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Trading Indicators Reflect Price part 2

Tuesday, January 10th, 2012

Today is Tuesday January 10th, 2012 as the market has been very quiet with low volume for the past several session.

We saw a large gap in today’s action and then the market went to sleep, again. It is hard to make money with low trading ranges and you need extra patients to let things come together and then again, let them get played out. Before I get going to far, I will post my last three trading session since my last post, Friday, Monday and Today’s. This kind of slow environment is best to be on the cautious side and not push the envelope and certainly not to over-trade, of which I am aware of. All three days came out good with the lightest day being today, but its enough if its on the positive side of the market. The screen-shots below.  Friday’s here;

Monday’s day here below;

Today’s trades below;

Trading indicators reflect price

Trading indicators are a tool that reflects the behavior of the price action it mimic’s. It is a reflection, but it is not the original. The original is always first and in this case that is the price. The price is the original and the indicator is a copy or reflection of the price.

That is so very important. We as traders need to be able to interpret the price first. If you can do that, you will know which trade is stronger and which is in a weaker position. We don’t have to trade every twist and turn the market generates, but only those trades that lends us the “low risk trading advantage” towards our efforts.

Limiting yourself to those low risk trades puts you in control of your trading and your results. We don’t have to hope or wish for things to swing our way, we only need to position ourselves where we have that trading advantage or market edge.

The market is predictable at certain points. You don’t have to know every move it makes but just accept it at its current value. When the market pressure is built and factored in, and time has run its course, the last part is for the market to express itself back onto the screen in an upward and or downward move. Position yourself properly, and you have a low risk entry and high reward return. Trading is not easy, but it can be simple in some ways.

Many come into this thinking that it could not be that hard, but the market is filled with emotions and it can make you do things that you would not normally do, to take the wrong side.

If you understand how to read the price action as it is reflected in support and resistance, you can find those low risk entries and profit form it, but you need a method that will keep you looking and doing the same types of things over and over again. Without one, you will be all over the map, and left with losses.

Recap, which comes first, the price or the indicator?  The Chicken or the Egg ? I would say, the first one on both of those, but some might argue that. The first question, it is undoubtedly the price. The price drives the indicator and that gets projected onto the screen. Learn to read the price and understand its nature and behavior and you will better understand what and when to trade. The trade indicators are a guide and they can be helpful to get you to see what is already there, but your eyes are just not trained to see and interpret it at that time.

Being successful is very possible if you take the steps that will get you there. It is up to each individual to find his or here way, but we can get help that will take us in the right direction.

There are many ways to trade the market, some of them are good, and other not so good, but the key is up to you. Do you have the drive, will and determination to overcome all obstacles.  If the answer is “Yes”, I would say, take your time. Don’t rush into anything, do your own homework and first see what type of trader you are?  Short term scalper or position trader? How much time do you want to invest in following the markets? All day, or only a couple of hours? Answers to those questions will help to uncover a few key objectives and match yourself up with a good fit as far as style.

There are lot more questions one could ask, but just remember, price is always first and if you train your eyes to see and learn what drives the price action on the screen, you will be on your way to building a solid foundation. Anything else, will just leave you unsure and loosing valuable time and energy. Think about it?

Trade Well, Trade Committed !   Vince

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Day Trading Indicators, only part of the story

Thursday, September 8th, 2011

Today Thursday September 8th, the market saw a little resistance coming in at that number I mentioned yesterday, 1200/1202.  It would be normal for us to see an inside day from Wednesdays large run up and that would built pressure for a move of some size on Monday. There is a downside bias for the time being with solid resistance at the numbers mentioned. If we are able to break that level with some conviction, we may be seeing the second senario I laid out from Tuesdays post.

Currently, we are on track for the first senario where I said we would rally first, pause, then start the decent to retest the early August lows. So far, that is what is happening. The thing that would change it, is if we break the 1202 level with power, then we should see the 1240/1245 area where we will see the new resistance overhead.

In today’s trading, I took only one trade well after the open for a two point gain. I was in the trade for seven minutes and follow the markets for about 20 minutes. There was more in the move, but just took the easy points. Still a bit of that Summer vacation in my bones.  A chart of the early mornings signals and my trade taken above.

