Summary

Joe Ross advocates for a trading approach that is simple and based on direct observation of price movements rather than relying heavily on indicators. His trading strategy includes:

• Risk Management: Emphasizes the importance of understanding personal risk tolerance and market risk, using the Average True Range (ATR) to set stops and objectives.
• Entry Techniques: Utilizes the TTE and 1-2-3 formations to identify high-probability trade setups. The TTE involves entering a trade ahead of a breakout point, aiming to capture a quick profit.
• Market Understanding: Focuses on understanding where orders are located in the market and using this information to anticipate price movements.
• Scalping Strategy: Prefers short-term trades with set profit targets, entering and exiting positions quickly to minimize risk and maximize return.

Buy and Sell Rules

Buy Rules

1. 1-2-3 Formation: The formation must occur at the end of a trend or a swing, not in a consolidation area. The 2 point should be evident before placing an entry order.
2. Traders Trick Entry (TTE):
   • Wait for at least the second bar of correction before considering a trade.
   • Enter the trade one tick above the extreme of the correcting price bar.
   • The momentum should be used to cover costs and earn profits.

Sell Rules

1. 1-2-3 Formation: Similar to buy rules, the formation must be clear and occur at the end of a trend. The focus is on the downside movement from 1-2-3 highs.
2. TTE for Selling:
   • Follow the same principles as for buying, using the TTE for downside breakouts.
   • Enter one tick below the extreme of the correcting bar.

These strategies aim to capitalize on market momentum while minimizing risk through precise entry and exit points. Joe Ross stresses the importance of adapting to market conditions and using personal judgment to refine these rules.