Trading Insights

Trading Insights

Pattern 1, Crossover and puncture Techniques for Warp Predictive Software

Trading Insights
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When you see me trading Emini Nasdaq using Warp predictive software I use the green dots over the 120 EMA as buy signals; It’s called Pattern #1.

The red dots under the 120 EMA are used as sell signals and is called Pattern #2. When you buy the software, you have all these configurations in a Handbook in PDF format.

For today with the setup that I have for my predictive signals, shows me my first buy opportunity at 8:37. At this point you open the first trade (ENTRY 1), this is a Buy P1 pattern, and with 2 contracts or more you can:

  • Take profit at the las high first, move your SL at point of break even and,
  • Close the second contract or rest of the contracts at 8:51 when the time for that candle in the 1-minute chart ends.
  • Or you can close all contacts at 8:51

For the entry number 2 (ENTRY 2 in the chart) I used the crossover EMA 120 technique. You wait until the candle closes under the 120 EMA, open the trade, the stop loss is above 1 tick over the candle, and you take profits at the next timestamp when the time of that candle expires.

For the entry number 3 (ENTRY 3 in the chart) I used the puncture technique. It consists in wait a candle that crosses and close under the green level defined by the 9:03 signal and open a trade short. The stop loss is above the candle 1 tick and you can grab 5 to 8 ticks of that move easily.

There you have it, Pattern 1, Crossover and puncture Technique for Warp predictive Software and the correct way to manage risk and take profits.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

 

ARE YOU AFRAID OF BIG CANDLES?

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When I’m ready to open a trade using predictive WARP software, I use a predefined simple plan. There are 4 techniques defined to use when you trade with our software.

  • Buy or Sell above or below the 120 EMA, when you have a white or a blue dot
  • Buy or Sell when a candle closes over the 120 EMA
  • Buy or sell on a stablished defined point using the candle closed over the line the dot prints.

I have already explained them few past articles before. But under my armor, I have other advanced tips that I want to share.

Today I trade Nasdaq, and we have DGO (Durable Good Orders) and EIA Petroleum Status Report news for today. At my charts I have a vertical green line, that remembers me, to trade after the opening bell when the minute 33 is ended. With that in mind, the rule of this trading system tells me to open a trade at 8:34. But the candle at the minute 32 is so big that ending that minute, as fast as I can I put a Buy Limit order at 50% of the movement, expecting to enter in a lower price.

The price makes the pullback and activate my trade. So, for BIG CANDLES use the 50% pullback technique. If you don’t want to do that type of moves, you just wait until the 8:34 signal to open the trade, you can choose.

I have an ATM defined for the Nasdaq so my stop loss, and profit targets for 4 contracts are defined. The price continues with previous momentum and closes 2 positions and I move fast my stop loss at break-even point.

When that happens, I just apply some risk management concepts. From now until 8:37 I am going to trail my stop, candle by candle but, I want to see a second week candle to do that.

The prices go higher and covers my third contract, and I keep moving my trailing stop

When the 8:37 timestamp signal ends, I can close the trade or wait and see if “they” want to push higher the price until the red line that the timestamp signal drew in the chart. My last contract is the “runner” I’m I profit, so I can explore that option.

The price stops me out and I ended my day in 9 minutes of trading. Now you have another technique under your personal trading armor.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish – Support

Skype: juanvegam

 

August 16-21 – Emini Nasdaq (NQ)

Trading Insights
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There are 4 techniques defined to use when you trade with our software.

  • Buy or Sell above or below the 120 EMA, when you have a white or a blue dot (I use red and green dots in this setup)
  • Buy or Sell when a candle closes over the 120 EMA
  • Buy or sell on a stablished defined timestamp using the candle closed over the line the dot prints.

In this article I use Warp (Predictive software) to explain the last one that is what I did today. We also don’t have major news, its Monday and the last week of the summer season.

If you read my articles remember that I defined a setup to have more space between the predictive signals. At the New York session open, my first signal is at 8:29 over the 120 EMA and for the Nasdaq I like to trade after the 8:33 minute, just to see how the price action reacts. So, I wait until the next signal that is at 8:45. That signal tell me to buy, but the candles before the timestamp (8:45) are making lower lows. The candle at 8:46, the white one, did not close above the last candle also.

I’m a little bit cassius, draw a trendline above the candles, trying to find a breakout of it. The price crosses the 120 EMA, and appears my first opportunity to go short. But I used the predefined signal at 8:45, to wait the puncture of that level. What it means is that I am waiting a candle that going down closes under that level. When that happens, I open my trade and go short.

My daily goal is $500 usd, I draw a yellow line from my entry point that has 30 ticks of distance that’s $600 usd for one contract of the Nasdaq

When the price reaches that level, I move my stop loss tight to the active candle, and in the pullback, it stops me out, for a $575 usd profit target

The same puncture technique could be used at the 9:06 line, that’s the entry 2, with a 51 ticks profit move until the next signal 9:21am

Hope this article helps you to understand the puncture technique.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

August 12-21 – Emini Nasdaq (NQ)

Trading Insights
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When i tell to the people that i trade the Emini Nasdaq in 1 minute chart, they used to say: “You are crazy” or “its to fast for me”

They didn't realize that are other intelligent ways to have a good lower risk with data mining. Warp is the software the allow me to achieve that task. Take a look.

Today was an special day, a lot of news that may you think: “Stay aware” of the volatility or just reduce your positions.

For risk management all is valid as long protect and preserve your capital. But when i trade the Nasdaq i open positions with 4 contracts, the size of my account allow me to do that.

At my predictive time stamp for today I have a sell signal at 8:31 am and at 9:00 am.

I just trigger the bottom at those times when the candle closes at the timeframe of 1 minute

Both trades gave me 57, 5 ticks x $20usd = $1.150 usd

My daily goal is of $500 so, 34 minutes of trading was enough for me. I like to watch the market sometimes until 11:00 am and today the market ends for me like this: 101 ticks from 8:30 am to 11:00 am for $2,030 usd.

All markets are predictable including Nasdaq with this technique; using Warp software (Data Mining – Predictive signals)

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

August 5-2021 – Emini Dow Jones (YM)

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I love Dow Jones with his long moves and personality. My new setup allows me to see more distance between the dots, to avoid “noise” between them.

I trade at 8:30 for the opening bell for the New York session, and some times I like to open a position before the opening bell. Only with this instrument I do that.

Today the news has already happened, I am 1 hour late, so I open my first trade. I saw my first stamp time signal at 8:25 and decide to enter long.

I cover my first contract, and the second contract stops me out at the break even point. I decided to open a second trade after i get stop out, fast and cover the new first new contract, when I saw this big candle. At that moment both contracts are at the break even point. I let the second one runs and close it at 8:35

I change to a new chart, I alternate between them in one i have a swing of 8 and in the other a swing of 15, thats why you see different time stamps between the images. And le the trade ends at 8:43

Now I wait until 8:54. I open my trird trade, with 2 contracts and close it at 9:06 the first one.

When the candle closes at that time stamp y move my stop loss under the candle and the next candle stops me out

This day I made with the Dow Jones 98 Ticks @ $5 = $490 usd in 35 minutes of time

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

July 28-2021 – E-mini Nasdaq

Trading Insights
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Today I continue with my Nasdaq setup trading at 8:30 opening bell for the New York session. For today we have GDP, Jobless claims and Pending Home Sales index

The Warp signals are using the secondary time value, where I put my 3 minute chart signals “over” the 1 minute chart of the same instrument. In that way I have more space between the signals. I'm using this setup since last week

I open my first trade at 8:33, before the candle closes the 120 EMA with 3 contracts. This is a risky trade cause the candle still alive and don't cross the 120 EMA, I'm aware of that.

I want to close at least 2 contracts at 8:35. When the price closes at that time, I like to trailing my stop loss candle by candle. As a risky trade by my early entry I move my stop loss at point of break even. The time of 8:35 expires so I use the green line defined by the dot as my objective for my first two contracts

The move reaches my objective and cover more than my daily goal ($500 usd) fast.

What i do when I see a big candle like this is move the stop loss at the green line and wait until next time stamp at 8:44. So candle by candle stops me out, or i reach the time stamp objective.

Then I just trail my stop as I explain before.

I cover my last contract with the big move and end my day happy.

33.5 Ticks x $20 x 2 contracts: $1.340

95.25 Ticks x $20 x 1 contract: $1.905

Total for the day $3.245

I'm very happy, the wild animal of Nasdaq controlled by Predictive signals, its a cute kitten.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

July 22-2021 – E-mini Nasdaq

Trading Insights
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For today trading New York session on the E-mini Nasdaq we have Jobless claims, at 8:30, Existing Home sales at 10 am. I like to check the daily news to be aware of the price action at those times.

 

In my 1 minute chart. The near predictive time signal is at 8:42 am. My Warp signals are using the secondary time value, where I put my 3 minute chart signals “over” the 1 minute chart of the same instrument. In that way I have more space between the signals.

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I open my first trade at 8:42 when the candle closes, and with that big candle I move my stop loss at point of break even.

By price action I decide to move the stop loss at the tail of the candle in the mini pullback.

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And I get stopped out.

I tried a second entry when I identify a pattern 4 in the 8:48 time stamp signal, I drew a countertrend line, and wait a candle that closes above it. The price came back again and stop me out.

The last Entry was at 9:09. I applied the same line I drew in the entry #2 and wait for a strong candle that closes over the line, and at last, this trade pays the day. I hold the position until 9:30 and close the trade manually.

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For today 28.75 ticks in the E-mini Nasdaq ($575 usd)

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

1 Minute Charts and DOW

Trading Insights, Uncategorized
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July 15-2021

I have been trading the Emini Dow Jones for a while and have defined a standard setup for my fast 1 minute chart as follows.

  • Swing:8
  • Origination Mode: Trading Days
  • Source Days: 1-2-3-4
  • Volatility Stop Offset ATR: 1,2

I have noticed that sometimes not always, a have too much closer dot signals, and when it happens, I just saw my 3 minute chart in another screen. Cause I like to see all my 1 minute chart in one screen, I take advantage of one utility of the Warp software called “Secondary Data Series”.

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It allows me to:

  1. “overlap” any major timeframe of the same instrument in my actual chart,
  2. Or put the data and predictive signals of another instrument “over” my actual instrument.

For today I am using the first one.

So, I used the same swing of 8, like always, and add the same instrument contract YM 09-21 but with a period value of 3.

It means that in my 1 minute chart I can see the dots signals of the 3 minute chart of the YM.

I want more clean signals, and as result I expect better swing trades during my Ney York session.

I always used the color white and yellow, for my dot signals in 1 minute chart, but for this setup I change the colors.

Red for selling pressure signals, and lime green for buying pressure signals.

My trading plan is the same, trading the YM with 3 contracts.

As I expected the time between predictive signals are longer (More distance). So, I decided to open my first trade at 8:21 a little bit late. The entry signal was at 8:19. Also knowing that the opening bell was at 8:30. After the price cross the last swing high, I move my stop loss at point of break even.

My daily profit goal is $500 usd, and 1 minute before the open were achieved. I think “let’s wait until 8:42” but take some profits first.

So, the momentum of the opening bell, closed the first 2 contracts.

When I have a big move like this, its ok for me to expect a least a 50% pullback or deeper, and with that in mind, I move my stop loss, a little below that point.

My last contract was covered, and I end my trading morning session.

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For today with 3 contracts, @$5 per contract, I have:

60 ticks x 2 contracts x $5 = $600 usd

36 ticks x 1 contract x $5 = $180 usd

Total earned: $780 usd

Total ticks: 156

Stop loss: 16 ticks (@$5 x 3c =$240 usd)

Ratio: 0.3

It’s a good trade for me. I will continue using this configuration setup for other instruments.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

Emini Nasdaq Trade Overview

Trading Insights, Uncategorized
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July 08-2021

Today I have selected the Emini Nasdaq (NQ) for my trading session. For those who read my articles I love days with news.

