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Edition 789 - August 16, 2019

trading education

Joe Ross offers 30% off Traders Trick Advanced Concepts Recorded Webinar

Master Trader Joe Ross shares trading education

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed

Chart Scan with Commentary: BBs as a Momentum Indicator

One of my earliest uses of an indicator came about in the 1980s, when John Bollinger invented his Bollinger Bands (BBs). To tell the truth, it was superior to almost every other method of creating a price envelope because instead of the trader guessing where to place the envelope outer bands, BBs allow the bands to be set at least partially by actual price volatility. The trader has only to decide how many bars are to be used for the moving average, and the trader decides at what level to set the Standard Deviation (STD).

I began to use the BBs as an overbought, oversold indicator, typically together with a reversal bar, which I called a Gimmee Bar. When I saw a reversal bar with prices at one of the outer bands, I knew it was just a matter of time until prices reverted to the moving average line. Statistics show that sooner or later prices will revert to the Mean. I’m not a statistician, nor am I much of a mathematician, but my experience was that Gimmee Bars worked around 80% of the time.

However, I always wondered if there might be another way to use the BBs. Could BBs tell me when to make a momentum trade? What would such a setup look like?

Joe Ross shares trading success with Traders Trick Entry and Ross Hook trading methods example trading education

The chart above gives you a very good picture of how to use BBs as a momentum indicator.

First, in February, we see prices exceed the lower outer band which I set at 2 STD distant from a moving average of 20 bars. Any time frame can be used—in this case we have a daily chart.

We see that at the lower band there was a reversal bar (Gimmee Bar).

In about mid-February, after having reversed direction, we see prices break and close above the moving average. That was the momentum indicator. Entry is at the high of the momentum bar, and the stop is trailed below the moving average. You tighten the stop when prices hit the upper band in anticipation of an imminent reversal to the downside. Success rate for this kind of trade is around 80%.

© 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.

 

Master Trader Joe Ross shares trading education

by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed

Trading Article:  Stress Errors

Have you ever been so excited about a trade that you couldn't sleep at night? Or perhaps you are trying to dig yourself out of a hole and worry has taken a toll. Studies of disasters, ranging from major environmental catastrophes to minor laboratory accidents, happen when people are under ...read more.

© 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.

Joe Ross offers 30% off Traders Trick Advanced Concepts Recorded Webinar

 

Philippe Gautier shares his Instant Income Guaranteed trading education

by Philippe Guartier:  Administration and
New Developments of Instant Income Guaranteed

Trading Idea:  Instant Income Guaranteed

MOMO Trade

On 30th April 2019 we gave our Instant Income Guaranteed subscribers the following trade on Momo Inc. (MOMO). Price insurance could be sold as follows:

  • On 30th April 2019, and on 10th May 2019 on a GTC order, we sold to open MOMO Oct 18 2019 21.9P @ 1.025 (average price), with 167 days until expiration and our short strike about 38% below price action initially.
  • On 15th July 2019, we bought to close MOMO Oct 18 2019 21.9P @ 0.30, after 71 days in the trade on average

Profit: 72.50$ per option

Margin: 438$

Return on Margin annualized: 85.09%

Philippe

Receive daily trade recommendations - we do the research for you.

Joe Ross and Philippe Gautier share trading success with Instant Income Guaranteed options selling example trading education

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© 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.

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Andy Jordan Educator for Futures Trading Strategies on Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook

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

Trading Article:  Staying on the “Sideline”

Don't get irritated or angered because you haven't put on a new trade in a long time. Whenever there is nothing to trade, don't trade. Accept it and stay on the "sideline." There will be …read more.

Andy Jordan is the editor for Traders Notebook which shows you Futures Trading Strategies in Spreads, Options, and Swing Trades. Learn step-by-step how to trade successfully.

Traders Notebook Complete
Learn how to manage this trade by getting daily detailed trading instructions, click here!
 

© 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.

 

Marco Mayer shares trading success with Ambush Trading Method example trading education

by Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading MethodAmbush Signals, and Head of AlgoStrats.com

The Russell 2000 is simply too easy to trade right now!

The Ambush trading method is specialised in catching intraday market tops and bottoms in a variety of Futures markets. Including the Russell 2000 Mini Future (RTY/M2K) traded at the CME, where Ambush Traders keep on cashing in big time again over the last couple of months!

Ambush day trades on an end-of-day basis so there’s no need to even check the markets during the day.

The Russell 2000 a very popular market out there among traders. It has two of the most important things private traders are looking for liquidity and volatility. I won’t even include a daily chart here as it does look quite boring. To keep it brief, the Russell is trading in a wide range for a long time now. Perfect conditions for Ambush and so this has paid out big time, here are all the recent trades:

Marco Mayer shares trading success with Ambush Trading Method example trading education

Yes, that’s over $6000 within just three month and not even 20 trades! Which means Ambush traders made over $300 on average per trade doing nothing more than placing one entry order per day. I guess most active day traders made a lot less…but their brokers rich!

Now those are huge amounts if you have a small account and you might not want to make or lose hundreds or dollars per trade. Thanks to the new Micro Russell 2000 Mini Contracts (M2K) this is not an issue anymore. You can trade these with a small account now. Here are the results trading one M2K contract:

Marco Mayer shares trading success with Ambush Trading Method example trading education

If that is not enough bang for the buck simply size it up and trade two contracts or three. It’s so great now you can position size as you like exactly matching your risk preferences!

In either case you have to ask yourself if you really can afford to miss out on these trades!

So whether you’re trading a $10k account or a $100k account, Ambush has the right markets for you to start following the signals.

Again, ask yourself if you really can afford to miss out on these trades or at least be aware of the signals? Now if you’ve been on the other sides of these trades trying to buy the breakouts you maybe should think about switching sides?

TWO WAYS TO JOIN US
AND BECOME AN AMBUSH TRADER!


1) AMBUSH SIGNALS
OR
2) AMBUSH EBOOK
READ ON....

With Ambush Signals you can easily follow Ambush, a system specialized in catching intraday market tops and bottoms in the Futures markets!

The most popular and easiest way to follow Ambush is Ambush Signals. It does all the work for you, allows you to customise what markets you want to see and has a position sizing tool implemented to automatically adjust the positions to your risk preferences.

Each day around 6:30 pm NY Time the Signals are available for you on the Dashboard. You can then place your orders and literally walk away until the next market close! To find out more about the details of Ambush and how Ambush Signals works, have a look at the Ambush Signals Website.

Let’s be realistic. Following any System can be tough, especially in the beginning. It simply needs time to build the confidence needed to make it through inevitable drawdowns. So what if you are unlucky and don’t catch a good start right away?

I want you to succeed trading Ambush Signals, so here’s something for you that will strongly increase your odds of success and allow you to easily gain the confidence you’ll need to become a long-term profitable Ambush trader.

Find out more about Ambush eBook and Ambush Signals!

Did you come up with questions?  Don't be shy, email Marco Mayer, he wants to hear from you!  This email address is being protected from spambots. You need JavaScript enabled to view it.

Sign up for Ambush Signals Today!

LEARN ABOUT AMBUSH TRADING METHOD

© 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.

Joe Ross offers 30% off Traders Trick Advanced Concepts Recorded Webinar

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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).

Legal Notice and Copyright 2019 Disclaimer - Published by Trading Educators, Inc.
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.

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.