98 Ticks Live Today! $17,500 in May 4 Lots! Re-open Wednesday 745am EST
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Next week’s schedule:
• Trade room is closed Monday & Tuesday
• (the markets are OPEN on Tuesday)
• Sales & Support office is closed Monday
• Sales & Support is open Tuesday and the rest of the week.
The Market Gives us clues today…
830am EST
- Dollar Index Futures are trading sideways at their highs from late last week
o Speed is very slow,
o Average true range is very low, and has been dropping this morning
o This tells us that today, a Friday before a long weekend, we may not see much activity from the dollar, which means the other markets may not either
o Keep checking back every 20 mins to see if this improving.
- Euro Futures are the opposite of the dollar this morning
o Sideways market at their lows
o Decent speed, little green and yellow POT, so no worried about speed
o Average true range is not very exciting, its at the lowest point of the passed week, but we’ll check back and see if its improved.
1000am EST
- Gold futures, we defined a narrow downward channel, appears gold is trying to sell off today
Remember, this is a UNIVERSAL method of trading
- Any market
- Any timeframe
- Anything goes, as long as the pattern fits our simple rules
- We’ve made 50 ticks on scalping entries
o 4-range chart
o 6 tick stop
o Targets = +4, +8, runner
- Watch the blog
o 200 ticks in 24 hours on long term trade calls
o Buy here, sell there
o You don’t need to be a member to READ the blog
o Our members are trained on how to execute those entries
o Wave Pattern
o DX-Pattern
Slower timeframe trades
• 10-minute, 10 hours
1045am EST
- We noticed the market looks to be falling asleep, but lets confirm with the vital signs of the market
o Average true range
Gold = dropping from its recent highs
Crude Oil dropping
Euro starting to drop
We don’t watch the READING of the indicator, we look at the comparison of what the ATR was previously
o Speed of the Tape (pace of tape indicator)
Gold < 100 (very slow)
Everything we watch right now has RED (slow) pace of the tape
o Big MONEY
Larger-sized traders as they come into the market
Filtered time & sales window
• Filtered for 5/10/20 contracts
Look closely for the BIG MONEY in the market, and if they aren’t there, we need to trade with caution.
5 trades today, 5 Winners
+98 ticks, $980usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 27, 2010
73 Ticks Live Today. $50,000 for the Year on 4 lots!
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The Market Gives us clues today…
830am EST
- Dollar Index Futures are trading sideways at their highs
o Speed of the tape is very slow
o Double-tops and double-bottoms above and below us, creating a sideways bracket
o Average true range (ATR) is still dropping from its May 19th highs, so e continue to trade with caution
- 830am brings our Jobless Claims and Advanced GDP
o INITIAL JOBLESS CLAIMS: 460K V 455KE
o *(US) Q1 PRELIMINARY GDP PRICE INDEX: 1.0% V 0.9%E; CORE PCE Q/Q: 0.6% V 0.6%E
- Important Psychological Levels
o Big Round Numbers (1.2000, 78.00, 89.00)
o Sometimes we see value in the HALF BigRound #
1.2500 . 1.2550, 78.50, 89.50
850am EST
- Euro futures contracts, trading at their lows, opposite to the dollar
o Sideways market, double-tops and double-bottoms keeping moving sideways
o Speed of the tape has been decent, not as slow it was on Wednesday
o Average true range Is still at its lower levels, but not as low as it was on Wednesday
How does Nat Gas affect other markets?
- Crude Oil & Nat Gas are finite natural resources
- Nat Gas is nowhere near as speculative as Crude Oil, but it is getting more and more every day
- What is Nat Gas used for?
o Industrial production
Factories
Machinery plants
LARGE MACHINERY
- Nat gas has a better finger on the pulse on the economy than anything else
o Earlier this week we saw ‘Industrial production’
o Durable Goods Orders
Means we are MAKING STUFF
o Low Nat Gas inventories
Leading Indicator on the Economy:
- Durable Goods going UP
o People are working, and producing STUFF
- At the same time…
- Nat Gas Inventories are DOWN
o People are producing stuff in FACTORIES that are consuming all that NAT GAS
The other side of the coin…
- Durable goods go DOWN
o We produce LESS stuff
- Nat Gas inventories are down
o They’re producing less NAT GAS b/c there’s no DEMAND
1115am EST:
- The previous 3 trades have not gone very far.
- Our rules lined up
- We executed with confidence
- We got our quick 1st target filled, moved our stop to entry
- But the market has NO FOLLOW-THRU
- We got 6 ticks down, and then 8 ticks back up.
1130am EST
- Euro markets closing
- We need to be careful we look for VOLUME to continue trading this late in the morning
1030 TO 1130am EST = dead zone
- The euro session doesn’t bleed over into the US session until 1130am EST (when the Euro session ends)
- After 1030 usually all the news is behind us
- 1100 is typically when we see Mr. Obama start to speak
5 trades today, 5 Winners
+73 ticks, $785usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 26, 2010
82 Ticks Live Today! $16,000 on 4 lots in May!
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The Market Gives us clues today…
800am EST
- Dollar Index Futures trading right in the middle of the sideways range from 87.600 down to 86.00
o We’re trading in the middle
o We have dropping average true range
o Pace of tape is VERY Slow
What does this mean?
