
Method 1:
Do not open them after downloading them... The files will be zipped and need to remain that way for the install. They can only be used in 8. It will be a little bit of a process, but it is extremely important that you learn how to do this. When it comes to being independent and responsible, learning how to install and change the settings will be a key part of the whole process!
Download Indicators for NT8 in the downloads section of this lesson.
Once downloaded, you'll pull up the Control Center, click on Tools, Import, then NinjaScript Add-On... After which, you will select the files you just downloaded in order to have them in your indicator list. They will now be imported and usable! DO NOT OPEN THE ZIP FILE when you import it-- just import the entire zip my friends!
FOR THE MACD BBs: I have changed my personal colors to darker than I originally had them created-- I liked the lighter colors but the white didn't show up as well--if you would like to use the same colors I am, they are TEAL for the Dots Rising and INDIGO for the Dots Falling
If you already have workspaces and just need the indicator information, the closes on the bars (the dots) are the 1 SMA set to Black, Dot, Dot, 4 (although the size of the dot may vary depending on your Screen configuration - adjust the dot to suit your preference and match the sizing shown throughout the curriculum). Also, I have deleted the text in the "label" section because I find they can get in the way on your charts at time. It is up to you if you'd like to keep them.
The other EMAs are the 55 and the 144. I always make the 144 thicker, that way when you match it with the next tick chart.
The 144 (large) EMA on the 233 chart IS the 55 (small)EMA on the 1597chart.
And the 144 (large) EMA on the 1597 chart IS the 55 (small)EMA on the 10946 chart.
I know that's a little confusing, but it will make more sense as you go through the course in the EMA section. But to keep the flow of things, I use the same color to represent the EMA from one chart to another. (So that 144 EMA on the 233 chart and the 55 on the 1597 chart might both be the same color purple).
NinjaTrader 8 ERROR MESSAGE : If you are seeing an error message stating that the indicators cannot load due to them being from an older version of NinjaTrader please follow the process in the video above to see how to delete and replace indicators. You will also need to complete a similar process with your workspaces. Please see the next section of the curriculum "Downloading and Install the Workspaces for NinjaTrader 8" for a walk through video showing the process of resetting your workspaces. You can complete both actions simultaneously to save yourself time.
Method 2: Please watch the video above to see method 2 in which you manually copy and paste the indicators into the "indicators" folder
.CS File
In the download section I have included the Tick Counter as just the file itself (.cs). If you are having trouble where the Tick counter is not showing up, please try downloading the cs file and pasting it into your indicators folder (Method 2).
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
VERY IMPORTANT: To install a workspace click the Download button, CLOSE NINJATRADER, and unzip downloaded .zip file to Documents\NinjaTrader 8\workspaces\ folder.
If you do not close NT, you will not receive the files correctly.
IF something happens to one of your charts and you accidentally delete it, you have a few options- you can close without saving and get it back OR you can go to the workspaces folder in your NinjaTrader8 Documents folder and recover it from there.
All colors are customizable, so if you want to change them, you can-- BUT we have designed the EMAs so that the colors connect from one chart to another (which you will find out more about it through the course). Please consider going through the course and hearing how they connect before you choose to change colors.
For this course, you will have access to all of the charts. It will include charts for both the ES and MES. Also, make sure you are in the current contract, which you can see located in the top left corner of the chart. It will say the month and the day. You will want to make sure it says the month that is ahead of us-- or the future month. If you are just opening your charts for the first time, if necessary, it will ask you to roll over your contracts. Say yes to this as it will be quick and easy through this process.
Example: If the month you are in is currently October in the year 2021-- you want it to show the future contract of December 2021 (12-21)
Loading the workspaces for the first time will take significantly longer due to having to load all historical chart data. Subsequent load times will be quicker.
The ES will include the 233, 610, 1597, 4181, 10946, 28657, The Daily, The Control Center and The Trade Performance Log.
The MES will include the 144, 377, 987, 2584, 6765, 177711, The Daily, The Control Center and The Trade Performance Log.
