Trading Insights

Trading Insights

Are recessions predictable? Looking down the rabbit hole...

Tags: , , , , Trading Insights
featured image

As a middle-aged American who's witnessed the ebb and flow of economic tides most of my adult life, delving into the predictability of recessions becomes even more intriguing when you consider the historical data. Over the past century, on average, recessions have made their appearance approximately every eight to ten years. It's like a familiar dance – a rhythm that's been playing out in the background of our financial history. The kind of rhythm we see every day with our predictive signals using programs like Tacheon Warp to project where popular futures, forex, stocks, and crypto markets are headed in advance like WD Gann did 150+ years ago. 

Picture it: a century's worth of economic ups and downs, each recession separated by this predictable timeframe. It's not just a coincidence; it's a pattern etched into the economic landscape. Economists, armed with data spanning decades, scrutinize various factors – interest rates, consumer spending, global trade dynamics, and government policies – to unravel the complexities of this cyclical phenomenon.

Understanding this historical context provides us with a valuable perspective. It turns out that recessions are not just random storms; there's a certain regularity to their occurrence. It's akin to an economic heartbeat, pulsating every eight to ten years, signaling the inevitable downturn.

Learning from the past becomes crucial in this context. By analyzing previous recessions and deciphering the contributing factors, we gain insights that empower us to prepare for the future. It's not about predicting the exact moment a recession will strike, but rather recognizing the signs and adjusting our financial sails before the economic winds turn turbulent.

So, here we stand, in the midst of a century-long cycle of economic rhythms. As a middle-aged observer who's weathered a few storms, there's a sense of awe in acknowledging this recurring pattern. Recessions may be an unavoidable part of our financial journey, but armed with historical knowledge, we can navigate these cycles with resilience and emerge stronger on the other side.

The Rise of the Quarantine Day Trader: How COVID-19 Turned Living Rooms into Trading Floors

Tags: , , Trading Insights
featured image

In the blink of an eye, our daily lives shifted from office spaces to home spaces. Zoom calls replaced water cooler chit-chat, and the 9-to-5 grind became an undefined blur of pajamas and virtual meetings. As the pandemic forced us to redefine our workspaces, it also paved the way for a surprising trend: the rise of the quarantine day trader.

With commutes eliminated and extra time on our hands, a new breed of investors emerged from the chaos of COVID-19. The stock market, once a mysterious realm for the financially savvy, suddenly beckoned to those seeking a break from the monotony of quarantine life. Enterprising individuals, fueled by the desire to make the most of an unprecedented situation, dove headfirst into the world of day trading.

Trading platforms like Robinhood saw a surge in users, turning ordinary folks into amateur stock enthusiasts. The allure of quick gains combined with the accessibility of mobile trading apps provided the perfect storm for a day trading boom. Millennials and Gen Z, known for their tech-savvy nature, were quick to adopt this trend, transforming living rooms into makeshift trading floors.

Suddenly, phrases like "bull markets" and "bear markets" became as commonplace as pandemic-era slang. The once-daunting task of understanding stock charts and financial jargon became a pastime for those seeking a sense of control in an uncertain world.

However, the rise of the quarantine day trader wasn't without its pitfalls. The market's unpredictability led to both triumphs and losses, prompting a newfound respect for the age-old wisdom of "buy low, sell high." As the world gradually inches back toward normalcy, the quarantine day trader phenomenon remains a testament to the resilience and adaptability of a generation determined to find opportunities amid chaos.

 

NinjaTrader, the most powerful trading platform

Tags: , , , , , , , , Trading Insights
featured image

Unveiling the Power of NinjaTrader:  Predictive Futures Trading with Back to the Future Indicators

In the ever-evolving world of futures trading, staying ahead of the curve is essential for success. Amidst the myriad of trading platforms available, the dynamic duo of NinjaTrader and the forward-looking indicators from Back to the Future Trading has emerged as a true game-changer. This potent combination provides traders with an unparalleled advantage, enabling them to predict market movements and execute strategies with precision.

