Dean Storholt

(On Exits)

I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk.

I am not subject to trading restrictions. Myself and other instructors could have a position in a security or initiate a position in a security at any time.

KILLER EXITSTo get the killer exits, we need to do the opposite of what we did on the entry.

Plan the trade!Are we trading band to band?

If so, Will the opposite band will be where we start looking for the exit?

ANTICIPATION!

Be ready for direction changesLook for reversal patterns

KILLER EXITSTrading rules:

2. AVOID calls at the top band3. Avoid puts at the bottom band

Do the opposite when getting outWhat do I mean?

2. Avoid selling puts at the top band3. Avoid selling calls at the bottom band

Why?

KILLER EXITS2. Avoid selling puts at the top band

Based on going band to bandIf at the top band where is it likely to go?See what it does at the moving average

3. Avoid selling calls at the bottom bandIf at the bottom band, where is it likely to go?Again, monitor the moving average

Watch for the hook in the Bollinger band at the M/A

KILLER ENTRIES - ReviewANTICIPATION!

Be ready for direction changes

TWEEZERS TWEEZERS TWEEZERSBollinger BandsBreak inside the bandStacking indicators – mostly day count

Gaps – Defending the gap

Stacking IndicatorsDay count / candle countOld levels of horizontal support/resistance

Can include round numbers Retirement pattern at a moving averageBollinger Band Squeeze/BreakoutDouble tops/bottomsOld levels of horizontal support/resistance

Can include round numbers

Ascending wicks / decending wicks

KILLEREXITS

EXIT 1 – The stop out

Easiest exit for me

The reason for the entry is the reason for the exit

If it breaks below our killer entry, we stop out

Simple Right??????

Analyze – Stop out or Add?

Trading Rules (review)2. Check the angle of the bands (and moving avgs)

Horizontal bands are strongerAngled bands are slipperier

Horizontal moving averages are weakerAngled moving averages are stronger

EXIT 2 – Failure at the MABe Mindful of the band angle

When we approach a relevant MA, Look for?Hook, no hook?

How do we know which MA is relevant?

20 SIMPLE moving average

If we fail at the MA, tighten stop or GET OUT!

EXIT 3 – Break down THRU a MAAs our move progresses (from band to band)

We go from moving average to moving average

Once we clear a MA, it becomes our stop

A failure at the next one and a break below triggers our stop

Killer Entry

See SawOutside BandCandle Count200 emaStochasticsBreak inside band

Killer Entry

See SawOutside BandCandle Count200 emaStochasticsBreak inside band

Killer Entry

See SawOutside BandCandle Count200 emaStochasticsBreak inside band

EXIT 4 – Failure at the opposite bandAs we approach the opposite band

Look for reversal signalsTweezersGap up/down, defend the gap

Blow off move

EXIT 4 – Failure at the opposite bandAs we approach the opposite band

What MIGHT keep us in the trade?

See Saw?Break Outside the Band?Hook?

Bollinger Band bottom/top

Killer Exit

Band to BandDay CountTweezerDescending WickStohastics50 EMA

6 indicators to enter6 to get out?

EXIT 5 – Break back inside bandOutside the Band

How many candles?

If it’s a great entry – it’s a great exit

The move from outside of a band to inside of a bandcan often be an EXCELLENT entry for a trade in the opposite direction!!!

With angled bands, the distance to the moving average is the determining factor in whether or not to take the trade

Is the distance worth playing?

Watch for the hook!

FIRST CANDLE IN - review

Triple tweezerDay countSee saw countInside yet?

Inside Band

5 min chart

I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk.

I am not subject to trading restrictions. Myself and other instructors could have a position in a security or initiate a position in a security at any time.