ES Less Days to Load - use this workspace if your computer is fairly old / is struggling with NinjaTrader. It will have less days to load so will load a lot quicker, but for homework you will require more days to load.
NinjaTrader 8 ERROR MESSAGE : If you are seeing an error message stating that the workspaces cannot load due to them being from an older version of NinjaTrader please follow the process in the video above to see how to reset the workspaces. You will also need to complete a similar process with your indicators. Please see the previous section of the curriculum "Downloading and Install the RDT Indicators for NinjaTrader 8" for a walk through video showing the process of resetting your indicators to fix this error message. You can complete both actions simultaneously to save yourself time.
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Combine proven edge divergence with price turn analysis to identify high-probability trades, assess market direction, and refine timing through bar-by-bar market replays.
So, we're kicking off Divergence. As you may already know-- Divergence is the difference between price and MACDs. This tool will help you to see changes in the immediate direction... as well as the longer term. Divergences on the smaller scale will allow you to take much quicker profits and prepare for deeper pullbacks.
These puppies will help you to understand when a push in a certain direction is limited. When you understand that, you can be more responsible with your entries, exits and your stop management. As you're looking through this chapter, you'll see that Divergences can really open your eyes to turn-arounds. Even if it is only short term.
Now a Divergence is not an absolute, but a sign. Here, you will learn how to recognize when Divergence Potential is on the plate or how to see that you no longer have Divergence..... Or to even see Divergences after the initial one happens-- or what to even DO after your first Divergence completes and another one sets up.
This, and the next section with Retracement Divergence, can get a little tricky but once you got it-- YOU GOT IT! Just think of it as understanding when the market is a little out of whack or where things are just flowing along in tune. Either way-- the MACDs will give you signals as to what you're looking for-- you just have to learn to read them. And that's why we're here!
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Divergence can be a lot of fun once you've got it down! You'll be able to use this idea to take take precise entries and exits. So, let's make sure we understand it really clearly!
Homework:
10 Examples where Potential for Divergence turned into the price and MACDs agreeing to the Upside
10 Examples where Potential for Divergence turned into the price and MACDs agreeing to the Downside
10 Examples of Divergence to the Upside-- Show where Potential for Divergence first started in each example
10 Examples of Divergence to the Downside--Show where Potential for Divergence first started in each example
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Here we are going to give you a quick breakdown on how the homework reviews work here at RDT. We are always going to put the time in to make sure you are understanding the concepts we are teaching. If we feel you are not fully understanding certain aspects of the curriculum, we will spend extra time on your review to provide extra examples and insights to further your comprehension of the topic at hand.
Please check the Education Announcement section to get access to our discord where you can apply for homework reviews!
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Retracement Divergence is one of my FAVORITE patterns in the market! It is what gives me some BIG confidence in the MACDs.. It helps me to know when the ride is about to roll out-- or possibly even be cut short! Looking for Retracement Divergence might require you to use the Fib Retracement tool at first-- but after a while, it should feel pretty natural to notice it.
Now, Retracement Divergence is still a difference between the price and the MACDs BUT now we're going to see them in a different light. We will still be looking in the current direction that the chart is traveling (if going down, we'll look to the bottoms of the pivots or up to the tops of the pivots). BUT now we will be seeing a difference in how far the price travels in that direction compared to the MACDs....
A lot of times, this particular type of Divergence will follow other Divergences or even Market Patters-- but it can stand alone just as easy as it can work in conjunction with other Divergences and patterns. But as I said-- this move-- is my JAM and I LOVE to use it! It can make you feel like an absolute market wizard. And if you don't hesitate to do the right tings at the right time when you see them-- you'll look like a market wizard too!
We will be using them on all tick charts and will be putting it all together in the final video--- And there are some Divergences that, once you learn them-- like the Super and Ultra Retracement Divergence (AKA BB Slide) then you'll be about 100 steps closer to being ready to pull the trigger on these puppies! There is definitely still a bit more to learn about Divergence-- like what happens when it resets and how to read it in the bigger picture vs the smaller-- but each step is a step in the right direction here!