• Dollar leads the other markets, so concern on the dollar = concern on other markets we trade
• Trending dollar = trending EVERYTHING else
• Choppy slow dollar = disaster for a day trader.
- Watching for a DX-pattern @ 825am EST, we see the Dollar is in the middle, so we need to wait for the dollar to test its extremes
o Also notice the NARROW trading range on the dollar. From high to low is a VERY NARROW trading range. We want this to be as WIDE as possible, giving us the room to let the trade run.
830am EST
- Euro Futures are looking very similar to the dollar index
o Trading off its recent lows, we’re sitting in the middle of a very narrow sideways range on the fast timeframe
o Also in the middle of the wide range on the slower timeframe
o Pace of tape indicator is NOT showing GREEN like it usually does, so euro has a slow speed
845am EST
- It looks like most of the markets are sleeping this morning ahead of the holiday weekend
- We can chose ANY market we want, so what should I look for?
o Overall Volume = use your market analyzer
Trade the market with MORE volume
o 6E = 131k
o 6A = 56k
o 6B = 41k
o 6C = 30k
o 6S = 29k
945am EST
- We watched as the DX-Pattern sets up for a high risk entry
o Dollar has too much support
o Euro has too much resistance
o Both the Dollar and the Euro are trading @ their open of the day and prev close of the day
Remember the loss we took last week?
• No big money!
• Trading around the open/close of the day
• We want to avoid trading around the OPEN/CLOSE of today or yesterday.
5 trades today, 5 Winners
+82 ticks, $950usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 24, 2010
41 Ticks Live Today! Free Webinar on Tuesday!
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The Market Gives us clues today…
830am EST
- Dollar Index Futures trading off their highs from last week
o Multiple levels of support and resistance
o Double-tops & bottoms keeping price propped up just below its lows.
o Pace of Tape is < 100, so very slow
RED Pace of tape = very slow market = beware!
o Average true range is at its lower levels from last week, so we may need to wait for this to improve.
950am EST
- Crude Oil Futures, we noticed that the price action was so choppy at the lows, the current 13-range chart was no longer a good fit.
o Slowed it down to a 34-range chart to remove a lot of the ‘noise’ and now it’s a lot easier to use the chart.
o Average true range is increasing, off its lows of the prev week, and heading to the highest level from late last week.
Tells us that a sideways market with widening range is going to be perfect for our 2-step reversal patterns today~!
Identify the best possible spots, and look for those 2-step patterns
o Sideways markets = 2-step pattern
be aggressive with taking profit
with a rising ATR, this means we may get some nice moves INSIDE of the sideways range
- 1015am EST
o Crude Oil futures are trading in a WIDE sideways range
o We’re looking for the option to sell the highs, or buy the lows, but the market has us concerned
o All the trigger lines are the same, flat, price level
o Sideways markets = flat trigger lines
When they’re ALL flat and the SAME price, that means BE CAREFUL, this is a SIDEWAYS sideways market!
1030AM est
- Euro futures we need to get above the 2415 level to get into our DX-Long
o Average true range is still pretty low
o Speed of the tape (pace of tape) is all RED all morning
o We’re still seeing low volume this morning, most likely because of the European and Canadian holidays today,
1150AM EST
- We first saw crude oil futures contracts with a wide sideways range, and a rising (widening) average true range
o Use our 2-step patterns to buy the lows, and sell the highs of this sideways range
o WIDE ATR made us confident in taking trades within the sideways chop.
2 trades today, 2 Winners
+41 ticks, $410usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 19, 2010
108 Ticks Live Today. Gold is a Trader’s Best Friend!
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The Market Gives us clues today…
830am EST
- Dollar Index Futures are trading off their highs of the week
o Sitting sideways inside the center of the bracket
o Double-tops and bottoms above and below, and we wait for a breakout
o Pace of the tape is still pretty slow, but faster than we’ve seen all week
o Average true range is off its weekly lows, and appears to be rising as the day moves forward.
o We need to wait for the dollar to start to move towards its trading extremes, meanwhile, we look for rising speed and ATR to give our markets the moves they need today.
945am EST
- Crude Oil futures trading at their lows, going sideways
- WE have clear space to the upside, so our highest percentage trades will most likely occur there.
o Wait for above the 73.000 for the best opportunities.
1100am EST
- Trading gold futures contracts we notice now that our last entry on gold became very choppy and slow.
o Average true range confirms that we are getting narrower as the morning moves on
o Pace of tape indicator is ALL red, and when I look at the entire morning we can see the SPEED has been dropping since 930am EST
Tells us that this GOLD MARKET is not getting BETTER with time today.
It appears the longer we wait, the worse the price action gets.