For this morning I want to share the 5 minute NQ chart, to show the type of market in the Asian session. Remembering the 3 types of markets; A bullish market, when you see higher highs and higher lows, a bearish market, when you see higher lows with lower lows, and a market in range when you see the price in lateral way. When you have a strong movement like this, always ends in a range. So, for my New York session I must be aware of that.

I love to check my calendar for today and watch if my predictive software signals appears at the same time.

For my trading plan I use the 3 and 1 minute charts. My predictive software WARP shows me in the 3 minute chart, Bearish pression after the opening bell. That’s my zone of interest. That time of window.

My setup for my predictive time signal software is as follows for the NQ (E-Mini Nasdaq):

  • Swing:10
  • Origination Mode: Trading Days
  • Source Days: 1-2-3-4
  • Volatility Stop Offset ATR: 1,2

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With that in mind for today I will trade in the 1 minute chart, supervising the big moves in my 3 minute chart. My interest time zone: 08:33 am to 09:00 am.

At the open the 8:32 signal, is inverted and I identify a Pattern 4. At the left I identify the bottom as relevant support zone (3 white circles). The price goes up until the 120 EMA in 3 minutes and I wait to reverse and crosses back the 120 EMA in 1 minute timeframe. I use the Puncture technique. (When the price closes under or above the 120 EMA, I take a long or a short position trade)

I cover fast the 2 first contracts, and the third one. At the left you see the last bottom Lower Low swing, so I think to take profits there, or until 08:59 am.

So, I move my profit to a lower position. And move the Stop loss to break even, one candle before the active one. The prices “jumps” back and close my last position. I could take more profits in the initial lower low, but this is my runner contract, and I like to explore the market, you never know.

Nasdaq is a “beast”, I must be focused and concentrated. When I trade the Emini Nasdaq I do not trade other markets at the same time.

For today 112 ticks, that’s a great trade for me. $2,240 usd, using predictive time signals.

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support

 

Trading With Signals on the Dow Jones

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July 01-2021

Starting a new month, almost half a year now.

Trading Wednesdays a Thursdays for some people are hard, and they are freaking out their minds cause the “relevant” news.

My predictive software reduces all hesitations and put me in the “execute” technique mode. Just following some basic steps, I have a full guide of the modern predictive modelling algorithm software to validate my entries.

My setup for my predictive time signal software is as follows for the YM (E-Mini Dow Jones):

  • Swing:8
  • Origination Mode: Trading Days
  • Source Days: 1-2-3-4
  • Volatility Stop Offset ATR: 1,2

In my 3 minute chart a identify at the bottom from 8:30 to 8:51 what will be a selling pressure zone, after taking this screen capture, I wait until the opening bell that for me, is at 8:30 am, after that I will execute my entries in the 1 minute chart.

So, my Trading setup will have the 3 minute Anchor chart at the left and my execution 1 minute chart at the right.

At the opening bell I thought that I could have a reverse P4 pattern at 8;29, but the wick of the candles, tell me that the price was rejected. So, the Bias at 3min chart, going down was right.

I open my first trade, cover my first 2 contracts, move my SL (Stop loss), to point of break even + 2 and stop me out 1 contract. That was fast. Now I want a pullback to sell again.

Fast as I can when I saw the wick of the candle, I put another sell limit order.

The same trade as the last one, I cover 2 contracts and the third one stop me out at point of break even. During the active candle I activate a sell direct order to the market.

The third one is my last chance to reach my daily goal, and the time window in 3 minute chart still open until 8:46. My first 2 contracts were covered. After that I hold my last position until 8:46. When I have big candles, I like to trail my stop or at 50% of the body, or above of the candle if it has a regular size. My target was reached before I explore the closing time at 8:46.

So, for today 2 entries reacting to my fast ATM Breakeven point move that were stopped out.

And the third one that gave me the movement that I wanted and have identify previously at the 3 minute chart.

122 Ticks for the Dow Jones today ($610), and my daily target reached.

Warp Software and the predictive signals rules!!

Juan Fernando Vega

Mechanical Engineer

Bogota-Colombia

Spanish - Support