Royal Flush Explained

The Royal Flush is a three part trade setup, that can eventually end up with 100's of pips. It is based on several key parts:

• The first pulse of momentum to start the move ( RF10/10)
• The continuance as more traders recognize a determined move is under way (Wild Card with the 60 min confirmer)
• The emergence of a strong move that cannot be easily overwhelmed by the opposite traders (you have more buyers then sellers or the opposite)
• And an Elliott Wave (Royal Flush)

* Note we are not gamblers, the trade is called a Royal Flush since it is the best hand in Poker and it is the best trade with ProAct Traders.  The name comes from our history not from gambling (more info on our history Click here)

Let's understand this process:

The first pulse of momentum to start the move is an RF 10/10.   This is a confirmable move for about 25-30 pips. As market participants recognize the move, more and more traders enter creating momentum and the speed of the move increases. This decreases the probability of the opposite move happening since more traders have entered positions agreeing with the overall move. Ultimately, if enough traders are entering, the market will only slowdown, retrace or pullback as traders take off winning trades since there are too many traders on board for the continuation of the move. If this is the 3rd or 5th wave of an Elliott Wave, then the Big Boys will be reluctant to take positions off until the target is reached.

Below is an illustration to graphically show the process:

You can think of this like a mighty river. A river starts as a small stream but as tributaries enter the stream it makes the river grow larger and faster.

You can see in the below illustration, that the move starts as traders enter at the beginning of the move.  Because there are not a lot of traders yet, the market does not have the power to go very far (illustrated as a canoe entering the river). This is a short term trade.

But as traders recognize that the move is valid, more and more of them enter the order flow.  Their participation increases the speed of the move and is why we illustrate it with a speed boat.  This is an intermediate term trade.

You can see there are some rocks in the river that have to be navigated.  These are indicative of supports and resistances, HSI Targets, Fibonacci ratios, T30's that can slow down the move but it does not change the course of the river.

Eventually, so many traders are on board that they can't fit on the speed boat anymore and we illustrate that as a cruise ship who's only job is to take passengers to a specific predetermined destination.  This is a long term trade.

This is exactly how it happens in the charts. It is this:

The RF 10/10 captures the first thrust of the movement.  It is a trade designed to get that first 20-30 pips.

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The Wild Card on the Royal Flush Setup captures the movements as the rest of the traders enter and this tends to be a speedier movement - especially between the R2-R3 or S2-S3 area using the HSI Tool. It is a trade designed to get 45+ pips (hopefully to the 55 pip momentum target using the PAT PROJECTOR). <

The final movement is a full fledged Royal Flush and if it is also an Elliott Wave then the movement will be very difficult to deter.  It is a trade designed to get 100+ pips.

What is an Elliott Wave? Without getting into all the specifics it is simply a phenomena that occurs in the market.  The Third and Fifth wave of a move are the most powerful.  These are the ones we want to ease into and then stay to the targets -  and there ALWAYS IS A TARGET!

Chart below is an illustration of a Short or Sell move.

Below the First wave (1) goes down followed by a corrective wave up to (2).  The move then continues the trend down to (3).  Then we have another corrective wave counter trend up to the (4) and then the last wave of the trend continues the down move to the target which is (5).  Note: the 3 and 5 wave have a tendency to equal each other in size.

As you can see the power moves are the (3) and (5) wave.  These are Full Fledged Royal Flushes.  You will also notice that the 3 and 5 wave all start with a Black Jack (the black candle with a diamond on top of it indicating the direction of the wave).

In each of these setups - do you have a blackjack CONFIRMING that a move is probable in that direction?  We call that the GATEKEEPER - it keeps you from jumping in too soon!  The Chart that this blackjack show up on is called the "GATEKEEPER" chart.

The RF 10/10 uses a 10 minute Wild Card Screen in conjunction with a 10 minute "GATEKEEPER" confirmer matching the times frames from the illustration above.

10+10

The 10 minute Wild Card Sceen (called the trigger)  (on the Royal Flush Template) in conjunction with a 10 minute  "GATEKEEPER"  matches the times frames from the illustration above.  

10+60

Pay special attention to the 60 Min HMI on this screen - it is the key to potential sustainability in that direction if they match in color. You will either not lose the NEON color or will lose the color and get another Arrow and painted candle - this is called the Wild Card trade - if you get a white dot look for 55 pips from the white dot AT THE CORRECT TIME OF DAY.

10 + 240

When the Setup using the correct time frame you are trading lines up, then the corresponding move is at least available to you.  Please note:  you do not change any templates - they are already setup for you correctly.

Here is a screenshot of each one.

RF 10/10   - see how the move goes about 30 pips

10 + 10

The RF Wild Card W/ 60 min confirmer  - note already gone 45 pips

10 + 60

A full fledged Royal Flush - note already gone 100 pips.  The 240 minute charts at the bottom right confirm that a wave is under way - so stay in to the targets!

10 + 240

You can see above that while we had the 10 and 60 minute confirmers in place in the early part of the move, we now have the whole right hand side of the template showing the same move.  In the above example they are all red (PATO's and HMI's) and the 240 charts are both saying we are in a continuation.

We also include a pre-made RF1010 gatekeeper screen to watch for moves to get in harmony for the first trade - the RF1010.  This means you only have to watch this chart until you get a confirmation from the gatekeeper to go look at the specific Royal Flush template of that currency cross.   Here's a screenshot of that screen below:

As you gain experience using our charts you will learn that instead of  getting into the trade in your canoe and clicking a trade out after getting 20 pips with a RF 10/10.  You will look and see if the 60 minute Gatekeeper has gotten in line to confirm a  speed boat ride for 45+ pips.  As you approach that profit you will once again look and see if you now have a full fledged Royal Flush and get 100+ pips on the cruise ship.  The targets are found by using the HSI TOOL on the ProAct charts and if the river or the order flow is trending south you find the high on a 60 or 240 minute chart to find the targets.  Just the opposite if you are heading north in a buy.

It takes practice but you have the tools to do it and live training rooms to learn how to do it.

Want to watch a live recorded session detailing the RF1010 CLICK HERE

Here is  the step by step video of the RF1010 trade again

Here is the CONTINUATION of the above - the ROYAL FLUSH TRADE SETUP