Edition 853
October 30, 2020
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Introduction to a Series on Technical Analysis
This week’s chart scan is a continuation of a series of very basic technical analysis concepts. I’m not a big fan of technical analysis, but I have to admit that I cut my trading teeth using it. Eventually, I came to believe there is a time and place for any and all tools. If something can help you understand the markets and how to trade them, I’m all for it.
There are many beginning traders who read Chart Scan, and over the years I have had many questions from them concerning technical analysis. Instead of giving you an article on the psychological aspects of trading, the next several issues of chart scan will feature articles on technical analysis. My hope is that where and whenever possible, I will show you the right way to use this type of analysis.
Keep in mind, the only real truth on a price chart is price itself. With that in mind and keeping price always in the forefront we can begin taking a look at some tools that fit into the category of technical analysis.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Trend or Congestion?
Hey Joe! The reversal bar that you have labelled at (2), in my opinion, is in congestion due to the measuring bar at (1).
Do you agree -- or have I missed something?? (Just trying to see if my understanding of the situation is correct)
I agree. If you see congestion, you are correct. However, when we have both trend and congestion, trend takes precedence. There is a trend from the lowest low to the high of the RB.
However, if you prefer to see the entire picture as congestion, that is not an incorrect view of things. Sometimes, the right answer is in the view of the beholder.
The way I see it, (and it’s ok to disagree) the initial swing down was trend enough to label the lowest low as a reversal bar (RB), and therefore, a trend reversal. The swing from the lowest low to the highest high can also be seen as a trend, and the RB at the top is then a trend reversal.
Neither view is right or wrong. This is why I always say, “trade what you see, not what you think.” If you see these price bars as congestion, then you must trade in accordance with what you see. And, if I see this as a trend reversal, I should trade it as I would any reversal bar.
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© 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.
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Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Cup and Handle
The cup and handle is a great trading pattern that works well with different time frames and with most markets like stocks, futures, commodities and foreign currency markets.
Here’s what it means, how to trade it, and tips to use it for potentially bigger profits.
The Cup and Handle pattern is a bullish...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.
Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Instant Income Guaranteed - PAGS TRADE
On 24th September 2020 we gave our Instant Income Guaranteed subscribers the following trade on PagSeguro Digital Ltd. (PAGS). Price insurance could be sold as follows:
- On 25th September 2020, we sold to open PAGS Nov 20 2020 25P @ 0.35, with 55 days until expiration and our short strike about 31% below price action.
- On 6th October 2020, we bought to close PAGS Nov 20 2020 25P @ 0.15.
Profit: 20$ per option
Margin: 500$
Return on Margin annualized: 132.73%
Philippe
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© by Joe Ross and Philippe Gautier. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, Day Trading, and
Editor of Traders Notebook Complete and Traders Notebook Seasonal Spread Trading (TNsst)
Trading Article: Being confused while trading!
A thorough understanding of who you are and what makes you tick is essential in trading. How and what you think, what you believe, and how you behave are critical parts of winning in trading as well as winning in....read more.
Andy Jordan is the creator of Traders Notebook, a successful spread trading daily guidance advisory service. Do you want to receive how to manage trades and detailed trading instructions every day? Click here for additional information! Contact Andy Jordan with questions.
© 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.
Professional Trader Marco Mayer
Educator for Forex, Futures and Systematic Trader
Creator of Ambush Trading Method, Ambush Signals, and Head of AlgoStrats.com
Trading the Euro is Easy if you have the right method!
One of the top markets over the last couple of months for Ambush Traders has been the Euro. Whether it's the Euro FX Future or the EUR/USD Forex pair, Ambush Traders had real fun in that market!
Here's a daily chart of the Euro FX Future (6E), showing the last couple of months of trading. As you can see this market did what markets do 90% of the time, which is why Ambush is such a great trading method. Markets move in boxes/ranges, break out for a few days and then start moving in the next box. The Euro has been boxing a lot lately and so Ambush Traders had a lot of great opportunities!
Here are the results of these trades, trading one contract:
Yup, that's over $4k profits with almost no drawdowns in between, a winning rate of 80%, and a Profit Factor of over 5 within that period!
Notice that all of these are actually day trades, even though they're based on end-of-day trading decisions. Ambush is exactly that, an easy way to day trade not for a few tiny ticks with a lot of stress but placing your trades once a day, walk away, and go for the big intraday moves!
Don't miss the next Euro trade and join Ambush Signals today!
Happy Trading!
Marco
The Ambush Trading System was created in 2007 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.
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