As a reminder, I am back showing the smaller time frame chart that I usually do, but wanted to point out that the day trading indicators that generate the trading signals are not the method. They are consistent with the trading method, but they are marking the long and shorts all for completely different reasons than just the trade signals themselves. That is very important, because a trader needs to know “Why” and “What” is happening to the price as he allows the trades to come together. Knowing that information, makes the trading indicators and trade signals that you do see, all that much more powerful.

Knowledge is power, and those who know how to use it become empowered.

Good Trading to all !

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Day Trading Indicators

Thursday, June 16th, 2011

Today, June 16, 2011 marks 6 straight weeks of selling in the index’s. The Dow did manage to move up 66 points with the S&P flat. Over the weekend I will report if we have had any shifts in sentiment as that has been leaning towards a very bearish bias, which could be good if we have reached extremes.

Last week we were close and with this weeks selling, could have swayed those on the fence to jump to the bearish side and thus actually be a bullish signal. It is funny how that works, but it does. I could go either way and have heard arguments on both sides. All I can say is currently the market is showing negative momentum on the daily charts. A shift can come at any time so be on your toes.

In tomorrows trading, I do see the possibility of us filling the gap from a few days ago up around 1282, the next potential target would then be around the 1300 area. If the market has legs to the upside, we could hit those levels in one and then two days. Currently we are at 1262 on the S&P and hit another new low around 1252 late in today’s session. For us to hit 1282 and then 1300 is a tall order, roughly 400 Dow Points, but I will leave the possibility open if the strength shows up.

As traders, we need to look both ways. If you only look one way, you will miss what the market is saying. I did not trade in the afternoon, but the market showed short all over it and guess what happened, it went down. If you only were looking for the up move, you not only would have lost money on your long trade, you would have missed the opportunity to profit on the drop. So, the moral of the story, read the market and let it decide. If you don’t know how, that too is yet another story, for maybe another day.

I traded about one hour and picked up about 5 points with a little scalp trade later on. I have my trades below and mark up the screen below and above to show the signals. The day trading indicators are not the trading method, but they are consistent with it. The price always comes first and is the primary indicator for our trading decisions. It is all about being able to read the price just like you would be able to read Italian or French. It speaks a language unto itself and has many accents, so it pays to learn it if you are going to trade. Having the day trading indicators there to confirm that you are reading it right, can help, but it is not the basis for the actions taken. I hope that makes sense.

Trading from this standpoint, is very empowering. You don’t have to get every trade, and some of them you will get wrong, that is apart of trading, but taking what is the easy and obvious is what its all about. Keep the struggle to a minimum and walk away to fight another day. Good Trading to All.

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Trading Indicators only Reflect Price

Thursday, April 14th, 2011

3-14-11;  Today’s trading was smooth sailing, with only 30 minutes on the screen for me today and I was off to do other things. The market was very predictable as you can see the turning points and continuation points on my screen shot below. The trading indicators are only a reflection of what the market is doing and that is a reflection of what individual traders collectively are doing. So, if you know how other traders will react at these inflection points, you will right there have a leg up on them.

A Psychologist by his trade, listens to peoples problems and offers advise to help direct there lives. He has to get inside there head, so to speak to know how his patient is thinking and try to understand why he does what it is that he does. Only then can he offer anything of value that will help address the issues at hand.

The same is true in trading. You have to get a feel for what these traders will do in mass as they see certain points on the screen. This is all broken down into a price driven trading method. The trading indicators only reflect everything I just mentioned.

These trading indicators can help you see what it is that you don’t see and understand at this point. Knowing the trading method and reason for the moves, totally puts the odds and trading advantage on your side of the isle.

It takes work and dedication to master this. It does not come overnight. You may be able to follow the trading indicators and have some trading success, but the true real empowering confidence will come when you know the methodology behind behind these moves.

You do need trading discipline to be able to keep yourself in check, but that is within you, which is also work. At times traders are not willing to do that work or they get lax on it and think they can just get by. Well, if you let your gaurd down while competing on the screen, you will be disappointed. When you don’t get what you think you should have, it can be discouraging. That happens only when you don’t have a solid understanding of what you are doing, even if you think you do.

