TechniTrader Weekly Stock Discussion: “7 Things To Know About Trading IPO’s”

 MetaStock® SPRS Series - Week 144 – November 8, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMTThe Facebook IPO has left a nasty after taste for many retail investors and retail traders, who didn’t know what they needed to know about trading or investing in an IPO.Now with Twitter’s IPO the retail side of the market is shunning this debut.What makes a great IPO and what dooms other IPOs to failure?  Why is WAGE a spectacular IPO from 2012 which TechniTrader Students learned about even before it IPO’d?  Here are 7 things to know about trading or investing in an IPO, but no one ever tells you.Retail investors and retail traders are not the most important investors for a new IPO. Wealthy individuals are not the most important investors, nor are professional traders.  The Market Participant that truly matters in terms of the success of an IPO are the Giant and large Buy Side Institutions.To follow the Giant Buy Side institutions and to discover which IPO’s they are interested in, and which they are not buying is a simple matter of having the correct indicators that tell you when the Giants are buying. These indicators were written for our modern markets, whereas MACD, Stochastic, and other older indicators do not tell you this vital piece of information. The Institutional percentage ownership is important. Facebook had less than 2% institutional ownership in the first several months after it IPO’d, because the Giant funds shunned FB immediately and the collapse of the stock was due mostly to their lack of interest. A good IPO will have anywhere from 40-90% institutional ownership. This is because most smaller lot investors and smaller funds are afraid of investing in an IPO.  This is because they do not know what information is needed to make a proper assessment of a young firm, and they listen to gurus and recommendation services that are only trying to dump a lot of IPO stock quickly.Revenues and Income matter but a company can have a strong IPO even if it is not making a profit yet, IF it is showing that it can make a profit within a quarter or couple of quarters. Giant institutions are long term investors and they will buy into a young firm ahead of strong earnings reports. They can tell when a company has what it takes to succeed.  Find the Platforms.  Quiet accumulation is a very distinct pattern on charts. Candlesticks form in a blocky tight formation with consistent highs and lows. This is due to the specialized order that the Giant Funds use regularly on Dark Pools.  This specialized bracketed order is what keeps price in a Platform sideways pattern. This is a newer sideways pattern that first started showing up in charts less than a decade ago. It is a vital piece of chart analysis for retail investors and traders because it tells you if quiet accumulation is occurring.  Giant Buy Side institutions keep their investments very private and do not reveal their holdings until they are required to do so quarterly. Only on stock charts can you quickly see what they are buying ahead of the quarterly reports.Company management is important to a new firm. It doesn’t matter how big a company is but how well it is managed. Facebook had several issues including too many private investors, nearly 500.  Also there were too many private investors and insiders wanting to sell too early weakening the opinion of Facebook.  The CEO and Board of Directors can make or break an IPO.  It is not just the underwriter who must present the company.Shares offered at the Initial Public Offering. One of the biggest warning flags for Facebook was its enormous offering of shares.  It was far too huge an offering for a good, strong IPO. Most great IPOs that launch and run like LNKD, WAGE, and others had small outstanding shares. What this does is it creates a strong supply versus demand equation for the stock which keeps the stock moving upward.There are many simple ways to decide is an IPO is going to do well or not, but you won’t find this information in any commentary or guru recommendation.  Understanding the internal dynamics of the market is where the true information you need resides.For more information how to track the giant funds who use Dark Pools watch "Stock Indicators Online Training Video" at http://goo.gl/6NRQe9Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc.  All Rights Reserved.TechniTrader is the Registered Trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

TechniTrader Weekly Stock Discussion: Linear Regression Lines

 In prior discussions TechniTrader Quiet Accumulation TTQA, TechniTrader Volume Accumulation TTVA, and TechniTrader Flow of Funds TTFF have been featured. Today the discussion is on Linear Regression Lines, a terrific Indicator that is seldom used. Next week the discussion will be on the best use of Relative Strength Index, Wilder's RSI.Looking at the Price chart window above for MCD, there are 2 blue Linear Regression Lines. As with all indicators that are single line indicators, combining two primaries or a subordinate indicator applied to the primary indicator, provides a superior analysis as well as speeding up the entire indicator analysis process.Linear Regression Lines do not average price. They are unlike Moving Averages which are a formula that adds up all of the data within a set time period and divides by the total of that day, for the simple moving average formula that creates the moving average line on the chart. The Linear Regression Lines are a straight line indicator.Moving Averages are the oldest of all of the stock indicators, and were used and are still used primarily to confirm that the trend is still intact, and were never designed to be leading indicators by themselves. Moving Averages are subordinate indicators, whether they are used with primary indicators or with candlesticks. Remember that candlesticks are an indicator for price.Linear Regression Lines are also a subordinate indicator but instead of smoothing price action, the Linear Regression Lines are a stark straight line from the current price back X number of days or periods of time, depending on what time frame you are using on your chart.The example above is for a daily chart. The Linear Regression Lines are set for an analysis of the intermediate term trend and the short term trend. This provides invaluable information for proper analysis of the trend.In the chart above, we can clearly and easily see that the intermediate term trend Linear Regression Line which is the longer of the two, is far beyond the peak of price on the chart in March when the downtrend started. What this warns is that this is heading toward a longer term trend for the downside action. The intermediate term downtrend has been underway for 7 months, which is getting close to the maximum normal length of an intermediate term correction of about 9 months average. If this were more than 12 months, then this would be a long term trend.The short term trend Linear Regression Line has tipped up with this recent bounce run. This means that the short term trend is patterning out the intermediate term downtrend extreme angles of descent, which slows the downtrend and lessons the speculative price impact on the trend. This regular interval of the short term trend moving in a contrarian action against the intermediate term trend, is what is sustaining the intermediate term downtrend. Without these occasional short term moves up, the intermediate term downtrend would be too steep to sustain and a V bottom would develop quickly. The short term trend is helping the downtrend continue. When the intermediate term Linear Regression Line starts to flatten and angle upward, then a bottom formation will have started. Linear Regression Lines are essential Indicators for Position and Swing Trading. For more information about stock indicators sign in to view our free video titled “Online Trading Tips” athttp://goo.gl/I9NvxbTrade wisely,Martha Stokes CMTMember of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesFor additional training visit http://technitrader.comThis Stock Discussion and Training Lesson is sponsored by TechniTrader.comMetaStock® Partner©2013 Decisions Unlimited, Inc. dba TechniTrader® All Rights Reserved.Technitrader is the registered trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service

TechniTrader® Weekly Stock Discussion: “Platform Compressions Are Ideal Entries”

  Platform compressions are ideal entries for swing and momentum traders, and identifying these compression patterns early is most important.We are looking at SWIR today to study a relational technical analysis pattern.  This stock was under Dark Pool quiet accumulation which tends to form platforms. Dark Pools create this sideways pattern with controlled bracketed orders that buy incrementally over time.  The goal of the Dark Pools is not to disturb price. As they conclude their buying for that period, HFTs find out and can push price up with momentum as occurred in January on this chart. Prior to that move up, the candlesticks compressed. These platform compressions are ideal entries for swing and momentum traders.A compression is a tight consolidation rather than a wider platform. It doesn’t matter where the compression forms, at the low or high of the platform range, it often precedes a decisive breakout and run or gap. Then the stock resumes its sideways pattern as Dark Pools start buying at the next level.  Platform compressions are ideal entries that form at or near the end of the platform, and are often missed by retail traders.  Bollinger Bands can be used to assist in the identification of the compression. These expanding and contracting bands provide excellent analysis for sideways patterns. Entries must be made prior to the breakout due to the rising energy that develops as price compresses.  One aspect of Bollinger Bands to remember is that the center line for a strong compression will be equal distance from the outer bands.  In a strong compression, the center line on Bollinger Bands will move right through the center of the candlesticks.  If the center line is below or above, then the pattern is not as strong or indicative.Learning to identify compressions in platforms is a Spatial Pattern Recognition Skill that helps swing and momentum traders trade platform market conditions. Sideways markets occur 50-60% of the time and these are the market conditions that tend to have retail traders whipsawed out of trades constantly.Platform compressions are ideal entries so instead of attempting to trade the small runs in a platform, wait for the compression pattern, and enter before the stock runs or gaps with momentum.Using different techniques and strategies during a sideways market can help swing and momentum traders find more stocks to trade with much higher point gain potential.For information regarding trading styles sign in to access “Choosing a Trading Style” here: http://goo.gl/ki1UO4Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc. dba TechniTrader® All Rights Reserved.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader® and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader® and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader® is not a broker or an investment advisor it is strictly an educational service

Are you Prepared?

