The price change is the result of a change in supply and demand. Institutional orders dominate more than 85% of all financial markets. We measure with our indicators underlying changes in supply and demand to forecast potential price moves by spelling out the following:
- Entry conditions (at which price point to buy or sell)
- Exit conditions (profit take, stop, or trade adjustment)
- Risk/Reward relations (transacting at favorable conditions only)
Yes, we use and propagate a follower system: The crowd follows the leaders, and we enter directional price move early and leave at a pre-defined point following our pricing model:
NeverLossTrading Price Move Model
At any point, our system dashboard expresses the SPU: Speed unit or forecasted price move as a dollar value and in percent.
SPU Dashboard
The NLT dashboard also qualifies a trend in its strength (blue for up and red for down) and specifies the trade target and where to place the stop. In the example above it was a favorable setup with a $1.3 reward for every dollar of risk you take.
An algorithmic approach we take, to help traders with mechanical instead of discretionary decisions.
There are a few reasons why spotting and following institutional money moves can be beneficial:
- Predicting Market Trends: Institutions such as hedge funds and mutual funds have access to extensive resources and expertise that allows them to make informed investment decisions. By tracking their moves, you can get an idea of which stocks or sectors they believe are poised for growth or decline, which can help you make more informed investment decisions.
- Gaining Insight into Company Performance: Institutional investors often have access to private company information and can use that information to make investment decisions. By following their moves, you may be able to gain insights into a company’s performance that are not publicly available.
- Mitigating Risk: Institutions often invest significant sums of money, and their moves can have a significant impact on a stock’s price. By tracking institutional moves, you can potentially identify and avoid high-risk stocks or sectors.
- Potential for Higher Returns: Institutions often have the ability to move markets with their investments, which can create opportunities for individual investors to profit from their moves. By following institutional money flows, you may be able to identify undervalued stocks that institutions are accumulating and potentially profit from their eventual rise in price.
Spotting and following institutional money moves can provide valuable insights into market trends, company performance, and potential investment opportunities. However, we never have 100% certainty in trading decisions, but we work with a high probability of> 65%.
Let us start with a top-down approach, analyzing the markets on a higher level of the NeverLossTraidng Alerts:
Weekly Market Analysis For the Week of May 8, 2023
The table shows the S&P 500 with the word change, indicating the price development is in an NLT Purple Zone, as a sign of directional price ambiguity. Hence, longer-term investing with overall market-correlated stocks is not the best investment strategy.
Hence, how to best engage your investment money in such times:
- Find uncorrelated price movers with buy or sell signals
- Switch to shorter-term strategies like day trading (opening and closing positions on the same day) or swing trading (holding positions for multiple days)
NLT Top-Line Correlation Study
Here is how it shows on the chart and helps you to make uncorrelated decisions in times of overall directional price ambiguity
MSFT, Weekly NLT Top-Line Chart
After a period of directional ambiguity (NLT Purple Zone), the chart shows how MSFT found a strong buy signal that indicated an uncorrelated or individual price move to the upside. As a result, the system formulated the entry condition: Buy > $283.33 and two targets. You could have participated in the stock price move by buying the stock or with the NLT Delta Force Options Trading concept, which helps you to limit your risk and leverage returns.
The question is: how to find uncorrelated price movers?
The market has 40,000 stocks to trade, and you can always find and follow an independent happening. The NLT Top-Line scanners and Alerts help you to act when it matters.
To spot and follow institutional money moves, you need to be informed of the happening and either operate your analysis or subscribe to an Alert service.
If you are interested, we will send you a week of our swing trading analysis for free:
contact@NeverLossTrading.com Subj.: Swing Alert Free
However, there is one difficulty: putting the spelled-out opportunities into action without proper training might be a challenge.
We offer proper training to our clients, teaching in one-on-one units at your best available days and hours, focusing on your specific wants and needs. Being in business since 2008, we have not had two clients with the same focus on assets, risk tolerance, time for the market, preference in holding open positions, return expectation, account size, investment strategy, etc. So now you know why individual training is much more effective in helping you become the trader you want to be.
Swing trading can have several advantages in times of longer-term directional price ambiguity. Here are a few:
- Takes advantage of short-term trends: Swing trading is a strategy that involves holding a position for a short period, typically a few days. In times of longer-term price ambiguity, there can still be short-term trends that swing traders can take advantage of. Swing traders use technical analysis to identify momentum-price moves and trends to conduct trades accordingly.