Every day, traders take to the field and think that it won’t happen to me, but the other guy. The thing is, they are the other guy and just don’t know it. That is not a put down, but it is just how it is. Every trader needs to stay “Humble”, doing other wise, will bring disappointment. Many have heard the term, “Pride comes before the fall”. That is from the Good Book and it happens all day long across the globe.

Trading confidence is different and comes when you know that doing the right things over a period of time will yield you the overall results you seek. Stick with what works and be consistent with it. If you don’t have anything that works, find it, work hard to create it, or buy it.

I show my screen every day as seen in the screen shots above with my daily trades. I show the turning points and continuation points as identified with the hope that traders can see a pattern of consistent market behavior within the trading day. You don’t have to get it all, as you can see in the long trade I took today, I had more in the trade. Its not how much is available, but how much you can walk away with that counts.

We all know how much sand is at the beach. If you get overwhelmed with all the sand, you will loose your focus on getting some of it. Trying to grab it with only your hands, you only see it fall right through them. Don’t get overwhelmed by getting all that the market has to offer as it could overtake you as you walk away with nothing. Instead, be content with “your daily bread” , what you need from the session and walk away. Close the computer and enjoy the benefits of what trading has to offer, free time.

For me, a couple of times a month, I like to react to market conditions and trade longer , with much higher daily returns, but that is the exception not the daily rule. I do think if you exercise good trading discipline and some what a veteran, trading for more only when the market tells you too, is OK. Again, that is maybe 2-3 days out of the whole month. Listen to the market and feel what it is saying. That will keep you out of trouble and keep your daily struggles down to a minimum.

Well, I hope today’s article was a help to some. Feel free to comment back with an email or question. I really don’t mind and in fact encourage you to. Don’t worry, I never try and sell anything to anyone. I don’t even keep the emails names to later hit you up with this or that, like almost every other site that I have seen. I just like to help traders overcome there issues and make them better traders, but that is always on your terms.

Wishing the best to all my readers, Good Trading,

Vince

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Day Trading Indicators Reflect Price

Saturday, March 26th, 2011

3-25-11       This post is for Friday Sessions, but will have to keep things short. I did not trade on Friday which is the first regular session that I missed in about 6 weeks. I did trade on Thursday and my results are posted below. Thursday marked the fist loosing session in over 5 weeks. It was not really to bad, which is fine and I think I could have pulled it out if I stayed the rest of the day.

I started out on the wrong foot Thursday. I did not take my time to get up to speed with what the market was doing and jumped the gun on a few short attempts. I really need to get started on the open and go from there. I have never really had a hard time picking it up from where ever the market is, but I do know I have made things a lot harder on myself by doing so.

The volume and big market moves come in the morning and later afternoon. The middle of the day can be very slow and directionless. It is very possible for traders to get chopped up during that time, expecting a move and it just doesn’t happen. I do know better and it only takes a loosing day here or there to get my attention to make a change. So we will have to see how early I can get going here on the West Coast.

My screen shot below shows the area’s of interest as identified by the corresponding indicators. I know I have said this before many times, but indicators are a reflection of the price. The price on the screen is always first. The indicators reflect what the price is doing, so if traders can learn to read the price better, they would get insight into where and when the next move is coming.

I know its a lot easier to see trade signals than to interpret what the price is saying, but that is where your confidence is going to come from. The indicators are like “Cliff Notes” when reading a book. It tells you a lot about what is going on, but you don’t have all the information. In a discussion or debate, you would be at a disadvantage.

It is a lot of work to be able to dedicate yourself to be a student of the markets but more importantly, a student of price. The buck stops with that and it also begins with that if you are trying to find your share.

Lots more could be said, but all for another day. Good Trading to all.

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Day Trading Indicators

Thursday, January 6th, 2011

Today is Wednesday and the third day of trading on Wall Street for the year, as the Dow was up 31 and the S&P +6.