  Are you Prepared? Martha Stokes CMT teaches you how to prepare for the most active trading season... September through February are the busiest and most active trading months of the year, with heaviest trading volumes and higher energy.  Even though August appears to be quiet on the surface, there is a huge amount of activity just below the slumping Index action. If retail traders only watch the indexes they miss all of the underlying activity in August, which gives vital information about what to expect for trading in September and forward.Explorations that are customized to follow the indexes, do not track what is crucial to successful trading. Without this information retail traders are utterly reliant upon less than 10% of the listed stocks, and NONE of the Exchange Traded Derivatives which at this time is 1,395 ETFs. The NASDAQ currently has 2,663 listings, the NYSE has 4,632, AMEX 438, and OTCBB 1,076.The S&P500, Dow, and NASDAQ only represent 630 companies.  The remaining 9,574 trading instruments on the exchanges represent a far larger body of stocks that do not always follow the lead of the indexes. In fact of you were to study this huge group of stocks and ETFs, you would discover that often times these lead the indexes. This is because they expose the direction and sentiment of the giant funds. They reveal the Sell Side institutions and Buy Side institutions and their interest or lack of interest, their accumulation or their distribution in and out of sectors and industries, and whether they are going to move into large cap or are vested in smaller cap stocks.All of this information is available IF you use Explorations that are defined to track the institutions both Sell Side and Buy Side, and where they are placing money and where they are rotating. This activity is not seen on the indexes. It can only be studied by using Explorations designed to expose what is going on with the vast majority of stocks and ETFs that are not listed on indexes.If you are a TechniTrader® Student using our Advanced Tools specifically designed for MetaStock, you have all the Explorations you need to study the underlying market beneath the major indexes in relation to how the indexes are performing.  In addition you also have specific Explorations for your trading styles such as Swing or Position trading, price levels, strategies, and quiet accumulation tracking bottoming or topping action.  The goal of trading should be to streamline your trading process so that you spend more time trading and less time trying to find stocks to trade.  This means understanding the market conditions so that you can select the right stocks for the current trading conditions, the correct strategies to use based on which market participants are in control of price at that time, and the overall sentiment of the underlying securities because these lead the market action most of the time.If you are still using the 3 major indexes as your guide to trading you are missing a huge chunk of critical information. This can be one of the reasons for chronic losses, whipsaw trades, and disappointing net profits.  Upgrade your trading process by incorporating not only the 3 major indexes, but also the analysis of the bulk of the market which are the underlying securities not listed on the 3 big indexes.For more information regarding Explorations that are defined to track the institutions both Sell Side and Buy Side, sign in to watch a free TechniTrader - MetaStock Webinar "Explorations: Beyond the Basics" CLICK HERE or http://goo.gl/bhE7F3Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesFor additional training visit http://technitrader.comThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc. dba TechniTrader® All Rights Reserved.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader® and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader® and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader® is not a broker or an investment advisor it is strictly an educational service

The Power of Covered Calls

 MetaStock U - Week 1 - The The Naked Traders - The Power of Covered Calls - July 20, 2013 By: Chief Trader Bruce E. Dinger  Writing covered calls is a very powerful cash flow generating strategy for both individual investors and professionals. It is a straightforward strategy that allows you to collect a premium when you sell someone the right to purchase your stock. Typically, a covered call is executed with a one or two month timeframe, but this can vary depending upon the investor’s investment goal.The ability to sell a call option on a security you ownGive someone the right to buy your stock at an agreed priceTypically done with a 1 - 3 month timeframeYou may be obligated to sell your stock if certain price points are hitThere are two types of options; CALL and PUT. Covered calls involve the use of CALL options, but instead of buying calls, the focus will be on selling calls. When you sell a call option, someone has the right to buy your stock at a pre-determined price on or before a set date (expiration date).When doing a covered call, we sell the right to another investor to buy the stock we own for a pre-determined price.Covered Calls – A powerful cash flow strategy used to generate income on stocks we own. When entering a covered call, we are paid in advance by the markets. The other investor is someone we’ll never know or meet. It is like having someone write you a check for the opportunity to own your property.Think of covered calls as a lease on a house. Suppose you find a house for sale for $300,000. You ask the owner if you can give him $10,000 right now for the right to buy his house sometime between now and the next six months. He agrees, and you give him a check for $10,000. In this example, the homeowner is like the “covered call writer”…he owns the house and is willing to sell his property for a fixed price ($300K) on or before an expiration date (6 months), and in exchange for giving the investor the right to buy his house sometime in the future at this fixed price, the investor pays him a premium ($10K). Let’s say the home goes up in value prior to the 6-month expiration date – and it increases in value to $350,000. The investor has the right now to buy the property for $300,000…why? Because he had paid a premium earlier that set the contract giving him the right to purchase the property for $300K. He just made $50K minus his initial investment of $10K. Not too bad.The owner is OK with this deal too – because he originally wanted to sell it for $300K and he also took in an extra $10K for giving the investor the right to buy his property between the date of the contract and 6 months.If the property value would have languished around $290K at expiration, chances are the investor would not have bought the property, but the homeowner would have still made $10K on the deal for just giving the investor the opportunity.This is the basis of a covered call. Let’s bring it back to the stock market. Say you own a stock and are willing to sell it, but rather than sell it right away, you decide you want to generate some cash flow. You can sell a call option to an options market maker, which gives him the right to buy your stock in the future at a set price. In exchange for this contract, an options market maker will pay you a premium -- cash money.If the stock goes up, the market maker will likely buy your stock at the set price (strike). If your stock stays flat or even pulls down a bit the market maker may not buy the stock and you would keep your stock AND the premium. Either way, you make a profit on the stock or on the option premium.DETERMINE YOUR STRATEGY FOR WRITING COVERED CALLSWhen selling a covered call, you can use it as a strategy to sell your stock or keep your stock and receive a monthly premium.To help in timing the selling point of the call option, you will likely refer to technical analysis. These are covered in greater detail in the Mentorship Program or Advanced Technical Analysis.If the goal is to keep your stock and generate cash flow each month, then the time to sell the call option is when the stock is just about to take a breath to the downside and drop in value.As an example, let’s say you purchased 1,000 shares of stock ABC at $24.00 per share and now it is trading at $29.01. You see it made an attempt to rally to $30 but failed with the demonstrated exhaustive wick. You decide to write a covered call on the stock, allowing the market maker the right to purchase your stock at a higher price ($30) – as you choose the OCT 30 CALL. In our example, when you sell the OCT 30 CALL against your stock position, the market pays you $1.16 per share or $1.16 X 1000 for a total of $1,160.00 (minus commissions).This money goes into your account immediately and can be taken out the next trading day to be used however you see fit. Keep in mind; the premium collected is yours to keep no matter what happens…this allows you to profit on the income from the CALL if the stock moves higher, sideways, or down*.*In this example, if your stock trades below your chosen strike price of $30 on the OCT expiration date, chances are that you will keep your stock and have the ability to write another covered call for the next available month. Covered Calls are a true cash flow generator.Step 1: Identify Optionable Stocks in Your PortfolioStep 2: Determine the Market ForecastStep 3: Check the Options ChainStep 7: Close Out the Trade if NecessaryThere is a chance of selling your stock – so be willing to sell itYou give up the opportunity to profit if the stock rises above your chosen strike price (the price you agreed to sell it for)Allows you to generate monthly cash flow from stocks you ownServes as downside protection in the event the stock drops in valueIt can be a growth or income strategyChief Trader Bruce E. Dinger, CEO and Chief Trader of TNT Trading the Stock Market, formed the The Naked Traders with the concept of teaching other independent traders how to "strip themselves of all emotion" when they trade or invest in the stock market.Mr. Dinger has spoken on some of the largest stages around the globe, including CNBC, BusinessWeek, SuccessMagazine, The Women's Financial Conference, Rich Dad's, On-Line Trading Academy, Success Resources, and many others. He has one of the best reputations in the financial markets for helping students achieve their goal of becoming an independent trader or investor. Mr. Dinger can be reached at info@TheNakedTraders.com .

TechniTrader Weekly Stock Discussion: “5 Tips for Higher Swing Trading Profits”

 MetaStock® SPRS Series - Week 142 – October 25, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMTSwing Trading is a very popular short term trading style used by retail traders and professional traders.It is far superior to Day Trading in every way, and here are 5 reasons why:Lower costs to set up and maintain your trading system and platform.Lower capital and experience requirements from online brokers.Less time needed to make significantly higher profits per month.Flexible work hours and less effort to manage open held stocks.Less stress and much more fun to do.Swing trading depends primarily on the analysis of the stock chart, and recognizing specific candlestick patterns that indicate a momentum or velocity price action is about to start.   In order to be highly successful at Swing Trading, you need to find the right price candlestick patterns on your stock charts that will be ideal Swing Trades.  Just picking any old stock, a recommended stock, or a stock in the news is NOT going to be the best method for choosing a Swing Trade stock pick.Here are 5 Tips on how to read a stock chart and decide if it is suitable for Swing Trading:REPETIVE CANDLESTICK PATTERNS that yield consistent Swing Trading runs that are profitable.  When you find a chart with candlestick patterns that repeat regularly, this gives you a means of anticipating AND recognizing a similar setup for the next Entry before the Swing Trade run begins.PRICE LEVELS are most important for Swing Traders.  Sure, any price level can have a momentum or velocity run, but for Swing Trading it is also about being in with the professional Swing Traders that track the Dark Pool giant lot funds managers.  By trading with the pros you have a significantly better profitability ratio and far more consistent runs. Lower priced stocks are generally the realm of smaller lot uninformed traders.  Extremely high priced stocks are the realm of retail day traders or options traders.FOLLOW THE GIANT FUNDS MONEY PLACEMENT. The giant Buy Side funds control trillions of dollars of mutual fund and pension fund investors.  The stocks they are buying are strong candidates for Swing Trading because these stocks have companies with improving fundamentals or expanding growth potential, or both.  By tracking the giant funds via TechniTrader Quiet Accumulation TTQA Indicator as example, retail traders know that this company has stronger fundamentals and is poised for growth.  A company that is growing will  have periodic momentum and velocity moves due to surprise Earnings, sudden great news, and High Frequency Trader HFT triggered buying activity.KNOW THE DIFFERENCE between a Momentum run and a Velocity run.  The Velocity run is faster moving, gaining more volume energy and buying speculation. This type of run requires a completely different trailing Profit Stop position to keep you in the stock while protecting profits, from the inevitable profit taking the professional traders will begin at some point. A Momentum run will last much longer but has rests frequently. The Stop Loss for a Momentum run needs to allow for the natural pausing, resting, and small indecisive price action days to keep you in the trade until the Momentum energy is exhausting.ENTRIES AND EXITS for Swing Trading must be precise, deliberate, and well planned.  Just jumping in because a stock has started to run is the best way to lose money on a Swing Trade. Using a pre calculated Entry that buys into strength instead of the traditional Limit Order so many retail traders use, is crucial to successful Swing Trading. Never buy into weakness using a Limit Order. Using a Limit Order is one of the most common reasons Swing Traders do not have consistent profitability.When you combine professional style Repetitive Patterns, Price Levels, Indicators, Stop Loss placement, Entries and Exits your Swing Trading will go to a whole new level of profitability.  It will be easier, more reliable and a lot of fun to do.Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc.  All Rights Reserved.TechniTrader is the Registered Trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

