Trading Financial Market Patterns

Price changes in all financial markets: Stock market, Commodities, Currencies, and Treasuries are a pure expression of supply and demand changes.  

 

NLT Top-Line Chart: Sell Signal with a NLT Light Tower Pattern and NLT Lime Line Price Move  

The chart above contains a clearly defined trade entry, which was confirmed by the next candle surpassing the formulated price threshold: Sell <$99.90. By our algorithm a NLT Light Tower initiated trend (candle with a cyan dot, signifying key changes in institutional supply and demand patterns) has a high probability (74%) to end in a NLT Light Tower, when using a 1-hour time frame. In addition, we find high predictability for price moves from one to the next NLT Lime Line (Quant based price levels). 

As an investor (longer-term perspective) or trader (short-term perspective), your key challenge is to find swing points where a shift between supply and demand takes place. 

In my early trading years, I got introduced to Moving Averages; today still key TV channels characterize the sentiment of an asset by their price position in relation to the 200-day and 50-day moving average. This for sure gives a chart reading; however, years back when writing an algorithm and taking charge at moving average based price turning points, such system turned out to be a pure gamble with a low probability for success. Imagine, if knowing the price position of an asset in relation to two moving averages would be enough to make a living from trading: Then nobody would ever go to work. 

How else to capture shifts in supply and demand patterns? 

Historically, technical analysis is used to predict a future happening on the price chart. The first technical analysis is reaching back to the 1600’s, when “Japanese Candle Sticks” started their development in tracking historic price moves to predict the price moves to come. Since then, there is an understanding that in traders are trying to gauge the depth to produce a high or low breakout of the price direction. When this is happening, usually the crowd follows the leaders and this is what we portrait on the chart in our 21^st century algorithmic trading systems. They are related to the base understanding of the 1600’ but fit today’s market requirements. 

This is how NeverLossTrading records and portraits changes in price move patterns. 

NLT offers various systems for day traders, swing traders and long-term investors, taught in individual session to custom fit your personal wants and needs. For more information on our most favored mentorship, click the hyperlink on: NeverLossTrading Top-Line, a system for the high probability day trader, swing trader and long-term investor. 

 

Another Example for Crude Oil Futures on the NLT 1-Hour Top-Line Chart

Again, you find the same formation: What begins in an NLT Light Tower signal ends in a NLT Light Tower Signal: Trend initiation and trend exhaustion patterns, triggered by a change in institutional supply and demand: Price moves from NLT Lime Line to Lime Line. 

Click here to learn more about NeverLossTrading Top-Line. 

Feel free to schedule a private consulting hour: 

Call: +1 866 455 4520 or contact@neverlosstrading.com

 

In case you are not yet subscribed to our free trading tips and market reports, sign up here:
http://www.neverlosstrading.com/Reports/FreeReports.html 

We are looking forward to hearing back from you.

Good trading,

Thomas