19 Ticks Live Today! Another Winning WEEK in the Live Trade Room

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

From the desk of JJ....Friday 04-30-2010

Hey guys, JJ here...

We wrapped up a challenging month of April today, and HELLO to May!

For many of us, May brings much better weather, as well as better trading environments.

As ive said before, the first quarter is always very rocky.  Earning season and the end of Q1 puts a lot of BIG MONEY on the sidelines, and if you're not prepared for it, this sluggishness in price action around this time of the year can EASILY sneak up on you and wipe out any gains from March.

On the topic of day trading futures, we have a LOT to look forward to!  We introduced our new DX Pattern this week, and in the first 5-8 trades we have never seen anything with this much potential before, so im very excited to share more with you next week!

Remember, we learned a lot this week about the DX Pattern:

- dollar must confirm FIRST

- dont under-estimate the power of those trend lines!

- be sure to move your target to the correct location as soon as you enter your trade!

- dont forget to make sure your stop is just above/below that previous S/R level

- and stay away from those big round numbers!  yikes!! :)

For all our advanced members, we will do a SPECIAL TRAINING on Wednesday next week @ 1130am EST so we can make sure everyone understand how to use it!

For more info on membership, click here:

http://www.schooloftrade.com/signup.php?pck=cjI=

Good work this month!  keep to those rules, and see you in May!

Easy Money Trades! Here's how I made an easy $200 today!

Simple patterns, simple rules, and easy-to-follow instructions are the keys to your trading success.

No matter what your daily profit goals are, we specialize in helping you achive those goals with EASY trades every day in our live trade room.

Today's video we talk about a trade on the Russell, and we show you how EASY it is to make $100 or $1000usd on only 1 trade each day!

I Almost Gave it All Back! But Wait, Another Winning Day?

The Market Gives us clues today…


815am EST

- Dollar Index futures trading sideways above big round number of 82.000

o Average true range is low, lower than it has been in the previous week (use caution)

o Pace of tape is also very slow

o Market appears to be very quiet right now

o The dollar moving slowly is a concern that the rest of the market will also be moving slowly.

- Pound Futures are in a very tough spot, we need to be careful trading the Pound

o Lots of trend lines and resistance levels overhead

o Its trying to push through these levels, so we need to let it succeed and wait for the best times above resistance.

o Average true range is in the middle of its range from earlier this week.

o Pace of tape < 100 (slow speed, so be careful)

- Euro Futures trading sideways below the 3300 level

o Average true range is at its lower end of the week, this means we might want to for a better time in the market.

900AM est

8-Phases of the E-Mini Markets We Trade

Every market you trade will have a different personality, or way in which the price action moves, which is a direct result of the market participants that make this all happen.

Now the S&P is one of the most widely traded indexes in the world so there are lots of factors playing into the trading day, and we’ll cover them for you here today.

Remember, what makes our members so successful is how they understand the way in which the participants in these markets can make certain times more profitable than others, and visa versa.

Obviously, as a member you will get all the fine details, most importantly, as a member you will be told how to USE this knowledge to make profit, but this should give you some very useful information for you to apply to your trading today as a demonstration of the intimate knowledge we have of the markets we trade.

Understanding these different phases of the market will prove to be a vital tool for you to eliminate the riskier trading opportunities during the day, and most importantly, it will really show you what's happening that makes price move the way it does!

Here we have a 3 minute chart of the S&P, and to the naked eye, there is just a bunch of price bars moving back and forth, until of course you look a little closer at this…

Phase 1 is our pre-market, 7am – 930am est

At this time we’re preparing mentally for the day ahead, and we want to remind ourselves of this very simple solution to a common problem among all traders… and that is there emotional standpoint in the market.

I repeat this a few times in my head to get me ready….

“My job today is to protect capital while positioning myself to be ready and able to participate in the opportunities the market gives me.”

8:30 am:              

Prepare your notepad for the following information

News events today (http://fidweek.econoday.com)

Support & Resistance levels

Notes on market personality

Questions to ask during the lunch hour or during training

Set your Clock timer for 5-minutes prior to the news or 11:15am for a heads up on lunch session, whichever comes first.

Mark the following on all of your charts:

Overnight highs & lows

Value Area High (VAH) and Value Area Low (VAL) Levels for the past 30 days

Untouched Point of Control levels (Naked POC) within striking distance of today’s anticipated trading range.

Yesterday’s High of Day (HOD), Low of Day (LOD) and Close.

Today’s Opening price, HOD & LOD

9:00 am:

Review the market:

30-minute chart to see a broad view of the market

6-minute & 13-minute chart(s)

Review your day from yesterday:

Break up the day into 30-minute increments and look for WHERE & WHEN the moves occurred.  Make note of when these moves occurred and look for them today.

Where did you take your trades yesterday?

Your trades from yesterday

Your notes from yesterday

Set-up your trading DOME:

You should have the following options on your trading DOM:

Bracketed trading, meaning that your targets and stops will be automatically set and moved for you as you have defined in your trade-management strategy.

Multiple Strategies that will allow you to move from large to small sizes, or more/less aggressive stops & targets.

The ability to toggle back and forth between simulated trading and live trading for periods where you need to stay out of the market.