Support Tip: MetaStock Monitor SEPTEMBER- OCTOBER 13

  HOW CAN I SEARCH FOR SECURITIES BASED ON FUNDAMENTAL DATA?MetaStock can only screen securities based on price data and price based indicators. However, MetaStock Professional, through the MetaStock XENITH program can search for and screen stocks based on a much more diverse set of criteria. To do this:1. Open MetaStock XENITH.2. Look at top left and find the blue icon that shows a magnifying glass over a page (Advanced Search).3. Click the icon and then select Equites -> Companies4. The Companies Search screen will open.5. In the bottom left, click the Add Criteria button.6. Select the desired fundamental data from the list7. A new line will be added to the search screen and you can enter the requirements for that data value.8. Add as many other criteria as desired and then click Search.

Tracking The Large Lot Institutions

 Martha Stokes CMT discusses how to Track Large Lot Institutions...TechniTrader® Stock Discussion for MetaStock® Users: "Tracking The Large Lot Institutions"MetaStock® SPRS Series - Week 135 – September 6, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMTMain challenges retail investors and traders face today, is figuring out when High Frequency Traders are going to suddenly appear and when Dark Pools are quietly buying or selling.There is a distinct pattern to tracking the Large Lot Institutions that repeats over time, and here it is step by step:Dark Pools are buying into a stock. Their “interest” in a stock is no longer seen on the market maker limit books prior to the execution of their trade.  These are giant investors buying for the long term, most of the time.Professional and Floor traders who are closer to the action of the Dark Pools jump in for short term trade action. Some are Intraday traders, while others are Swing traders.High Frequency Traders HFTs discover the Dark Pools either via a notification once the Dark Pools have bought what they want which is a news alert, viewing the transactions posted after clearing, or due to a ripple in volume.  The ripple in volume occurs when a Dark Pool order can’t be totally filled on the ATS platform, so some of that order is filled on the exchanges.Smaller funds chase the HFTs due to news, causing price to surge with emotional responses to the HFT action.Retail traders chase the smaller funds ending up getting into a stock, just as a whipsaw or reversal occurs due to sudden profit taking by the HFTs.This pattern of buying by these Large Lot Institutions is repeated over and over these days, often frustrating retail traders who unwittingly get in the way or buy unaware of who is controlling price at that time.The patterns are in the chart candlesticks, and every retail investor and trader needs to learn them.  Part of the pattern is in price, the other is in volume and in large lot versus small lot indicators. The first candle indicated by the red arrows is HFTs which is evident in price, volume, and TechniTrader Quiet Accumulation TTQA.The green vertical rectangle is Dark Pools and Pro Traders.  Dark Pools are accumulating, while Pro Trades are trading short term.  The small green horizontal rectangle is the high price range or top level price for the quiet accumulation buyers. They will not buy any higher than this which means Pro Traders are going to take profits.This brings the price down to the support low, which is the trigger level for more quiet accumulation. Meanwhile quiet accumulation is going on, while uninformed retail traders are trying to sell this stock short.  They struggle to push price down but due to lack of numbers, they are unable to control price.Then as quiet accumulation ceases HFTs gap down price at market open, then drive it down on an inconsequential retail news item, and quiet accumulation drives it right back up.But smaller funds chase HFTS trying to sell or sell short. It goes deeper this time as quiet accumulators wait, then start buying again. This is discovered by the HFTs which gap price up.Learning to read charts properly is not just using an indicator cross over or a candlestick pattern.  Relational Analysis must be applied to really understand who is in control of price. If you can recognize the Large Lot Institution group controlling price and you know which groups chase price, then you will have a much stronger understanding of what price is going to do near term. In addition recognizing the levels where quiet accumulation will trigger because these are automated orders, will help you avoid being on the wrong side of the trade.Being on the wrong side of the trade aka trading against the Large Lot Institutions is the main reason retail traders have so many losses.To learn more about High Frequency Traders, sign in to view our free webinar titled "Ride the Velocity Express of High Frequency Trading Action Using MetaStock" CLICK HERE or http://goo.gl/IMJlgFMember of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc. dba TechniTrader® All Rights Reserved.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader® and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader® and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader® is not a broker or an investment advisor it is strictly an educational service.

Volume Spikes Continued

 MetaStock SPRS Series - Week 129 - TechniTrader® Stock Discussion for MetaStock Users - Volume Spikes Continued - July 26, 2013 By: Martha Stokes C.M.T.  High Frequency Traders create most of the "Volume Spikes" that form on your charts nowadays. This is due to their high speed, low latency trading platforms that execute as many as 3000 trades per second. This is way beyond the scope of retail trader's minute trading platforms.HFTs can control price for one day, and sometimes for 2 days. Their volume patterns are easy to identify on the charts and can give you a leading indication of what to expect the next day.If you are a swing trader, learning these patterns is crucial for your success. If you do not understand whether the HFT volume is a continuation or a reversal pattern, and why it is a continuation or reversal pattern then you are most likely to find yourself on the wrong side of the trade most of the time.Studying the chart above with colored volume to indicate an upside price day versus a downside price day, it is easy to pick out the HFT volume days when the HFT trigger orders are moving price and volume.Remember that not every HFT buy or sell is profitable for them. This is a computer generated high frequency order system. The computer is far from infallible.The first HFT action is out of a bottom. Smaller funds and retail traders who use share lots above 5000-10,000 lot size are trying to sell down this stock. TechniTrader® Quiet Accumulation TTQA shows this smaller fund and large lot selling effort. However Dark Pools are moving in at this level so price holds steady. HFTS discover the Dark Pools and trigger a gap up day on higher volume. As the Dark Pools shift the sentiment to the upside, seen by the red to green TTQA in December, the HFTS once again trigger causing price to move up again.When HFTS are tracking Dark Pools the trend continues.As the Dark Pools activity evaporates smaller funds and HFTs are driving price. Dark Pools have stopped buying. When HFTs discover this they start selling short, triggering the smaller funds and retail side to chase on the sell side, either selling out of a losing trade or trying to sell short.However, the Dark Pools are NOT selling, distributing, or rotating. They simply stopped buying because price moved out of their buy zone. So as the price enters their buy zone, the Dark Pool orders start firing off again and this forms the bottom.HFTs once again discover this, driving price up again for one day end of April. Since Dark Pools are still in the buy mode price moves up slightly in May. HFTs try to drive price up further but fail at the end of May. So the HFTS switch tactics and try to sell short, unfortunately for the HFT computers which are not able to see what you can see in your charts, the Dark Pools are triggered just as the HFTs try selling short again based on their computer algorithms.Smaller funds chase the HFTs and lose money, because Dark Pools are consistently buying incrementally which now drives price.The final long volume and green TTQA is a result of HFTs triggering after the Dark Pools have completed their buying for the moment.The dynamics between the two largest and most dominant market participants in the market is important. By understanding how they move in and out of a stock and what patterns they create on the charts, you can learn to enter before the huge HFTs moves and avoid being on the wrong side of the trade.For more information email: info@technitrader.comMember of Market Technicians AssociationMaster Rated Technical Analyst: Decisions Unlimited, Inc. Instructor and Developer of TechniTrader® Stock Market Courses http://technitrader.com/MetaStock Partner ©2013 Decisions Unlimited, Inc. Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

TechniTrader Weekly Stock Discussion: “FDO Family Dollar Store Inc.”

