Edition 929
April 29, 2022
"If you look good and dress well, why trade?" Master Trader Joe Ross
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Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Reinventing the Wheel?
I received the following letter from one of our oldest friends. I think you will find it interesting. As a matter of confidentiality, I am not at liberty to tell you which market or time frame is used in the example.
"The markets have certainly been wild lately, much as I described they would be in past letters both earlier this year and last year. We're still seeing large choppy trading ranges, abbreviated trends that fail to continue beyond just a few week’s duration. Lots of explosions and collapses make these markets difficult to trade, even for the very best traders.
It seems only the innovative and adaptive traders will make it in the markets today.
"Sometimes all that is needed is a simple set of tools. Let's look at just such a set of tools, that from a technical point of view are proving themselves successful in trading the kinds of markets we are seeing. In the illustrations that follow, I will be using a fifteen-bar exponential moving average of the close, along with a simple forty-bar moving average of the highs and lows. With the forty-bar simple moving average of the highs and lows I will attempt to create a channel. When prices move beyond the bounds of the channel, I will attempt to trade pointy places. I will never attempt a trade when prices are within the channel. The exponential moving average will be a filter used to keep me out of the market when the moving average is flat. So, even though prices are out of the channel, as long as the fifteen-bar moving average is flat or relatively flat, I will not attempt to trade.
"A trade will come when the geometrical moving average is trending and prices are out of the channel. If prices are above the channel, I will attempt trades only from the long side. If prices are below the channel, I will attempt trades only from the short side.
"Let's look at a chart so that your readers can get the picture. More details will follow.
"The idea behind the technique is to have you at all times on the right side of the market. This is accomplished via the channel created by the forty-bar simple moving average of the high and low. Whenever prices are in the channel we do not trade. Whenever prices are above the channel, the appropriate position is to be long. Whenever prices are below the channel, the appropriate position is to be short.
"The only thing that will prevent us from attempting to get short below the channel or long above the channel is if the fifteen-bar exponential moving average is flat or near flat. We use an exponential moving average to tell us more quickly if prices are flattening out.
"With this technique, we are attempting a three filter method for being on the correct side of the market.
"We are pursuing the age-old concept of trading with the longer term trend by entering an intraday high/low breakout signal when the intermediate term trend moves counter to the long term trend. This concept is covered in the newly updated "Trading by the Book" to be released later this year, Joe!"
© by Joe Ross. Re-transmission or production of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Trading Article: Indicators
Question from a trader: Joe! I’m not a very creative person, so I tend to use indicators to help me in my testing. I’ve heard that you are vehemently against indicators. Is that true?
Not true! I am not vehemently against anything that works for you in the markets.
I am not...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.
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Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Applied Materials Inc. (AMAT) Trades
In these volatile times we highly prefer ratio spreads which have a bearish put spread embedded component, and resist much better to down moves, giving us much higher profits when they happen close to expiration around our short strike.
This was the case for AMAT Apr 14 2022 +120P/-2*115P entered for a credit of 1.46 per 1*2 spread on 28th February 2022. Depending on how many spreads you entered, you had the possibility to scale out of your positions with a profit maximizing strategy:
- exit for 0.05 on 29th March 2022 (141$ profit)
- exit for -0.30 on 5th April 2022 (176$ profit)
- exit for -1.05 on 12th April 2022 (251$ profit)
- exit for -3.80 on 14th April 2022 on expiration day (526$ profit)
When a ratio spread expires close to our short strike, as it did here, we can get nice profits, much higher than our initial credit. This is a strategy well worth learning for premium sellers.
Philippe
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Join Master Trader Joe Ross' Instant Income Guaranteed (IIG) program which rolled out on December of 2014.
This program will continue until September 30, 2022 so take advantage to learn IIG's option strategies with Philippe Gautier's master mind within his detailed guidance.
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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.
Professional Trader Andy Jordan
Educator for Spreads, Options, Swing, and Day Trading, and Editor for 20+ years with Traders Notebook, daily advisory newsletter.
Trading Article: It All Comes Together
It is critical to develop a well thought out and organized trading plan. It is then important to have the discipline needed to follow it. Diversify your trading into several unrelated markets, or focus on one market and time frame where you have seen you can make money. Trading, by its nature is not investing. Trading requires consistent monitoring on at least a...read more.
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
Day-Trading the T-Notes Future without Stress
Like almost everyone out there, Ambush too got hit by the crazy markets out there, including the 10 Year T-Notes Future (ZN, traded at CME). But that market did give us quite a reversal and its performance is at new all-time highs again!
Here's a daily chart of the ZN Future, showing the last month of trading. As you can see this market moved lower but did so in a slow way. Perfect conditions for the Ambush System that managed to hit one swing-low after the other providing plenty of profit opportunities.
