Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Monday, February 9, 2015

A Simple Way to Know Where Prices Will Go

Price has a memory: A price point once reached is used by institutional investors as profit taking or investing point.
Knowing this, watch in particular for candles with very long wigs: Mark the high or low price point of the wig and be surprised:
Our base trading concept is called; in a four hour Mentorship, you learn to follow price continuation patterns, triggered by market followers: Fund managers (mutual funds, hedge funds, pension funds, ETF’s) and low risk investors (banks and insurances).
Let us take a look on a day trading chart:
  • Trade Entry after the high, low of a tow or more same candle color sequence is surpassed (highlighted in orange).
  • Target: Top or bottom of the long wig candle. 
  • Stop: Below the first candle of the trade initiation sequence.
Australian Dollar Futures 1-Hour Chart
Australian Dollar 1-Hour Long Wig Candle Trade
The Australian Dollar chart shows how this trade setup lead to two wonderful trades just in the last trading day:
  • Trade-1: Long with a $280 income perspective and a risk of $170 per contract.
  • Trade-2: Short with a $260 income perspective and a risk of $280 per contract.
You sure like the first trade setup with a higher expected return than risk, but how about the second, where the risk is higher than the expected return?
The probability for success of this trade setup is about 70%. If you put the reward and risk in relation to the probabilities of winning or losing and your return on risk is higher than 50%, you found a solid trade:
Validation: ($260 x 0.7 - $280 x 0.3)/ ($280*0.3) = 116%; and thus represents a very solid trade setup.
Learn to be a high probability trader: Call +1 866 455 4520 or
Check or sign up for the mentorship at our web site…click
Does this work for Swing Trading too?
Indeed: Check the daily AAPL Chart and see the precision of the two candle color short setups
AAPL Trade Colors Example
But if your type account does not allow for shorting stocks?
Then you learn to trade options to produce short setups in any account.
Learn to be a high probability trader: Call +1 866 455 4520 or
Check or sign up for the mentorship at our web site…click
Good trading,

No comments:

Post a Comment