DX-PATTERN SHORT ON EURO:
For the 2nd day in a row, took the Euro short, got stopped out just before the market went to fill our target
- Make sure momentum confirms on the entry
- Make sure we are NOT in a choppy, tight trading area on the dollar, b/c we are going to need the dollar to have lots of room to breathe.
- Use the BLUE Medium Timeframe for my stop
o I’ve used the green and twice I’ve been stopped out just to see the trade work out.
Open/High/Low/Close: Are these important?
- OPEN: use caution around the OPEN/CLOSE
o 6-tick rule applies
o Call this our ‘zero line’ (stay away)
- CLOSE: use caution around the OPEN/CLOSE
o 6-tick rule applies
o Call this our ‘zero line’ (stay away)
- LOD: Use this for entries
o 6-tick rule applies
- HOD: Use this for entries
o 6-tick rule applies
OPEX:
- Options Expiration
- Occurs on the 3rd Saturday of the month
- Last trading day is a Friday, so we call it OPEX Friday
o If the first day of the month is a Friday, this will occur on the 4th Saturday of the month
- Only applies to Equities (E-mini)
o Does not apply to the Currencies,, Commodities
- Inside of OPEX Week
o Wednesday of OPEX is a VERY busy and potential nasty trading day
o ‘Wacky Wednesday’ is described by seeing LARGE, unpredictable moves from the BIG MONEY the market, as they prep for the end of the week
o No reason behind, no follow thru,
o Most pro traders will schedule doctors visits, mother-in-law visits on Wacky Wednesday
- Thursday is usually very mild compared to wacky Wednesday
- First hour of Friday = final touches
- First hour of Monday = re-balancing
Daily target for 1 contract:
- 10 ticks = $100usd
- 2 winners of 5 tick target
- 1 winner of 10 tick target
9 trades today, 8 Winners, 1 loss
+108 ticks, $1,090usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 18, 2010
62 Ticks Live Today! Avoid making the same mistake…I almost gave it all back!
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The Market Gives us clues today…
830am EST
- Dollar Index Futures are trading off their highs from last week, and now trading sideways in a tight range.
o Trying to break the up-trend line, it’s running into problems and we see very choppy price action.
o Pace of the tape is slow < 100
o Average true range is dropping, and at its lowest levels in 2 weeks
o This info tells us we may have to wait this morning before we take any trades
- Most important things:
o Speed of the market (pace of tape indicator)
o ATR (wider / higher is better)
o Some trend developed
- Euro Futures are trading sideways off their lows from earlier this month
o Speed has been pretty slow on the euro this morning
o Average true range is VERY low, lowest levels of the past week.
850am EST
- We noticed a DX-pattern SHORT setting up on the Euro.
o We have the dollar needs to break above 86.300, and the Euro will then enter below 1.2399.
Make sure we see BIG MONEY BUYERS on the dollar to confirm entry on the euro
Make sure we don’t get caught in that big round number, so give it a little room away from the 1.2400 as much as we can.
- Gold Futures trading off its all time highs last week, no ran into a major support trend line and now trying to bounce off those lows.
o Trading sideways, with an upward bias
o Very slow pace of tape < 100
930AM esT
- Crude Oil futures are off their lows from yesterday, and now trading very sideways and quiet
o Lots of trendlines above/below
o Double-tops and bottoms to contain the price action
o There really isn’t much wide open space on the crude oil until we break above 75.40
o Speed has been slow b/c we rolled forward to the 07-10 contracts today.
Blog: search for ‘contract rollover’
o Average true range was at its daily high at 900am est, but now falling back to its lows
We may have already seen the best price moves on the crude oil
Beware we’re sharing volume with he 06-10 contract because we just rolled forward so some traders will yet to do so.
Contract Rollover:
- Video on our blog: search for ‘contract rollover’
- Specific videos for each different market
- Crude Oil Futures
o They expire MONTHLY
o Gold = bi-monthly, every other month
o E-mini’s = quarterly, March, June, Sept, Dec
o Bonds, Notes, Dollar = quarterly
- How do we know when to roll forward to the next front month?
o Watch the volume
o Market Analyzer
Trend vs. Counter-trend trades:
- Trading with the trend will always be higher percentage winners
- Trading against the trend can be VERY profitable, but you need to make sure you manage the trade properly.
o Because counter-trend trades tend to reverse frequently, taking back your money
o Be aggressive with taking profit when using a counter-trend trade.
o Lock up profits quickly, tighten the stop to eliminate the risk, and then take it to the bank!
- Using the Pace of Tape with your trades
o We look for INCREASING speed of the tape to enter our trades
Descrease in speed shows a sign of a potential reversal
• Look for the slowdown in speed
• Look for the momentum indicator to turn
• Look for the sudden increase in speed, with momentum confirming the reversal.