 The huge advantages retail investors and traders have today that were unavailable a decade ago, are the new indicators that help track the Dark Pools and giant institutions who control over 80% of the market activity. Their investments in large caps ranges from 40-80%, and their investments in small caps can be as high as 99%.FDO currently has a 96.80% institutional ownership, which means that the mutual funds, pension funds, and sell side institutions own the majority of the outstanding shares of this stock. Their investing can be long term or it can be short term. Sell Side Institutions often buy stocks to hold in trusts for derivative instruments they create and issue such as ETFs.The advantage that retail investors and traders have nowadays, IF they learn to use modern indicators rather than outdated indicators such as MACD, Stochastic, and other old-style price indicators is the ability to see the technical patterns called negative divergences. A negative divergence occurs when a leading indicator moves in opposition to the price trend.This is an essential indicator created by TechniTrader to help students see negative divergences. This is vital information investors and traders need, because the most critical areas are tops and bottoms which can be difficult to see and consequently is where they lose money.Price indicators do not lead price because anytime you use a moving average based indicator, the price MUST move before the indicator can react and create the line direction. That means all indicators that are based on moving averages of price lag. Even an exponential moving average which places more importance on the current price over the older price, in the time set group of prices that are used in the moving average aka 10 days, 20 days still lags price. This has been a problem for decades that great indicator writers tried to eliminate.What has happened in recent years is a massive shift of how stocks are traded by the giant institutions. With this shift of market structure, the importance of volume indicators has escalated. Without the proper volume indicators, retail investors and traders are prone to chronic losses. This is due to the lagging qualities of price indicators.With volume indicators, especially indicators such as TechniTrader Volume Accumulation TTVA which is exposing large lot volume activity in relation to what price is doing, negative divergences are exposed early on before the stock collapses. This means that retail investors and traders can now see that the stock is at huge risk of a top or a correction, thus avoiding buying into a top.For additional information sign in to view a free webinar titled “Explorations: Beyond the Basics" at http://goo.gl/bhE7F3Trade wisely,Martha Stokes CMThttp://technitrader.comMember of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader Stock Market Courses ©copyright 2013 Decisions Unlimited, Inc. All Rights Reserved. TechniTrader is the registered trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor, it is strictly an educational service.

TechniTrader Weekly Stock Analysis: “The Best Stocks for Swing Trading”

  MetaStock® SPRS Series - Week 148 –December 6, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMTThere are over 5800 listed stocks that investors and traders can choose to trade. Often retail traders use various stock recommendation services but that is the worst way to find stocks to trade.  The reason recommended stocks are not ideal for trading is that these stocks have already run up for many months before they are chosen for recommendation lists.Choosing the correct price range for your swing trading requires some forethought about several areas of your trading including, risk tolerance, capital base, and experience. As an example, AAPL is around $550.00 currently.  Because it is so high priced it can and does move 12-15 points in a day, but not every day.For the average retail trader, buying even a small lot of 100 shares is a huge capital drain.  In addition big blue chip stocks are prone to smaller lot activity intraday and day to day, which makes them more volatile.  AAPL is also a higher risk trade given the price and the risk of sudden profit taking.  It also requires extensive experience to trade it successfully.For swing trading, you want to avoid volatility and find stocks that will move with velocity.On the other side of the price equation, many retail traders who have very small capital bases try to swing trade under $10.00 or even under $5.00 stocks.  These stocks however do not usually have strong swing trading style price action, and their patterns are frequently choppy rather than momentum action.AA as an example below seldom moves even 1 point in a day. With such miniscule gains, the risk of swing trading rises inordinately in relation to the capital required to trade AA.  That means that the risk of a whipsaw on an attempted swing trade is very high, because price doesn’t move sufficiently to create enough profits to offset trading costs, fees, and your time. Remember that you must consider your time as a cost factor for trading.Therefore AA is not a good candidate for swing trading either, because it doesn’t moves sufficient points in a single day or even during a run that would provide the necessary profit to cover all of your expenses. Remember, just because you make a tiny gain of a few pennies on a trade doesn’t mean the trade was profitable. You must consider all of the costs of trading.For Swing Traders, the middle range priced stocks tend to be the best. These are not too expensive and they also run better with more points in a run. When choosing stocks for swing trading selecting a good price range as one of your trading parameters, allows you to screen down the thousands of listed stocks to a much smaller group. This insures that you are then looking at stocks that have sufficient energy to move well, but also are not so pricey that you are putting too much capital at risk on any one trade.Many traders are lured to the higher priced stocks, over $100.00 because these stocks move 10-30 points in a single day. The problem is that the same stock can quickly reverse and move down 10-30 points. This causes many retail traders substantial losses that did not need to happen.When setting your swing trading rules and parameters, one of the first tasks is to select your price range that you will use to trade. This is a step that many novice and new swing traders do not realize they must do before they begin trading. Your price range will define many aspects of your swing trading including personal criteria for scans and sorts. Establishing a price range also will help you find better picks faster.Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc.  All Rights Reserved.TechniTrader is the Registered Trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

HFT Price and Volume Patterns

 MetaStock SPRS Series - Week 130 - TechniTrader® Stock Discussion for MetaStock Users - HFT Price and Volume Patterns - August 2, 2013 By: Martha Stokes C.M.T.  We have been studying the High Frequency Trading price and volume patterns in the last few discussions. High Frequency Trading orders are triggered primarily on news during earnings season. These low latency high speed trading platforms often cause big gaps that seem to have no predictability.However when Relational Analysis™ is applied to the Price, Volume Bars, and TechniTrader Quiet Accumulation TTQA then patterns are revealed, that are difficult or impossible to detect with just price and price indicators alone.If you were to just use price and price based indicators all you would see is a very choppy sideways pattern that whipsaws swing and momentum traders frequently causing losses on trades. MACD is a price momentum indicator that fails dismally when charts have this new type of sideways pattern called a "Platform." The platform is a very specific type of sideways pattern that first started forming in 2005 and has become increasingly more common as more and more giant and large funds use Dark Pool ATS.To be able to anticipate what price is going to do and when it is most likely to trigger HFT orders that run and gap hugely, it is imperative that volume and quiet accumulation indicators be used.What volume and TTQA show is that there was quiet accumulation going on in this stock that created the Platform sideways pattern. HFTs gapped the stock up as the Dark Pool quiet accumulation ceased and smaller funds chased the HFTs. During the next platform Dark Pools returned quietly adding to their holdings. Several attempts to sell the stock down created a flurry of smaller funds dumping this stock. Notice how TTQA diverges from volume and that most of the Volume is green during the red TTQA period. This exposes Dark Pools buying once again. Subsequently the sell down fails because the giant funds are buying, while smaller lots are trying to sell short against the huge lot buy orders. The compression pattern just prior to the gap up, along with the fading TTQA angling up, and lack of sell side volume all point to HFT trigger opportunity.The stock gaps as HFTs automated orders react to the Dark Pool buying earlier.Being on the right side of the trade requires that you not only use price indicators but that you also use volume indicators, that not only show volume action but also large lot versus small lot activity.These indicators are more sophisticated as they are the new TechniTrader® Hybrid Indicators™ but learning to use them will dramatically improve your trading results.For more information email: info@technitrader.comMember of Market Technicians AssociationMaster Rated Technical Analyst: Decisions Unlimited, Inc. Instructor and Developer of TechniTrader® Stock Market Courses http://technitrader.com/MetaStock Partner ©2013 Decisions Unlimited, Inc. Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

TechniTrader Weekly Stock Discussion: “Breakout Pattern Analysis”

 MetaStock® SPRS Series - Week 143 – November 1, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMTAmerican Express Company AXP is the example of a Breakout pattern.  AXP has been stuck in a 7 point sideways pattern for several months. It recently broke out to the upside as its earnings report was better than expected.  Several aspects of the sideways pattern indicated that this was a stronger sideways pattern with upside potential.There are many types of sideways price action and identifying each is critical for successful investing and trading. This was not a true Trading Range because it was less than 10 points from peak to trough.Trading Ranges also tend to have inconsistent highs and lows with plenty of inter range lower peaks or higher lows. This makes trading range bound stocks much more difficult than many people believe.When a sideways pattern is less than 10 points wide from peak to trough, attempting to trade the range with a SAR, Stochastic, or other Trading Range strategy is substantially more difficult.  This is due to far greater risk because of the constant whipsaw action, long wicks and tails, and the inconsistent highs and lows of the range.However when a pattern forms very consistent highs and lows, and maintains a stable level even when High Frequency Traders enter the stock periodically, then more is going on than is often evident on the surface.One market participant is capable of controlling price within a consistent high and low range.  Their buying patterns maintain price within a narrower range than a true Trading Range pattern.When studying AXP it is evident that Dark Pools were involved in maintaining the neat, concise appearance of this sideways pattern.  This pattern is called a Platform pattern because it is building a base upon which the stock can move upward, with stronger support beneath it when it does move up.It is common for a stock that compresses as AXP did, to have a breakaway gap form.  The breakaway gap leaps over prior highs, establishing a new higher high for the stock.  The significance of this move is not just that the company had good earnings but also that the giant funds believe this company is going to continue to have strong growth moving forward.Most of the time retail traders make the mistake of trying to swing trade these platforms with mediocre to terrible results. The Platform pattern is seldom recognized for what it is, and is often mistaken for a Trading Range or wider sideways pattern. Being able to recognize the consistent highs and lows of the sideways pattern, can be hugely beneficial as the breakouts occur without much warning.  During a Platform pattern Bollinger Bands may not compress, Stochastic may show a floating pattern or an extreme oversold pattern. So instead of holding the stock to reap the profits of the breakout, the trader exits just before the stock forms a breakaway gap.Chart analysis requires an understanding of not only price but also which indicators should be used for the current market conditions, trading conditions, and the chart candlestick patterns.  Most short term trading losses are due to the following: Not being aware of the current Market ConditionNot recognizing compression patterns within a sideways patternUsing the wrong trading style for the chart patternUsing the wrong trading strategyBy increasing your ability to read charts and by using proper indicators, trading styles, and strategies your profitability will increase significantly.  In addition trading will be easier and much more fun to do.Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc.  All Rights Reserved.TechniTrader is the Registered Trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

MetaStock XIII is here. Check out the video.