Cutting-Edge Technology: At the core of NinjaTrader's brilliance lies its state-of-the-art technology. When paired with the predictive indicators from Back to the Future Trading, this synergy empowers traders, whether seasoned or novice, to navigate the complexities of futures trading with ease. What sets this combination apart is the predictive nature of these indicators – a feature that enables traders to anticipate market shifts in real-time, allowing for informed decisions that are a step ahead of the competition.

Customization and Flexibility: NinjaTrader's adaptability, in tandem with the predictive indicators from Back to the Future Trading, offers traders a personalized trading environment. By tailoring their workspace using NinjaTrader's features and layouts and integrating the predictive indicators seamlessly, traders can align their strategies precisely with their preferences. This level of customization ensures maximum productivity and laser-focused trading approaches.

Powerful Charting Tools: The marriage of NinjaTrader's advanced charting capabilities with the forward-looking indicators from Back to the Future Trading creates an unmatched analytical powerhouse. While NinjaTrader's extensive array of technical indicators and chart types remains invaluable, the addition of predictive indicators takes trading analysis to the next level. These indicators empower traders with the ability to foresee potential market trends, making their decision-making process significantly more proactive.

Algorithmic Trading: NinjaTrader's automated trading functionalities, when bolstered by the predictive indicators from Back to the Future Trading, become an even more formidable asset. By harnessing NinjaScript's algorithmic development capabilities and coupling them with predictive insights, traders can design and implement automated strategies that capitalize on anticipatory trade signals, translating to swift and effective execution.

Market Replay and Backtesting: NinjaTrader's Market Replay feature and robust backtesting capabilities, enhanced by the integration of Back to the Future Trading's predictive indicators, offer traders an unprecedented edge. Simulating and refining strategies with historical market data gains an entirely new dimension when guided by predictive insights. This integration empowers traders to assess strategy effectiveness comprehensively and fine-tune approaches with a future-oriented perspective.

Brokerage Integration: The seamless integration of NinjaTrader with diverse brokerages is elevated by the incorporation of Back to the Future Trading's predictive indicators. This seamless amalgamation ensures traders not only execute trades directly from the platform but also do so with predictive insights that can be a game-changer in volatile markets.

And here's a bonus: For new traders looking to explore the world of futures trading, Back to the Future Trading offers a selection of free indicators. These indicators serve as a valuable starting point, allowing new traders to dip their toes into predictive trading strategies without any upfront costs.

In the dynamic landscape of futures trading, leveraging predictive indicators can be the key to staying ahead. The marriage of NinjaTrader's cutting-edge technology with the forward-looking indicators from Back to the Future Trading creates an ecosystem where traders can thrive. This dynamic pairing, with its predictive insights, advanced technology, customization options, potent charting tools, algorithmic trading capabilities, seamless brokerage integration, and support for new traders, revolutionizes the way traders approach the markets. Armed with foresight and a comprehensive support system, traders can confidently navigate the futures market and emerge victorious.

Trading with lunar cycles, predictively

Tags: , , , , , , , , Trading Insights
featured image

Lunar Cycles: Unveiling the Mystery Behind Predictive Trading in Stock Markets

Introduction

In the world of financial markets, traders and investors are constantly seeking new tools and techniques to gain an edge in predicting market movements. While traditional methods such as technical and fundamental analysis remain popular, some market participants are turning to an unconventional approach – lunar cycles. The idea of using lunar cycles to predict stock market behavior may seem esoteric, but a growing number of proponents argue that the moon's phases can offer valuable insights. In this article, we explore how traders and investors are leveraging lunar cycles in their quest for predictive trading.

The Concept of Lunar Cycles

Lunar cycles refer to the recurring patterns of the moon's phases, as it orbits the Earth. The lunar month, spanning approximately 29.5 days, sees the moon transition from a new moon (invisible) to a full moon (completely visible) and back again. Advocates of lunar cycle trading believe that these moon phases have a subtle but significant impact on human behavior and, by extension, market sentiment.