This market does not want to go down as it popped up after gaping lower on the open. A welcomed sign to all

Tomorrow is the fourth day in a 5 day window as it relates to the January Effect. If the first 5 days are up strongly, it usually spills into a strong year for stocks. Better yet, if the whole month of January is strong, that spills over into a positive year for stocks to the tune of 78% of the time, or something close to that if my memory serves me. Lets watch Thursday and Friday to see how we close out the week. I will also report on the sentiment changes if any tomorrow or in Fridays post. They have been strong as small investors are heavily invested in this market with the public coming in with  Bullish readings of 57-58 %, typically a very high reading.

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Tuesday and Wednesdays S&P emini futures market, with Wednesday being on top.

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Let me shift gears here for a moment. I will start my trading likely this coming Monday, but have done some recent U-Tube Video’s of this weeks price movements as it relates to in part to my trading method. Just a note on that as I will post here the last two I did from yesterday and today. It points out, “Turning Points” as I call them and continuation spots along the way as it relates. These are identified by some custom modified indicators I use to help determine these spots. This is done in an attempt to show those that look on, that there is something to this that can be useful to there trading in some fashion. I do need to say though, the trade indicators are not the trading method and is only a reflection of what is happening to the price.

I teach how to read the price and trade it first. I know I have written about this before, but it bears repeating when I post video’s as such. Their is a solid reason to enter all of these trade area’s as I have them marked as per the trade method, NOT THE INDICATORS.  The thing about it is, that they are in the same spot. Which came first, you know the saying, but this time it is talking about the stock market. Is the indicator before the price or is the price before the indicators?  I think you know the answer to that, and you are right. Price is always first and those who know how to trade the price apart from indicators will likely do better. If you have both and you can trust them to give you insight into the next move of the market, that is all you need.

Traders are usually very visual, but their is a lot more to the trading screen than meets the eye. Their are other ways to look at things, and they are very different than reading candle stick charts and such. Many traders like this form of analysis and I won’t attempt to shoot that down, but that is not what I do as I read the charts apart from indicators.

I mainly trade off of tick charts, attempting to scalp trade 2-4 points a day on the S&P 500 emini futures market. Each point represents $50 dollars per contract traded x the number of contracts can equal a nice sum for a session. Trading three contracts, and landing 3 points, is $450 for the session, with each point being $150 dollars. The minimum margin to day trade the S&P is roughly 1200 per contract assuming you open and close all contracts within the same session.

Trading boils down to good timing. With it, you get in with little draw down as the trade moves in your favor. Knowing when to do that is key and is what traders across the globe struggle with. I can say, their is a way to do that and do it with some degree of consistency. Support and Resistance combined with momentum can lead you to hitting these Sniper Spot area’s. Small windows of opportunity, come and then go. If you are able to hit the hole so to speak, picking up a few points is not that hard to do. Its all about knowing. If you know, you can do it. Does it take work to learn, yes. But what comes to us, that is so rewarding, without work and sacrifice. With it, is the opportunity to expand your empire if you so choose.

I believe, we do have the power to overcome any barrier if we think we can, but you need to know and have a way to get that done. Just thinking it so will not complete the job.

I know their may be those searching for answers to their trading problems and it could be you need a solid trade method, based on trading the price and what it represents first, then any trading indicators to help confirm your findings. This gives you the best of both worlds and is what I do when trading the Sniper Day Trading Method. I don’t want to sound like a commercial, but that is how it is and don’t know of how else to put it. I have helped many traders get over the hump and turn the corner to profitability. If you have questions please feel free to ask. I don’t mind to share some additional info.

Always wishing my readers the very best;

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Tick Chart Trading the S&P Emini Futures

Wednesday, July 7th, 2010

Today is Wednesday and the market took off higher to close up +275 on the Dow and +35 on the S&P futures.

We saw a very nice day today to the upside. I said yesterday that I was a bit undecided but wanted to see a break of two numbers, one down or one up. Which ever one breaks, that is where the move is going to come in at. We got the up move and the number I gave yesterday was 1030. That was right in line with a nice break to the upside at 6:55 am West Coast. There was only one other trade after the open before this main break out that could have been traded, so you did not miss much of the move after the market opened.  The market did not look back and we moved up +29 points after that 1030 number to close at 1059.25.  A nice call.

