How to Trade Stocks and Crude Oil with TradeColors.com

In this week’s educational article, we want to share with you our introductory system to NeverLossTrading: TradeColors.com identifies institutional triggered trading opportunities by a two-candle-color-sequence. 

Trade potentials arise when the high of the second or next blue candle is surpassed by the following candle or when the low of the second of following red candle is surpassed by the next candle. 

You basically put a buy or sell stop at those levels and then you trade along with the set price direction. 

Crude Oil Futures on November 26, 2013 (Time: November 25, 18:00 to November 26: 24:00)

TradeColors.com is an introductory concept to “Algorithmic Trading with Human Interaction”, featured by NeverLossTrading® and provides you with a high probability trading system. 

However, successful trading is a combination of finding high probability trade entries in combination with formulating immediate targets for the trade, recognizing where the market forces let us expect supply and demand or support and resistance.  

In respect of target setting: TradeColors.com offers two different trading types: 

Type 1: Momentum trading – After the second same color candle initiates a trade setup, you trade for the expected price move. But how do you define this target? In our aim to support you in your trading, we added in the upper left hand corner of the chart, a field with states: Price Move Approximation and a number behind it. This field helps you to define the exit or target-1 for your trades. 

The Crude Oil Futures Chart shows a current expected price move of $0.16, when the high/low of the trade initiation candle is ticked out, which relates to a potential trade gain of $160 per contract on a 10 minute chart. The expected time in the trade until this target is reached is 1-5 bars: In our example this would mean 10 – 50 minutes. 

Type 2: Trend trading – You trail the stop below the prior candle until you get stopped. However, for a trend move, we also formulate our positive exit with the use of the blue lines on the chart. They function as key support and resistance lines and you learn in your mentorship class, how to put those blue-lines on the chart and how to use them for setting your trend trading goals. 

Take a look at the orange highlighted areas and you will see how often prices accumulated at the blue-lines. In our mentorship, you will learn to formulate those price levels prior to entering into a trading sequence. 

Crude Oil Futures with Key Support and Resistance Levels (Highlighted)

Imagine, how trading will be for you by finding entries in a candle-color sequence and formulating targets either with the help of the blue line or by the price-move-approximation. 

You recognize: “There is no overhead resistance line on the chart”. How to trade in such a situation? When you do not have an orientation line to trade to and from, then you either momentum trade, formulating an approximated target-1 and target-2 or you trend trade by following the candle color sequence until either your trailing stop gets triggered or the low of the first red candle is surpassed. 

User focused, two different systems are available:

The TradeColors.com education packages offer you a budget, however, powerful vehicle to operate in the world’s financial markets. 

The chart below shows SPY (ETF for the S&P 500 Index) and its development for the last six months. Trade-setup situations are highlighted in orange and follow the two candle color sequence model: 

SPY (June-November 2013)

Again, you see how the directional price moves setup in a two-candle-color-sequence, which was followed through. In addition, the chart shows how the used price gravitation lines defined key supply and demand levels were the price of SPY accumulated or made a major move after a breakthrough. 

With the help of our scanner, we help our subscribers on a daily basis to find Stocks, Futures and FOREX pairs, where this setup constellation was found. 

AAPL Two-Candle-Color-Sequence and Follow-Through

The AAPL chart shows that the stock is concluding an up-move, where the price comes close to facing overhead resistance at $550. 

If you sign up now for TradeColors.com, every dollar you pay will be accounted on an upgrade to a NeverLossTrading mentorship, in addition, you receive a $500 year-end-discount. Click this link…. or call 866 455 4520 or contact@NeverLossTrading.com

TradeColors.com is applicable for all asset classes and for their derivatives, Options and Futures:

1. Stocks, ETF’s, Mutual Funds
2. Commodities
3. Currencies
4. Treasuries

With TradeColors.com, aside from providing you with a trading concept, we share our market scans at least three times per week, reporting stocks, futures and FOREX pairs with a two-same-color-candle-sequence, sharing with you were market pressure and trading opportunities arise. 

Considering stocks widely held and traded with institutions, we scan:

• 180 Stocks from the S&P 100 and NASDAQ 100.
• 78 FOREX pairs, covering the world currencies.
• 50 Focus Futures, ranging from stock market indexes, via currencies to commodities and treasuries.

