Blog – 3 Columns
One of my favorite tools is the Smart Super Trend Tool (SST). It can be used for a variety of techniques like trailing stops in a trending market or as a support and resistance or zone tool in a consolidating one. One of my favorite patterns for the consolidation variety is what I call three tags in the box pattern. To see this pattern on your charts there are two steps. 1) Draw the box and 2) identify the pattern.
Let's do a couple examples for the short side. To draw the box, take the highest red and blue markers on the SST in a move.
You can highlight this using the Ctrl F12 key in NinjaTrader and extend it out into the future:
Notice the pattern leaves the box twice and returns to tag into it. The best patterns have declining highs as shown:
Here is another trick that works again and again. Very often the market will extend off these patterns by a 261, 361 or 461% extension off the height of the pattern:
SST is a key component of the Smart Patterns trading system and is in many respects a system unto itself. The patterns we have discussed also work very well with the Smart Patterns Bloodhound template shown in the above screenshots (red and green background colors that act as an excellent triggering system with a variety of bar types)
A student who has been with me for several years asked that I post this on the blog, wanting to show his progress. Nothing is more rewarding than knowing you have help another to achieve his dreams and aspirations!
This is a testimonial - to your years of research and building a set of tools for us novice traders who unfortunately cannot be in your trading room due to several constraints. I'd love for you to post it in your blog.
I switched to trading the December CL contract yesterday, taking a short position based on Support & Resistance analysis from your tools, and even with the position going a bit against me yesterday after my initial short, electing to use your rules of not sacrificing more than 2% of my portfolio, elected, way after the pit closing hours yesterday, to strengthen my shorts by adding to my short position a little before 5 pm and closing out today, again, strictly by using your tools, volume analysis and your Daily Targets tool. This is a testimonial for your years of work in helping traders learn, not entirely a day-trade example but for me it was simply amazing allowing me the luxury of focusing on work (my day job) for the rest of the week! Thank you!
Reviews appearing here were received via email. They are individual experiences, reflecting real life experiences of those who have used our products and/or services in some way or other. However, they are individual results and results do vary. We do not claim that they are typical results that consumers will generally achieve. The testimonials are not necessarily representative of all of those who will use our products and/or services. There is a substantial risk of loss in futures trading. Past performance is not necessarily indicative of future results CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
The following charts are from a student reporting his progress for last Thursday and Friday (Oct 2nd and 3rd, 2014) using the Smart Patterns Day Trading System. Past performance is not necessarily indicative of future results. There is risk of loss trading. To see the webinar click here. To get the system, click here:
When trading Stock Indexes using the Smart Patterns Trading System there is one pattern that helps you to be in better trades; Confluence. Look for your favorite set up patterns in multiple Stock Indexes at the same time. This is especially true when using the Smart Patterns Trading System from IndicatorSmart. For example, by looking for the Basic set up in the Russell, Nasdaq and Emini S&P all at the same time, it lessens the probability of getting caught in the chop and increases the potential of getting caught in a directional move. Let's look at the three charts:
At about 7:18 Pacific time, all three markets lined up with the Type 2 buy set-up. With this occurrence, you trade your chosen market in accordance with the confluence of the markets. You could also use the DOW futures as well in your analysis. With this elegant yet simple technique you will trade less and more likely be trading when the markets are moving. If one market is lagging the others this can be alright and sometimes the lagging market is the best one to trade because it can need to play catch up.
Good Trading to You!
Using Supply and Demand Zones in trading intraday is an important part of an overall strategy in making a determination as to market context and for making lower time frame decisions about how you are trading. Using 60 minute charts with SmartZones, SmartColorBars and a 89 period moving average applied, we can often discern where the market is going. Let's take a couple examples from today's charts in order to illuminate these factors:
In the above chart, we can see the market tagging the higher zone just off the open and finding rejection there and coming back down into the trading range that was defined in the overnight price action. Following this the strong rejection at the zone (greyish blue area), we can see the market began to sell off. At this point, we would suspect the market is going to test into the lower zone and this is exactly what it did, finding support there by days end. This sort of thing is not uncommon. Today one might not have expected such a range expansion. It is also not at all uncommon for the market to have substantial range expansions off the EMA on the chart. The SmartColorBars are also a short tern trend indicator that can help us to identify trending situations. In addition to tagging the upper zone early in the day, the market also tagged the SmartDailyTarget up in that range (a product that is also available through IndicatorSmart that predicts highs and lows with a known probability). The market also retagged this region on the supply and demand SmartZone on the daily chart (image not shown). So, there were about 4 reasons or more for the market to be turning in this region. Following the above occurrences, the market began selling off and providing multiple excellent selling opportunities through the end of the session.
We can also find another pattern worth knowing in the ES for today. The ES has been trading at new highs for 8 sessions or more on the daily chart. When this occurs, the market has to be analyzed differently than it does when in a trading range. Today the ES tagged its lower 60 minute SmartZone from above. The interesting thing about this test is, it is actually pretty rare to see this and the market made a solid upward run off the 89EMA:
All the above tools and techniques are taught in more detail in our ESSP trading system and course. For more details about this system, visit the following page: http://indicatorsmart.com/product/es-smart-patterns-for-bloodhound/
If you have questions or interests in improving your trading, send us a note. We are happy to help.
That's all for now....
Rob Blog, Discretionary Trading Indicators, Intraday and Day Trading Indicators, Momentum Trading Indicators, Trade Position Management Indicators, Trader Mentorship and Consulting - Learn to Trade, Trading Courses and Trading Education, Trading Tool Packages, Trend Trading Indicators 0 Comments
Rob Blog, Discretionary Trading Indicators, Intraday and Day Trading Indicators, Momentum Trading Indicators, Must Have Indicators, Trade Position Management Indicators, Trading Courses and Trading Education, Trading Tool Packages, Trend Trading Indicators day trading, Emini S&P, learn to trade, trading systems 0 Comments
We have a lot of new students and so I would like to review today's action in the CL. I traded in the CL today because we were between two zones. If you would like to learn more about this trading method you can view the webinar with Shark Indicators by clicking HERE