You should have three (3) pre-defined strategies to manage the trade:

Full sized: to be used during high volume times of the day (9:30, 10:30, 1:30, 2:30)

Partial sized:  used primarily when you have a lead on the day, or if you are taking trades with a high level of risk such as counter-trend, light volume, or outside of the normal trading hours.

Small Sized (Protection):  Use this when you are trying to dig out of a hole, when you have hit your daily goal, or when you feel as if the trading is too risky to work with anything more than a minimum size.

9:15 am:              

Review the potential day ahead of you: 

“Where are we, where were we, where are we headed?”

What did the pre-market show us?  Did we test any levels before the open?

Prepare for the first level of support & resistance if we open UP or DOWN, get ready to think quickly.   

9:20 am:              

Get ready for the open:

RELAX.  You have all day to earn your living, and the market isn’t going anywhere so take your time.

Turn everything off that may distract you and cause you to make poor decisions such as cell phone, email, instant messenger.  It may not seem like much, but neither does a full stop loss. L

It’s the trades you DON’T TAKE that will make you profitable today. 

GO HOME GREEN.

REVIEW YOUR RULES ONE MORE TIME!

Phase 2 is our opening drive, from 930 to 1030am EST

9:30 am:               Opening Drive

ROOKIE’s: WAIT AND WATCH:  The open brings you great opportunity to get your day off to the wrong start.

 At the open you are watching for the initial VOLUME to step in before you can start taking trades. 

You will see low volume and choppy price action while…

LOCALS buy up the inventory they will use to make money trading to the PAPER on the floor today

Now is the time to make note of your market internals and set your reminder to check internals every 20 mins to watch them improve/decline to give you more information on what type of day this is.

9:33 am:               Check your internals now that the 1^st bar of the day has closed.  Make note to show relative changes to the market sentiment as the day progresses.

9:45 am:               Your job is to try to get involved with the first small move of the day, which will be strictly taken off price action.  There isn’t enough time for a pattern to set up at this point, so look to read the tape and get involved in agreement with the momentum on the tape.

Its important at this time that we keep our mind open to new direction…right now all we know if where we opened, so don’t assume or give yourself a false bias on the direction of the market…and for gosh sake….turn off the CNBC! Hehe….we need to trade what we see…not what we THINK.

Most news happens in the morning at 10:00 and 10:30, remember to stay on the sidelines or protect your position/prepare to profit from a move up or down because of the reaction. 

I set my alarm for 10-minutes prior to the time the news is scheduled to be released, and I do not enter the market within those 10 minutes b/c sometimes the news is leaked early, which will take you out of a good trade in a heartbeat.

First half hour of the day is mostly local trade, meaning that it will be driven by locals (those guys jumping up and down in the pit on TV) trying to jockey for position ahead of what is likely to happen after 10am news and 10:30 moves ahead.

At this time, the locals simply want to get into a position to be able to use their new inventory to make a profit, and you will see this on your charts in the form of fast price action in little pieces, such as 10 lots and 20 lots…not to be confused with the PAPER traders that are yet to show up to trade..

WATCH FOR, ‘OKIE-DOKE’ before 10am

The opening drive will move in one direction or the other, we are looking for initiating activity to drive the price up or down on its course of the morning.

Frequently you will see price come down, search for sellers, pop back up, and then take off to the upside simply on lack of selling pressure. 

We call this okie-doke b/c it can be very misleading and usually catches quite a few retail traders off guard because price will move quickly in one direction, which gets everyone excited, and then it reverses b/c the price action was based on NO VOLUME, just local traders playing back and forth.

A good tool to use is your shortest time frames to watch price action for patterns that develop for you to get involved with.

Be patient during this time.  You will have 3-4 set-ups before lunch time, WAIT FOR THEM to come to you

ALWAYS SCANNING THE MARKET: 

AM I prepared to take the next set up?

At what level am I ready to take this set up?

Scan all the time frames to see other levels standing in your way, and be ready to take them when they set up.

 

10:00 am:             News events are most likely scheduled for this time slot

Market should be breaking out at this point after the initial open, watch out for indecision prior to any news events. 

The market has a tendency to bid up the price prior to the more important news events.

You will know the news has been released when you see the added volume hit the tape and your indicators.

We look for a few specific trade set-ups during this phase, and we Keep your eyes peeled for the perfect set up to take form just after 10:00am.

Why do you think we wait for 10am to see a pattern develop?

Do we have any fund managers in the room today?  Anyone who trades Market Profile on a TPO chart?

Well if you were, you would be trading off a 30-minute chart, not a 3-minute chart like a day trader would use.

With that said, if you use a 30-minute chart than your first candle is closing at 10am, which will most likely be your first opportunity to take a position in the market.

So if the big traders, the PAPER, are getting into the market around 10am….we should be looking for that and ready to get involved in the direction that THEY want this thing to go.

Picture a tug of war match between a 100lbs person and a 500-lb person….who would win?  Exactly…the heavier person…well those are the big fund managers, institutional traders, or what we call PAPER, and they are the initiating activity that you need to see to convince us of the direction of the morning, so waiting for them to show up and make a trade will ensure that we can trade along with them, rather than against them.

So at 10am we start to see volume increase, but we more importantly will see the activity of the larger trades come into play.

10:15 am:             Market Check: 

Are we trending today?