Trading around big round numbers
- Psychological price levels that we have a hard time forgetting
o 70.00 on Crude Oil
o 1.2300 on Euro
o 86.000 on Dollar
o 1200.00 on Gold
o 800.00 on ES
- I use a 5-tick Rule for avoiding those areas on my chart
- Will wait for 5 ticks above to enter long, or 5 ticks below to enter short when price is trading around a big round number
Candlesticks to identify the market bias/sentiment
- Big wide candles, extending all the way to the high and low, this shows a TREND
o New highs, or new lows = new developing trend
o However!!!!!!
o Be careful when those new lows, are followed by a quick reversal
We see that right now (1000am EST) on Crude Oil
- Open/close of the candle
o It will show more of the bias/sentiment, but I don’t use it for much more than that
o If we close above the open, the candle is GREEN
o If we close below the open, the candle is RED
- Hammer, Doji’s, shooting stars, these are also good candlestick patterns to use as sentiment
- I don’t use candlestick patterns for ALL of the ENTRY, still need to use RULES for entry!
2 things we learned on the DX Pattern today:
- Wait for the DOLLAR’s BIG MONEY to confirm the entry on the Euro
- Only trade around the extremes (HOD/LOD)
Big obstacle for new traders:
- Emotions
o Patience / Discipline most important
Find something to look for
Do something else to pass the time
• Look over your charts
• Practice reading tape
o Bracketing your tape
o Watch the ‘discipline cycle workshop’
Why don’t I trade the Bonds? Or why not the S&P?
2 types of markets:
1. Highly-Liquid: Bonds, Notes, S&P, Eurostoxx
a. Lots of participants
b. Not much up/down movement b/c it takes SO MUCH pressure to move the market
c. We can still trade this!
d. But why would we if we see more opportunity in other markets?
b. Times when the market can be dangerously low volume (DAX)
c. Follow the rules, trade with BIG MONEY and you can trade these slightly less-liquid markets for MORE volatility
d. Less volume = less pressure needed to move up/down
e. We can still trade this stuff!
f. Have more volatility, more MARGIN required.
6 trades today, 4 Winners, 2 losses
+62 ticks, $580usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 17, 2010
127 Ticks Live Today. $12,000 on 4 Contracts this month! Webinar tomorrow!
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The Market Gives us clues today…
830am EST
- Dollar Index Futures are trading sideways off their highs from earlier this month
o Average true range is near its lows of the past two weeks
o Pace of tape indicator < 100, very slow, even for a Monday morning
- Euro still trading in a strong downtrend, but has flattened out at 1.2250
o Waiting to see if the euro will go sideways here, or if it will reverse off the lows and head back up.
o Average true range is at its lower levels
o Pace of tape on euro looks VERY slow, we’re used to seeing at least some green, but today its mostly red and yellow.
900am EST
- Gold Futures are trading sideways off their all time highs from last week
o Average true range is at the lower third its been in the past week
o Pace of tape on gold is < 100, which means we need to wait a little to see more speed in the market
o Highest percentage trade on Gold future will be below the 23.9
915am EST
- Crude Oil Futures trading off their lows of 70.00, and now trading sideways
o We identified the highest percentage trade opportunities to be above 72.25, or below the 70.92
1015am EST
- Crude Oil futures trading back into the sideways bracket, after an attempt to move lower, but there weren’t any sellers to be found
o Wait for the market to get back into this bracket, and be careful around the big round numbers!
- Gold Futures sluggishly moving to the up-side moving from one trend line to the next trend line
o Wait for the best times to trade: size and speed!
9 trades today, 8 Winners
+127 ticks, $1,305usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 14, 2010
93 Ticks Live Today. 1,000ticks this month!
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The Market Gives us clues today…
800am EST
- Dollar Index Futures are trending up from yesterday
o Low average true range, so expect some sideways markets today
o Speed is a little better then we’ve seen this week
- Euro Futures are trending down; we notice a strong downward channel that doesn’t look to good for the Euro.
o Broke below 2500
o Pace of tape is relatively slow (red)
o Average true range is at its lower levels of the past 2 weeks
845AM EST
- Crude Oil futures are trading up off their lows from earlier this morning
o We noticed that we have a clear line of site to test the 75.00 if we break above the 74.10
o Crude appears to be VERY active this morning, speed looks ok, and we want to be patient and look for our pattern.
- Gold Futures trading at their all time highs from earlier this week, and now trading sideways at those highs
o The market is VERY slow and sluggish, looks like it needs more direction
o We will wait and look for the gold market to start getting some direction.
Membership:
- Free charts
- Free market data
- Lifetime access to our materials
- Lifetime access to the trade room
- sales@schooloftrade.com / Skype: SOTSales
where do I find the BIG MONEY?
- Filtered time & sales window
- Where do I find the SPEED in the market?
o Speed of the market = pace of tape indicator
If youre trading 2 markets, I use 2 DOM’s and 2 TMC’s
If im watching 4 markets…..4 of them
Entries:
- Not going to use a sloppy market order
- And im not going to leave a limit on the table either
- I need to wait for confirmation, and them get into my trade.
4 trades today, 4 Winners ($1,000 ticks this month so far!)
+93 ticks, $930usd
Only 4 contracts needed to achieve this today.
See you tomorrow @ 745am EST for the live trade room session!
