I have been talked with many traders in the last 20 years, a lot of traders want to do the mechanical trading, let computer to take over. To do so, first you must have a time tested and proven winning trading strategy (or called trading system). How long is so-called time tested? It should be […]
A few weeks back, we saw both the dollar index (DX) and US treasury bond futures (ZB) break T2 weekly support. By May 27th, prices had already bounced back to daily resistance. At that time, we said that such a bounce is in perfectly in line with what one might expect. Even if a downtrend were […]
On April 19th, we introduced a concept of Sweet Spot in trading with its definitions and an example chart of HUM Weekly. Today I want to show you a live example of Sweet Spot, Alibaba (BABA) daily chart. I single out this chart to show you what to expect when it shows up in the […]
Last week, there was a question during the webinar about how to superimpose the longer term support/resistance dots from Trend 2 on to a trading chart. We looked into it, and Eric has prepared a quick clip demonstrating how to do the overlay.
Here’s a clip from Ron’s webinar last week 5/28/2015, from our on-going member’s education series. Starting from 22:11 in the video, Ron walks you through the ES trading session, which was about as choppy as it gets!
Entry at Bar Close (EBC)- only this method is 100% mechanical. Here are examples of mechanical trading with AbleTrendTS strategies. EBC Execution: Entry at Bar Close Execution is the simplest approach to using a mechanical trading system. After you have chosen your input parameters, the system will generate buy, sell, stop, or exit signals based […]
It can be helpful to use the trend direction on daily charts to guide your trading with intraday charts. Here the daily chart is used as the so-called guidance chart. Of course, you may also use the 60-minute chart as guidance to trade the 5-minute chart, etc. Our back-testing reports clearly show that this method […]
The Dow theory by Charles Dow is basically talking about market trend, its three phases and how to confirm the market trends. Recently, we have noticed the Dow Jones Industrial Average (DJIA) has a divergence with Transportation Average index (DJTA), and is indicating a potential reversal of the trend. See the chart below. DJTA index […]
Last blog article we illustrated how to place the initial stops for day trading the Gold Futures. Today we’ll show you how to place the initial stops for swing trading the stock, as well as how to manage the stop replacements while holding the positions. How many times has fear made you exit the market […]
Traders tell us “my main problems in trading are…” Staying too long with losing positions Exiting too early with winners The greatest challenge for traders is knowing when to get out. If you can take control of the losing trades, profit will take care of itself. What if you could systematically define the market’s key […]