  MetaStock is very excited to announce the release of MetaStock XIII featuring the new MetaStock FORECASTER. This brief video by Scott Brown, president of MetaStock, explains the new features.

How to Follow the Pros of the Market...

 Retail Traders need better, more intuitive chart analysis tools...MetaStock® SPRS Series - Week 133 - August 23, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMT: How To Follow the Pros of the MarketWith High Frequency Trading Companies, Dark Pool Automated Transaction Systems, and more and more Pro traders actively trading stocks, Retail Traders need better, more intuitive chart analysis tools to help them find stocks that are poised to move PRIOR to the big moves up or down.Often times, the HFTs’ attempt to sell down further is thwarted by Dark Pools buying in incrementally without exposing their pre-trade interest. This can cause retail traders, who chase after the HFTs, to take losses.Rather than chasing HFTs, retail traders need to learn to spot the Dark Pool activity that forms in stronger bottoms.This is made far simpler with TechniTrader Quiet Accumulation, TTQA, which is a quiet accumulation indicator.  The chart above shows a stock stuck in a range-bound bottoming formation that failed to move up after several attempts. HFTs tried to move it down, but it bounced right back up due to Dark Pool buyers.  Volume bars hold above the average line consistently and the TTQA indicator shows the footprint of the Dark Pools as the price moves up just below the prior resistance level.As energy builds with Professional Trader activity and Dark Pool activity, the stock moves up to form a tight consolidation at the prior resistance level. Tight price action is indicative of a very controlled entry used primarily by Dark Pools and Pro Traders.  This is not HFT action but the giant funds buying quietly.  TTQA confirms the momentum energy and price action continuation, resting again, and then moving up further.  The steady increase of TTQA is even more reliable than the volume bars to allow you to hold as the stock moves up with momentum energy.Momentum energy is reflected first in the dominant buying power of the Dark Pools. Although their pre- trade interest is dark, once their orders are executed, these orders are displayed, often delayed but displayed to the lit market.  Learning to see their buy-in areas using candlestick pattern analysis with modern leading indicators, such as TTQA, will help the retail trader get into a momentum run earlier for higher profits and easier-to-manage trades.As we approach the fall and winter months when trading activity increases, these momentum runs will also increase.  Many retail traders continue to use outdated chart analysis and indicator analysis. This puts these traders at higher risk of whipsaws and missing out on the faster moving stocks.Watch a demonstration in Metastock of how to catch HFT activity HERE. Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market Courses© 2013 Decisions Unlimited, Inc. All Rights Reserved. Disclaimer: All statements, whether expressed verbally or in writing, are the opinions of TechniTrader, its instructors and/or employees and are not to be construed as anything more than an opinion. Students/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor; it is strictly an educational service.

The 7 Key Ingredients for Successfully Trading for a Living

 MetaStock U - Week 2 - The Naked Traders - The 7 Key Ingredients for Successfully Trading for a Living - July 27, 2013 By: Chief Trader Bruce E. Dinger  Trading in the stock market can be challenging if you do not have a clear roadmap and recipe for success. The purpose of this article is to provide some key structure in selecting your investments or trades. Follow this process and your chances for finding high-probability successful trades are likely to increase.The most common mistake that investors make is looking at an individual stock without reviewing the industry group’s performance. It is key that investors start their due diligence by examining the performance and trend of the overall industry group. Savvy investors understand the importance of a “top-down” analysis approach and know that old saying “a rising tide lifts all boats”. So if you truly want to increase your chances for success in the stock market, start with the attraction or trend of the industry group before identifying any individual stock.Industry or sector analysis is very similar to a real estate investor purchasing a property. The real estate investor first focuses on the surrounding neighbor because they know the importance of associated properties and how they will have an impact on the valuation of their identified property. Trading and investing in the stock market is very similar. If you develop the habit of checking the surrounding “neighbor”, understand the attraction or valuation of those related properties; you will increase your chances for successful investment selection.The 2nd thing you need to do BEFORE you think about pulling the trigger and placing that trade is to check under the hood, what is better known as the “fundamentals”. Many investors think they need a degree in finance, but even a simple look at the company’s basic fundamentals will give you a sense for the strength and viability of their business.Here are some key trends to note and compare to the company’s closest competitors.RevenueNet IncomeProfit MarginReturn on EquityCritically important is to look for trends of interest. This means starting with the “footprints of the elephants” and noting if the big investors are putting their money on the line with your stock of choice. While the investment from a big money manager is no guarantee that your stock is going to do well, it does increase the probability. Another trend to watch for is “insider buying”. There are many reasons that executives of a company sell their shares, but there is usually one main reason that they buy shares of their company – they believe it is undervalued.It is also important to note global trends for the company’s supply and demand of their products and services. Successful investors and traders understand the importance of noting trends and classifying them as “cold, warm, hot, and explosive”. Yes, analyzing global trends does take time and a commitment to serious due diligence, but the payoff can be HUGE.Finally, under “trends of interest”, an investor should focus on the leadership of the selected company. Determine if the executive team are seen as visionaries, great business leaders, or under performers. If they have major followers, chances are great that the stock valuation has solid upside potential.Many investors dismiss analyst ratings but this is a mistake. After doing your above due diligence and your findings support a high-probability rocket ship stock, but then you notice that the consensus amongst the analysts is a “hold”…this could be the set-up for a future catalyst. How, you might ask? If everything else is equal and your findings support a good buy, and then later the analysts begin to revise their ratings from a “hold” to a “buy”, this typically serves as a catalyst to help catapult your stock’s valuation to new heights.5. Earnings and Conference CallsThere is much that you can learn by listening to the company’s conference call. You will find out not only the company’s outlook and possible concerns, but you will also uncover what is important to the analysts. The questions being asked could signal a trend of what the analysts are seeking and provide insight to you as an investor of what is really important. Listen to how the executives handle the questions….are the questions handled with confidence? Are there other companies in that group that perhaps have a better foothold on the trend of interest to investors and analysts? Listening to the earnings call or reading the transcript is key in this process of becoming a successful investor or trader.After all due diligence has been completed, one of the true barometers of the market’s interest in a stock is “Price Action”. The supply and demand of a company is ultimately reflected in the price. An investor or trader of the market must learn how to recognize KPPs (key pivot points) that reflect the emotional patterns of market participants. As you become more familiar with the price action, price patterns, support and resistance areas, and other technical aspects of chart reading, your ability to effectively manage your risk and identify low risk/high reward opportunities will increase.Regardless of whether you are a short-term trader or long-term investor, to effectively recognize price patterns and distinguish between ‘major’ and ‘minor’ reflection points of supply and demand, it is important to use multiple time frame analysis. This means viewing a chart from not only a standard one-year time frame, but looking at all major time frames including a 20-year, 10-year, 5-year, and 3-months, and various intra-day charts.Viewing a chart utilizing multiple time frames will ensure that you gain a better understanding of key pivot points and the major and minor waves of a chart. This helps you to make better decisions on both your entry and exits.One of your finals steps before placing the trade is to plan your entry, your exit, and the strategy you intend to utilize that will not only help increase your probability for success, but also eliminate as much of the risk as possible. Architecting a trade with the idea of reducing your exposure and providing the highest reward is the true sign of a Master Trader.Follow the 7-steps outlined above and you should see a higher degree of success in the market and come closer to your pursuit of trading for a living.Chief Trader Bruce E. Dinger, CEO and Chief Trader of TNT Trading the Stock Market, formed the The Naked Traders with the concept of teaching other independent traders how to "strip themselves of all emotion" when they trade or invest in the stock market.Mr. Dinger has spoken on some of the largest stages around the globe, including CNBC, BusinessWeek, SuccessMagazine, The Women's Financial Conference, Rich Dad's, On-Line Trading Academy, Success Resources, and many others. He has one of the best reputations in the financial markets for helping students achieve their goal of becoming an independent trader or investor. Mr. Dinger can be reached at info@TheNakedTraders.com .

