekly and daily before engaging in real-time so that you know the key price levels that will affect the current scenario, and what they will change into. You should have a road map for the day in your head or written down depending on your proficiencies in remembering these things.

      The FBO issue is separate and not related to this lesson. In short, FBO is part of normal price actions. Read the part on FBO again to remind yourself what is considered as confirmed BO – by close of the highest timeframe where the price level is relevant. If you have taken that into consideration your scenario analysis will tell you if you should keep the possibilities open or not.

      • mel February 3, 2014 at 5:03 am

        Thanks, re-read the topic on FBO, it clarifies the whole thing, you gave me the inspiration, shorted N225 this morning when the chart showed me signals, reaped OR 100% expansion…. builds up my confidence…. need more mojo LC !

  • Minty415 February 2, 2014 at 4:52 pm

    Thanks for this great write-up LC. It gives us a sense of what you visualize from day to day with a practical approach to entry/exits at key levels.

  • ultramarine February 3, 2014 at 4:45 am

    Thanks LC – a very useful lesson.

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