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
We are getting close to the end of the homework here folks! Only a few more and then we push forward to bigger and better things! As always-- 10 examples of each please! If you want to use the fib retracement tool to check some of these out-- please do-- play around with the settings on the drawing tool so you can see the lines more clearly-- you can extend them in the direction that helps you most-- and you can put the text where you want it--- Just DO NOT change the % settings to different numbers! If you want to shut some of them off, go for it for sure-- just leave the percent's where they are :)
Homework-- 10 of each:
Retracement Divergence Up
Retracement Divergence Down
Super Retracement Divergence Up
Super Retracement Divergence Down
Ultimate Retracement Divergence Up (AKA BB Slide)
Ultimate Retracement Divergence Down (AKA BB Slide)
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
So now, we're going to learn how to use Divergence when we see it happening away from the EMAs. This is known to others as a Divergence Reversal. When this happens, we're looking for the Divergence to take us back down, either to the area of the EMAs on the bigger charts, OR to push it through the EMAs and change the direction. Meaning it could shift the direction by getting back on the other side of the EMAs and the Zero Line.
Divergence plays a key role in all that we do here at RDT. It helps us to see the shift in the direction before it actually happens and helps us to see how far the market can push. Learning this, and how to use it, will make huge shift in your own trading and will allow you to see and react to moves before they even begin. Its not magic, its knowledge my friends!
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Alright guys, so we are going to be needing those Divergence Reversal examples. So remember we want to be looking at the overall picture when we are trying to find those divergences. So working from a top down perspective will be key for this homework.
Now when we are trading we can still take divergences at Intermediate levels (Between the higher time frame pivots) but you will begin to understand this more as you get more screen time and get familiar with how divergences play out, and learn how to read multiple signals at the same time.
But for now we want to keep it simple and focus on those higher time frame charts.
Requirements:
- 10 Examples of Divergence Reversals to to the Upside (3 Chart View)
- 10 Examples of Divergence Reversals to the Downside (3 Chart View).
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Alright guys and gals, we can now look at combining those white BBs with those Divergences. Two or more signals presenting themselves at the same time, what's not to love about that!
So, the white BBs with the MACDs. These things have been a fairly new addition to our trading and as helped us to take things to the next level. The white BBs will be preset with and without divergence. But understanding how they work and when to really pay attention to them will make also be a key component in understanding when the market has the opportunity to make a shift. When you add divergence into the mix, it can make the anticipation of the shift even stronger. And when it lines up on multiple charts, then you want to have your eyes open and be aware of what's to come!
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Homework Part 1 : Single Chart View - Double White BBs.
- 5 Examples of Divergence with double white bbs to downside
- 5 Examples of Divergence with Double White bbs to Upside
Homework Part 2: 3 Chart View - High Time Frame White BBs Focus.
- 5 Examples of HTF white BBs to Upside (3 Chart View)
- 5 Examples of HTF white BBS to downside (3 Chart View)
Find those white BBs in the High Tick Chart, Identify signals from the other charts which are in agreement with those white BBs (White BBs, Divergences, Snapback look etc)
Homework Part 3 : 3 Chart View - Signals From all Charts
For this final homework part we want to put together everything we have learned. We want to see the white BBs utilized on at least one chart for each example. This exercise is similar to part 2, however we do not require the examples to have the white BBs on the Higher Time Frame.
You may wish to identify other signals such as a Slow on Roll at the EMAS on the High Time Frame, the 1597 could have a Divergence with white BBs, the entry chart be bouncing off the Zero line. You could have a 10946 Snapback with white BBs, 1597 Retracement Divergence, 233 Retracement Divergence - for example.
So there is a wide array of examples that can be found for this last part, we really want to get you used to pairing signals together and also seeing how those White BBs really add an extra layer of confluence for our trading signals.
- 5 Examples of White BBs (with a form of Divergence on at least one chart) - Going to Downside.
- 5 Examples of White BBs (with a form of Divergence on at least one chart) - Going to Upside
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Well, we have made it my friends! We have arrived at the end of section 1 in part 2 of the curriculum. Of course it doesn't end there, but as for your basic course lessons, this will be the wrap up. Try not be too disappointed now, there is still much more for us to cover ;).