Are we making new highs/lows?

Are the buyers being absorbed by the sellers? 

Is this a 2-sided day?  Lacking conviction of a move up or down?

WHO HAS CONTROL?

This time of the day should have allowed you 1-2 trades off opening volume, now is the time to decrease your position size if you are in the green to protect profits, or to protect against digging yourself a hole into lunch if the pre-lunch chop gets you.

Phase 3 is from 1030 – 11:15am, and is characterized by the 10:30 reversal

10:30 am:             News events are most likely scheduled for this time slot

               

10:30 reversal is likely at this time.  Locals will be taking profits at 10:30, so take profits as well!

Paper buyers & sellers have likely already shown up, so be aware of the potential reversal of whatever trend the market has been trading.

               

Be prepared for initiative buying or selling, that is, other-time frame participants MAY start trying to push this market in the direction they see fit. 

               

Remember, we don’t predict, so forget your feelings and trade what the tape tells you.

Always SCANNING THE MARKET: 

AM I prepared to take the next set up?

At what level am I ready to take this set up?

Scan all the time frames to see other levels standing in your way, and be ready to take them when they set up.

Look to take morning profits between 10:30 am to 11:30 am, which is the continuation of the 10:00 am move. 

Think like a floor trader…. They have been trading since the open, jockeying for position, scalping single ticks out of their positions, and now they too need to take profits, so be on the lookout for a change in direction ahead of lunch.

This taking of profits and the final PAPER traders getting involved will ultimately result in what we call the 10:30 reversal, which is seen consistently across the E-Mini’s

11:00 am:            

The market is likely to transition between the opening drive and the lunch time chop somewhere around 11am to 12-noon. 

It is important to watch for subtle changes to the time in which this change occurs.  We have seen markets that will shows signs of chop early, and then the big moves happen right before lunch, and we have seen the market go into chop very late and present us with numerous opportunities before lunch.  You need to pay close attention to this so you don’t GIVE BACK the profits of a good trade after getting into a trade that was taken on low volume around 11am that you could have seen coming BEFORE you entered the market.

You want to Pay close attention to the following: at 11am to catch the traders leaving early for lunch:

Speed of the tape

Size of the contract SIZE on the tape (is paper still buying/selling?)

Volume of trades (# of trades executed all together in the market big and small in size)(lack of volume will give you a heads up of an early lunch session, which brings added risk)

Usually by 11:15 or 11:30 you will have seen the lunchtime crowd hit the doors and you’ll then have the lunch session set in rather quickly.

Its vital that you are ready for this, and prepared to skip a trade set-up if it appears its happening on low volume.

Our members are given specific instructions on what to pay attention to and how to play this situation.

11:30 am:             Lunch time (typically) lasts from 11:30 until 2:00pm EST, but you will be educated on what to look for to see when the lunch session is over with

11:30-1:30 is not the place to take trades, its nothing but locals playing with the retail traders.

Look for increased volume to take trades as price can be VERY slippery as larger market participants are not in the pit, making strong moves unlikely.

Take a moment to stand up, walk around, go grab lunch, and take some time to focus on something else besides your computer screen so that you can return fresh to the market in the afternoon.

DURING LUNCH:  review your morning session:

Where were your trades and why did you trade them?

Did you see something today that you didn’t understand?

Did you miss a level today?

Did you experience technical issues today?

Were you prepared to trade today?  Were there distractions?

Did you over-trade?  Fail to take trades?

What was the ‘tone’ of the day today?

How can you make small changes to your plan of attack to make sure you don’t make the same mistakes tomorrow?

1:30 pm:               Open your charts and get ready for the afternoon action.

YOU ARE NOT TRADING UNTIL 2pm, you are just watching.

Locals come back from lunch, they review the parked orders in the form of stops in the market, and they formulate how to attack those stops and shake this market up for the afternoon session.

1:30 Fake Out, Break Out:  this describes the act of running the stops (forcing price 1 tick below the lows which kicks most of the rookie stops out of the market, making price jump thus kick-starting the rally in the OPPOSITE direction.

Looking for the afternoon session (which can be completely different than the AM session) to begin. 

We aren’t taking trades right away, but merely trying to get a read on the market coming BACK to life with more volume and larger orders on the tape.

Once the locals finish running the smaller stops, the larger participants will then step in and take this market until around 3:30pm, we want to be WITH them on this strong move in either direction, and be prepared to hold this trade into the 3:30 pm period.

BEWARE:  there is ONE technical indicator that we do NOT use until the afternoon session.  I wont even pay attention to it in the morning…only the afternoon session does it provide trading set-ups.

Right now You are looking for lunch to end…

increased volume, look for more than 1000 trades more often

speed of tape

Position size to see the larger players come back from lunch, which will signal your ability to participate without the added risk.

Be patient.  You will see 2-3 more set-ups.  WAIT FOR THEM.  The afternoon will bring plenty of opportunity.

Phase 5 is the afternoon session transition, and again, we are pay close attention to the technicals to tell us when the afternoon session is finally here to trade.

2:00 pm:               Waiting for volume to return to the tape …

Now we want to mentally prepare for the afternoon…

Where is the market headed for the afternoon?

What is the tone of the early afternoon session? 

Have ONLY the buyers come back from lunch? 