Trading with the Moon Phases

One common approach among lunar cycle traders is to observe the market's performance during specific moon phases and discern patterns over time. For instance, some traders look for correlations between bullish trends and the occurrence of full moons, theorizing that the increased brightness of a full moon may positively influence investor confidence.

Others track the new moon phase, associating it with the beginning of new market cycles or shifts in momentum. The new moon's darkness might be perceived as a time of uncertainty, prompting traders to exercise caution and possibly reduce their exposure to risk.

Statistical Analysis and Data Mining

To apply lunar cycles to trading, proponents rely heavily on statistical analysis and data mining. They comb through historical market data, comparing it with lunar phases, in search of any consistent relationships. While some studies have suggested correlations between moon phases and market behavior, the results are often mixed and inconclusive.

Behavioral Psychology and Sentiment Analysis

The basis for lunar cycle trading lies in behavioral psychology, as it is believed that human emotions and decision-making can be influenced by celestial events. Behavioral finance scholars argue that investors' decisions can be impacted by external factors, including the psychological effects of the lunar cycle.

Critics and Skepticism

Despite the growing interest in lunar cycle trading, skeptics remain unconvinced about its efficacy. They argue that any observed correlations between moon phases and market movements may be mere coincidences or the result of data mining bias. Furthermore, market behavior is influenced by numerous complex factors, and attributing it solely to lunar cycles oversimplifies the complexity of financial markets.

Conclusion

While the concept of using lunar cycles to predict stock market movements is intriguing, it remains a subject of debate and skepticism. Traders and investors should approach such unconventional methods with caution and not abandon well-established analytical techniques. As financial markets continue to evolve, it is essential to remain open to innovative ideas while maintaining a critical and empirical approach to trading strategies. Ultimately, successful trading demands a robust understanding of market dynamics, risk management, and a disciplined approach to decision-making.

Using technology to predict market moves

Tags: , , , , , , , Trading Insights
featured image

Unveiling the Future: Leveraging Historical Patterns and Modern Computers for Predictive Insights

The study of history has always provided valuable insights into the present and future. In the realm of finance, historical patterns serve as a treasure trove of information for predicting future market trends. With the advent of modern computers and advanced data analysis techniques, harnessing the power of historical patterns has reached new heights. In this blog post, we will explore how historical patterns, in combination with modern computing capabilities, can be leveraged to make accurate predictions about the future of financial markets.

Big Data and Machine Learning
Modern computers equipped with powerful processors and vast storage capabilities enable the analysis of massive amounts of data. By applying machine learning algorithms to historical market data, computers can identify intricate patterns that may go unnoticed by human analysts. These algorithms can uncover complex relationships, correlations, and non-linear trends, empowering investors to make more precise predictions and informed investment decisions.

Algorithmic Trading
Algorithmic trading relies on sophisticated computer programs that automatically execute trades based on predefined rules and strategies. These algorithms can incorporate historical patterns, technical indicators, and market data to generate buy and sell signals with minimal human intervention. By leveraging the computational power of modern computers, algorithmic trading systems can identify and act upon market patterns in real-time, potentially capitalizing on fleeting opportunities.

High-Frequency Trading
High-frequency trading (HFT) utilizes ultra-fast computers and advanced algorithms to execute trades within fractions of a second. These systems can analyze historical patterns and real-time market data simultaneously, enabling traders to capitalize on short-term price discrepancies and exploit market inefficiencies. By leveraging the speed and computational capabilities of modern computers, HFT firms aim to gain a competitive edge in predicting and reacting to market movements.

Data Visualization and Pattern Recognition
Modern computers enable the visualization of complex data sets, allowing analysts to identify patterns visually. Data visualization tools can plot historical market data, overlay technical indicators, and display patterns such as support and resistance levels or trend lines. These visual representations enhance the human ability to recognize and interpret patterns, supporting decision-making processes and enabling investors to anticipate future market trends.