May 13, 2010
67 Ticks Live Today. Congrats to our Members Today!
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The Market Gives us clues today…
800am EST
- Dollar Index Futures are trading sideways at their recent highs
o Speed of the tape on the dollar is very slow, < 100, which means our other markets will be slow also.
o Average true range is the lowest its been in two weeks
Tells us that the price action we are trading with has been getting worse by the day this week.
This may be the worst price action we’ve seen all month
830am EST
- Euro Futures are trending down, breaking new lows on fears of rising unemployment in Greece this morning.
o With the dollar at its highs, we now know to look for a DX-pattern LONG on the Euro, we need the euro to bounce off these lows..may not be possible today.
o Pace of tape is slower than usual, lots of RED = very slow price action
o Average true range is the lowest its been in two weeks
Tells us that the price action we are trading with has been getting worse by the day this week.
This may be the worst price action we’ve seen all month
945am EST
- Look at the Average true range
o Dollar index has fallen
o Crude is Rising
o Euro is falling
o Getting mixed signals (crude rises while dollar falls)
1000am EST
- Getting mixed signals on Gold futures
o See the ATR rising off its lows
o But the price action is sitting quietly at its prev close and today’s open
This is concerning b/c trading at the OPEN of the day is considered higher risk
- Remember, yesterday we didn’t see any price movement from 1030-1100am, so today may be similar.
1100am
- Price begins to increase speed.
- Crude Oil Futures are REALLY moving fast now
- We took the Euro long for the DX-Pattern and got stopped out for -13ticks.
- We took the overnight trade on the Euro and made 20 ticks, so no big deal
7 trades today, 6 Winners, 1 Loss
+67 ticks, $638usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 12, 2010
123 Ticks Live Today. 4 Days in a row +100 ticks!
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The Market Gives us clues today…
800am EST
- Dollar Index Futures trading sideways from 84.800 down to 84.330
o Slow speed of the tape, slow market
o Falling average true range
o Tells us the DOLLAR is very slow, very narrow, and probably should use this as a caution.
- Last Night’s Levels for the DX Pattern:
o DX = 84.725
o Euro = 1.2679
845am EST
- Crude Oil futures trading sideways at their recent lows
o Very slow speed < 100 on the Pace of Tape
o Average true range is getting lower by the day this week. This means price action on the crude oil is less than desirable.
930am EST
- Gold Futures trading sideways just off their all –time highs
o Speed on the gold has been very slow and concerning
o Average true range on the gold is not horrible, it’s the not the worst we’ve seen this week, but its certainly not RISING as the day moves forward.
o Lets wait to see if this price is going to sit in this sideways range.
1045am EST
- Gold Futures are VERY slow
o Pace of tape < 100
o Chopping around trying to find some direction
- Crude Oil futures came out of its 1030 inventory news number with a very sluggish reaction
o Very slow, and sideways price action
1100am EST
- Now seeing the ‘dead zone’ set in
o 1030-1130am EST
o No more news, outside of the first hour of the market, and we tend to see things slow down.
- 1130 we have more vol b/c the Euro session ends, so we will wait for 1130am to see if we get any
more volume.
1130am
- Volume returns and we saw 3 more entries that were all winners!
- Another example of how valuable PATIENCE is in our day trading futures contracts.
See you tomorrow @ 745am EST for the live trade room session!
May 11, 2010
148 Ticks Live Today. 3 Days +100ticks, DX-Pattern Training Wed
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The Market Gives us clues today…
900am EST
- Dollar Index futures are trading at their high of day, and we are looking for the break of support @ 84.670 to get the confirmation we need to enter the euro long
o Pace of Tape on the Dollar is very slow
o Average true range is on the lowest point of the previous week of trading
945am EST
- Crude Oil futures are trying as hard as they can to break new highs
o We have inverted HAMMER candlestick patterns that show us the buyers are running out of steam, but they keep trying
o Less conviction than the buyers need right now to keep moving up.
1000am EST
- Crude Oil is back at its OPEN of the day, which we call the ZERO LINE
o The buyers couldn’t push up
o The sellers couldn’t keep it down
o So without any real direction, it sits on the OPEN of the day
o Same is true for the previous day’s CLOSE of day
o Average true range on crude oil continues to rise, giving us potential for some more High %opportunities
- Gold Futures continue to chop around at their all time highs
o Tough to predict where the new highs will go, so we stay away, use extra caution around the MAJOR EXTREMES, such as all time high on Gold futures.
- Dollar Index continues to trade very slowly
o DX Long on the Euro trigger @ 915am EST and we made our 10tick move on 4 contracts
o Average true range on the dollar continues to be flat, at its lowest levels of the week.
The DOLLAR leads the way, so if the ATR on the dollar is FLAT, we don’t expect much from our other markets
We need to see the dollar improve FIRST
1045am EST
- Notice the Crude Oil futures are trading sideways, and ALL of the different timeframe trigger lines are the same, or around the same level
o Average true range WAS rising about an hour ago, but now it’s falling, tells us to be careful, as the day moves forward, there is less opportunity to profit.
