Make your Trading Strategy Unstoppable with This Concept

Step-by-Step Trading Strategy Tutorial:

1. Understanding the Elephant Bars Concept:

• Elephant bars are significant in trading and represent 65% of trading activity.
• They have a 70% follow-through rate, indicating a high probability of continued movement in the same direction.
• Elephant bars require large amounts of money to create and are often influenced by institutional investors or "whales" in the market.

2. Identifying Elephant Bars on Charts:

• Look for bars with small wicks on either side, indicating significant market movement.
• Elephant bars are characterized by their size and the amount of money required to create them.

3. Utilizing the 80% Follow-Through Rate:

• By focusing on elephant bars that stay in the top third of their range, you can increase the follow-through rate to 80%.
• This top third acts as a launching pad for further price movements, providing more profitable opportunities.

4. Monitoring and Trading Elephant Bars:

• Watch for elephant bars that maintain their position in the top third after formation.
• Consider selling if an elephant bar drops below the top third, indicating a potential reversal or loss of momentum.

5. Implementing the One-Third Concept:

• Divide the elephant bar into thirds and focus on trading within the top third for optimal results.
• Avoid trading when the price moves into the bottom third, as it may signal a weaker trend or potential reversal.

6. Applying the Filtering Process:

• Deepen your filtering process to identify high-probability trading opportunities.
• Focus on trades that align with the top or bottom third of the elephant bar for better risk management.

7. Choosing Strong Trade Setups:

• Look for stocks that exhibit strong elephant bar formations in the top or bottom third.
• Avoid trades that do not meet the criteria of staying within the desired range for optimal trading outcomes.

8. Practicing Discipline in Trading:

• Be decisive in your trading decisions and exit trades when the market conditions change.
• Avoid holding onto trades that do not meet the criteria set by the elephant bar concept.

9. Continuous Learning and Improvement:

• Regularly review your trades and analyze the effectiveness of the elephant bar strategy.
• Stay disciplined and consistent in applying the concepts to enhance your trading performance over time.

By following these steps and incorporating the elephant bar concept into your trading strategy, you can enhance your trading skills and potentially improve your trading outcomes significantly.