Conclusion
Combining historical patterns with modern computing capabilities revolutionizes the way we predict financial markets. The immense processing power, machine learning algorithms, algorithmic trading systems, and data visualization tools available today empower investors and analysts to uncover hidden patterns, make accurate predictions, and capitalize on market opportunities. However, it is important to remember that human judgment and expertise are still essential in interpreting the insights provided by computers. The symbiotic relationship between historical patterns and modern computers holds immense potential for navigating the dynamic landscape of finance and unlocking the future of market prediction.

Chat GPT interviews WD Gann

Tags: , , , , , , Trading Insights
featured image

Interviewer: Good afternoon, Mr. Gann. Thank you for taking the time to speak with us today.

W.D. Gann: It's my pleasure. Thank you for having me. This is a nice change up for me, actually. 

Interviewer: How's that?

W.D. Gann: There's no Wall St. in heaven, and I miss the markets a little, to be honest. I like talking about them to other people. 

Interviewer: Happy to provide a change of pace for you. Can you tell us a little about your family and how they supported your interest in trading?

W.D. Gann: Certainly. My father was a farmer, but he also had an interest in the markets, and he encouraged me to pursue my own interest in trading. My mother was also very supportive and instilled in me a strong work ethic and determination to succeed. 

Interviewer: Mr. Gann, can you tell us what life was like for you as a young boy?

W.D. Gann: Certainly. As I said, I grew up on a farm in Texas, and as a young boy, I was responsible for helping out with the chores and working in the fields. It was a hard life, but it taught me the value of hard work and perseverance. Despite our rural surroundings, my parents placed a high value on education, and they encouraged me to read and learn as much as possible. I spent many hours reading books on a variety of subjects, including science, mathematics, and history. These early experiences had a profound impact on my later life and career.

Interviewer: Mr. Gann, can you tell us what life was like in the town you grew up in?

W.D. Gann: Sure. I grew up in a small town in Texas - Lufkin -  and life there was very different from what it is today. It was a close-knit community, and everyone knew each other. People worked hard to make a living, and there was a strong sense of self-reliance and independence. I remember spending many hours working on our family farm and helping out our neighbors. We didn't have many of the conveniences that we take for granted today, such as electricity or indoor plumbing, but we made do with what we had. Despite the challenges, it was a wonderful place to grow up, and I'm grateful for the lessons and values that I learned there.

Interviewer: That's interesting. How did you develop your interest in the markets?

W.D. Gann: I became interested in the markets after working as a telegraph operator for several years. I was fascinated by the fluctuations in market prices and the ways in which various factors could influence those prices. I spent countless hours studying and analyzing market trends, and eventually developed my own unique approach to trading.

Interviewer: Ever take time to settle down and start a family in-between all those books?

W.D. Gann: (laughs) Yes, I actually came out of the library into the sunshine from time to time. Long enough to get married in fact. 

Interviewer: Yes, I was going to ask you about that. Can you tell us a little about your wife, Nora?

W.D. Gann: Yes, I married Nora in 1902, and she was a wonderful wife and mother to our six children. Nora was a strong and supportive partner in my work, and she played an important role in my success as a trader. She helped me with my research and analysis, and she encouraged me to continue pursuing my interest in the markets even when times were tough.

Interviewer: Can you tell us more about your children?

W.D. Gann: Certainly. We had four daughters and two sons. My children were a great source of joy and inspiration to me. I encouraged them to pursue their own interests and passions, just as my parents had encouraged me. While none of my children became traders like me, they all went on to successful careers in various fields.

Interviewer: It's wonderful to hear about the support of your family. Can you tell us how they influenced your work as a trader?

W.D. Gann: My family was a constant source of inspiration to me. They encouraged me to pursue my dreams and to never give up, even when things got tough. They also played an active role in my work as a trader. My wife, Nora, was a trusted partner who helped me with my research and analysis. My children were also interested in my work and often asked me questions about the markets. Their support and encouragement helped me to stay focused and motivated throughout my career.