- Gold futures chopping around the double-bottom, which was our final target on the previous gold trade
o Average true range is stable, off its lows of the week earlier today, but certainly not rising
1130am EST
- Just took the Wave Long on the Crude, perfect pattern, used the Swing High as support on the entry long
o Here were the reasons we took the long trade
Swing High Level was used as support (most important)
Momentum curled and pointed up, confirm LONG trade
Flood of BIG MONEY Buyers on the Filtered time and sales window
Trade management on a wave
• 8/16/runner (15-tick)
• Watch the video on TRIGGER ZONES for more info on how to place your stops, target, and how to manage the trade
9 trades today, 8 Winners, 1 Loss
+148 ticks, $1,580usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 10, 2010
115 Ticks Live Today. Free Webinar Tuesday!
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The Market Gives us clues today…
800am EST
- Dollar Index Futures have dropped from their highs from last week into a strong downtrend
o When the dollar is trending we expect to see everything else moving, so lets keep our eyes open
o Average true range is very low, the lowest third of it’s trading range for the past week
Tells us the trend on the dollar may not result in much opportunity b/c the range is so tight
o Speed on the dollar is also very slow, so we must wait
- Euro Futures have pulled off their lows from last week, and have bounced up into the downward channel that was broken last week.
o Speed is good, lots of GREEN P.O.T.
o Average true range is at its lower levels of the past week
920am EST
- Noticed today that there is a lack of conviction in the market
- Gold Futures, Crude Oil Futures both lacking any real conviction for the market’s direction
- Very big change in the personality of the market from last week to today
Larger Accounts:
- How would we trade 18 contracts?
o ½ off @ +4 ticks (9 contracts)
36 ticks of profit
o ¼ off @ +8 ticks (5 contracts)
40 ticks of profit
o ¼ off @ Runner (4 contracts)
40 ticks of profit if you took the runner for +10ticks
2 Contracts: (similar to 3 lots, but no runner)
- 1 off at target #1
o Move stop to entry
- 1 off at target #2
- NO RUNNER on 2 contracts
Can we use other tools to look for confirmation of a trade?
- Yes, we can use different sentiment tools
o Candlestick patterns
o Swing-Highs/Lows
o Lower Highs/ Higher Lows
How to trade futures with 9 CONTRACTS:
TAKE 5 CONTRACTS (1/2) OFF @ TARGET #1
TAKE 2 OFF AT T2 AND 2 OFF AT T3
7 trades today, 6 Winners, 1 Loss
+115 ticks, $1,175usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 07, 2010
146 Ticks Live Today! Correction…$5,000 on 4 Lots this Week!
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The Market Gives us clues today…
820am EST
- Dollar Futures are trading sideways
o Sideways dollar = sideways on most of our markets
o Speed of the market is slow
o Average true range has been dropping from its HIGHEST levels in a week, but we are still in a decent spot for trading range.
- Euro futures are trying to gain some ground off the lows of the day, week, month
o Speed of the market is slow
o Average true range has been dropping from its HIGHEST levels in a week, but we are still in a decent spot for trading range.
830am EST
- Non-Farm Payrolls are released
- Gold Futures are trading is a sideways range, just off the highs from yesterday’s move ABOVE 1200.00
o Average true range on Gold is rising off its lows of the week
Price action continues to improve as the morning moves on
- Crude Oil Futures are trading in wide sideways range, with lots of concerns above and below
o 2-tops and bottoms keeping us inside this range, and lots of chop to worry about
o Average true has been RISING all morning, this tells us the price action should improve as the morning moves on.
- Universal Method
o Same patterns on ALL markets
o Same Rules on ALL markets
o Same management on all markets
As a new trader:
- Start with Gold, Russell, Euro, Pound, Crude Oil, ES
Your momentum chart should be the same as the chart you are trading off
- 4 range to scalp the markets, use a 4-range momentum
- 13-range on the Euro for the DX pattern, use a 13range momentum (anything slower than 4 range)
Trade Management:
- Use 2 different types to manage our trades
- Green POT (fast) use my PINK LINE
- RED POT (slow) use a discretion exit
o MACD
o Momentum
o Pace of Tape
Using the Breaker / 2-Step Entry, use the 4-range momentum b/c im taking on a 4-range chart
Wave Entry is on a slower timeframe, so we use a slower momentum indicator, such as the 8 range (grey char
t)
7 trades today, 7 Winners
+146 ticks, $1460usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 06, 2010
80 Ticks Live Today. We’re up $4,000 this WEEK!
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The Market Gives us clues today…
815am EST
- Dollar Index futures trading sideways after its upward movement this week
o Testing its HOD right now
o Pace of tape indicator < 100
o Average true range is promising, it has been rising since earlier this morning
The price range getting wider, so we can make more PROFIT!
- As the dollar tests new highs of the day, this is pushing the EURO Futures down like a rock
o Continue to tests the LOD
o Decent speed, lots of GREEN Pace of Tape
o Average true range is also improving, which means our opportunities are only getting better as the day progresses.