Do you see changes or consistencies from the morning trade? 

Remember, just like you, we do different things over lunch, which may involve re-thinking your

Remember that the locals will try to push this market in the opposite direction of where the larger participants will most likely take the price around 2:30pm. 

Don’t get anxious to trade b/c you haven’t traded in a while…remember that you need to discipline yourself to the point that you can open your charts at 1:30, wait for volume to show up, and then wait for the set-up to form and the BIG $ to trigger the trade.

PATIENCE….remember you have the final drive to look forward to, so sit on your hands and be patient.

2:30 pm:               WATCH the VOLUME come to the table right NOW!

We expect to see SOMETHING start to move around this time. 

If we don’t see the larger players step in and grab this market, we need to be careful because the locals will chop the market up and take your account equity with it.

Potential for a reversal around this time due to the larger players stepping back in with initiative buying/selling. 

Be sure to protect any positions during this time with appropriate stops to protect against losses or to lock in profits.

“Where are we, where were we, where are we headed?”

Phase 7 is from 230 – 400pm and will be where the majority of the afternoon opportunities occur, and we will rarely want to trade after 330pm altogether.

3:00 pm:               Bonds and Currencies Close

We should see the big afternoon move occur around this time.

Volume should come back very strong with other markets closing over the next 30 mins. 

Ultimately, as other markets close for the day, these traders mosey on over to the other pits and get involved, which shows a significant impact on price around this time, so be ready for it.

Look for increased speed of tape and a defined trend developing into the afternoon.

“Where are we, where were we, where are we headed?”

Remember, we cannot predict where the market will go based on the AM session.  We must only react to what the afternoon participants are telling us.  It will not be any more likely to take place simply b/c it occurred in the AM session.

3:30 pm:              

330 means we need to expect the day to start showing signs of the end….

MARKET CHECK:

Is the market up/down by a large amount? 

If so, look for short-coverings on a down-day (opposite on an up-day of course) which will cause the market to ‘bounce’ off its LOD simply because of the shorts that are now BUYING back in order to flatten their position. 

Don’t forget to limit risk by trading with fewer contracts!

IS the market flat?  If so, STOP TRADING at this time.

Risk increases around this time, as volume decreases (many people don’t trade after this time) with more people leaving the pit to go home, and frantic traders placing desperation trades, covering shorts, or dumping their longs prior to getting stuck overnight.

Look to fade the Developing Value Area levels.

Watch closely for

Decreased volume to tip you off to an early end of the afternoon session.

Lack of Paper participation, ie, local-only, ie, only SMALL contracts which means price will become ‘slippery’ very quickly.

A heads up those large buys/sells may be coming by listening to the pit and watching the dome for sporadic activity on the dome.

If you decide to trade the late afternoon, be prepared to significantly lower your contract size in order to protect profits or protect capital if you are trying to dig out of a hole.

4:00 pm:               Close of the Cash Market

4:15 pm:               Close of Electronic Trading on the CME Group (applies to the ES E-Mini)

Review your day.

Prepare questions for the next training

Where were your trades and why did you trade them?

Did you see something today that you didn’t understand?

Did you miss a level today?

Moving Averages

Value Area Levels

HOD / LOD

Did you experience technical issues today?

Were you prepared to trade today?  Were there distractions?

Did you over-trade?  Fail to take trades? How many did you take?  Not take?

What was the ‘tone’ of the day today?

How can you make small changes to your plan of attack to make sure you don’t make the same mistakes tomorrow?

So why does all this matter to you as a trader?

Well, human beings are creatures of habit, and we made the markets we trade, so those same habits carry over into these markets

The traders show up to work each day in the same car, take the same route, use the same parking lot, the same path to the pit, etc…they love routine.

Ask a baseball player if they like routine…enough said!

We see patterns as traders

We use these predictable patterns to anticipate movements before they happen, and then we WAIT for the technical's to line up according to our rules to take the trades.

For example..

We know the reversal is coming at 10:30 b/c we understand the market participants…

b/c of this we are ready to take advantage of it, and we use our rules to get us into the market at that time with the most high percentage set-ups and the lowest risk possible.

Once we are in the trade according to our rules, we then manage our trades correctly with our simple and efficient methods of doing so, which is all covered in the course materials of course.

66 Ticks LIVE Today! Don’t Miss the Webinar Tomorrow

SchoolofTrade.com Daily Commentary 04-28-10

The Market will give us clues today…

820am EST

- Dollar Index Futures trading sideways just below the big round number of 82.00

- Looking for a DX-Pattern Long on Euro, but the highs on the dollar have broken, so we wait for the price to reverse to enter the long euro trade

- Pace of tape indicator < 100 (be careful)

- Average true range on the dollar index trading at its lows for the past week

o Tells us the range is very narrow, which means it will be more difficult to earn profits.

o The dollar leads the markets, so we wait for the dollar to move FIRST.


900am EST

- We took our first losing trade on the new DX-Pattern

o Learned that we need to get in LATE, rather than early

o We moved to a slower chart, 6-range on the Dollar to make sure we’re not getting in before the move occurs

Increase Profits w/ High Percentage Patterns, here are our favorites!

One of the most important aspects to any traders' success is the use of high percentage entry patterns.