I did not come into today’s market until later on in the session and did pick up my daily goal. I had two 1 point losses and 1 tick loss with 8 gains that were scaled out of. Today was not a big day but still a nice daily goal. My losses were 100% my fault and could have had all winners again today. Bad timing and not doing things right will most often not give you the results you want. Just the opposite is true. If you do the right things at the right time, you will be rewarded, plain and simple.

There were so many good trading signals today and yesterday, it is not even funny. I love my trading method because it will work in any market condition. I can always scalp a point or two out of the market even in low volatility days. A few points and I am done. When the markets are moving, you have the benefit of catching a lot more if you want to. I have two main models to trade out of ,my T-1 screen (scalp screen setup)  and T-2 screen. I mainly use tick chart in my trading, but time, volume or range charts can be used just the same.

The second screen, of which only a fraction of the whole screen is shown, is my T-2 screen and is mainly for trending markets. I have other things built into the all the screens, but can only show you a limited amount. (Something is better than nothing). You certainly can scalp a point or two out of this as well and I often do just that. I have become a bit partial these days to the T-2 screen, as I am trying not to take counter trend trades and this screen does help me see that better.

We look at different time frames as well, with the one I most often show, being the smallest tick chart of the three. Two charts are internally designed to work together on the front screen and gives you the zoomed in view for best entries (as shown) and a zoomed out view for the bigger picture. My custom trading indicators are intertwined together inside these two charts which gives the same signals on both screens, creating a synergistic effect.

I have a U-Tube Video of today’s trades, showing the smallest tick charts of the three and yesterdays trades, as well as all the trading signals generated by my indicators. Just following the indicators will generate consistent profits, but we teach how to read and trade the price by itself. The two are a powerful combination. Take a look in the video and see what you think. A trader only needs a couple of these trades to do very well each day.

Enough said about that. The sentiment numbers came out today and it was down 4% to 37% bullish. Very close to a big buy signal, but no cigar. We needed to see that 35% to get confirmation that this move will have legs.

Right now, the market looks good and there is likely more to go. I do see likely initial resistance at 1066 S&P futures, but may likely trade to 1080 after. The daily charts are still pointing down as are the weekly even with today’s move. We would need to finish this move up, then retest somewhere in the middle of this range to see if it is going to hold. So more work to be done by the markets to see if we can turn the corner in the daily charts. In the retesting between now and next week it could be enough to get the market to bit on the last 2 % needed in the sentiment index to give this market a real boost, we shall see?

If you have questions or want more information, drop me a line at vinnie@sniperdaytrading.com

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Day Trading Indicators – See the Difference

Thursday, May 27th, 2010

Today is Wednesday May 26th and the market had follow through from yesterdays close only to give it up into the close.

We saw a good follow through move from yesterdays strong close, but as things started to settle down later in the session, the market sold off. I did hear of some good news on the economic front, housing starts, PPI Index and a couple other good bits of glitter, but it was not enough for the general market to hold on to there gains.

Currently the after market is pushing up nicely as the S&P is up 15 points as I write this late Wednesday evening. Looking at the daily charts, we just stayed above key support I pointed out last week on a closing basis and that was good to see. I do also see a continuation of this night trading move into tomorrows early session and expect the market to hold on to those gains and even add to them over the next few days. That is what it looks like to me. This is that bounce that I figured would come as I see the S&P futures moving up to 1110 area or so before it takes a break for the next move. That could take a few days, but we are just taking back some of what was lost over the last week.

Tomorrow, the sentiment numbers come out and it would be interesting to see how the public now see’s the current environment in the face of this sell off. We did come off a lot in the past two weeks and it is possible the trading public got very bearish this last week, which could have pushed us into the opposite scenario very quickly. We were at 43   %bullish and 35 is a bullish trigger point for the market to rally. The numbers were out this morning and most have seen and reacted off that reading already, but I will not be able to see them until tomorrow evening. You can get the link in the resources section of my website if you want to keep up to date with it yourself in the future.