- Flexibility: Swing trading allows traders to be flexible and adjust their strategies as the market conditions change. In times of longer-term directional price ambiguity, swing traders can adapt to the changing market conditions and take advantage of short-term opportunities that arise.
- Swing trading typically involves lower risk by setting tighter stops or trade adjustment levels tighter than longer-term investors.
- Less time commitment: Swing trading allows order execution without being in front of the screen when you operate with buy-stop or sell-stop orders according to your system.
- Can generate profits in a range-bound market: In times of longer-term directional price ambiguity, the market
may be range-bound, meaning that prices are trading within a specific range. Swing trading can effectively generate profits in this market type by participating in in-range price moves.
We developed specific alerts to find swing trading opportunities.
NLT Swing Trading Alert for May 2, 2023
The table shows four trading opportunities.
MU Daily Chart
The chart showed the confirmed price direction of MU, and the trade came to target on May 5, 2023. Then, on 4/26/23, you saw a swing trade to the upside that met to target on 5/1/23. Finally, on May 2, sellers took over from buyers and created a CIC situation (change in command), a firm trading setup according to our systems.
LOW Swing Trading Opportunity
AMGN Swing Trading Opportunity
The chart for AMGN shows a selling opportunity that arrived on May 2 and led to a short selling opportunity, while the current signal points to the upside. On April 26, the stock had a selling opportunity that came to target, showing how you can swing along with price changes. AMGN was also an uncorrelated price-moving stock.
The potential NLT Swing Signal for AMZN did not print a directional buy or sell signal and, by this, did not provide a trading opportunity.
AMZN, Swing Trading Opportunity, May 2, 2023
In Summary: Two swing trading opportunities in one day.
If you prefer day trading, we developed a concept that helps traders to find risk-adequate directional solid price moves.
On our NLT Timeless Day trading chart, we use system-defined price increments to specify the start and end of every candle instead of time, helping you multifold:
- Each setup is in the system-appropriate risk/reward ratio, which is often not given in time-based candles
- Your entries and stops are less predictable by not following time-based patterns
- You trade for meaningful minimum price changes of the underlying instead of being eaten up in volatility
- The system produces multiple trading opportunities in the trading day for all assets
In our first example, we pick a FOREX trade: USD/CAD. You will see two trading opportunities that came to target. In addition, the system specifies a maximum price expansion by a black dot, where we expect counter-action.
USD/CAD NLT Timeless and Trend Catching Chart
On the chart: The first directional indication came on April 25, 2023, and the second on April 28, 2023. Dots on the chart specify the exit, and red crossbars the stop. You operate with buy-stop and sell-stop bracket orders.
The E-Mini S&P 500 Futures contract is a prevalent day trading instrument, and we trade it on two frequencies with the NLT Timeless Concept.
NLT Timeless /ES Slow Pace Chart
NLT Timeless /ES Fast Pace Chart
Please decide on your own if you found more winning than losing signals, expecting an accuracy of > 65%.
If you’re ready to take your trading to the next level, consider implementing a structured approach and see the difference it can make.
contact@NeverLossTrading.com Subj.: Free Consultation
NeverLossTrading is a trading education and software company that aims to help traders improve their performance and profitability in the financial markets by:
- Personalized Coaching: in one-on-one sessions, you learn customized trading strategies that fit your unique needs and goals. This personalized approach can help traders better understand the markets and make more informed trading decisions.
- Trading Software: NeverLossTrading offers proprietary software that provides real-time market analysis and trading signals. Our indicators are designed to help traders automate their trading decisions and execute trades with greater accuracy and efficiency.
- Comprehensive Training: We provide extensive training and education materials to help traders learn the fundamentals of trading and develop the skills and knowledge necessary to succeed in the markets.
To succeed in trading, you best work with an experienced coach. Our #1 competitive advantage is the support and customer service we offer. Veteran traders have been through more ups and downs than you can imagine. So, experienced pros have probably experienced whatever you’re going through.
If you are ready to make a difference in your trading: We are happy to share our experiences and help you build your trading business. Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong. Strive for improved trading results, and we will determine which of our systems suits you best. The markets changed, and if you do not change your trading strategies with them, it can be a very costly undertaking. The markets changed, and it can be expensive if you do not change your trading strategies with them. However, you can make a difference with the right skills and tools!
Hence, take trading seriously, build the skills, and acquire the tools needed. Trading success has a structure you can create and follow.
Thomas Barmann (inventor and founder of NeverLossTrading)
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