In this video, we discuss 5 of our favorite high-percentage entry patterns.

dont forget...

The beginner's course has these patterns covered in great detail, and the Advanced Course has all the specifics to make sure you are using them correctly.

84 Ticks LIVE Today! More Dollar Index Trading Tomorrow

The Market will give us clues today…


820am EST

- Dollar Index Futures trading sideways just below the big round number of 82.00

- Looking for a DX-Pattern Long on Euro, but the highs on the dollar have broken, so we wait for the price to reverse to enter the long euro trade

- Pace of tape indicator < 100 (be careful)

- Average true range on the dollar index trading at its lows for the past week

o Tells us the range is very narrow, which means it will be more difficult to earn profits.

o The dollar leads the markets, so we wait for the dollar to move FIRST.

900am EST

- We took our first losing trade on the new DX-Pattern

o Learned that we need to get in LATE, rather than early

o We moved to a slower chart, 6-range on the Dollar to make sure we’re not getting in before the move occurs

2 Live DX-Setup trades in our live trade room.

One of our newsest entry patterns uses the popular Dollar Index Futures with Currency Futures such as the Euro, Pound & Yen.

12 Ticks LIVE Today. NEW DX-Pattern Tomorrow!

Market Give us Clues today…


8am EST

- Dollar Index Futures trading in a range from 82.000 down to 81.400

- Speed of the tape (pace of tape) is very slow (<100)

- Average true range is at its weekly lows

o Trading right now may be very narrow, slow and potentially dangerous.

o Average true range = volatility/ range of the market

820am EST

- Crude Oil Futures trading sideways from 85.60 to 84.75

- Pace of Tape Indicator < 100 (speed = slow)

- Average true range is very low

o Most narrow price action we will see

Quiz Of The Day; Trade Management

Quiz #3

The reason our trade management is so effective for all types of traders...?

   A.) Its very hard to learn.
   B.) Capitalizes on how the market moves.
   C.) We use lots of fancy indicators

Be sure to include your first name only. Please do not leave full names, or email addresses. This will help protect your privacy.





Names that will be entered into the May raffle include:


    Quiz #1                       Quiz #2

1.) Chad P                  1.) Joe Clark
2.) More Yummy        2.) Tom Giles
3.) Joe Clark              3.) Mike S
4.) Daryl Y                4.) Wim L
5.) James                   5.) Daryl Yarp

67 Ticks LIVE Today! Another BIG Week Re-Open Monday 745am EST

Market Gave us clues today…

800am EST:

- Dollar Index Futures, still within its wide sideways range from earlier this month

o Pace of tape indicator is rising in speed

o Average true range = dropping

830am EST

- Crude Oil Futures trading in a tight sideways range, half way between the big round numbers

o SPEED < 100 = be careful! Very slow out there

o Average true range = lowest its been all week

 This is the worst price action you are going to see! Use this to make educated decision!

- Gold futures are trading sideways in a VERY tight range

o Multiple tops and bottoms, making a breakout appear to be impossible

o Speed of the tape is not bad, avg 150

o Average true range on gold futures is rising, its about in the middle of its ATR from this week

 Its not the worst we’ve seen, but its not the best either.

Use Multiple Timeframes for Precision Entries

No matter what type of trading you do, using multiple timeframes will always be the most effective way to enter and exit the market.

In this video we'll show you the different ways to use Multiple timeframes, as well as how to get the most precise entries for your trades.

28 Ticks LIVE Today! Market Sentiment Lesson, Re-open 745am EST

Market Gave us clues today…


815am EST:

- Dollar Index Futures have broken to the upside out of its sideways range, but threatening to pullback into the previous trading range below.

o Average true range has been dropping since 6am EST, we are at the lower end of the ATR over the entire week

o Wait for the ATR to increase, this will tell you when there’s more opportunity in OTHER markets.

o Pace of tape indicator shows a VERY slow speed of the market

- Crude Oil Futures are trading at its lows for the week, but sitting in a sideways range from 82.60 to 83.00

o Average true range has been flat, we will wait for some reaction from the market to make a further decision.

o Pace of tape indicator is all RED = Slow price action, so be careful!

Quiz Of The Day. Pace Of Tape Technical Indictor

Quiz #2

The best ise of the Pace Of Tape Indicator would be...?
  
   A.) Predict reversals at high of day.
   B.) Define short-term market sentiment.
   C.) Tell you when to get long.

Be sure to include your first name only. Please do not leave full names, or email addresses. This will help protect your privacy.





Names that will be entered into the May raffle include:

1.) Chad P
2.) More Yummy
3.) Joe Clark
4.) Daryl Y
5.) James

Confidence is vital to our success, try this technique! Webinar 1130am Tomorrow!

Today’s Trade Room Notes:


815am EST:

- Dollar Index Futures trading sideways at the high of its sideways range

o Fast timeframe shows no short term trend

o Average true range (atr) has been dropping since 745am EST

 Narrowing ATR shows signs of concern b/c the rest of the market will follow

- Crude Oil Futures trading sideways from 83.60 to 84.50

o Average true range is at its DAILY high, but only half of the ATR we saw yesterday

 Things are more narrow than they were yesterday

Speed & Average True Range (ATR)

No matter what type of trading you do, speed is always an important factor, and we use the Pace of Tape Indicator to measure the speed of the market, and we can compare the speed throughout the trading day with other technical indicators, such as Average True Range.