830am EST
- Gold Futures recently dropped out of its sideways range
o Sitting in an area that appears to be a very choppy area in previous trading days
o Pace of Tape < 100 (very slow)
o Average true range has been rising off the lowest point of the Week today
This is the worst price action we’ve seen all week on the Gold
Give it some time, check back in later for better price action
- EU’ Trichet begins speaking, so expect things to slow down a little while he speaks
845am EST
- Watching a DX-pattern LONG on the EURO
o We noticed that the trading range today is 50% of the range from yesterday, only 100 ticks
o We also noticed that a trend line on the slower timeframe is standing in our way as overhead resistance.
o Slightly higher risk when you consider those two issues.
We use 2 different time & sales windows
- One is filtered for 10+ contracts
o That shows the BIG MONEY in the market
o We want to trade WITH the BIG MONEY
- 2nd is NOT Filtered, so ALL the trades show on this window
o Use this to see ALL activity
o Measure the speed of the tape
o Use Pace of Tape indicator in tandem with this window
You could get away without the un-filtered tape, and just use the POT indicator, but we like the unfiltered version b/c it gives us the feel of the market
DX-Pattern
- Great way to make sure you ALWAYS have quality trades in any environment
- Sideways trading day, the DX pattern will be used more often
- Trending Day (like today) we may not see the highs or the lows hold, but that type of trading environment will give us more opportunities elsewhere.
1000AM
- Crude Oil futures keep bouncing up and down around the 79.00
o Average true range continues to rise, which means we still want to look for patterns
o Speed of the tape is GREEN (fastest) and YELLOW which means all signs point to YES!
o Good speed, good rising ATR, with the exception of the big round number we look great!
1030am
- Waiting for the natural gas inventories news to be released, so sitting on our hands
- Looking at Crude Oil futures we noticed the following
o ATR was dropping
o Speed was dropping (P.O.T)
Tells us that as we move later in the morning, it will get more difficult to profit from the crude oil futures.
Questions:
- This will work on any liquid market, stocks, etf, forex, futures
- We will train you on all of these markets.
- Use it on a slow chart or a fast timeframe
o Scalper, day trader, position trader (swing)
When are the best times to day trade futures?
- 3am – 7am EST (Euro Session)
- 8am – 12pm EST (US Session, AM)(most active)
- 230pm – 330pm EST (US Session, PM)
- 7pm EST for Asian Markets (not as good)
Why watch the Euro, instead of other currency futures, DX Pattern
- Euro is the market I know best
- The most liquid
- 12.5/tick = more profit
o Pound = $6.25/tick
- CAD, SWissy, Pound, they aren’t as popular as the Euro, so they wont have such strong correlation.
DX-Pattern is relatively new pattern, but VERY promising.
Pace of Tape indicator
- Best use is to determine short term market sentiment
- Look for ‘divergence’ between the PRICE and the SPEED
- Example:
o If price is rising, and speed is falling
Divergence
Price should end up reversing to the downside
Watch the speed pick up when the price moves to the downside to confirm the sentiment.
- Example:
o If price is rising, and speed is rising
Increasing speed confirms the move
Increasing speed = more people trading
More people trading = more interest in this rising price
As price increases and speed increases, that tells us the SENTIMENT of the market is to the LONG side.
- The INCREASING speed is what we look for
- DECREASING speed is the sign of a likely reversal
3 trades today, 3 Winners
+80 ticks, $900usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 05, 2010
103 Ticks Live Today! Hidden Divergence Lesson, back to BIG Winners in the Trade Room!
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The Market Gives us clues today…
830am EST
- News about Portugal getting a downgrade, seeing news about Greece Riots, news about people fleeing financial markets in Greece and flooding the US markets….however…we MUST stick to those RULEs!!!
- Dollar Index futures continue to push through their highs
o We have a tight sideways range just below the highs, but we will wait to see if we need to worry about that.
- Euro futures continue to drop on pressure from the dollar
o Euro looks very appetizing to the short side, but we remind ourselves to follow those rules
Sometimes the BUY off the BOUNCE off the lows is the better trade, so don’t feel pressured into jumping in short
915am EST
- Gold futures were trading sideways with LOTS of support, however, they kept getting forced through the lows, and violently dropping to the next level of support
o This is very hard to trade b/c the VOLUME doesn’t show up until AFTER the move has started.
- Crude Oil Futures made us 50 ticks already today on a very easy breaker pattern short, which started the big move down
o We looked for the bounce off the lows, got a small winner there, but the BIG BOUNCE off the lows came @ 900am when the market was opening.
1115am EST
- Markets have been trading slower in the dead zone (1030-1130)
- We had such large drops in crude oil, crude is very tough to get a feel for right now
- Gold speed has dropped dramatically
o Use the pace of tape indicator
o Where are we right now?
Trading sideways, at the highs of the bracket, looking to break the 2-top
Trigger lines are flat on the fast timeframe
• Sideways market = flat trigger lines
Speed is the slowest its been since 8am est
• Speed < 100 = DANGER!!!!
