Learn to Read Your Charts
One of the advantages of using Warp predictive software is that the dots are always there when the time has gone. If you want to study a past trade day you can do it, also in replay mode in Ninjatrader 8. This is a good technique to understand the patterns and correlation between them and the price market. The behavior of the candles and their closed position when a dot is above or below that event
Here is my chart, I Have the Emini Nasdaq 100 in 3 minutes. You can make the same analysis in any timeframe because Warp predictive software is based on time, and we just follow some rules and watch the timestamp that appears with the dot. The chart below explains the moment of the entry and the exact time of the exit following one simple rule:
- Watch the price if is above or below the 120 EMA, when a dot appears open a trade when the candle is closed and close the trade in the next timestamp when the time expires.
These basic rules have more than the 60% of probability in a standard setup. Based on the volatility the risk for each trade for the Nasdaq could be between 30 to 50 ticks per trade.
These are the results of 1 hour of trading
The trade 1: +28 Ticks
The trade 2: +79,25 Ticks
The trade 3: -27,25 Ticks
The trade 4: +20,25 Ticks
Total of ticks: + 107,Ticks
107 Potential Ticks in 1 hour of trading make the difference!
When you understand these concepts, your trading starts to be consistent in time. And this is just 1 rule.
Juan Fernando Vega
Mechanical Engineer
Bogotá-Colombia
Spanish – Support
Skype: juanvegam