In my last post, I put up a video of the S&P turning points for Mondays session. For those who trade the S&P emini market you are familiar with how it is works. We trade futures contracts to buy or sell, which gives us the right to buy in the future the basket of stocks at a specific price. Most people who trade the the S&P never really hold until the end of the contract and take delivery as you could do with a commodity, but it is traded more like a hedge against a portfolio or as a speculation instrument. That is what we do, as we trade contracts at specific prices. The smallest measure of movement is $12.50 and that is considered a tick and 4 ticks make a 1 point which then is $50 dollars. If you day trade 3 contracts, which you could do with a margin or deposit of roughly $3,000, each 1 point is worth $150 dollars. Having a daily goal of 2-4 points per day is the minimum daily goal I like to set and there are days it is 8-10 points or more.

Picking up this daily goal is not really that hard if you know when to buy and when to sell, to start. Then it is learning how to manage the trade and lock in profit and book your gains for the day and do it again tomorrow. The first key is knowing when to buy and when to sell. If you can not get that part down, you will never make it. If you don’t have a game plan on when to buy and when also not to buy, which is just as important, you will struggle.

I teach traders at Sniper Day Trading to read the price action and trade off of that. I have a few simple ways to make it easy to learn, but it does take time to build a data base of various market reads that can and will be shown to you. That part takes time to build, but in the mean time, while you build this knowledge of learning price action trading, I have a set of indicators of which I have one of them shown in today’s video to help you with timing of when to go long and when to go short. My trading method is based off of something different then what is in the video, but it compliments what we do very nicely.

To many traders are trying to learn how to trade just by following the indicators and not by learning what drives the indicators and that is, “the price”. In addition the indicators that they follow, usually are lagging and not that efficient. That is not the case with what we offer. You will never have to look for another trading program or method again as long as you live on this earth and trade the stock market.  That is how I truly feel. This can be set up in any time frame to give you the trading edge you need to beat Wall Street. The Stock market is fractal in nature and any good trading method will and can be applied to all time frames and styles of charts.

When you combine this method with at least two time frame charts, the smaller chart is shown in the video you will get a crystal clear picture of what you need to do and when. The video shows clear entry area’s both long and short, exactly what you need to profit. When you consider, this trading method can be run with only a tiny 4 tick stop, (5 is OK) that is hard to believe, but the proof is in the video. The turning points happen like this every day the market is moving.  When it is a choppy session, I have another screen set up just for that, with the results no different.

Traders need precision timing  to be successful, bottom line. If you don’t have it, do what it takes to find it, email me for more details. This works on individual stocks just the same. Turn your trading around, protect your trading capital and live the dream.

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Market Sentiment as a Trading Indicator

Thursday, March 18th, 2010

Today is Thursday March 18th and the S&P futures ended the day flat, but the Dow outperforms for a change.

That is exactly what happened in today’s session the Dow was up 45 points, the S&P flat and the NASDAQ +2 points. The new numbers are out today on the Investors Intelligence market survey of newsletter writers and another week of increased sentiment by 1.2% to 46.1%. At the start of this rally it was in the mid 30’s area and a typical trigger point for a rally. The market has made it back up to its January highs and then some. At that time, the market sentiment for this timing tool was hitting close to the mid 50’s. A reading in this area, typically forecasts a market sell off and it did, just after the high in those numbers were posted. The point is, we are at a slightly higher high in price and the indicator is still 9% away from getting into the danger zone.

This indicator works in the opposite direction, as more professional newsletter writers become bullish, this will signal a top. I have been following this barometer or indicator since the mid 1980’s, a long time and I have seen it work what seems like magic over and over again at market extremes.

This is fitting since I have been talking about trading indicators the last few days. This is a different kind of overall market direction indicator for me anyway.

Back to the point at hand, if the market were to increase over the coming weeks this reading will then likely get to that over exuberance level of bullishness. The question is, how high will it go, before all of this happens. The possibility exists that the market sells off a little to let out a little of the mounting optimism. As day traders, we will just read the market for now.

The reason, stock market newsletter writers are really no better by and large than any one else when calling the market. The are overly bullish at market tops and extremely bearish at market bottoms. It is at those times that market goes the other way. Funny how that works.

Don’t be caught up in the emotion like most. It usually pays to think contrary to the conventional wisdom on the street.