Average true range has been dropping since 930am
4 trades today, 4 Winners
+103 ticks, $1130usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 04, 2010
79 Ticks Live Today! DX-Pattern Members-Only Webinar Tomorrow!
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The Market Gives us clues today…
800am EST
- Dollar Index Futures are in an uptrend, breaking its highs, and trading just below the 83.000 big round number
o Average true range is very low compared to earlier in the week
o The speed of the tape is < 100, which means we need to wait
830am EST
- Euro Futures are trading trend down
o Sitting on the low of the downward channel
o We need to be careful trading around the extremes of the channel
o Testing its LOD, we can look for the DX-Pattern LONG, just wait for the DX to make a reversal off its highs
o Average true range is very low compared to earlier this week
o The speed of the market has been inconsistent, fast, and then slows, then fast again.
845am EST
- Starting to see a pattern here among these markets
- Large drop/pop and then we are now sitting sideways waiting for more direction ahead.
- Gold Futures are trading sideways after a large pop to the upside; clearly defined double-tops and bottoms are being tested.
o Average true range
1000am EST
- Dollar continues to push its highs, keeping us away from the DX-Pattern today (trending markets are best suited for other patterns)
- Gold futures broke out below their range, but then got pushed back up into the sideways bracket.
- Crude Oil futures sold off at the open @ 930am est, and are now sitting quietly at the 84.00 level.
- Russell futures dropped at the open as well, but have settled into a sluggish range very quickly.
- Euro futures, getting pressure from the dollar continue to drop.
o We need to see double-bottoms to get our hands on the DX-Pattern long on the Euro today
o b/c the euro is trending, we wont see the DX pattern today, we should look
Wave
Breaker
Possibly the 2-step (reversal)
Is there a MAX amount of movement the market can go through?
- 2008 during the credit crunch we saw limit DOWN on things like ES, Russell, Euro, Wheat, Corn, Soybeans
- Limit-Down/Up
o The market can only trade a certain amount down, or up
o Get this info from the exchange website
Corn Futures, the daily price fluctuation is limited to .30, if we close above .30, the following day will be .45
Be careful when you see a market going limit up/down
Your broker should make you aware of this
Watch for multiple days closing at the highs of the day
5 trades today, 4 Winners, 1 scratch
+79 ticks, $790usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 03, 2010
68 Ticks LIVE Trading Today! You gotta see this WAVE Pattern!
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The Market Gives us clues today…
845am EST:
- Dollar Index futures are very quiet today, trading sideways, in a tight wedge pattern
o Speed of the tape < 100 (Red<100 = beware!)
o Average true range is at its LOWEST period in weeks (likely due to the Holiday today)
- Euro futures are very quiet today, trading sideways, in a tight wedge pattern
o Speed of the tape < 100 (Red<100 = beware!)
o Average true range is at its LOWEST period in weeks (likely due to the Holiday today)
1130AM EST
- Looking for the transition into lunch
- How do we know when LUNCH is actually here?
- How do we know when to STOp trading for the morning?
- Watch for 3 important things to tell us…
o Slower Speed in the market
Pace of tape indicator (Red = Slow)
o Sideways Market
Average True Range (dropping)
Flat (horizontal) Trigger Lines
Double-tops, Double-bottoms
o Less BIG MONEY
Filtered Time & Sales Window
• How many orders are coming across?
• How quickly are they arriving in the market?
Dead Zone = 1030-1130am EST
- News is over @ 1030
- European session closes up, and those traders come join us @ 1130am EST on the US Session.
- I set my alarm for 1100am EST so im aware of
o What time it is
o 30 –minutes more of the dead zone
o Lunchtime may sneak up on me, so pay attention
3 trades today, 3 Winners
+68 ticks, $715usd
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
May 03, 2010
19 Ticks Live Today! Another Winning WEEK in the Live Trade Room
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830am EST
- Dollar Index trading at its lows, looking for the DX Pattern SHORT on the EURO
- The Euro futures are trading at their highs, waiting for the Dollar Index to break its overhead resistance
o The euro has quite a bit of overhead resistance on the price action right now, double-tops and a big round number to push through, this may be another good reason to look closely the DX SHORT entry
900am EST
- Crude Oil trading sideways, and we’re waiting for the double-top to form for more feedback from the market to make better decisions today.
- Gold Futures trading its monthly highs and trying to continue to the upside
o The concern is if we break the new highs we will see very difficult price action
915am EST
- Noticed the average true across all markets is at its lowest levels of the week
o Most important is the dollar index, b/c the dollar is the denomination currency
o Gold & Crude, Euro are all looking very tough, with very low ATR reading
This was most likely a reaction to the wait for the GDP report @ 830am EST
1000am EST
- Almost through the news
- Crude Oil futures are now trading below a triple-top (overhead res), and the ATR has now risen to acceptable levels
o May want to wait a little longer, but we should see something soon.
3 trades today, 3 Winners
+19 ticks, $190 usd on scalps
+20 and +15 on the two DX Demo trades…we will go live on those next week
Only 4 contracts needed to achieve this today!
See you tomorrow @ 745am EST for the live trade room session!
