January 27, 2023
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"Use of a computer for trading proves that men have become the tools of their tools." Master Trader Joe Ross
Let's Learn the Art of Trading Joe Ross' Way!
Chart Scan with Commentary: Volume
Hey Joe! Do the actions of the large money affect me when I trade or invest?
Yes! The markets are dominated by large money managers: folks who run pension funds, insurance funds, mutual funds, commodity funds, and hedge funds.
Every day, the exchanges track the amount of trading volume in every stock index and security.
This volume measures the amount of buying and selling activity that was present during the day. The higher the volume of a stock, the greater the amount of buying and selling activity.
Many of these managers control billions of dollars in client assets, so when they decide to enter or exit a position they can't do it over just a few days. They have to spread their transactions over weeks and months. They even have to hire people whose main job is to determine the best way to put big money into individual stocks.
A few years ago, a trader from Norway came to visit me. He had a $1 billion hedge fund, and we spent most of our time together position sizing him into various markets. Not wanting to move the markets, we did a lot of planning and organizing as to which markets could absorb the huge amounts of money he had without moving the market against himself.
These big money managers are the giants in the markets - not just stocks, but futures and forex as well. They create the huge moves that become market trends. And you can track their behavior by following trading volume. Following volume can assist you in identifying trends. Following are some of the clues to watch for:
A market that is experiencing heavy trading volume on up days and light trading volume on down days is being sold by the big money. The giants are pointing in the direction of lower prices.
The phenomenon of lots of trading volume on down days, not much trading volume on up days, is especially useful when trying to determine the end of a downtrend.
You'll see some green and red bars at the bottom of this chart. These bars represent trading volume. Green bars represent days the stock advanced in price. Red bars represent days the stock declined in price; the taller the bar, the greater the volume.
Note that in the latter part of February, the green bars, representing volume on days prices rose, started to dominate and on some days get just a bit bigger than the red bars, representing volume on days prices dropped. This is an early sign that buyers have more power and more conviction than sellers.
Now notice the tall green bar in late February. This was major buying pressure. A healthy uptrend enjoys big trading volume on buying days, not big trading volume on down days.
Next, let’s look at what happened with prices beginning about May. It’s just the opposite, isn’t it?
A market that is experiencing heavy trading volume on down days and light trading volume on up days is being purchased by the big money. Volume is pointing in the direction of higher prices.
The phenomenon of lots of volume on up days, not much volume on down days is especially useful when trying to determine the end of an uptrend.
Perhaps the market has risen so much that it has become very expensive; so expensive, in fact, that the big traders notice it.
Note the surge of selling volume in May, represented by the series of many red bars culminating in a very tall red bar. These are evidence of the giant, and they signaled the end of ADSK’s uptrend. The market went on to give back most of what it had gained in the previous uptrend.
Entire books have been written about volume analysis, and many traders use sophisticated formulas to track volume trends. The thing is, most of the time, volume analysis isn't going to tell you much.
But you can use it to help find the end of swings and trends. It will often signal market extremes. And for the great majority of traders, the two guidelines I just covered are all you need to know about trading volume.
© 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.
Trading Article: A Personal Letter from Joe Ross Dated February 12, 2014
After going through emails, I came across a personal message from Joe Ross to his students and wanted to share. There were a few changes to omit outdated information, but other than that, below are Joe's words.
From: Joe Ross' Personal Letter - Trading Educators
Subject: Personal Message from Joe Ross at Trading Educators
Sent: Wed, Feb 12, 2014 4:25:13 PM
This is a personal message from Joe Ross at Trading Educators (TradingEducators.com). Most of you know that, from time to time, I send a letter to our trading friends in order to share ideas that I am not able to fully cover elsewhere. Please read on to find out what I want to share with you in this letter.
RESOURCES AND CYCLES
I'm not a big fan of cycle trading in the way that proponents of "cycles" are, simply because cycles are too imprecise, sometimes with predictive ranges measured in years. They just don't seem to want to come on time.
There are currently two very "reliable" cycle analysts whose writings I look at periodically. One of them is calling for the DJIA rising, starting in late 2014, culminating at...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: Pulling the Trigger
"Sometimes I absolutely dread sitting down to trade. I have had so many bad experiences that I'm not sure I can pull the trigger. Anything I can do about it?"
What happens to us as we trade colors the way we see things in the market and influences the way we approach them. We take a big hit in a particular market and we decide never to trade there again. Or, when we have a great...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.
