Edition 954
October 21, 2022
"He can compress the most indicators onto the smallest screen of any laptop I ever seen." Master Trader Joe Ross
Let's Learn the Art of Trading Joe Ross' Way!
Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
Chart Scan with Commentary: Indicators
Is there a time to use indicators? Back in the days before day trading, I used them quite a bit. They are useful to me for longer-term trading.
However, with the advent of Exchange Trade Funds (ETFs), I am becoming increasingly comfortable with taking some long-term trades, especially in markets where it is not difficult to ascertain the long-term trend. For example, if you are certain, as I am, that over the long term the U.S. dollar has to go down, it is not difficult to buy shares of an ETF to hold for the eventuality that the U.S. dollar will fall.
Allow me to give you an example of what I mean.
Some time ago, I began looking at the Indian rupee. Why the rupee? Because in India, the Reserve Bank of India (RBI) has always maintained its distance from both political and market forces, and kept its independence. Sadly, this ETF is no longer in existence.
When the whole banking system around the globe was drinking the real estate bubble Kool- Aid, the RBI refused to allow Indian banks to use derivative instruments to run wild in the markets.
Old-fashioned as it seemed, they prevented the extensive development of instruments that were impossible to understand. As a consequence, the banks had virtually no write-down of toxic real estate based-assets. Further, there were signs of overheating in the real estate market, but no bubbles.
Further, the Reserve Bank of India bankers did not pander to the markets by allowing interest rates to remain at excessively low levels for any major long period of time. It has always watched inflation like a hawk, and acted prudently to control this as early in the cycle as possible.
As you may know the RBI had to reduce its interest rates down to record lows.
Then it watched the economy slow down to its lowest point of a GDP growth of 5.5%. Since then we have seen the Indian economy rebound.
In the long term, I see that the rupee will gain on not only the U.S. dollar, but on many other currencies as well. I then looked for an ETF that would allow me to make a long-term trade in the rupee. I found what I was looking for in the Wisdom Tree Indian Rupee ETF, symbol ICN.
If you looked at a daily chart of ICN, it looked more like a disease than it did like a highly liquid currency chart. But I was in the trade for the long run, and that's where I did, and still do use indicators to give me the perspective I need to hold a trade in an extremely volatile market. I was looking at ICN using a weekly bar chart. I needed to see the price action a bit smoothed out. The daily charts of many markets do not let me see as clearly as do the weekly charts.
What indicators do I use for the long term? The answer is I want a directional indicator, and I also want a momentum indicator.
For direction containment, I can use a simple moving average set at 25 bars. For volatility I can use Wilder’s Volatility Stop.
The reason I use volatility is that it gives me a dimension unrelated to momentum. For example: if you use a simple moving average and then also use a moving average for the momentum indicator, you are really not getting true confirmation. Let's face it, most momentum indicators are nothing more than detrended moving averages.
Detrending a moving average causes it to oscillate.
As you can see on the chart, all I used was a simple 25-bar momentum indicator, showing me the difference between the price for the current bar and the average price of the previous 25 bars. As long as this indicator stays flat, or slightly rising, and the volatility indicator maintains containment, I can rest easy that the rupee is, over the long term, continuing to rise against the U.S. dollar.
© 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: Initial Capital vs Earned Capital
Traders are always more concerned about protecting their initial capital, rather than gains beyond that amount. In fact, traders become careless with gains beyond the amount of their initial capitalization. For some strange reason, traders do not treat...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.
Where are my links to Joe Ross' two free eBooks? Not received - send an email for the links!
Philippe Guartier: Administration and
New Developments of Instant Income Guaranteed
Thank you, Philippe Gautier for the past 8 1/2 years of providing Continued Detailed Guidance to our students.
Philippe Gautier, thank you for taking this program for the past 8 1/2 years to an all new level and sharing your trading wisdom. Joe Ross was proud of your accomplishments and direction given to our students.
As of September 30, 2022, we discontinued the subscription services for Instant Income Guaranteed; however, the Workshop and Webinars are still available as invaluable trading resources. For those who purchased this program, you gain lifetime access under your menu in our Member Area to study these as needed.
Check out the Performance Record and consider adding the Recorded Workshop and Webinars to your trading library.
© 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: Develop a Trading Plan
The main message I want traders to understand is how important the disciplined execution of a well thought out trading plan is in today's markets. Nobody knows for sure what a given market will do next. Having a plan of attack will allow you to successfully cope with the uncertainty that is an inherent part of trading. I think it makes good common sense to have a well thought out plan of attack for trading all markets.
Make time to study and organize a trading plan for each and every trading day. This is a serious business that requires...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
Ambush Traders Again in a Gold-Rush: Catching Reversals in the Gold Market
One of the top markets over the last couple of months for Ambush Traders has been the gold market. Whether it's the Gold Future, Micro-Future, or XAU/USD forex pair, Ambush Traders are in a crazy gold rush!
Here are the results of these trades, trading only one Gold Future (GC) contract:
Yup, that's almost $20k profits with almost no drawdowns in between within just a couple of months! Looking at the statistics you can see that we got a profit factor of over 3 and the maximum drawdown was just about 20% of the profit!
Now the Gold Future is a large contract and not suitable for small accounts. But you can do these trades also in the E-Micro Gold which is just 1/10 the size or the XAU/USD forex pair.
That's what makes Ambush Signals so great, it works with any account size offering three subscription models depending on your goals.
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 Gold 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.
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.
Dear Traders,
Master Trader Joe Ross passed away September 2021, and prior years he was continously sending me folders filled with Chart Scan and Trading Articles. The emails would be titled "More to follow" and I would reply, "Keep'em coming". I am calling these lessons "hidden vault" material because if Joe were still alive, this is exactly what would be shown in your inbox every Friday morning. This is not regurgitated material; this is new stuff written by Joe or as he would refer to it with such passion, "This is good stuff".
As we continue to receive newsletter sign ups, new students from every continent will start to learn trading Joe's way especially in this challenging market. This is where he would reinforce to his students, yes, that includes you, that learning to trade is possible even in this environment, "A chart, is a chart, is a chart". His writings will stand the test of time to provide teaching lessons and guidance.
The proceeds of Trading Educators will continue to support Joe's wife, Loretta, of 62 years of marriage, which she is our number one priority. We thank everyone with continued support and prayers for her well-being in late stages of dementia.
As expressed in the past editions, the trading world has lost a unique and passionate trader and his material will continue to be relevant. Let's start learning to trade Joe Ross' way with our future Chart Scan publications. I am here to help, so feel free to email me with any comments, questions or concerns.
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
