Edition 630 - July 8, 2016
Extra, Extra, read all about it! Ambush Trading Method is on sale for 20% off until July 13th, use coupon code: ambush20
The Law of Charts with Commentary
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Trading from a Ledge
Aluminum prices had been soaring. But aluminum futures were too thin to trade and, besides, the futures are dangerous when thinly traded. One way to get into aluminum was to trade shares in Alcoa Inc. (AA)
AA had formed a ledge. The Law of Charts describes a ledge as being two matching or almost matching highs and two matching or almost matching lows. The two matching highs must be separated by at least one price bar, and the two matching lows must be separated by at least one price bar. A ledge always begins with a Ross hook, but then prices form a consolidation. A ledge occurs only within a trend or swing. The breakout of a ledge is traded only in the direction of the former trend or swing. The chart shows two almost matching highs at 28.74 & 28.75, and two almost matching lows at 28.20 & 28.21. Entry would be made long at 28.76, 1 tick above the high of the ledge.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Question from a Subscriber:
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
"I read about a Monday Morning Bull Market Entry Technique. Do you know anything about something like that?"
I’ve run across a few in my many years of trading. Of course, the first step is to be certain that you are in a bull market. Once you know for sure, buy Monday's opening — risk half the range of the previous trading day; price objective is 80% of the three-week average weekly range.
If the previous week had a higher high; higher low; and close above the open, mid-range, and previous week's close, then use this strategy. This is even better on Monday with a lower opening that does not violate the previous day's low, since it should retrace back to the previous close a high percentage of the time. Monday's price action should ideally exceed Friday's or the last week's high. If this happens and Tuesday or any following day makes new intra-week lows, then a short term reversal has occurred.
Watch to see if the new intra-week low closes below the previous intra-week low for confirmation. Tuesday is technically known as "the reversal day," so watch its afternoon price action carefully. Tuesday's relationship to Monday's range points to the direction of the remaining weekly range. Many technicians buy the S&P on early Monday morning weakness to sell a rally on Tuesday afternoon.
Of course, you have to check this technique to see if it is working now in the markets you want to trade.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
New Blog Posts
by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook
This week, Andy has two new blog posts for you:
Trading is Not Scientific
Trading is not an exact science. It is more of an art.
Why So Many Traders "Don't Make It"
The majority of traders end up losing their accounts. Why? There are many factors that go into becoming a successful trading that most traders don't even consider.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Andy Jordan's Trading Plan Series:
Trading Plan Part 1 - The trading plan.
Trading Plan Part 2 - Who needs a trading plan? What will a trading plan do for you?
Trading Plan Part 3 - It is important to know yourself and your purpose.
Trading Plan Part 4 - How to set the right trading goals.
Trading Plan Part 5 - Explains the markets, time frames, trading vehicle, brokers, software, and much more.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Ambush Performance Update and Brexit
by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com
Marco answers the question "How did Ambush make it through the BREXIT" and includes the latest Ambush perfomance in his blog post. He is also giving 20% off of Ambush through July 13th. Enter the coupon code ambush20 when you check out. Enjoy! If you have any questions, feel free to This email address is being protected from spambots. You need JavaScript enabled to view it., or post it in our Blog or Forum.
© by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Experience AlgoStrats.com today! Marco Mayer's (Systematic and Forex Expert) newest development. AlgoStrats:FX Free Trials will start this month, stay tuned! Follow Marco on Facebook and Twitter.
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A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
by using Genesis Financial Technologies' Trade Navigator (with permission).
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© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