Here are the results of these trades, trading only one 10Y T-Notes Future (ZN) contract:
Yup, that's a profit of over $2k in just a few weeks with a couple of trades in the $1k profit range. That's a lot for a day trade in the ZN future which is a small contract!
Here's the long-term chart of ZN:
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 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.
30% OFF
Day Trading Strategy with E-Mini S&P 500 eBook
Use Coupon Code During Checkout: emini30
Join Master Trader Joe Ross' Instant Income Guaranteed (IIG) program which rolled out on December of 2014.
This program will continue until September 30, 2022 so take advantage to learn IIG's option strategies with Philippe Gautier's master mind within his detailed guidance.
NOW is the time!
65% OFF
Use coupon code during checkout: iig65
Includes 2-Months FREE of Detailed Guidance which starts after completing Joe's online courses.
Check out IIG's Performance Track Record
We hope you will join our IIG trading team!
Even though Master Trader Joe Ross passed away September 7, 2021, his trading knowledge of over 60 years will carry a trading legacy and will live on. As you learn about Joe Ross and understand what he was trying to teach his students, you will find that within his writings, he had a very special gift. Most importantly, it was his students that kept him striving to provide comprehendable trading material to actually teach traders and become independent, to rely on anyone, but themselves.
Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He was able to survive all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits.
Joe Ross is the creator of the Ross hook™, and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™." Joe was a private trader and investor for much of his life, but a serious health situation in the late 80's caused him to shift his focus, and that is when he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988, to teach aspiring traders how to make profits using his trading approach.
Joe Ross has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into many different languages. His students from around the world number in the thousands. His file of letters containing thanks and appreciation from students on every continent is huge: As one student, a successful trader, wrote: "Your mastery of teaching is even greater than my mastery of trading".
Joe Ross holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, Virginia. He is listed in "Who's Who in America." After 5 decades of trading and investing, Joe Ross still tutors, teaches, writes, and trades regularly. Joe is an active and integral part of Trading Educators. He is the founder and contributor of the company's newsletter Chart Scan™.
Joe's philosophy for helping traders is:
"Teach our students the truth in trading - teach them how to trade."
"Give them a way to earn while they learn - realizing that it takes time to develop a successful trader."
Joe sets forth the mission of Trading Educators as follows:
To show aspiring futures traders the truth in trading by teaching them how to read a chart so that they can successfully trade what they see, and by revealing to them all of the insider knowledge they need in order to understand the markets.
To enable them to trade profitably by training them to properly manage their trades as well as their mindset and self-control.
To accomplish our mission for our students we educate them so that they know and understand:
Benefits for our Clients:
- Where prices are likely to move next.
- Independence from complicated trading methods, magic indicators, and black-box systems.
- Independence from opinion, anyone's opinion, including their own.
- Independence achieved through knowing how to read a chart.
- Independence through having knowledge of insider actions.
- Independence achieved by taking holistic and eclectic approaches.
- Independence coming from knowing how to manage both the trades and themselves.
- Independence because they understand and trade what they see.
- Independence because they have learned how and why prices move as they do, through studying the truth in trading and the truth about markets.
Students learn only proven methods and techniques, which helps them to preserve capital and create more consistent profits; they are offered simple methods that will assist them to earn while they learn.
- They learn to work smarter and more effectively.
- They learn to treat trading as a business; we offer no Holy Grail or magic systems.
- They learn to adapt to changing market conditions.
- They learn a systematic approach to trading rather than a mechanical system for trading.
- Why prices will move there.
- Who and what cause prices to move.
- How far prices are likely to move when they do move.
- Their own role in the movement of prices..
- How to take advantage of the knowledge they receive.
- How to properly manage and exit a trade which they have entered.
- How to manage themselves and acquire the discipline needed to become successful traders.
Read some personal testimonials which Joe has received.
WE APPRECIATE YOUR TRUST IN US AND THANK YOU FOR YOUR BUSINESS!
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A WEALTH OF INFORMATION & EDUCATION:
Joe Ross-Trading Educators' popular free Chart Scan Newsletter has been published since 2004.
Note: Unless otherwise noted, all charts used in Chart Scan commentary were created by using Genesis Financial Technologies' Trade Navigator (with permission).
Legal Notice and Copyright 2022 Disclaimer - Published by Trading Educators, Inc.
Chart Scan is a complimentary educational newsletter.
This newsletter and future publications are created to keep Master Trader Joe Ross' lessons readily available to traders that want to learn and improve their skills. My father passed away on September 7, 2021 and will be greatly missed, but his writings will stand the test of time for generations to come. Take it to heart and learn from the best through Master Trader Joe Ross' trading examples and articles which have impacted thousands of traders on every continent for over 60 years.
Happy trading,
Martha Ross-Edmunds
© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent
