Trading Insights

Trading Insights

UNDERSTANDING THE PATTERN 2 IN DOW JONES

Trading Insights
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Warp predictive software have a manual who describes different patterns to execute approved entries. Today we are going to analyze the Pattern number 2 in Dow Jones. These are the rules for that pattern:

  • The trade is activated when the candle closes at the specific time stamp in the chosen timeframe shown by Warp predictive software.
  • The closed candle is above the 120 EMA
  • The stop loss is below the ATR line plotted by the timestamp, 1 tick under

I open this trade with 4 contracts at 8:42, a little bit late but checking the last rules is valid. My stop loss initially is under the green line, plotted by the 8:42 timestamp. I move the stop loss at point of break-even + 2, because there are already more than 15 ticks of profit.

I like to take partial profits, or you can hold the trade until 9:03. The yellow line is a swing high that you can´t see in the picture, so, I move my first 2 contracts under that line to cover that position. I use a line or an arrow (Yellow) to measure the first “swing” and predict with the same size the second leg, and I wait and cover the first 2 contracts.

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After that, when the candle closes at 9:03 I move the stop loss under it.

The next 3 minutes the price stops me out.

Juan Fernando Vega

Mechanical Engineer

Bogotá-Colombia

Spanish – Support

Skype: juanvegam

 

UNDERSTANDING THE PATTERN 5 IN NASDAQ

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When I purchase WARP, predictive software, I have two main objectives.

The first one two reduce my indecision to opening trades and the second one when to close the open trade. There are different techniques you can apply to reach those goals, and are based in your account balance, appetite to risk, and number of contracts used.

It’s important to understand the way this predictive software works. Therefore, you have a manual for that, a pdf file that explain the system.

When I start trading with this software y just focused on easy patterns above or below the 120 EMA, it means buy and sell, if the dot timestamp signal appears above or below the EMA. I become an expert to know when to open and close the trades based on times. But today I want to explain an advanced pattern, and it’s the pattern 5. You can get good entries with a reduced stop loss if you understand it.

In the picture the first trade appears after 8:29, the time ends, the red (ATR) level is drawn and the candle in minute 31 make a puncture over passing and closing over the red line validating the long trade. But in Nasdaq I like to open trades after 3 or 4 minutes after the opening bell, so I avoid that trade, is just my preference. So, my next time stamp it’s at 8:36. It’s a buying dot but, I do not open the trade under these criteria:

  • The bars at the left of the dot, are making higher highs
  • The candle that closes at 8:36 make a new higher high

The concept is simple, and I follow the next steps in my mind to open the trade:

  1. Wait that the candle closes and start to be drawing the ATR dotted line (in green)
  2. Option one: put a buy limit 1 tick above the green dotted line, if is activated I put my stop loss below the EMA or in the last swing low at my left
  3. Option two: The “U” turn shape. Wait until one buying candle appears and close above the green line and activate the trade manually, the stop loss is under that candle or in the last swing low at my left.

If you have just one contract you can:

  • Take profits in the last high at your left
  • Or move your stop loss under the medium candle the crosses the reversal high and hold it until 8:56

I trade with 4 contracts:

  • My first two contracts are covered in the reversal line
  • I move my Stop loss under the last swing low (when says “partial profit” in the picture.
  • Move the stop loss under the closed candle at 8:56 am and get stopped out.

Juan Fernando Vega

Mechanical Engineer

Bogotá-Colombia

Spanish – Support

Skype: juanvegam

Emini ES – Range at Opening Bell

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As a user of Time Warp Software, I always expected that my timestamp signals for my daily trade sessions are organized and give me great moves, specially at the beginning of the opening bell market.

The most difficult types of markets that you can find are the range markets, because you will have a sequence of inverted patterns, or the markets does not move so far as you wish or see past days, or you must avoid some entries. Understand the patterns and the technique of the predictive Warp Software could help you to save the day.

In the chart I have a selling pressure signal at 8:59 but the candle closes in the 120 EMA. The time stamp defines his red dot line (Based on the ATR of the moment), and when I see a big blue candle closing below the 120 EMA, I open the Trade.

I make the mistake to leave my first profit target below the green ATR line of the 8:45 time stamp. I must put it above. That cost me that for just 1 Tick I can not grab or close my first 2 contracts and must wait almost 25 minutes. Let see.

Because the price pullback now I have to:

  1. Close all positions at 9:16, that could have minimum loss
  2. Leave the stop loss at the actual position and try to reach the last low at my left
  3. Wait until 9:24 timestamp closed candle, wait that the line green appears, and see if a “punchure” of that level could occur.

I wait for the third option but:

  • The 9:24 timestamp was a buy pattern. I did not take it cause the candles in 30 minutes of trading never crossed the last highs levels
  • And I have and open trade already

I cover my first 2 contracts after 25 minutes waiting

  • I let the price run and tight my stop level when cross the 9:24 level
  • Then I cover the third contract

Move my stop loss above the next ATR level until the price stops me out

Juan Fernando Vega

Mechanical Engineer

Bogotá-Colombia

Spanish – Support

Skype: juanvegam

 

Gold – Thanksgiving Week

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We are starting the thanksgiving week. For today trading session I have selected the Gold Futures contract. When i have an extended move before the opening, I like to wait to trade the pullback after the 8:30. To be sure to find the right spot I read the time stamp signals that Warp predictive software gave to me in advance. With my actual setup i see a potential selling signal at 8:45. Because the last bullish leg is so deep, I wait a few candles after the candles closes at 8:45 and I DON’T open the trade. The price cross and touch the ATR level (line in red), appears a bearish candle that a called “1st attempt” for the sellers, and the “2nd attempt” the candle close below the ATR level and I open the trade. I do this because I want to be sure that the sellers are going to try to retest the last low. The first target is reached.

I move my stop loss at point of entry plus 1 tick and use the ATR level of the 8:19 time stamp as a point of support. My third contract is above that level.

For the last contract you can try to reach the last lower low or, wait until the candle closes at 9:04

When time ends at 9:04 I move my stop loss above that candle and leave it. You never know if the price can cross the ART level of the 9:04 timestamp.

The price stops me out I reach my personal profit target and the day it’s over for me.

Juan Fernando Vega

Mechanical Engineer

Bogotá-Colombia

Spanish – Support

Skype: juanvegam

 

Emini – NASDAQ - NQ

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For today's trading session I selected the Emini Nasdaq. Before the opening, and with my setup for Warp predictive software, the timestamps show me bearish potential price action. I like to wait sometimes until the minute 33 when the price action is extended or not near the 120 EMA (Blue), like in this morning

Look the timestamp at 8:30 (The most volatile time) shows me a P2 pattern. It means the I am authorized by the rules of this trading predictive system to open a selling trade. Red dot under the 120 EMA. But as I said after the opening, I like to wait a few minutes to read the candles. So, a violent candle crossover the 120 EMA at minute 33 and I take my first trade, my stop loss is at the 50% of the candle, or in the red line of the 8:30 time stamp. My first 2 contracts are covered (1:1 Risk/Reward Ratio), and I move my SL at point of break even.

I look at my left and take profits below the next swing high.

I want to cover my last contract at 8:39, but in my experience with the Nasdaq I always trail my stop with the big candles

At this moment I made more than $2K in 6 minutes of trading.

If you want to continue just wait until the next signal. In this case with the bullish runaway, I expected a deeper pullback. At 8:50 there is a buying pressure signal, but I wait the “U” turn, that means that after connect an countertrend line (Cyan color), I reduce my position, wait that the level (green line) is tested, and open the trade and grab other $400 with one contract

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

Emini-S&P 500 – Crossover in the 120 EMA

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When you trade with Warp predictive software you learn how to read the hidden price action when a signal appears.

If you have doubts, I invite you to join the live trading sessions.

For today Emini S&P Trade, we are going to analyze one trade that I avoid, then wait to get more info and then open mi first trade.

In the chart the vertical green region is the opening bell. At 8:37 am we have the first BUY pattern, and I didn’t take it. Why? Look the 8:24 am time stamp and the red line plotted by itself. At the opening the price couldn’t cross above that line forming medium wicks in the candles. That’s a good resistance level (White square). The candle at 8:37 is closed with a big wick, making me think that a reverse could be come.

The price makes the first crossover at the 120 EMA but does not cross the 8:37 level, I wait the second attempt trying to cross the EMA and the green price level, and I open the trade.

If you missed it, you could put a sell limit order at the middle of the third big candle (the one that crossed both levels) in the middle of it or the 50% of his body.

My objectives? cover fast the 1:1 and hold the position until 8:52 time stamp. I cover my first 3 contracts and move my SL (Stop loss) at point of break even.

Now with profits you can:

  • Do not move the stop loss and wait until the next timestamp or
  • Manage your trade and trail the stop until the price stops you out.
  • Wait the 8:52 candle that closes and close the trade.
  • Wait the 8:52 candle that closes and try go further to the 9:06 time stamp

I do the fourth move and trail my stop loss level

The price stops me out but makes a HUGE move!!

It also stops me out to early 😉 but was a great analysis and the movement closes lower at 9:06 time stamp

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

 

ATR AND PRICE ACTION Emini-S&P 500

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Today's trade includes the puncture technique, a pullback to the ATR level and a pattern 2

Warp software include some rules to follow. Just read the last articles to understand them.

Look the 8:27 time stamp, it defines a horizontal line based on ATR calculations made by Warp predictive software. At the opening bell the price is rejected above, in the 120 EMA (Blue color). With that concept I open my first trade when the level of the time stamp is crossed down. My first target is the lower low at my left, my stop loss is above the candle that gave me the signal, and my final target will be at 8:54 time stamp.

