Whether you are a beginner in the markets with an investment idea or have a few stocks that you are interested in buying or selling but lacking conviction to 'time' the trade, this program will get you started on a learning path towards better understanding the language of markets and will support you in your investment decisions. If you are an experienced market operator this program will serve as a decision support overlay to your existing methods and will add another dimension of confidence to your trading, locking in and solidifying your ideas. If you are interested in receiving a free weekly report on system generated signals, send me an email to learn more.
The system integrates input derived from multiple factors: trend and momentum, trading time frames and the developing auction process.
Through my experiences trading and investing, I have generated the most positive risk-adjusted returns by trading a trend. This initially involves developing a set of rules that allows you to define what a trend is, so you can visually spot it. This will of course depend on the type of trader that you are; long term investor, positional swing trader, day trader. All of these trader-types have a unique way of looking at markets and participating in markets. The program integrates all of these trading varieties into a single platform. I will say that the methods I have developed are primarily for the former 2 trader-types (long term and positional). However, being a day-trader still requires that you understand a market with context from different perspectives of time to ensure an understanding of the nature of market bias that you are operating in.
Momentum is a market term that describes the rate of change of price over time or the velocity of price movement. Momentum, when combined with volume analysis, can be quantified to provide insight into changes in market bias. Normal price activity for any market has a characteristic range or true range (ATR) of movement that can be altered by changes in condition or perception. I have isolated a specific entry signal-type through my research and testing that is sensitive to changes in ATR as an indicator of changes in market direction.
We are also quantifying market behavior through an understanding of the developing auction process. Traders tend to be myopic and 'price' focused; where did the market close, or it was up 50pts, or down 10, etc. We can derive meaningful information about price through an analysis of volume which gives insights into 'fair price' for a given trading time period. At which price is volume concentrating and how can we derive meaning from this as it may relate to the current trend strength?
This process is evolving and developing across multiple trading time frames -- Monthly level, Weekly level, Daily level and Intraday. All of these time frames are continuous and mutually effect one another. The intraday level of activity becomes embedded until it spills into the next larger time frame (daily) as an integrated cascade system linking time and price.
The Volume, Trend and Momentum interaction are three pieces that form the basis of this program.
See the Tutorial Page for more information on this system
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