Ambush 2022 Review & 2023 Special
I hope you have had a great start to the year so far. It's been over a year since our last Ambush Specials so I thought it's time to reach out again, give you an update on what happened in 2022, and hopefully have you join us in the new year with our limited special offers!
After I finished writing this, I felt like it got way too long so here's a brief summary for impatient people like myself. Ambush is still alive and doing well. In early 2022 Ambush experienced serious drawdowns in many markets, but recovered quickly and managed to end the year at new all-time highs in most of them. The same is true for the sample portfolios but due to the crazy volatility we've seen, needed some rebalancing to ensure the risk profile is again within the desired parameters for each portfolio size. Also, it's been a year since our last Ambush Special and many of you have been waiting for a new one.
The Ambush System
It's been 14 years since I came up with the Ambush System back in 2009. Wondering where all those years went what's really astonishing to me is the fact that the Ambush System is still around and doing so well in so many markets. I simply don't know of any other trading system that has kept on performing that well for over a decade. I'd say there isn't even a second close competitor, most systematic traders are more than happy if their system keeps on working for a single year. Also, while most systems work in just one market, Ambush keeps on pushing to new highs in over 20 markets including a wide range of Futures and Forex markets!
2022 Market Review
Now 2022 surely wasn't an easy trading year in the markets. After the Ukraine crisis started and messed up the energy markets, inflation showed up around the globe and central banks followed changing their monetary policies quite dramatically. That combination did lead to a lot of volatility and unusual market moves that also hit Ambush's performance at the beginning of the year. Luckily things turned around sharply in the second half of the year and most market's Ambush performance ended 2022 in the green territory at new all-time performance highs. In perspective to how most markets and portfolios performed this isn't bad at all. But trading through a sharp drawdown is never fun though so I'm hoping for a more relaxed year in 2023!
We came up with three sample portfolios for different account sizes a couple of years ago to showcase how Ambush performs trading a well-diversified portfolio of markets. Looking at the long-term performance of the "Large Ambush All Stars Portfolio" before it was rebalanced, you can see that 2022 was indeed an unusual year. Yes we did end up significantly higher but only after a sharp drawdown and looking at the chart it's clear that the performance of the old portfolio was much more volatile than before:
This explosion in volatility is simply caused by the volatility of the underlying markets going through the roof. This required an update of the Ambush sample portfolios to ensure the risk profile is again within the desired parameters for each portfolio size.
Ambush Market of the Year
One of the markets that continued to outperform in 2022 is the Russell 2000 Index Future, making it again the Ambush market of the year!
Here are the results of these trades, trading one E-Mini Russell 2000 contract:
Yup, that's almost $30k profits trading per contract with a very moderate drawdown of under $9k!
The E-Mini Russell 2000 Future is a large contract and not suitable for small accounts. But you can simply do these trades in the E-Micro Russell 2000 which is just 1/10 the size and more than liquid enough for Ambush Trading. Remember we don't get in and out of the market 10 times a day and make our brokers rich. We place our order once a day and walk away till the close!
Ambush Signals does all the work for you and simply sends you the Ambush signals for each of the markets that you subscribed to every day.
As many of you want to subscribe long-term you kept on asking for yearly discounts so here's a special that covers that. These won't be available on the regular Ambush Signals page and will be available only for a couple of days so don't miss out! These are one-time purchases, not auto-renewal subscriptions.
There are three different subscriptions based on which markets you need, to learn more simply go to the Ambush Signals Page and click on "Compare Plans":
- 1 year of Ambush Signals Forex for $399 (
- 1 year of Ambush Signals Mini for $599 (
- 1 year of Ambush Signals Pro for $899 (
The Ambush eBook contains all the trading rules of the Ambush System, so if you want to make it your own or know what's behind Ambush Signals this is for you. You can get it now for just $999 instead of the regular $1799. But that's not all, if you buy the eBook you also get three months of Ambush Signals Pro for free to get you started on the right track. That is another $387 saving! All you have to do is use the coupon code ambush999 during checkout. But don't wait too long, this is a limited special as we can't give out a lot of Ambush Systems at that price!
Whether you're trading stock indices, currencies, commodities, or interest rate futures, you don't want to be on the other side of these day trades!
I keep hearing from our active subscribers about how surprised they are that it's so easy and simple to follow Ambush Signals. They simply had no idea you could actually day trade profitably with so little effort and time! As it just takes a couple of minutes a day you can day trade while still doing other things throughout the whole day and still have all the benefits day trading offers.
Enjoy the specials and have a great trading year 2023!
The Ambush Trading System was created in 2009 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).
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Chart Scan is a complimentary educational newsletter.
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.
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent