26/02/2026
Rules for trading
Hello Traders �
Trading concepts are great, but not when they don't have a clear set of rules.��When you are guessing at the entry, the stop and the target because of a "concept", you are destined to fail... like most traders do. ��What you need isn't just good concepts, you need a strict set of rules to trade them profitably.
�great trades don't come along every day, but there are rules in place to capture them when they do.
When you have rules, there is no doubt.
• You know exactly what the signal is.
• You know where the perfect stop loss is.
�• You know the exact entry point.
�• You maximize your gain and minimize the potential loss.
Take the trade when you have a minimum of 3 valid reasons
Trend
OBOS
Volume
Momentum
�• And when you are in the trade, you know exactly how to move the stop loss to reduce the risk.��No guessing at any of it.�No unnecessary losses.�No random stop loss.��We use the HTF to find the perfect setup.
�We switch to the TTF for find the perfect entry.
�High probability setups for big trades.��You've been losing because you don't have clear rules.
�You might have concepts, but they are completely useless unless you can act on them with a precise set of rules.
Taking a trade with a minimum of 3 valid reasons based on Trend, Overbought/Oversold (OBOS),
Volume, and Momentum represents a high-conviction, multi-factor analysis strategy.
This approach aims to reduce false signals by ensuring that price action is supported by market participation and technical strength.
Here is how to combine these factors to form a high-probability trade setup:
1. Trend (The Direction)
Establish the primary trend to ensure you are trading in the direction of institutional momentum.
* Moving Averages: Price is above the 200-day SMA (for long-term) or 50-day SMA (for medium-term) for an uptrend, and below for a downtrend.
* Market Structure: Look for a series of higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend).
*
2. Volume (The Conviction)
Volume confirms the strength behind a price move. High volume confirms, low volume signals a potential reversal.
* Rising Volume: Volume increases as price moves in the direction of the trend, validating the trend's strength.
* Volume Breakout: A sharp increase in relative volume (RVOL) during a breakout above resistance or below support suggests conviction.
* OBV Confirmation: On-Balance Volume (OBV) moves in the same direction as the price (e.g., price is rising and OBV is rising), indicating accumulation.
3. Momentum (The Speed)
Momentum indicators show the rate of acceleration in a price movement, indicating if the trend has strength or is stalling.
* MACD: A MACD line crossing above the signal line in an uptrend, or below in a downtrend, indicates accelerating momentum.
* RSI: In a strong trend, RSI moves into overbought (above 70) or oversold (below 30) territory and stays there, confirming strong momentum rather than an immediate reversal.
4. Overbought/Oversold (The Timing)
OBOS indicators (like RSI or Stochastic) are used to time entries, ideally waiting for a minor pullback in a strong trend.
* Trend Pullback: In a strong uptrend (Trend + Volume), buy when the RSI dips to 50 or below (Oversold/pullback) and then turns back up.
*
* Divergence: Avoid trades where price hits a new high but momentum (RSI/MACD) hits a lower high (bearish divergence) or vice-versa, as this signals a weak trend.
Example High-Conviction Setup (Long Trade)
1. Trend: Price is above the 50-day SMA (Up).
2. Volume: A breakout from a consolidation flag occurs on double the average volume (Strong conviction).
3. Momentum: MACD shows a bullish crossover (Positive momentum).
4. OBOS: RSI is rising, just crossed above 50, but is not yet overbought, indicating room to run (Good entry timing).
Key Rules
* Avoid Low Volume: If price is climbing but volume is low, it is a red flag and the trend is likely weak.
* Rule of Three: Only take the trade if you can identify at least three of these factors aligning.
* Risk Management: Always set a stop-loss to manage risk in case the momentum reverses.
��YTrade can offer those rules to you.�
YTrade can offer you a high win rate.
�YTrade can offer you the skills you need to become a real trader.��Click here to get the most precise rule-based system you've ever used, and start making money today. YTrade.au��If you have any questions, contact YTrade at any time:
�info@ytrade.au
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