Interviewer: Tell me a little about your siblings. Big family?

W.D. Gann:  By your standards, absolutely. I had three brothers, and two sisters, who were quite a handful for my parents. One of my brothers - John - he left the farm and became a successful businessman and actually helped me with my trading career by providing financial support in my early days. 

Interviewer: How important was the support from John?

W.D. Gann: It was tremendous - and a huge blessing. During my early days, John's backing allowed me to trade more capital than I could have otherwise, which allowed me to take bigger risks and build my working capital up exponentially faster. John believed in me, and was proud of my accomplishments later as I refined my techniques. 

Interviewer: Can you tell us more about your trading strategies?

W.D. Gann: My approach to trading is based on a combination of fundamental and technical analysis. I studied market cycles, price movements, and other factors that can influence the market. I also relied heavily on astrology and numerology to predict future market movements. But it's important to note that I didn't rely on these methods alone. I combined them with rigorous analysis of market data and trends.

Interviewer: You mentioned using astrology and numerology to predict market movements. Can you tell us more about how you used time and vibration in your trading?

W.D. Gann: Yes, time and vibration were key elements of my approach to trading. I believed that everything in the universe, including the markets, followed certain natural cycles and patterns. By understanding these cycles and patterns, I could make more accurate predictions about future market movements. I used various techniques, such as calculating price and time targets based on geometric patterns, to identify these cycles and patterns.

Interviewer: That's fascinating. Can you give us an example of how you used these techniques in a trade?

W.D. Gann: Sure. In one trade, I used a technique known as the "Square of Nine" to calculate price and time targets for a particular market. Based on my analysis, I predicted that the market would reach a certain price level on a specific date. When that date arrived, the market did indeed reach that price level, and I was able to make a significant profit.

Interviewer: Mr. Gann, your trading techniques were quite unique and unconventional for your time. Astrology. Predictions. Geometric patterns. How did people react to them when you first introduced them?

W.D. Gann: Well, when I first began using my techniques, many people were skeptical. They thought that my approach was too complex and esoteric, and they didn't believe that it could produce consistent profits in the markets. However, over time, as I began to share my ideas and techniques with others, more and more people began to see the value in what I was doing. Eventually, I gained a reputation as one of the most successful traders of my time, and my methods became widely respected and imitated.

Even today, many traders continue to study and use my techniques in their own trading. Many still don't believe that time predictions can work though, something I've been observing from up here. It's disheartening. 

Interviewer:  Meaning?

W.D. Gann: I'm was always fascinated how complicated people made their trading decisions because they didn't believe the markets were predictive. After I was interviewed for the Ticker and Investment Digest - and they reported on my trades - people still didn't believe markets were predictive. Apparently that still holds true today. My friend Richard Wyckoff said that people don't like 'thought and research'...hated it, in fact. I can see how my techniques might intimidate them based on his assessment. It requires a little extra analysis. A leap of faith, if you will. 

Interviewer: Interesting.  What advice would you give to new traders today?

W.D. Gann: My advice would be to never stop learning. The markets are always changing, and it's important to stay up to date on the latest trends and developments. It's also crucial to develop a solid trading strategy and stick to it, even in the face of adversity. And to study Vibrational law, and the cycles of the markets. It's all based on Nature and Natural Law - which never changes. 

Interviewer: Thank you for your time and insights, Mr. Gann. It's been a pleasure speaking with you.

W.D. Gann: Thank you for having me. 

What's the big deal about WD Gann?

Trading Insights
featured image

W.D. Gann, also known as William Delbert Gann, was a financial trader, analyst and author who lived in the early 20th century. He is widely considered to be one of the most successful traders of his time, and his methods and theories are still studied and used by traders today.