Average True Range measures the trading range of the market. The wider the range, the more profit potential we have.

Today's video discusses a very interesting situation we saw in the markets where we compared the SPEED of the Tape with the Average True Range to get a better feeling for how the market was moving. Enjoy the video

10-Ticks LIVE Today, ATR Lesson on Sideways Markets

Today’s Trade Room Notes:


Market Gave us clues today…

800am EST

- Dollar Index Futures are trending down from yesterday’s highs, but have settled into a broad sideways range.

o Double-tops and bottoms above and below, and the market continues to show lack of direction

o Pace of tape on the dollar index is very slow

o Average true range of the dollar is dropping since 5am EST

 That means the market is narrowing in its trading range, so we can expect the same from the other markets.

815am EST

- Crude Oil Futures trading sideways below the 84.00 level

o Slow pace of the tape

o Average true range is dropping

- Gold Futures trending to the upside, but gone sideways over the past few hours

o Pace of tape is slow

o Average true range is dangerously low on the gold futures, lower than yesterdays low

Quiz of The Day Tax Advantage

This is our first quiz of the day for our May Raffle. Whole new ball game hope everybody is ready.

Quiz #1

Traders of futures get a 60/40 tax advantage of stocks and forex because...?

   A.) Contract expiration of futures
   B.) Futures contracts classified as commodities with IRS
   C.) Earn futures income in "advance"

25-Ticks LIVE Today & Free Webinar tomorrow 1130am EST

Today’s Trade Room Notes:

Market Gave us clues today…

800am EST:

- Dollar Index Futures

o Slow timeframe shows new higher highs, and a trending UP market

o Fast timeframe has lots of movement

o Slow pace of tape indicator

o Average true range has been narrowing since 330am EST, which means the markets we trade will also most likely be very narrow as well.

- Crude Oil Futures

o Strong downtrend almost all morning

o As of 8am est went sideways into a very narrow range

o Average true range at its highest levels of the day @ 8am est

New Sling-Shot Pattern & Entries on the Wave Indicator

In today's tips & tricks in the live trade room we discussed the new Sling-Shot Pattern and Entry techniques on the Wave Indicator.


Using multiple timeframes is a great to help your trading, and this webinar discusses how we use our SLOW charts to see the PATTERN develop, and then we use our FAST charts to execute the trade.

We will also cover this in great detail in the members materials!

86-Ticks LIVE another Great Week! Re-Open Mon 745am!

Today’s Trade Room Notes:


845am EST

- Dollar Index Futures trading sideways ALL week, very tight trading range

o Average true range is flat

o No short term trend on the fast timeframe

o This tells us we may have to wait a ltitle to see some movement in these markets

o Dollar moves first

 Short term trend is very important

 Avoid trading when the dollar is choppy and sideways on the fast timeframe

- Crude Oil Futures, first move of the day was lacking BIG MONEY in the market.

o Looked for a slingshot long entry @ 850am EST, and there were no BIG BUYERS to get us into the trade.

o Waiting for the wave short to trigger….

o Crude Oil trading in the middle of the sideways range from earlier this week, so watch those double-tops and wait for CONVICTION of the breakout.

945AM EST

- Overall lack of BIG MONEY in the market

- No matter which pattern we see, we aren’t getting the BIG buyers/sellers we need to feel confident to take this trade.

Candlestick Patterns & Profits!

We see too many traders looking for candlestick patterns to take trades...

Candlestick patterns are VERY useful, but we still see many traders using them incorrectly.

Today's video is a MUST-WATCH if you want to know the TRUTH about how to profit using Candlestick Patterns.

As always, post your questions on the blog, and we will be sure to answer them!

Tax-Day Trading, Did you SEE this 2-Step Entry on the Wave Indicator?

Market Gave us clues today…


815am EST

- Dollar Index Futures are trading sideways from 81.000 – 80.000

o Still watching the half 80.500

o Still watching the double tops/bottoms

o Pace of tape is very slow

o No short term trend on the fast timeframe

o Average True Range has been very narrow at the extremes, tells us that the traders in the market have very little confidence in breaking that sideways range

- 830am EST

o Jobless Claims are out higher than expected

o Crude Oil Futures trading sideways from 87.00 – 86.00 and sticking around the 86.50 level

o Just rolled over to the 06-10 contracts today, so speed will be a concern.

 We need to make sure that the REST of the market has also joined us on the 06-10

 First move of the day 833am EST on the Crude oil had NO BIG MONEY, so we must keep an eye on that.

Raffle Results! Plus Quiz Of The Day, Divergence

Watch the video below to see if you won any prizes in our monthly raffle.

Plus start out on the right foot for our next raffle for the month of May.

Quiz #1

Price makes a new high and indicator does not is called...?