The Power of Key Pivot Points

 What really drives the market in either direction... MetaStock U - Week 3 - The Naked Traders - The Power of Key Pivot Points - August 9, 2013 By: Chief Trader Bruce E. Dinger  New traders are always wondering what really drives the market in either direction…the answer is simply supply and demand – price action – or what many professionals refer to as KPPs – Key Pivot Points.The KPPs of a stock are very powerful psychological buying and selling areas that enable a trader to focus on their entries, exits, and most importantly the ability to manage their risk. These KPPs of a stock attract buyers and sellers into a trade and when combined with the dominant trend of the stock can produce amazing results for a trader.Some traders primarily use the KPPs of a stock to manage their trades from A to Z. This includes outlining a clear entry and clean exit. The KPPs also guide a trader to help determine a stock’s ATR (average trading range) and how long it typically takes for a stock to make its move. Learning how to identify KPPs and combining them with “price action” increases your chances for taking your trading career to new levels.We have found over the years of trading that the best indication of a stock’s movement is price action and how the price reacts with the KPPs. This is because price action will reflect the emotions of the market place. When a trader combines price action with the KPPs of a stock, this can be a very powerful tool for gauging the stock’s next move.KPPs are also referred to as support and resistance areas. It is one of the most critical things to learn to identify if a trader is looking to trade for a living. It provides a thesis of buying or shorting (trading it to the downside) a stock. Learning how to identify KPPs will enhance a trader’s results because of (3) three major factors involved:It requires the trader to identify a clear entry pointIt requires the trader to identify a clear exit pointIt helps the trader identify quality trades with solid reward to risk ratiosSo how do you identify the KPPs of a stock?In most cases, this cannot be done with just a single time frame, but rather done most effectively by using multiple time frame analysis. A trader will find a stock has primary and secondary KPPs, and it is not always easy for the novice trader to distinguish between the primary and secondary KPPs. However, if the trader incorporates both long and short-term charts, it will be easier to recognize the cluster areas of previous buying and selling of a stock.These clusters will become easier to recognize as the trader spends more time examining various charts and studying multiple time frames. As a trader finds these clusters and compares them to other time frames that the stock huddles around, these should be marked and noted on the chart as either a primary (strong area) or secondary (moderately strong) KPP. The more times that the stock revisits a specific area, the stronger the KPP.Keep in mind that the market leaves tracks from investors and the market has a long memory. The KPPs will help a trader identify where the main action takes place - where traders view and interpret good buy or sell zones. It is recognizing these areas that will help a trader identify their entry points, exit points, and effectively manage their risk.There are many moving parts to the market and much for a trader to watch, but we have found as traders and educators of the stock and options market that learning how to effectively identify a stock’s Key Pivot Point is critical to continued success in the market place; regardless of whether your goal is to invest and build long-term wealth or day trade the market to create cash flow.Chief Trader Bruce E. Dinger, CEO and Chief Trader of TNT Trading the Stock Market, formed the The Naked Traders with the concept of teaching other independent traders how to "strip themselves of all emotion" when they trade or invest in the stock market.Mr. Dinger has spoken on some of the largest stages around the globe, including CNBC, BusinessWeek, SuccessMagazine, The Women's Financial Conference, Rich Dad's, On-Line Trading Academy, Success Resources, and many others. He has one of the best reputations in the financial markets for helping students achieve their goal of becoming an independent trader or investor. Mr. Dinger can be reached at info@TheNakedTraders.com.

TechniTrader Weekly Discussion: “Market Voids - The Invisible Sink Holes for Retail Investors and Traders”

  MetaStock® SPRS Series  Week 146 – November 22, 2013 - MetaStock Spatial Pattern Recognition Skills Series  written by Martha Stokes, CMTMarket voids were once rare events, now are occurring more often as the use of Dark Pool  ATS platforms increase.  Market voids are when the most important and influential long term market participants stop buying stocks and sit on the sidelines.When this happens suddenly there is a massive void of buyers, who typically buy giant share lots of 100,000 – 500,000 at one time via Dark Pools.  The cessation of the giant and large funds buying is a buy side phenomenon that is not mirrored in bear markets.  It occurs in Bull Markets and is uniquely tied to speculative trading activity.The problem for most retail investors and traders is that this void occurs without warning and creates whipsaw action, gap downs, and slip-slide price action. Often these sink holes appear just after retail investors or retail traders have rushed in to buy a stock due to news or other good information about a company.Voids are a primary cause of losses for retail swing traders, day traders, and at times position traders.  Therefore understanding why they occur, how long the void can and will last, and how to recognize that a void is beginning, helps traders make better decisions to circumnavigate the sink hole before they are swept into it for a big loss trade.Unfortunately all Market Indicators such as High/Lows, Market Breadth, and Advance/Decline do not reveal market voids in advance. Rather these indicators all lag due to the outdated formulas that were written prior to the Dark Pool ATS platforms.The ideal way to discover potential market voids before they occur is to use a group of Scans to reveal the momentum bias and other factors.  Scans developed to expose market condition analysis is a leading indication of when a void is about to occur. This gives retail investors and traders a heads up that buying stocks will be a much higher risk during the void.In early November a void pattern appeared on the TechniTrader Market Condition Analysis Scans.  A few days later the S&P500 had a sudden down day, please see the chart below.  Nothing in the candlesticks specifically exposed that a big down day was coming.  Many retail traders were on a buying spree. Many retail investors were rushing to buy stocks as news spurred them back into the markets. The one down day caused many whipsaw trades.   The run down was not due to High Frequency Traders, market makers, or any of the commonly blamed factors it happened because those giant and large funds that are the largest buyers stopped buying for a few days.  Many new retail investors and retail traders feel that a charting program is an expense they do not need. Instead they opt for free charting services and online broker charts, which were never designed to be used as trading charting programs.By not having the proper tools, new retail investors and retail traders actually increase their risk of losing money. They pinch pennies and throw away dollars of profits, and have more losses because they are not using proper investing and trading tools.Scans that expose when a void is about to occur help protect your capital and profits.  To build scans that can do this requires the proper charting software tools. Otherwise you will find yourself suddenly in a sink hole, losing money rapidly and wondering why that great buy signal didn’t work.Member of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader® Stock Market CoursesThis Stock Discussion and Training Lesson is sponsored by TechniTrader.com©2013 Decisions Unlimited, Inc. dba TechniTrader.  All Rights Reserved.TechniTrader is the registered trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader and its instructors or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues.  At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service

TechniTrader Weekly Stock Discussion: “Trading with Exchange Traded Funds ETFs”

 MetaStock® SPRS Series - Week 141 – October 18, 2013 - MetaStock Spatial Pattern Recognition Skills Series  written by Martha Stokes CMTNowadays, there are far more opportunities for making extra monthly trading in the stock market than ever before.  One hugely popular area is the Exchange Traded Funds ETFs.  This is a relatively new trading instrument that is a derivative. Just picking any ETF and trying to trade it is a great way to lose money. There are many different kinds of Exchange Traded Derivatives: ETFs are based upon an underlying group of stocks or group of funds that are held in a trust account long term.ETNs are based on different kinds of bonds or debt securities that are held in a trust account.ETCs can be either based on commodities futures contracts or currency contracts.Then there are the leveraged ETFs which are designed for very specific institutional needs that most retail traders do not understand. Any leveraged ETF is prone to sudden price shifts as these must be rebalanced from time to time to maintain the leverage aspect.The most popular and most commonly traded ETFs are also the oldest which are the SPY, DIA, and QQQ. These are based on a specific type of weighting formulation, and are often used for longer term investing. However there are also many different types of weighting used in different big index ETFs. Understanding which weighting is right for your trading or investing can make a substantial difference on your Return On Investment ROI.Learning to trade ETFs requires an understanding of the purpose, the type, and the issuer intent. It also requires learning whether it is suited for long term or short term trading, and whether it is leveraged or not.  In addition it is important to determine which market participants are using the ETF, their long term and short goals, and speculation.When an investor or trader takes the time to understand the controlling factors behind their action and how these derivatives are developed, created, and their purpose, it makes it far easier to choose the proper ones for your personal goals and trading parameters. Trading is not just about finding a stock or ETF to trade, it is also about understanding the market structure and market participant groups who are actively trading in that stock or ETF.By going beyond mere indicator or candlestick patterns, the retail investor or trader can dramatically improve their ROI and profitability regardless of their personal goals and trading preferences.  Always know what you are buying beyond mere chart patterns, otherwise you are trading blindly with a lack of knowledge that can cause substantial losses.For more information regarding investing and trading ETFs, sign in to consider taking the TechniTrader Online Course titled “(ETF) Exchange Traded Funds & Index Trading” at  http://goo.gl/kDy9lcMember of Market Technicians AssociationMaster Rated Technical Analyst for Decisions Unlimited, Inc.Instructor and Developer of TechniTrader Stock Market Courses©copyright 2013 Decisions Unlimited, Inc.  All Rights Reserved. TechniTrader is the Registered Trademark of Decisions Unlimited, Inc.Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor, it is strictly an educational service.

Trading a Momentum Market Using Swing Trading Techniques

 MetaStock SPRS Series - Week 131 - TechniTrader® Stock Discussion for MetaStock Users - Trading a Momentum Market Using Swing Trading Techniques - August 9, 2013 By: Martha Stokes C.M.T.  Summertime momentum markets are rare. It takes two things occurring simultaneously to create a momentum market:A rush of new monies into stocks.Advances in new technologies.We have both right now. The Bond Markets are a Trillion-dollar market but in one month alone, there was a dumping of bond funds in historical proportions. This amounted to nearly 80 billion dollars being pulled from bonds in one month. This is a huge red flag for current bond holders and bond fund managers that a major shift of sentiment has occurred.The money has to be place somewhere in one of the several Financial Markets. It is moving from Money Market Accounts directly into stocks, creating a momentum energy market not seen in many years.To swing trade a momentum market, you need to understand the dynamics of not only swing trading but also how momentum action behaves, how it is different from a velocity price action, and how it is NOT volatility as many will claim but ENERGY that continues in one direction with building volumes and rising prices followed intermittently by resting day patterns rather than retracements.Momentum price action is unique and learning to read these charts requires far more understanding of candlestick patterns than is taught in books written a decade ago. Within the past 3-5 years, the way price reacts, how candles and where candles form, for how long, and when price will suddenly move again has changed dramatically. Just learning the candlestick patterns in a book or from an article online is not sufficient for highly successful swing trading in momentum markets.Below, the TTQA indicator exposed Dark Pools buying. By itself, price doesn’t look like anything during some heavy Dark Pool buying. But the energy that is generated when Dark Pools buy incrementally without moving price causes big runs to follow, such as this chart has.On the chart below, the failed sell down that started with the engulfing black is best seen in the indicators, which accurately tell you that the sell down attempt has failed and more upside is coming. This allows you to enter the stock prior to the gap.In the chart below, shifts of sentiment, increasing volume patterns, building underlying energy in TTQA, all are vital cues that tell you the resistance level is going to be blasted right though, that this time resistance will not hold back this stock moving out of a long term bottom.The crucial analysis you need in order to find stocks BEFORE they move suddenly, running or gapping up quickly, is relational analysis: the interpretation of the relationships between price, volume, lot size, and who is trading the stock at that time.When you combine relational analysis, the new candlestick patterns that have just started to form in the past few years, and Hybrid Indicators like TTQA, your ability to choose fast-moving stocks and have strong momentum swing trades will be faster, easier, and far more reliable.Did you miss our most recent webinar for MetaStock users?For more information email: info@technitrader.comMember of Market Technicians AssociationMaster Rated Technical Analyst: Decisions Unlimited, Inc. Instructor and Developer of TechniTrader® Stock Market Courses http://technitrader.com/MetaStock Partner ©2013 Decisions Unlimited, Inc. Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.

Power User Tip: MetaStock Monitor SEPTEMBER - OCTOBER 13

  Using Excel with MetaStock XENITHContributed by Breakaway Training SolutionsIn this short video, I'll give you a couple of quick tips on how to get your real-time data from MetaStock XENITH into an Excel spreadsheet. Kevin Nelson is the founder of Breakaway Training Solutions, Inc. He has spent the last 17 years becoming an expert on MetaStock software and a serious student of technical analysis while working for MetaStock. Prior to joining MetaStock in 1993, Kevin was a stockbroker for a well-known NYSE firm. In his role as Sales Manager at MetaStock, Kevin interacted extensively with MetaStock customers via phone, webinars, and public appearances. His experiences while working at MetaStock have enabled him to gain a keen understanding of the needs of technical analysts worldwide. While with MetaStock, Mr. Nelson was a featured presenter for four years. During this time, he traveled the U.S. introducing the MetaStock program to thousands of people and teaching them how to use its many features. His easy-to-understand approach is considered by many to be the best in the industry.

Slauson's Slant: MetaStock Monitor SEPTEMBER - OCTOBER 13

 The Starving Artist - Contributed by John Slauson One of the biggest challenges in developing a trading systems is being precise when defining the rules.  Technical analysis is often criticized because many of its adherents are so ambiguous with their methodology.  So ambiguous in fact that it becomes impossible to validate their “system” using any semblance of scientific methods.  This is convenient for the trading system peddler, but frustrating for the trader. Among technicians, the well worn adage “the trend is your friend” is sadly second only to “technical analysis is an art not a science.”  The latter is a euphemism for:  “I have a system that works super awesome...except when it doesn’t.”Some examples of ambiguous trading rules I often hear:Prices should move slightly above….Volatility can increase a bit….Place the stop just above a recent high…Prices should cross above the moving average on big volume...Prices will reverse at about the same price level several times…The trend must be steeply up over the short-term…The black candlestick must be significantly larger than the preceding white candlestick…To move technical analysis out of the realm of art and into the realm of science, ambiguous words like the ones in bolded italics must be eliminated and replaced with precise, quantifiable values.  Of all the tools used by technicians, support and resistance is perhaps the most difficult to quantify.  Ask 10 traders to draw support and resistance lines on the same chart and you’ll see lines drawn at almost every price level   Years ago I developed a scoring method to help traders quantify support and resistance levels.  I presented this method at a conference sponsored by Golden Gate University.  In attendance was W.H.C. Bassetti, editor and coauthor of the classic book, Technical Analysis of Stock Trends first written by Robert D. Edwards and John Magee in 1948.  Bassetti referenced my scoring method and the MetaStock Add-on based on it (PowerStrike), in the 9th edition of his book.The methodology I presented for measuring support and resistance is based on three phenomenon in the stock market:1. Humans prefer “easily” divisible and memorable numbers (e.g.,“20” is preferred over “19”). These values are typical of optionstrike prices. Hence many traders' attention is drawn to thesenumbers providing the potential for even more "concentrated"2. Stock prices are heavily influenced by trading near option strikeprice levels. Hence, these levels greatly influence where"important" buying and selling occur. Support and resistance isbased on the concentrated buying and selling. Option StrikePrice levels attract more attention from important marketparticipants over other price levels.3. Bullish and Bearish pressures at Option Strike Price levelsresolve more quickly than pressures at other levels.With these general principles in mind, I developed a tool that scored the strength of support and resistance on optionable US stocks.  The heart of the scoring method revolves around three bar pivot highs and three bar pivot lows.  A value of 1, 3 o 5 points is assigned to a pivot high or low based on the volume associated with bars 1 and 3 of the pattern.          To be counted in the score a pivot highs or lows has to form within a specified distance (based on precise volatility bands) from an option strike price.  Totaling these values provides a specific score for the support or resistance level being measured.  The score can then easily be used independently or incorporated into a larger set of trading rules.  It can even be backtested, an important litmus test for a valid trading method.The following chart of Costco illustrates this scoring system.  Pivots highs that occurred near the 120 strike price totaled 14.  Pivot lows near the 110 strike price totaled 30.  “Near” is precisely defined as pivot highs and lows that form within the volatility bands drawn at each level.  From this we can objectively state that support at $110 is stronger than resistance at $120.My point in presenting this scoring method is not to sell you on this specific method of identifying support and resistance; it is simply to illustrate that it is possible to take the ambiguity and “art” out of technical analysis, even something as subjective and seemingly imprecise as support and resistance.  Do this and you may avoid becoming a “starving artist.”

The Option Premium Always Follows the Stock

  There has been a lot of interest in Options Trading again as new investors and traders have heard about Binary Options.  Unlike the high risk Binary Options, the traditional buy call or buy put simple option contract is regulated traded on US exchanges and is a low risk, low cost way to trade the stock market.To be successful at options trading, you need to learn how and why The Option Premium Always Follows the Stock.  The option contract price and the stock price are always linked and move in harmony.  When you understand the connection the option has to the stock, trading options becomes as easy and simple as buying a stock outright.  The difference is that the option contract is far less expensive, and often the risk of the option trade is much lower than the risk of the stock trade.What this means is there are two types of investors or traders who could use options trading instead of buying a stock directly.The investor or trader who has a small capital base.  When you have a small capital base which is less than $10,000.00, then you need to be particularly aware of risk, and be far more careful with your trading decisions and your choice of trading instruments.  A stock is a trading instrument, but so is a stock option. Using a stock option dramatically lowers your costs. For example, the stock below is trading at $73.63 and you think this is a good entry after a correction. You have only $4000.00 in your trading account so you can’t afford to buy even 100 shares because you would need $7363.00 to put on this trade.  Instead you can buy a call option at the money for only $1.43 per share for a total investment on 100 share contract of $143.00 at the money contract. This means you can trade this stock because the option contract is within your budget, and your risk is now only $143.00 rather than $3000.00 based on proper stop loss and buy entry prices.The investor or trader who has plenty of capital, but the proper stop loss placement is far too much risk.If you have plenty of capital to trade this stock, but when you study the actual entry price based on a professional bracketed order that protects from whipsaws and stocks that reverse suddenly, you find that the proper stop loss placement is far too much risk. You do not want to take this much risk but you really like the stock and are confident it is going to recover, and move back up based on strong indicators and strengthening fundamentals. To insure that the stock is going to continue to move up, that you are buying into strength, and are therefore avoiding the risk of a whipsaw the entry must be at $75.50 and the stop must be at $71.00. That is a 4.50 point risk or $4500.00 on your intended 1000 share purchase of this stock.Rather than buying the stock for $75.50 x 1000 = $75,500.00 which ties up a lot of capital that you have to trade and is a high risk trade, you could use an option to  leverage into the stock using an option you intend to exercise.  This means that for $1430.00 for 100 contracts, you have lowered your risk for this trade by $3070.00.  This is a huge difference in the risk of buying this stock. Exercising a stock option is as easy as buying a stock. When the stock moves up to your intended entry all you do is place an exercise order for your stock option, and immediately your broker will execute your option contract, pay for it out of your broker account and now you own this stock.  Your initial investment was low and your risk was lower, than if you had bought the stock outright.TechniTrader is the only company that teaches these techniques for trading options and exercising options.  When you use the stock chart to determine your entry, your stop loss, the risk of the trade, the potential profit of the trade, and the proper option chain it makes trading options simple, accurate, more profitable, and far less work than the out-of-date options strategies taught by other companies.  You do not need options indicators, you do not worry about implied volatility, or delta neutral. You don’t need to learn complicated, convoluted options strategies because The Option Premium Always Follows the Stock.All you need to do is to learn to read a stock chart, where to buy, how far the stock will move, where to place your stop loss, and the risk of trading the stock versus trading the option contract. You can trade options whether you have a small or large capital base and dramatically lower your risk of the trade.For additional information sign in to watch a free TechniTrader video titled “Options Essentials” at http://goo.gl/shPyCtMember of Market Technicians Association Master Rated Technical Analyst for Decisions Unlimited, Inc. Instructor and                                                          Developer of TechniTrader Stock Market Courses ©copyright 2013 Decisions Unlimited, Inc.  All Rights Reserved. TechniTrader is the registered trademark of Decisions Unlimited, Inc. Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor, it is strictly an educational service.

Un mercado dinámico usando técnicas de Trading de Swing

MetaStock serie SPRS - semana 131 - TechniTrader ® Stock discusión para usuarios de MetaStock - Forex un mercado dinámico usando Swing Trading técnicas - 09 de agosto de 2013Por: Martha Stokes C.M.T.Verano impulso mercados son raros. Necesitan dos cosas suceden simultáneamente crear una corriente de mercado: una oleada de nuevos fondos en acciones.Avances en nuevas tecnologías.Ahora tenemos dos. Los mercados de bonos son un mercado de billones de dólares, pero en un mes, hubo un derrame de fondos de los bonos de proporciones históricas. Esto representa cerca de 80 billones de dólares de bonos en un mes. Esta es una enorme bandera roja para los actuales tenedores de bonos y bono de los gestores de fondos que se ha producido un cambio importante de sentimiento.El dinero debe ser lugar en alguna parte de uno de los mercados financieros varios. Es el paso de dinero directamente en cuentas de mercado de acciones, creando un mercado de la energía de pulso no visto desde hace muchos años.Columpio comercial un mercado dinámico, usted debe entender la dinámica del no sólo swing trading, pero también cómo se comporta en una acción dinámica, cómo es diferente de una acción de velocidad precio y cómo no hay volatilidad que muchos dirán pero que continúa en una sola dirección, volúmenes de construcción y aumento de los precios, seguida por día descanso intermitente en lugar de las correcciones patrones de energía.Impulso precio acción es único y lectura de estas gráficas requiere mucho más comprensión de los candelabros que se imparte en los libros escritos hace diez años. Dentro de 3 a 5 años, qué precio reacciona, como velas y donde las velas forman, durante cuánto tiempo, y cuando el precio se mueve repentinamente otra vez cambiaron radicalmente. Aprender los candelabros en un libro o un artículo en línea no es suficiente para swing éxito lanzado en los mercados.A continuación, la TTQA expuesta compra indicador piscinas oscuras. En sí mismo, precio no parece lo que durante algunos pesados compra piscina oscuro. Pero la energía que se genera cuando compro oscuro piscinas progresivamente sin mover los precios principal causas caminos a seguir, como esta mesaen el gráfico a continuación, la venta no pudo bajar que comenzó con negro que envuelve se ve mejor en los indicadores, que exactamente que vender abajo la tentativa fracasó, y mayor beneficio viene. Esto le permite introducir las acciones antes de la brecha. En la tabla siguiente, cambios en la sensación, aumentando los patrones de volumen, edificio energía subyacente en TTQA, son todas las pistas vitales que dicen que el nivel de resistencia a saltar bien sin embargo, este tiempo resistencia paso espera acciones pasando a largo plazo de fondo. Análisis esenciales que necesita para encontrar las existencias antes de moverse de repente, corriendo o detener rápidamente hacia arriba es el análisis relacional: la interpretación de la relación entre precio, volumen, el tamaño de la parcela y que es el comercio el stock en este momento.Cuando se combinan análisis relacional, el nuevo de candelabros que acaban de empezar a formar en los últimos pocos años y híbrido indicadores tales como TTQA, su capacidad de elegir acciones rápidas y fuerte impulso swing oficios será más rápido, más fácil y más confiable.¿Te perdiste nuestro último Webinar para usuarios MetaStock?Para más correo electrónico de información: info@technitrader.com Miembro de los técnicos de mercado AsociaciónMaestro calificado analista técnico: decisiones Unlimited, Inc.Entrenador y promotor de las acciones de TechniTrader ®http://technitrader.com/MetaStock socio © 2013 decisiones Unlimited, Inc.ADVERTENCIA: Todas las declaraciones, ya sea expresada oralmente o por escrito son las opiniones de TechniTrader, sus instructores y o empleados y no debe interpretarse como algo más que una opinión. Estudiante/los suscriptores son responsables de hacer sus propias elecciones y decisiones relativas a compras o ventas de acciones o preguntas. En ningún momento es cualquier acción o pregunta en cualquier lista escribió y envió a que un alumno/cliente por TechniTrader y sus empleados se interpretará como una recomendación para comprar o vender acciones o tema. TechniTrader no es un corredor o un asesor de inversiones es estrictamente un servicio educativo.

El poder de la llave de pivotes

Lo que realmente impulsa el mercado en ambas direcciones. MetaStock U - semana 3 - desnudo - el poder de la llave punta comerciantes pivote - 09 de agosto de 2013Por: Jefe Trader Bruce E. DingerNuevos comerciantes son siempre preguntar lo que realmente impulsa el mercado en ambas direcciones... la respuesta es simplemente oferta y demanda - compartir precio - o lo que muchos profesionales llaman KPPs - Pivot puntos clave.Los KPPs de una acción son muy de gran alcance psicológico compra y venta de dominios que permitir que un operador concentrarse en sus entradas, salidas y más especialmente la posibilidad de administrar sus riesgos. Estas acciones KPPs atraen a compradores y vendedores en un comercio y cuando se combina con la tendencia dominante de la culata puede producir resultados sorprendentes para un comerciante.Algunos comerciantes utilizan principalmente los KPPs de un stock de manejar sus negocios de la A la Z. Esto incluye describir una salida limpia y clara de entrada. Los KPPs también guían a un comerciante para ayudar a determinar un stock ATR (promedio de gama) y cuánto tarda generalmente para que una acción hacer su movimiento. Aprender a identificar KPPs y combinándolas con 'acción precio' aumentar tus posibilidades de llevar su carrera empresarial a nuevos niveles.Hemos encontrado en los años de negociaciones, que es la mejor indicación de movimiento de un stock compartir precio y cómo precio reacciona con los KPPs. Esto es debido a la acción de precios reflejan las emociones de la Plaza del mercado. Cuando un comerciante combina la acción del precio con los KPPs de una acción, esto puede ser una herramienta muy poderosa para el siguiente movimiento del stock de medición.KPPs también se denominan zonas de soporte y resistencia. Es una de las cosas más esenciales para aprender a identificar si un comerciante está mirando al comercio para ganarse la vida. Proporciona una compra de tesis o implementación del cortocircuito (negociación hacia abajo), una acción. Aprender a identificar KPPs mejorará los resultados del distribuidor debido a (3), tres factores principales involucrados: requiere el comerciante identificar claramente pointIt entrada requiere que el operador claramente identificada la salida pointIt ayudar al comerciante identificar oficios de calidad con ratios sólidos recompensa al riesgo ¿Cómo puede usted identificar una acción KPPs?En la mayoría de los casos, esto puede hacerse con sólo una sola vez, pero bastante más eficientemente realizado mediante el análisis de una época de múltiples. Un trader es un stock tiene KPPs primarios y secundarios, y no siempre es fácil para el principiante de operador distinguir entre primarias y secundarias KPPs. Sin embargo, si el comerciante gráfica integrada largo y corto plazo, será más fácil de reconocer zonas de racimo de la anterior compra y venta de acciones.Estos clusters se convertirá en más fáciles de reconocer que el comerciante pasa más tiempo examinando varias cartas y estudiar varios plazos de ejecución. Como un comerciante encontrar estos clusters y en comparación con las otras veces que el stock se amontonan alrededor, esto debe ser marcado y fijado en la carta como primaria (área de fort) o secundaria KPP (moderado). Cuantas más veces que el stock retoma un área específica, la altura de la KPP.Tenga en cuenta que que el mercado deja los valores a los inversores y el mercado tiene una larga memoria. Los KPPs ayudará a un comerciante de identificar donde la acción principal tiene lugar - donde comerciantes ver e interpretar buenas zonas de compra o venta. Está agradecido a estas áreas que ayudarán a un comerciante de identificar sus puntos de entrada, puntos de salida y administrar su riesgo.Hay muchas partes móviles en el mercado y muchos por un comerciante mirar, pero encontramos a los comerciantes y los educadores del mercado de valores y opciones que aprenden a identificar efectivamente clave pivote acción es crítica al éxito continuo en el mercado; No importa si tu objetivo es invertir y crear riqueza en el largo plazo o el día del comercio del mercado para crear un flujo de efectivo.Jefe Trader Bruce e comerciante Dinger, Director Ejecutivo y jefe de TNT Exchange Trading, formado comerciantes el desnudo con el concepto de otros comerciantes independientes y aprender a "tira lejos toda emoción" cuando comerciar o invertir en acciones market.Mr. Dinger habló sobre algunos de los más grandes estadios alrededor del mundo, incluyendo Successmagazineconference financiera CNBC, BusinessWeek, el femenino de Rich DadAcademia de Trading en línea, consiguiendo recursos y muchos otros. Tiene una mejor reputación en los mercados financieros para ayudar a los estudiantes a alcanzar su meta de convertirse en un comerciante independiente o inversionista. Sr. Dinger puede ser alcanzado en el info@TheNakedTraders.com.