Gann's primary focus was on market forecasting using geometric angles and time cycles. He believed that the movements of financial markets could be predicted using mathematical and geometric principles. He developed a number of techniques for analyzing charts, including the use of angles, which he believed revealed the underlying trend of the market. He also used time cycles to predict market turning points, and believed that certain dates were more significant than others in the market's movements.

Gann also placed a strong emphasis on the importance of understanding the fundamentals of the markets, and believed that a trader should have a deep understanding of the underlying economic and political factors that drive market movements. He believed that the most important factors in determining market movements were supply and demand, interest rates, and the overall state of the economy.

One of Gann's most famous contributions to trading analysis is the "Square of Nine," also known as the "Square of 144." This is a geometric chart that Gann developed, which he believed could be used to predict market movements. The chart is based on the number 9, which Gann believed had special significance in the markets. He believed that the Square of Nine could be used to identify key levels of support and resistance in the markets, and that it could be used to predict market turning points.

Gann's methods and theories were not without controversy, and some traders and analysts have criticized them for being overly complex and difficult to apply in practice. However, many traders still find value in his work, and Gann's methods continue to be studied and used by traders and analysts today.

Gann's work has also influenced many other traders and analysts in the field, including Ralph Elliott, who developed the Elliott wave theory, which is based on the idea that market movements are fractal and repetitive in nature. Gann's work also influenced other trading gurus like R.N. Elliott, and W.D Gann's work is considered as a foundation of the technical analysis.

In conclusion, W.D. Gann was a pioneering trader, analyst, and author of the 20th century whose methods and theories are still studied and used by traders today. His focus on market forecasting using geometric angles, time cycles and understanding the fundamentals of the markets, has been a great contribution to the field of trading analysis. Despite some criticism, Gann's work continues to be studied and used by traders and analysts today and his work has also influenced many other traders and analysts in the field.

Overcoming the emotional stress of trading

Tags: , , , , , , Trading Insights
featured image
Traders, whether they are trading stocks, currencies, or any other financial instruments, must learn to control their emotions if they want to be successful. This is because emotions can often cloud judgment and lead to poor decision making, which can be costly in the fast-paced world of trading.
 
One way for traders to control their emotions is through the use of risk management techniques. This includes setting clear and defined risk limits for each trade, as well as having a solid trading plan in place that outlines the steps to be taken in various market conditions. By having a plan and sticking to it, traders can remove some of the emotional decision making from the equation and rely on a more systematic approach. We're amazed, after being in business for over 13 years. When we ask people to show us a copy of their trading plan, on average fewer than 5% of people we meet who describe themselves as day traders have an actual physical written out trading plan with any type of a statistical edge. Most people are 'shooting from the hip' and basing trades on 'in the moment' decisions that fail quite often. 
 
Another way to control emotions is through mindfulness and self-awareness. Traders should take the time to recognize and understand their own emotions and how they may be affecting their decision making. This can be done through mindfulness practices such as meditation, which can help traders gain clarity and focus, as well as through self-reflection and journaling. We have many customers who will actually monitor their emotions and ask themselves each day before they trade 'how do I feel?' They measure themselves objectively (physically and mentally) and rate their wellbeing. If they are less than a 7, they will only trade in SIM that day. They build in this emotional/physical 'circuit breaker' to make sure they're only trading when they are mentally optimal, and not prone to self sabotage that day. 
 
Traders should also be aware of their own biases and try to avoid letting them influence their trades. This includes avoiding overconfidence, which can lead to overtrading, as well as avoiding the sunk cost fallacy, which is the tendency to continue investing in a losing trade in the hopes of recouping losses. Instead, traders should focus on the potential future returns of a trade rather than the past performance or emotions associated with it.
 
It is also important for traders to remember that they cannot control the market, and it is important to accept this reality. Trying to fight the market or hold onto a losing trade can lead to emotional decision making and ultimately result in further losses. Instead, traders should focus on controlling their own actions and making decisions based on logical analysis and their trading plan. One of the reasons we developed our predictive software - was based completely on this idea. By understanding that markets had an element of institutional 'manipulation', we are able to study what is likely to happen in the future, versus fighting the market and trading it the way we would like it to go. 
 