   A.) Hidden Divergence
   B.) Regular Divergence
   C.) Bearish Divergence

48 Ticks LIVE Today! Sling-shot Pattern is a Success!

Today’s Trade Room Notes:

Market Gave us clues today…

Charts we use:

- Range Charts = Slow, Medium, Fast (majority)

- Minute Charts = Average True Range, Volatility Index

- Second Charts = Pace of Tape Indicator

- Tick Charts = Trade Management Chart

- GREAT VIDEO on using your charts here:


815am EST

- Dollar Index Futures trading sideways at 80.500, double tops above and double bottoms below

o Pace of tape is slow (30)(<100)

o Average True Range (ATR) dropping since 730am

 Tells us the market is most likely contracting right now along with the dollar

Dollar Index:

Discipline Cycle Tutorial

Today’s lesson is something VERY close to my heart because it’s my personal story of how I finally became consistently profitable as a day trader.

10 years ago, after I lost my 2nd trade account I was about to quit trading when something dramatic changed my life forever…I learned some very valuable lessons along my journey as a trader, and when I looked back on my experience I noticed that EVERY trader must go through the same process that I did.

The Discipline Cycle is the process that EVERY trader goes through, so don’t miss today’s video lesson!

If it feels like I’m reading YOUR story with this lesson, you’re not alone, and this simple ‘cycle’ will be your key to future success.

*This is a small portion of the full lesson in our Advanced Course*

Your Emotions can be an asset or a liability to your trading; I think we all agree on that.Out of ALL the things we worry about in the trade room each day, the most important is within ourselves.

Our emotions a deadly to our trading if we can’t keep them under control. Every trader goes through an evolution of learning and growing as a trader, and this Discipline Cycle defines that EVOLUTIONARY PROCESS that all traders must go through to achieve long term and consistent success as a day trader.

52 Ticks LIVE Today! New Patterns Coming Later week!

Market Gave us clues today…


800am EST:

- Dollar Index trading sideways range above 80.500. it returned to the same sideways range from early last week.

- Pace of tape on the dollar index is very slow

- Dollar Index fast timeframe is very choppy, sideways, no short term trend. Fast time frame, we watch the short term trend most importantly.

- If Dollar Index is flat = everything else is flat

- Crude Oil Futures trading sideways below a very choppy area of 84.10 – 84.00.

- We need to be careful around the 84.00 from yesterday’s choppy price action around that area.

- Crude Oil Futures wave indicator we have no new highs or lows, trading sideways inside a tight trading range.

- Look for new highs/lows to enter on the wave

830am EST

- Gold Futures trading within a wide sideways range. Gold futures have pulled back from their highs, but we need to wait to see some conviction for future direction.

- We noticed that Crude Oil futures are sharing volume between the 06-10 and 05-10 contract. This will expect to roll forward to the 06-10 contract later this week, if not later today.

- Euro Futures trading in a tight sideways range, just tucked below the 1.3600 big round number.

- We are trading sideways after the big move UP from the weekend news about the Greek Bailout

Easy Solution to Ninja Trader Charting Problems

If you've been with us in the live trade room recently you watched as we up-graded to a new computer, with the latest technology! This became a Nightmare very quickly because the charting platform we all love to use isnt set up for the latest and greatest technology. Here is an easy way to solve this problem.

28 Ticks LIVE Today. Use ATR to define the best times to be trading.

Market Gave us clues today…

820am EST

• Dollar Index Futures

o Dropped below its sideways range, below 80.500 level, and now sitting on support just inside the bottom of the range

o Speed of the dollar index futures is very slow at this time. Wait for the dollar to begin to move the other markets

• Crude Oil Futures

o Massive head & shoulders candlestick pattern on the slower timeframe, this tells us to be careful when price breaks that neckline, be careful not to predict…wait for the price to fully break to the downside, then look to enter on the REACTION.

• Gold Futures trading sideways @ their quarterly highs from Friday

o Pace of tape on Gold < 50 (very slow)

o Trading at its lows, low of the day, from last Friday

o http://www.microsoft.com/windows/virtual-pc/default.aspx

Quiz of The Day Momentum Oscillator

Quiz # 6

This is an Oscillator , used on a fast time frame, and we look for it to point UP for a long trade...?

   A.) Time And Sales Window
   B.)  Pace of Tape Indicator
   C.) Momentum Indicator




The Winning Results For Previous Quizzes!

Quiz #1                             Quiz #2                           Quiz #3

1.) More Yummy           1.) More Yummy             1.) Joe S
2.) Wim L                      2.) Joe S                          2.) Peter M
3.) Joe S                        3.) Paulo                          3.) Chad P
4.) David Kent               4.) Mivk M                      4.) Jeffery
5.) Kregg                       5.) Kregg                         5.) More Yummy

   Quiz #4                               Quiz #5

1.) Chad P                           1.) Wim L
2.) Tom Giles                       2.) Tom Giles
3.) Wim L                            3.) Chad P
4.) Scott                              4.) Kregg
5.) More Yummy                 5.) John-Henry

64 Ticks LIVE Today! Scalping & Wave Trading at its BEST!

Market Gave us clues today…

820am EST

- Dollar Index Futures are trading in a wide, sideways range 82.000 – 81.00

- Speed on the dollar index is very slow, less than 50 all morning, so VERY slow. We want > 100

- First move of the morning was on Crude Oil wave entry short. Slow speed, support below our entry, and early in the AM caused us to beware.

830am EST

- Crude Oil Futures, rather wide sideways range, and we’re trading up off the lows of the range this morning. Very slow speed on the crude oil, and we had to skip the first wave entry of the morning due to the lack of speed.

