Edition 962
January 6, 2023
From our families to yours, we hope you enjoyed ringing in the new year and most would agree that 2022 was one heck of a prep for 2023. There are a few more folders with "never before" released Chart Scans with Commentary and Trading Articles provided by Joe before his passing in 2021. After those are published, we will dive deep into his earliest Chart Scan editions that may be new, a repeat or a good refresher to us all. Good news, I will be visiting my mother Loretta in a few weeks. Joe's beautiful bride of 64 years and who used to proofread all of Joe's trading material and newsletters. As Joe was a master of trading, Loretta was a master of English and took her responsibility very seriously. Unfortunately, her mind started slipping and late stages of dementia have settled in. She is surrounded by a loving home, lots of love and the best way to describe her is "happy". Her smile and laughter light up the room. Thank you to everyone who continue to send prayers and emails asking for updates. I will will include a few pictures closer to the end of my trip. Happy trading and let's starting learning to trade Joe Ross' way. Best, Martha Ross-Edmunds
Marco Mayer will provide an "Ambush Special" at a later date. His whole family came down with the flu and needed to focus on getting everyone healthy. Prayers to you and your family for a speedy recovery, Marco.
"The market’s subtleties are many times greater than the subtleties of men." Master Trader Joe Ross
Let's Learn the Art of Trading Joe Ross' Way!
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Question from a Student
Hey Joe! I’m a long-term trader/investor. Is there some kind of technique using chart analysis that can help me know when is the right time to buy Silver, Gold, or any other asset? What should I look for?
It's easy to get caught up in the short-term market "noise." If you are a long-term trader and you want to sleep better at night, you must learn to tune out the day-to-day distractions and stay focused on the long term.
Although there are many ways, I’m going to show you a couple of chart analysis techniques that can help you with silver, or anything else.
The 50-Day Moving Average (50-DMA) is the average of an asset's closing prices for the prior 50 trading days. It can be used it to gauge the intermediate-term trend. The 200-Day Moving Average (200-DMA) is the same thing for the prior 200 days (about 10 months) of price action. It can be used t to gauge the long-term trend.
For longer-term positions with expected holding periods of a few months to several years, you should pay more attention to the 200-DMA. For shorter-term trades with expected holding periods from a few weeks to a few months, you should pay more attention to the 50-DMA.
You can consider two main things when looking at moving averages...
The first is that during bull markets, assets tend to spend most of their time above their moving averages. And during bear markets, they spend most of their time below them.
The second is the direction of the moving averages themselves. The moving averages are the trends. When they're moving higher or lower, assets often continue to move in the same direction.
These widely followed moving averages often serve as important "support" and "resistance." Support is a level at which traders/investors tend to buy an asset and prices often stop falling. It's an obstacle for falling prices. Resistance is a level at which traders/investors tend to sell and prices often stop rising. It's an obstacle for rising prices.
Either way, if an asset breaks through support or resistance, it will often continue to move in that same direction.
In the year 2020 Silver soared far above both its 50-DMA and its 200-DMA through early August. Then, it dropped hard and stabilized. At the time of this writing, Silver was trading above its 200-DMA. But it had pulled back repeatedly at its falling 50-DMA.
If silver would break above that level, its 50-DMA could soon turn higher, too. We could see this – a rising intermediate- and long-term trend in silver – as a great sign for Silver.
As you can see in the chart below, silver had broken through its rising 50-DMA.
Using these most popular MAs we could say this is a good sign for Silver.
In the next chart, we can see that silver has been trading in a narrowing range since August. Its rallies had stalled at its downtrend "resistance." And its declines had paused near its "support" around $22 per ounce.
Silver had been stuck in a trading range for about five months. But using the breakout of a coil-pattern (or pennant formation) breakout, we have a second chart analysis method to confirm the moving averages.
Both the pennant breakout and Silver's move above its 50-DMA were promising. That looked like the start of a big move higher in Silver. Once it climbed above its downtrend resistance, Silver's next targets are its prior August highs at $29.12 per ounce and then on to new highs. The old-time traders looked at the height of the flagpole from approximately 2000.00 to approximately 3000.00 to estimate the height of the next move. They would anticipate a 1000.00 move from approximately 2250 to 3250.00. It will be interesting to see how things develop.
Silver needed a break after the big rally at the start of the year. Now, it seems to have had that resting period and was rising once again.
The big picture as far as chart analysis is concerned portrays Silver as bullish. Governments were printing huge amounts of cash to support their economies. That action tends to devalue their currencies over time. If the chart analysis would continue, it would be a major tailwind for Silver’s price.
At the time of this issue of Chart Scan, the price action in silver was bullish. Once Silver had broken out, its short-term upside potential was big.
If you had been waiting for the right time to buy silver or silver stocks, this may have been the moment you'd been waiting for.
© by Joe Ross. Re-transmission or production 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: Seeking Protection from Loss
You must risk money to make money. It is sad, but true. You cannot possibly make profits in the markets unless you take some risk. Many people hate taking risks, especially with their money.
However, risk is a part of everyday life. We take risks all the time, even when we complete the most mundane tasks, such as driving our children to school, or flying home to visit our family for holidays. We even take risks while...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.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, and Day Trading, and Editor for 20+ years with Traders Notebook, daily advisory newsletter.
Trading Article: The "Crush Spread"
The spread is defined as buying one futures contract, and selling a different, but related futures contract. Specifically, when trading the crush spread, you would buy soybeans and sell its respective products, the soybean meal and soybean oil. This is what is referred to as being crushed. If you buy the soybean meal or the soybean oil and sells soybeans, that is what is referred to as being reversed crushed. Soybeans alone have relatively little value. The value of soybeans is the fact that when...read 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.
Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Marco Mayer will provide an "Ambush Special" at a later date. His whole family came down with the flu and needed to focus on getting everyone healthy. Prayers to you and your family for a speedy recovery, Marco.
Ambush Traders Again in a Gold-Rush: Catching Reversals in the Gold Market
One of the top markets over the last couple of months for Ambush Traders has been the gold market. Whether it's the Gold Future, Micro-Future, or XAU/USD forex pair, Ambush Traders are in a crazy gold rush!
Here are the results of these trades, trading only one Gold Future (GC) contract:
Yup, that's almost $20k profits with almost no drawdowns in between within just a couple of months! Looking at the statistics you can see that we got a profit factor of over 3 and the maximum drawdown was just about 20% of the profit!
Now the Gold Future is a large contract and not suitable for small accounts. But you can do these trades also in the E-Micro Gold which is just 1/10 the size or the XAU/USD forex pair.
That's what makes Ambush Signals so great, it works with any account size offering three subscription models depending on your goals.
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 Gold 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.
Even though Master Trader Joe Ross passed away September 7, 2021, his trading knowledge of over 60 years will carry a trading legacy and will live on. As you learn about Joe Ross and understand what he was trying to teach his students, you will find that within his writings, he had a very special gift. Most importantly, it was his students that kept him striving to provide comprehendable trading material to actually teach traders and become independent, to rely on anyone, but themselves.
Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He was able to survive all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits.
Joe Ross is the creator of the Ross hook™, and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™." Joe was a private trader and investor for much of his life, but a serious health situation in the late 80's caused him to shift his focus, and that is when he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988, to teach aspiring traders how to make profits using his trading approach.
Joe Ross has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into many different languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent is huge: As one student, a successful trader, wrote: "Your mastery of teaching is even greater than my mastery of trading".
Joe Ross holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, Virginia. He is listed in "Who's Who in America." After 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe is an active and integral part of Trading Educators. He is the founder and contributor of the company's newsletter Chart Scan™.
Joe's philosophy for helping traders is:
"Teach our students the truth in trading - teach them how to trade."
"Give them a way to earn while they learn - realizing that it takes time to develop a successful trader."
Joe sets forth the mission of Trading Educators as follows:
To show aspiring futures traders the truth in trading by teaching them how to read a chart so that they can successfully trade what they see, and by revealing to them all of the insider knowledge they need in order to understand the markets.
To enable them to trade profitably by training them to properly manage their trades as well as their mindset and self-control.
To accomplish our mission for our students we educate them so that they know and understand:
Benefits for our Clients:
- Where prices are likely to move next.
- Independence from complicated trading methods, magic indicators, and black-box systems.
- Independence from opinion, anyone's opinion, including their own.
- Independence achieved through knowing how to read a chart.
- Independence through having knowledge of insider actions.
- Independence achieved by taking holistic and eclectic approaches.
- Independence coming from knowing how to manage both the trades and themselves.
- Independence because they understand and trade what they see.
- Independence because they have learned how and why prices move as they do, through studying the truth in trading and the truth about markets.
Students learn only proven methods and techniques, which helps them to preserve capital and create more consistent profits; they are offered simple methods that will assist them to earn while they learn.
- They learn to work smarter and more effectively.
- They learn to treat trading as a business; we offer no Holy Grail or magic systems.
- They learn to adapt to changing market conditions.
- They learn a systematic approach to trading rather than a mechanical system for trading.
- Why prices will move there.
- Who and what cause prices to move.
- How far prices are likely to move when they do move.
- Their own role in the movement of prices..
- How to take advantage of the knowledge they receive.
- How to properly manage and exit a trade which they have entered.
- How to manage themselves and acquire the discipline needed to become successful traders.
Read some personal testimonials which Joe has received.
WE APPRECIATE YOUR TRUST IN US AND THANK YOU FOR YOUR BUSINESS!
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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 2023 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
Dear Traders,
Master Trader Joe Ross passed away September 2021, and prior years he was continously sending me folders filled with Chart Scan and Trading Articles. The emails would be titled "More to follow" and I would reply, "Keep'em coming". I am calling these lessons "hidden vault" material because if Joe were still alive, this is exactly what would be shown in your inbox every Friday morning. This is not regurgitated material; this is new stuff written by Joe or as he would refer to it with such passion, "This is good stuff".
As we continue to receive newsletter sign ups, new students from every continent will start to learn trading Joe's way especially in this challenging market. This is where he would reinforce to his students, yes, that includes you, that learning to trade is possible even in this environment, "A chart, is a chart, is a chart". His writings will stand the test of time to provide teaching lessons and guidance.
The proceeds of Trading Educators will continue to support Joe's wife, Loretta, of 62 years of marriage, which she is our number one priority. We thank everyone with continued support and prayers for her well-being in late stages of dementia.
As expressed in the past editions, the trading world has lost a unique and passionate trader and his material will continue to be relevant. Let's start learning to trade Joe Ross' way with our future Chart Scan publications. I am here to help, so feel free to email me with any comments, questions or concerns.
This newsletter and future publications are created to keep Master Trader Joe Ross' lessons readily available to traders that want to learn and improve their skills. My father passed away on September 7, 2021 and will be greatly missed, but his writings will stand the test of time for generations to come. Take it to heart and learn from the best through Master Trader Joe Ross' trading examples and articles which have impacted thousands of traders on every continent for over 60 years.
Happy trading,
Martha Ross-Edmunds
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent
