Edition 644 - October 14, 2016

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The Law of Charts with Commentary

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

CRUDE OIL

At the time I wrote this issue of Chart Scan crude oil was leaping higher. Where it will be by the time you get this issue of Chart Scan, I have no idea, but it's a good example.

The question I received was, "Is it okay to take gap open entries on Traders Tricks?" The only honest answer is take a look at the market to see if they usually work in that particular market. Based on what we can see on the crude oil chart, I would have to say it's worth taking a shot at it. Surely on both TT entries there was plenty of room to cover costs and take a profit. Both entries filled my requirement that I get paid to trade, and get a free trade while I'm at it.

© 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.

Here are two ways to know when prices are getting ready to break out from a trading range.

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.

When prices are in a trading range, count the number of closes above or below a specific price near the vertical mid-level of the trading range. If 70% of the closes are above the mid-level price, and the market cannot rally and close above reaction highs, a severe correction may be imminent. If prices break and cannot close below reaction lows, expect a rally to carry prices above the reaction highs. E.g. Let’s assume that a futures chart is showing that about 90% of the Closes are above 445.00, yet prices cannot Close above 455.00. If prices finally do Close above 455.00, a strong buy signal would then be in place.

Another way to determine that prices are about to break out of a trading range is to note if you have a 1-2-3 followed by a Ross hook within the trading range. If both are present, the percentages favor a breakout to follow, and entry by way of a TTE is acceptable.

A 1-2-3 formation followed by a Ross hook is a consistent objective chart pattern for defining that a trend or swing is in process. Once the point of the Ross hook has been violated, this pattern is enough to establish that a trend or swing does exist.

© 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.
 

MON TRADE

Instant Income Guaranteed
Developer: Joe Ross
Administration and New Developments: Philippe Gautier

On 6th April 2016 we gave our IIG subscribers the following trade on MON, which showed high premium with short strikes above support levels and buying activity. We decided to sell price insurance as follows the following day:

• On 7th April 2016, we sold to open MON May 20 2016 82.5P @ $1.30, i.e. $130 per option sold, with 43 days to expiration, and our short strike right at a major support level;
• On 19th April 2016, we bought to close MON May 20 2016 82.5P @ $0.65, after 12 days in the trade, for quick premium compounding.

Profit: $65

Margin: $1,650

Return on Margin Annualized: 119.82%

We have also added new types of trades for our IIG daily guidance, "no loss" propositions with unlimited upside potential, still using other people's money to trade. 

Philippe

Receive daily trade recommendations - we do the research for you!
Instant Income Guaranteed

  ♦  SIGN UP TODAY!  THIS IS WORTH THE INVESTMENT  ♦

This includes a daily 80+ page report along with a daily podcast!

We review and supply the following:
 

• our daily fills (entries, exits)

• full real-time statistics of our weekly trades, closed trades for the current month, monthly statistics (detail and summary) since the beginning of IIG

• daily market commentary (indices/sectors, volatility indices, main commodities related to our trade)

• new trades for the following day

• comments on our open trades, with all relevant news

• updated earnings dates for our open positions

• full details (days in trade, days to expiration, underlying close and price change, etc.) on our open trades (classic trades, complex positions, remaining rolled trades and covered calls)

• active good till cancelled orders

• dividends for the stocks owned

We also supply quite a number of extra "slides" in the appendix which are quite useful for new subscribers: recommendations, answers and explanations on the most frequent questions, techniques for entering trades, historical trades and real life examples, broker information, etc.

© by Joe Ross and Philippe Gautier. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
 

This Week's Blog Post - Don't Let Your Emotions Influence Your Decisions in Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

Trading is nothing more than a long, random statistical run. An experienced trader knows that even if he is in a losing streak right now, as long as he sticks to his already approved trading plan, he will come out a winner in the long run. Read more.

Traders Notebook Outright Futures Trading

by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook Complete and Traders Notebook Outrights

If you are interested in outright futures short term swing trading, you should check out our new service Traders Notebook Outrights.

Traders Notebook Outright Guide explains the Outright trading service from Trading Educators. It shows you around on the Outright Campus and how to use the information provided by the service.

© 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.

Why Entry Signals are Important and How to Test Them

by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method and AlgoStrats.com

In his new video Marco talks about why he believes Entry Signals are the most important aspect of a trading strategy. He then shows you how he likes to "prototype"-test entry signals and why it's important to do so.

© 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.

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A WEALTH OF INFORMATION & EDUCATION:
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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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Chart Scan is a complimentary educational newsletter.

© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.