The first target is reached, I move my stop loss at point of break even (BE). I identify the next lower low at my left again as a reversal level line.

The price reverses and stop me out. Remember the las article when I explain that I always like to put partial profits in my account

My next trade I use the ATR level again and Price action. At the minute 8:40, the price reaches the ATR level defined by the 8:27 time stamp again! So, I open the second trade. I reduce my position with 2 contracts. After reach the 1:1 level of positive move I move my stop loss to BE point.

The first target is reached

And after that I just follow the price manually until the price stop me out. I follow the price because the candles are so big, that the imminent reverse will appear.

For the next entry, just wait for the 8:54 timestamp to activate the third trade that is a Sell pattern 2, and repeat the process.

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Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

 

Emini-S&P 500

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We are starting the week with one major ahead at 9:15.

Today a trade the EMini ES with the setup show in the next picture, using the WARP predictive software.

I take 2 trades. The first one at 8:30 with 4 contracts. Stop loss 1 tick above the red line of the timestamp at 8:30, first objective at the green line defined by the 7:49 am time stamp, to grab some profits, and for the other 2 contracts I want to hold them until the las lower low at 7:50 or until the 8:39 time expires that is the next time signal

The first 2 contracts were covered

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And I move my Stop loss at point of break even

The next objective it’s the lower low at my left. I move closer the stop loss because the time window ends at 8:39, and the price could reverse.

My Stop loss close my last contract as expected.

The second entry is a puncture technique at the line plotted by the 8:42 am time stamp. 2 contracts covered for the 1:1 profit

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At this point, I move my stop loss at point of BE. The 8:48 time stamp could reverse as a pattern 5, so I covered the third contact manually

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For the last one I follow the price with each closed candle until it stops me out

You could also leave that last contract until 9:09 and would be a winner too, you decide.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

 

DOW JONES (Emini-YM)

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There are sometimes when the opening could be messy like today in the Emini Dow Jones.

Based on the indicator setup you have for your Warp predictive software you will have more or less number of printed dots.

I open trades in 1-minute charts always. Check the 8:28 timestamp in the chart below 2 minutes before the opening. As you read in my articles, I don’t like to open trades before the opening bell. Sometimes I do but based on the previous analysis I take the risk. This time stamp forms a pattern 5 when the candle closes at minute 28, I just wait, the price bounces on the 120 EMA of 3 minutes (Grey one) at minute 33. The price goes back to the last high (8:09 Time stamp), but never cross that high, So I think, when the price crosses the 120 EMA (Turns blue) I take the short. At minute 37 is the first try, you could open a trade there. When the market seems to be messy, I like to wait a second attempt, so, in the candle of the minute 36, I open the trade.

Now be aware of the timestamp at 8:45, if the price continues going lower, and time finishes, creating a lower low, a pattern 4 will be created. For that reason, I take partial profits (2 contracts).

For the last contract I move my stop loss at point of breakeven, and leave it, I want to see if I can reach the next timestamp (9:02)

As expected, the price reverses, and take me out.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

 

Are you ready for fast Movements?

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This article combines different techniques for Warp predictive software. These techniques are described in the last articles. You can read them and understand the terminology, and the concepts read here.

The promise of Warp predictive software is, when you see a signal just trade them following few rules. In other articles I explain that personally I don’t like to exactly the open I wait after 3 minutes and give it a try.

Today before the open in the Emini Nasdaq, there was a red dot bearish stamp signal at 8:30 , let’s say very tempting. I decide to trade it. Nasdaq is fast, and my advice for you is, that if you never have trade Nasdaq at 1 minute chart, do it in mayor timeframes like 3 or 5 minutes.

**Always wait until the candle closes**. Five (5) seconds before it closes, I hit the sell button:

Mentally i:

  • Know that a pattern 4 will be formed (reverses), the price is creating lower lows at the 8:30 stamp.
  • Check at my left the last Lower low
  • Draw a line to help me to see it
  • That low is my first take profit zone (I want to cover my first contract there (some cash in!!). When I cover the contract, I move mi SL at BE point.
  • Where? I used the green line plotted by the 8:13 am stamp
  • I ask to myself? where do I cover my second contract?
    • Option 1: at 8:54
    • Option 2: Split the distance between 8:30 and 8:54 in three parts and cover the contract in the first third.
    • Option3: If I cover the first contract and my SL is in place, I leave it: or Stop me out or I reach option1.

That’s my mental process but all this analysis happens in less than 2 minutes after I open the trade.

In this chart, ATM automatically move 1 SL to BE. My hand is in the second contract ready to move it to BE if first contract is covered.

First contract covered in the last low., I’m in the minute 31…

The price reverse so fast and stop me out. The option 3 of my initial analysis was fulfilled.

This chart will help you to understand the steps

Nearly $600 usd in minute trade, really fasttt!!!!

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam