Edition 852
October 23, 2020
Introduction to a Series on Technical Analysis
This week’s chart scan is a continuation of a series of very basic technical analysis concepts. I’m not a big fan of technical analysis, but I have to admit that I cut my trading teeth using it. Eventually, I came to believe there is a time and place for any and all tools. If something can help you understand the markets and how to trade them, I’m all for it.
There are many beginning traders who read Chart Scan, and over the years I have had many questions from them concerning technical analysis. Instead of giving you an article on the psychological aspects of trading, the next several issues of chart scan will feature articles on technical analysis. My hope is that where and whenever possible, I will show you the right way to use this type of analysis.
Keep in mind, the only real truth on a price chart is price itself. With that in mind and keeping price always in the forefront we can begin taking a look at some tools that fit into the category of technical analysis.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Not all TTEs Are Equal
Over the years, based on feedback from our students as well as our own experience, we have come up with a number of ways to screen TTEs for only the best. Looking at the chart above, there was only one TTE worth taking and that was the breakout from the number 3 point of a 1-2-3 high formation. The others marked TTE? Were eliminated as a result of our screening filters. To learn about all of our screening filters, you need to take our online webinar, “Traders Trick Advanced Concepts.” However, I’ll give you a hint as to one reason why all of the other potential TTEs were not taken. It has to do with the direction of momentum. In all cases except the one taken, there was more than one filter that failed to pass our screening tests. The result of the screening as currently done gives us a winning average approaching the 90th percentile.
© 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
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Relative Strength Index
The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions. It is primarily used to attempt to identify overbought or oversold conditions in the trading of an asset.
Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore, may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside.
RSI is a fixed...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.
Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Instant Income Guaranteed - MU TRADE
On 7th October 2020 we gave our Instant Income Guaranteed subscribers the following trade on Micron Technology Inc. (MU). Price insurance could be sold as follows:
- On 8th October 2020, we sold to open MU Nov 20 2020 40P @ 0.45, with 42 days until expiration and our short strike about 17% below price action.
- On 12th October 2020, we bought to close MU Nov 20 2020 40P @ 0.21
Profit: 24$ per option
Margin: 800$
Return on Margin annualized: 273.75%
Philippe
TRADING SUCCESSES EMAIL TO YOU DAILY!
~ WE DO THE RESEARCH FOR YOU ~
Learn More! Instant Income Guaranteed
© 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.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete and Traders Notebook Seasonal Spread Trading (TNsst)
Trading Article: Why is it that trading seems so unnatural?
When it comes to trading, you've got to unlearn what you've learned your whole life. It isn't all about you; it may just be the odds working against you. In other fields, probability plays little if any role. You put in effort, make sure you meet the expectations of the folks who pay you, and you're a success. In the traditional work environment, it makes sense to....read more.
Andy Jordan is the creator of Traders Notebook, a successful spread trading daily guidance advisory service. Do you want to receive how to manage trades and detailed trading instructions every day? Click here for additional information! Contact Andy Jordan with questions.
© 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.
Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Trading the Euro is Easy if you have the right method!
One of the top markets over the last couple of months for Ambush Traders has been the Euro. Whether it's the Euro FX Future or the EUR/USD Forex pair, Ambush Traders had real fun in that market!
Here's a daily chart of the Euro FX Future (6E), showing the last couple of months of trading. As you can see this market did what markets do 90% of the time, which is why Ambush is such a great trading method. Markets move in boxes/ranges, break out for a few days and then start moving in the next box. The Euro has been boxing a lot lately and so Ambush Traders had a lot of great opportunities!
Here are the results of these trades, trading one contract:
Yup, that's over $4k profits with almost no drawdowns in between, a winning rate of 80%, and a Profit Factor of over 5 within that period!
Notice that all of these are actually day trades, even though they're based on end-of-day trading decisions. Ambush is exactly that, an easy way to day trade not for a few tiny ticks with a lot of stress but placing your trades once a day, walk away, and go for the big intraday moves!
Don't miss the next Euro trade and join Ambush Signals today!
Happy Trading!
Marco
The Ambush Trading System was created in 2007 by Marco Mayer. Since then it proved itself in the markets for over a decade and did so with exceptional results. It's the only trading system we're aware of that is still going strong after so many years. While Ambush is a day trading system, meaning you will always enter and exit on the same trading day - you don't have to sit in front of your trading screen. You simply place your entry orders when the trading session starts and come back at the close!
© 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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