Saturation Play and the Open Price Tactic
Short Term Trading for Cash flow over 1-3 days:
"Sometimes less is more. In trading, your goal should be to find an edge and trade that edge as often as possible."
To trade with conviction, all it takes is one strategy that you truly believe in. Isn’t that really the goal for every trader, to have an edge that you believe in so deeply that you expect to earn money? You will never make money on every trade, but what you are searching for is that strategy that gives you confidence every time you place an order.
The Saturation Play course is three-step system to identify powerful trading opportunities. The Saturation Play set-up is powerful, yet simple. It's so simple that it can take you less than 20 minutes each day to game plan the trades!
Key Concepts to Understand:
As institutions work orders, the market tends to make highs or lows every two to three days
A fourth or even a fifth day in one direction may occur in a strong trend (how to recognize and trade these trends will be explained in detail in the course).
As the market alternates between buying and selling pressure, our objective is to enter as this pressure “saturates” in a value area to buy, or “saturates” in a profit-taking area to sell (or sell short).
Long-term fundamental outlook has NO bearing on the strategy; it does not factor in the intrinsic value of a company.
When learning the Saturation Play system, understanding when NOT to take the trade is just as important as knowing how to manage the trade. On page 71 of the Saturation Play manual, we list six specific scenarios when the odds of the trade are reduced. We encourage you to print this page out and have it handy when making your game plan.
The “Saturation Play”: What It Is and What It Isn’t
What it is: Identifying price action over a 2-4 day period where institutions are active, and recognizing when they step aside. This is called “saturation”.
What is isn’t: Fundamental traders need not apply! This strategy is pure technical analysis. It is NOT dependent on the longer term trends.
Table of Contents
Section 1) Trader Psychology: How to Think and Act Like a WINNING Trader
- How losing traders think
- How winning traders think
- How profitable traders act
Section 2) Strategy: Understanding the Edge and the Setup
- The concept of value areas and profit-taking areas
- The Saturation Play strategy explained
- What the perfect setup looks like
Section 3) Tactics: How to Apply the Strategy
- The entry
- Risk management
- Trade management
Section 4) Game Planning: How to Scan for Opportunities and Script Your Plays
- The scanning process
- Scanning criteria
- Building your watch list and opening plays
THE GOLDEN KEY: How to determine in the first half hour of the day if the high or low for the day was made first. When you combine the EXPECTED open for today (page 46) and the anticipated price action on the open you are prepared with a game plan for the time of day that generally offers the most opportunity. Learning this price action scenario ALONE could be worth the tuition to you.
Learning to craft a winning Game Plan: the treasure hunt!
You always want to balance the opportunity to earn profits with the ability to manage risk.
This means you need to learn how to balance volatility and liquidity for the stocks you trade.
Volatility= the amount a stock moves
Liquidity= the amount of shares traded or quoted
My “bread and butter” criteria for finding this balance is outlined on page 78.
The Saturation Play strategy includes:
- 4 hours of video instruction on how to find the setup, how to create a watch list to scan for opportunities, and how to trade the setup (including very specific price areas to seek your entry)
- 1 hour audio interview with T3 Live mentor and author of the program, Pete Renzulli
- 1 month of the exact Game Plans Pete will use each morning
- And, of course the Saturation Play Manual outlining the step-by-step methods to follow each day