With your subscription to TradeColors.com, you will receive this report free, for 30-days, with the right to renew of your subscription for a monthly fee of $99 after. Subscriptions can be cancelled at any time with PayPal a leading provider of payment option; they even give you the opportunity of financing the tuition for 6-months without payment. 

You save hours of time to find and document trading opportunities. Imagine checking 180 charts every night, documenting and selecting those you want to trade. We do the work for you and for a price for less than $5 per trading day, we provide you with constant reports, spelling out:

• Blue or Red Candle Sequences with market pressure.
• Potential Momentum Reversals with market pressure.

The average stocks, we repot, has an expected 1-Expansion-Move of 1.7%, based on the cash price of the asset. When you use overnight margin, this relates to a 3.4% return and on an intra-day-basis to a 6.8% return potential. 

Futures and FOREX trading, by the used leverage allows for much higher returns.

Always remember: Past performance is not indicative for future results. 

Why would one want to upgrade to a NeverLossTrading Mentorship?

NeverLossTrading systems have two major advantages compared to TradeColors.com:

1. Higher Probability Trade Setups
2. More Trading Opportunities Per Time-Unit-Observed

Hence, if you are serious about trading, NeverLossTrading systems provide the higher productivity.

TradeColors.com it gives you:

• An easy to follow, high probability trading system.
• The possibility for a short-term payback on your tuition.
• The ability to upgrade to NeverLossTrading Mentorships at full reimbursement of your costs.
• Clear cut documentation.
• Focused training.
• One month support with all your questions answered.

If you are ready for this you can purchase your education package online…click here or

Call +1 866 455 4520 or contact@NeverLossTrading.com  

1 Home Based Business Solution: Trading or Investing

Trading is a professional business; professional traders have their support- and control network, assisting them to strive for success. NeverLossTrading aims to replicate the same level of support and information for you, regardless if you are as a full-time or part-time trader or investor.

• The Trader makes the decisions and produces performance relying on his system.
• Analysts prepare the trader with information and details.
• The Back Office follows up on the orders and provides statistics.
• The Risk Manager provides guidelines for the maximum risk to accept and lot size to trade. 

      Sign up to download your free report to experience how all those elements are considered and work together in a complete trading system….click here.

 

Find out why trading or investing is one of the easiest solutions for a home based business. Check our newly published Kindle Book:  Your Trading Career as a Private Investor by Thomas Barmann. 

This book (available at Amazon for stunning $2.99) is for you, if you aim to produce constant income and long term wealth from trading or investing. The difference between trading and investing lies in the perspective of time: Investors usually take a longer-term perspective to buy and hold their investments, while traders focus on shorter-term results. If you learn how to participate in the up- and down moves of the financial markets, you will start to invest more frequently and turn yourself into a trader. 

Trading is a professional business and it requires preparation: Those, who take the other side of your orders are prepared to make money. Are you?

Unfortunately, most of what we learned in life is rather a hindrance to progress in trading: Good work ethic for example – We start to work when the office day starts and work to the end – and feel good about what we have done. However, we better not start to trade when the market opens and trade to the end: We only trade when we have a signal and the odds are in our favor. Our account statement tells us if we can feel good about what we accomplished. Let this book guide you to a new perspective of trading or investing. 

Prepare yourself for a part-time or full-time trading career; follow our step-by-step guide and insights, how to start and operate your trading business. 

To connect you with real-trading-world of this decade, we introduce you to the principles, methods, and strategies of Spotting and Following Institutional Money Moves by Algorithmic Trading with Human Interaction. 

This book is for readers without prior knowledge or for those, who want to take trading or investing to the next level: Trading is a professional business; professionals are prepared; amateurs pay professionals to be part of their game. Which side of the trade do you want to take? 

Be part of our information network: Sing up for our free reports and webinars….click here.

 Find the trading education package that gets you prepared for the market....click here.

Last Hour Stock-Mover Trade

Today, we want to invite you be part of one of our stock market research projects.

With all the marketing letters you receive, the word research might sound boring; however, progress can only be made by a sound research, analytics, synthesis, and conclusion.  