To further control their emotions, traders can also seek the support of a mentor or a trading community. Having someone to discuss trades and strategies with can help traders gain perspective and avoid making emotional decisions in the heat of the moment. It can also be helpful to have a support network of fellow traders who can provide guidance and encouragement.
 
In summary, controlling emotions is crucial for traders in order to make sound and profitable decisions. This can be achieved through risk management techniques, mindfulness and self-awareness, avoiding biases, accepting market realities, and seeking support from mentors or trading communities. By learning to control their emotions, traders can improve their chances of success in the fast-paced and often volatile world of trading.
 
 
 
 

Why do new traders fail so often?

Trading Insights
featured image

There are several reasons why most retail traders lose money in the stock market. One of the main reasons is that many retail traders do not have a good understanding of the markets and how they work. They may lack the knowledge, experience, and discipline needed to make informed trading decisions. This can lead them to make costly mistakes, such as buying or selling at the wrong time or investing in risky assets.

Another reason why many retail traders lose money is that they often trade on emotions, rather than following a disciplined trading strategy. This can cause them to make impulsive decisions that are not based on solid analysis, which can result in significant losses. One of the most powerful resources for many of our customers in this area, has been a book written by trading psychologist, Mark Douglas. In his book, "Trading in the Zone", Douglas forces traders to closely examine this psychological element of their trading. Many of our customers read his book once a quarter as to remind themselves that trading is really a numbers game - exploiting a statistically relevant edge over time. 

Furthermore, the stock market can be unpredictable, and even the most experienced traders can sometimes make mistakes or encounter unexpected events that result in losses. This is why it is important for retail traders to carefully manage their risks and not invest more money than they can afford to lose.

Overall, the combination of a lack of knowledge and experience, emotional trading, and the inherent unpredictability of the stock market can make it difficult for retail traders to consistently make profitable trades. We believe our predictive indicators for futures, forex, and equities traders can assist with many of these problems early on - giving traders a psychological edge with simple rules based systems with signals they know are coming in the future which reduces psychological anxiety. 

Contact us today if you'd like more information about our 4.9 star rated software and training programs. 

Dow Jones Industrial Average Futures

Trading Insights
featured image

The Emini Dow Jones gave us the possibility to get exposed to the 30 of the largest companies in the U.S. Representing a portion of the standard Dow Jones Industrial Average futures, these E-mini products allow us to short the index without stock loans or variable fees.

The Emini Dow Jones is one of my favorites in the future market because of its predictable behavior. Using the predictive software “WARP” in one minute chart, I enjoy my first 1 or 2 hours of trading because the patterns based on time that the software gave me in advance are really accurate.

Today in the New York session, at the opening, we have the retail sales report and the industrial production report. I check my calendar expecting that the volatility increases in those periods of time.

The first buying trade is shown at 8:39, the candle closes over the 120 EMA, I prefer that the candle close above the 120 EMA but is a valid trade, after that you can close the trade at 8:48 am.

A Candle closed above the 120 EMA with a timestamp under it it’s a buy pattern. A Candle closed below the 120 EMA with a timestamp above it it’s a sell pattern.

The second trade is another technique called crossover and is activated when the candle crosses below the 120 EMA at 8:50 am. You open the sell entry and hold it until 9:06 am. That was a great trade. Notice that the trade occurs during the news, but with the Warp predictive software, the entry and the exit of the trade were known 2 days ago.

The third trade is another sell pattern from 9:12 am until 9:24 am with a positive result. The last, the fourth one, is another sell trade with a stop out.

There you have it. 1.5 hours of trading with 4 trades. 3 trades won and 1 lost.

Juan Fernando Vega

Mechanical Engineer

Bogotá-Colombia

Spanish – Support

Skype: juanvegam