I have a few charts below of yesterdays equity chart and today’s trades. I will have more to say tomorrow and will show today’s turning points in a Saturday post. Until then, “Trade on and be safe”.


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Trading Indicators – Part Three

Wednesday, March 17th, 2010

Today is Wednesday and the S&P 500 had some legs to yesterdays run up.

The Dow Jones finally caught up to the other index’s today. Initially it saw resistance, which can be expected, but it came back and moved up 25 points over its January highs, 10,767 and then sold off. This is so very typical.  Now that the Dow reached what the other index’s did a week ago, it is going to be pretty interesting how it reacts from here.

Last weeks sentiment number were up a bit +3% to 45% bullish. That is pretty much what one can expect after coming off an extreme reading like we had a couple of weeks ago and currently is a neutral reading.  Once it reaches an extreme on the bullish side, you can look to lighten the load as more significant selling will come in. The thing is, we at this time don’t know how far it is going to advance.

With oil prices increasing that is sending a message to America that the economy is strengthening, at least from where it was before. I have been hearing things on the street about commodity prices in general. It is very possible that we will see large run ups in commodity prices in the coming months.  That is not usually how it goes for a struggling economy. My hope is that everything keeps moving along and any significant drop is put off until a later time, like next year or after, would be nice. Lets give America a break, not “break them”.

This patch work is only going to be temporary, but I guess I welcome it, for everyone’s sake. If you want to see the real state of the economy, go to my website front page and I have a link on the right side which shows an ongoing tally of the National Debt, but under that is a warning. “Expanded View” – “Click here at your own risk”.  I give the warning for real, its not a joke, because if you look at all the spinning numbers and totals associated with the items just on that one page, you will be filled with many emotions, I will just leave it at that. The bottom line is the real shocker, well, all of it really is, but if you would rather not know, “Don’t look under that Link“.

The last couple of days I have been showing a limited view of one of the trading screens I use during the day. I call this my T-2 Trading Screen. This screen is showing just one chart of two that I have up and is designed to find the turning points of the day, but give you a zoomed in view of it, so a trader is able to zero in on the exact point the balance of power has shifted.

The trading indicators I use help to show just that, as you have seen over the last two days. I will show yet another day today for those who think it is luck, that the turns are shown with such precision, almost magical. When the market is on the move, this is so very typical. When it is not (on the move) and we seem to be range bound, up and down, small or choppy moves with no follow through, all one has to do is just trade out of my T-1 trade screen for scalp trades of 1 point or more at a time. This part is just that simple. The market is moving, trade the T-2 for larger trending moves, with the possibility of pyramiding your position for maximum gain. When it seems range bound, trade out of the T-1 screen and take what the market gives you. If you get it wrong and are trading out of the T-2 screen and the market is not trending, you can still make a nice return trading the turning points, its just that they do not have extended moves to them, which will limit your total point return on that one trade. If you scale out of some of your position, you will always make a profit even if the market comes back against you. At some point, you will see that taking trades out of the other screen may be better and a “All in All out approach” would be best. Either way, it comes out in your favor.

Take another look below at the short video and see for yourself if you think you can place an order in the circled area’s I call turning points. I have placed a number above those turning point area’s which represents the amount of time you have once a turning point area takes hold, to when it moves out of the circle in the desired direction. The circle represents your window of opportunity and the amount of time you have to make a decision. You will see 3, 2, 5, 1, and so on. Again, ask yourself, do you think you can place an order to buy or sell inside of that window and take advantage of the trend. Your exit can come from several different way, with a couple of them shown. The first way could be a price bar color change and the next could be a reverse signal as indicated on the screen. There are a three other ways which are not shown, all similar in results, but non related, still all very visual and easy to interpret.

With all of that said, trading takes practice and your confidence needs to be high. If you give yourself the tools it takes to build that confidence, you can put it together. If your tools are shaky and inconsistent, you really don’t have much.

Just think what you could do in $ returns if you can buy and sell in the circled turning points area as  indicated in the video’s. This will always work because this is a reflection of price action trading. I teach how to get the exact same turning points without the trading indicators and it matches perfectly. If you have questions, email me, I will be happy to answer them.

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