Sample Fusion Trade Setups
In this chapter I show three classic fusion trade setups that cover the framework of my method. In the following part you'll view several advanced strategies that build upon what you learn here. Here you'll find two sample whiteboards, as charts. They are the standard for support or resistance fusion trading. I'll be using this whiteboard format from this point on.
Notice that the whiteboard chart in Figure 8.1 includes the prior price levels shown in Figure 8.2: pre-market and previous day. Because you're now learning the full fusion system, the whiteboard will only include the daily levels that are currently swing levels. Also note that I only show the support or resistance levels. This is because on the morning of a possible fusion trade, your focus should be only on those levels.
Why is this? Think about it. If a swing level is hitting, it can only be one of those. You will never have both a swing support level and swing resistance level hitting on the same day. The only time this could ever happen would be on earnings release dates, and you would not be trading until after the release, which would typically be the next day. ...