For a long time, the following hypothesis was in my mind: 

“Institutional investors reveal part of their trading plan in the last hour of the trading day, where the NeverLossTrading signals can guide us to a possible trade entry and exit at the 1-hour opening candle of the next day.” 

The challenge was to develop an algorithm to find those stocks, which comply with last-hour institutional action. Having 42,000 stocks traded in the US market only, shows that the complexity cannot be solved with chart analysis. 

Hence, I had to write a Google-like-program for filtering stocks with one of the NLT-HF- or NLT Top-Line signals in the last hour of the trading day and a solution was just found and installed. 

Now, we are now running the reality test: Checking, if our hypothesis holds-true. To do so, we run a daily review on the symbols reported by “The NLT Last Hours Movers Report”. The sample of stocks we selected is 800 selected stocks, which fulfill set NeverLossTrading conditions: Minimum liquidity, options, tight bid/ask spread, volatility.  Our scanners so far filtered on a daily level between 13 and 30 stocks with NLT-congruent last hour movement. 

First findings: Reported stocks, which produced a confirmed last-hour-signal at the opening, concluded the expected minimum price move with a probability above 80%. This is significant.

Statistic for November 14, 2013 (Symbols with prior-day NLT-Signals)

31 Stocks were reported with a last hour NLT signal. The highest amount of stocks with signals reported this far from a sample of 800 stocks; however this result was expected by the strong price move the overall stock market had. 

Let us share some of our evaluation terms you find in the final report:

-          Worked, signifies that the last hour signal of the prior day was surpassed by the opening candle, triggering a trade and the traded ended at the set target.

-          Failed means that a trade signals was triggered; the stock price reverted and came to the stop price level, making the trade a failure.

-          Gap up/down means the price moved above our set target without letting us participate in the trade and no opportunity for a limit order price entry and exit was given.

-          Purple Zone identifies a time of ambiguity where we preferable stay out of a trade, except we receive a power signal from NLT Top-Line.

-          Neutral means that a trade entry was triggered, neither the target- nor the stop-level was reached by the end of the day and the order was closed at the price level where it was opened. 

In total we had 19 out of 31 stocks had a confirmed signal; 17 successful trades and 2 failures. 

To trade with the odds in our favor, we want to trade for a minimum 1-SPU-Move (expected minimum price move per time unit observed), above $0.17, while the SPU move shall represent at least 0.5% of the stocks asking price. 

November 14, 2013 Results

Again, the last hour mover report gave us a fabulous result: 17 out 19 trades with positive outcome: 89% attainment rate (the prior days hat an attainment rate or 100%, 100%, 84%). 

To reduce the number of trading choices, you can use the following findings from the report: 

-          Stocks with a price above $30 have a much higher likelihood to be congruent with the set NLT targets to trade with the odds in your favor than stocks with a value below $30.

-          Stocks from the same industry segment seem to produce conform results; hence we can pick the ones with the best return on cash for trading them on a triggered signal. 

We surely will run more statistics; however, the question is now, how can you capitalize form our research?

After a trade potential is identified and confirmed, you can almost automate your orders on the 1-hour chart, best OCO order: 

·         Trade Entry at the set threshold or at any new signal.

·         Trade Target: Formulated with the entry signal at the set price point or at any of a newly set price point, initiated by a new signal. 

·         Stop from the NLT-Double Decker Line, Box-Line or NLT Price Gravitation Line, or the low of the trade initiation candle. 

·         Trading only when the odds are in our favor and the potential risk of the trade is below 1.5-times the expected minimum reward. 

·         By the high likelihood for a positive trade, as higher you can set your participation rate: Trades you accept, the higher will be the probability for you to achieve an overall positive result. 

When you join the NeverLossTrading community, you will receive this report and the opportunity for high probability trading. What would this mean for your trading? 

Check our program-offering and find the one which fits your specific requirements:

http://neverlosstrading.com/images/Mentorhsip%20Programs%20%20Overview%20Large.png

Stock trading is a professional business: If you fail to prepare, you prepare to fail.

The investment that pays the highest returns is the investment in you.

Do not trade/invest unprepared. 

Let us consult you, call +1 866 455 4520 or contact@NeverLossTrading.com

In support of your trading performance,

Thomas

NeverLossTrading