Develop Your Own Trading Plan, Tips from a Professional

With so many options available to us as traders, its no wonder why new traders have a difficult time defining their trading strategy.


Here is an easy way to get your trading plan started, and our Advanced Members get our 1-on-1 attention to make sure their trading plan is exactly what it needs to be!

95 Ticks LIVE Today!

Market Gave us clues today…

800am EST

- Dollar Index Futures trending up, but somewhat sideways. Still seeing double-tops and bottoms on the slower timeframe

- No short term trend on the FAST timeframe, which is more important when looking for a trend.

- Look at the first move of the day. Wave entry short on the crude oil. We see stutter steps, flat trigger line, and slow red pot, with momentum possibly oversold already.

- This lack of price movement tells us…wait for better speed, we now know what the market LOOKS like and FEELS like today on crude oil futures.

830AM EST

- Crude Oil Futures trading to the downside, slight downtrend, but overall, the market looks very weak, lack of conviction, and could go anywhere right now.

- Beware, double-tops and bottoms on crude oil above and below at the 81.50, 80.50 (halves)

FREE & EASY way to Record & Review your results

Its very important that we review our trades each day.Did you make any mistakes?

Where can you improve for tomorrow? Reflection on your trading day can be difficult if you aren’t using the right tools.

Watch this video for a FREE and EASY way to record your trades so you can review them at the end of each day.

Watch these Entries! Today’s Challenging Market was a learning Tool!

815am EST


- Dollar Index Futures trading very sideways on fast, at high of day, and at the extremes of the sideways range from earlier this week

- Dollar trying to break the highs and the weekly highs to the upside, but speed of the tape is very slow as well.

- Crude Oil Futures, testing its LOD, but we cannot take the short breaker entry without the GREEN POT

- Gold Futures trading very slow, very sideways, and we need to see something MOVE!!! Up or down, anything! Multiple days of sideways chop on gold futures.

845amEST

- Euro Futures, first move of the morning, told us a story. We saw sellers at the lows, looking for a 2-step long reversal. We now expect the sellers to maintain control, so we look for another short entry in the future.

- Wave Indicators are sluggish this morning with flat trigger lines on Pound Futures, Gold Futures,

Term And Quiz Of The Day

Quiz #5

We watch this market FIRST, it compares USD to a basket of currencies...?

   A.) Euro Currency Futures
   B.) Dollar Index Futures
   C.) Russell E-Mini Futures






Leave your answer in the comment box below.


The Winning Results For Previous Quizzes!

Quiz #1                        Quiz #2                          Quiz #3   

1.)  More Yummy      1.) More Yummy         1.) Joe S
2.)  Wim L                 2.) Joe S                     2.) Peter M
3.)  Joe S                   3.) Paulo                     3.) Chad P
4.)  David Kent          4.)  Mivk M                4.) Jeffery
5.)  Kregg                  5.)  Kregg                   5.) More Yummy

Quiz #4

1.) Chad P
2.) Tom Giles
3.) Wim L
4.) Scott
5.) More Yummy


Click Here To Watch Our Live Trade Room Recordings

Click here To Catch Up On All Of Our Quizzes.

44 Ticks Scalping, But check out this Wave Entry! Re-open 745am EST

Market Gave us clues today…

830am EST

- Dollar Index Futures has very slow speed, but trending to the upside above 81.500, testing its highs of the day

- Crude Oil Futures, trading to the upside, but sideways at 86.50

845am EST

- Gold Futures are trading sideways. 3 days of sideways price action

1015am EST

- Dollar Index Futures, quiet, very slow, resting on support

- Support on the dollar = likely resistance on everything else

- Look to the short side of other markets!

- Russell Futures are trading at their highs, at their quarterly highs, and trading sideways from yesterday.

1-Contract Trading w/ Wave Indicator

Here is the most effective way of using the Wave Indicator when trading 1 contract.

95 Ticks Live Today! How to make 21 Ticks in 17-Tick Range!

Market Gave us clues today…

830am EST

• Dollar Index Futures are sideways, tucked below the 81.500, fast timeframe is very choppy, no defined trend, pace of tape is very slow as well

• Crude Oil Futures, trading sideways, quite slow, just below 85.50, its quarterly highs

• Average true range for crude oil futures is rising

Quiz Of The Day; High Profile Levels

Hey Traders I was wondering if any of our current members or trial members, or even guests would like to leave some of there personal experiences that you have had with the Schooloftrade.com?

Just follow this link and post your experience, thanks guys this feedback really helps me tailor my teaching habits.


Quiz #4

A good example of a High Profile Suppot and Resistance level is...?

   A.) Market Profile Value Areas
   B.) High of Day/Low of Day
   c.) Moving Averages




Leave your answer in the comment box below.

The Winning Results For Previous Quizzes!



 Quiz #1                        Quiz #2                          Quiz #3   

1.)  More Yummy      1.) More Yummy         1.) Joe S

2.)  Wim L                 2.) Joe S                     2.) Peter M

3.)  Joe S                   3.) Paulo                     3.) Chad P

4.)  David Kent          4.)  Mivk M                4.) Jeffery

5.)  Kregg                  5.)  Kregg                   5.) More Yummy


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Click here To Catch Up On All Of Our Quizzes.

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