So we have seen how divergences can be used for reversal the market, but here is how we use divergences going WITH the market.
Many times, we'll see, what looks like, a strong push in the market and we will get on the other side of the EMAs on the smaller tick chart. But as we are reaching (or slightly overrun) the larger tick chart EMAs, we'll start to see divergences appear on the smaller tick chart. This will let us know that the EMAs on the big chart have a better chance of giving a bounce, or even holding, as the smaller charts are slowing down and showing reasons for a turn to continue with the trend.
This is such a vital part of what we do and shows us just how the divergences allows us to look like "magicians" in predicting the turn of the move. Its definitely not rocket science but it is a formula that can help your trading continue to work for you instead of against you.
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Homework: Part 1 - One chart only - Going with the EMAs
- 10 Screenshots showing all the divergences which go with the EMAS - (Traditional Divergence & Retracements divergences)
Homework Part 2: - Going with the EMAS - 3 Chart View - Examples will be easier to find when all charts are trending
- 10 Screenshots - Going with the EMAs (5 to downside, 5 to upside) - Look when price has pulled back to High Time Frame EMA, draw a box around it and apply to all charts, then identify all of the divergences which are going with the Higher Time Frame EMAs.
Homework Part 3: Divergences in both directions
- 10 Screenshots of ALL divergences at the EMAs - 5 examples of HTF EMAs to downside, 5 Examples HTF EMAs to Upside -
Similar to before, highlight an area on the Higher Tick Chart, draw and box around it and apply to all charts. Then we want to identify all of the Divergences which are presenting themselves on each chart (Going in accordance WITH the Higher Time EMAs, and also going AGAINST the Higher Time Frame EMAs)
This part of the homework is really to illustrate to you that we have divergences going on all the time and in both directions. So it is our job to read what is going on in the overall picture and make a judgements based on the signals we are reading from the charts in front of us. If we are in a downtrend and we see retracement divergences on the smaller tick chart to the upside - it does not mean that the retracement divergence will not play out, it just means that on average we would expect far less of a reaction / follow through of that retracement divergence, especially if price is trying to push against a strong area on the Higher Time Frame - such as the EMAs.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Identify the immediate market direction and its change on each chart, using the higher timeframe for perspective and reading signs of break, hold, struggle, and macds.
Knowing which way you're looking for the market to go is absolutely VITAL! The bigger the time frame, the longer it will take to turn. During the time the bigger tick chart takes to turn-- the smaller charts are running circles around the price. Sometimes things get out of whack-- and its hard to really read what's going on.. When you're really paying attention to the immediate direction vs the longer term direction, it will help you to determine if you're looking for a quicker or a longer term exit. The key is-- to pay attention to what the charts you're trading-- are telling you!
In part 1 we are going to look into the basics of being on the correct side of things / knowing the direction. We will cover being on the correct side, the incorrect side, identifying the direction change in the MACD and the Price (which specific bar indicates the direction change).
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Knowing which way you're looking for the market to go is absolutely VITAL! The bigger the time frame, the longer it will take to turn. During the time the bigger tick chart takes to turn-- the smaller charts are running circles around the price. Sometimes things get out of whack-- and its hard to really read what's going on.. When you're really paying attention to the immediate direction vs the longer term direction, it will help you to determine if you're looking for a quicker or a longer term exit. The key is-- to pay attention to what the charts you're trading-- are telling you!
In Part 2 we will be looking at all charts to compare when we cross to the correct side of things on all charts. We also demonstrate how we will utilize all three charts together to determine a bias and direction when there is a mismatch between the charts, with the lower tick charts being on the incorrect side of things but the higher tick charts are on the correct side of things.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Correct Side of Things Homework:
We are going to require:
- At least 10 examples (10 Screenshots) showing price and MACDs shifting to the correct side of things.
(5 Screenshots showing the correct side of things shifting to the upside, 5 Screenshots showing correct side of things shifting to the downside).
So we will need to see MACDs crossing that Zero Line, and you will need to point to the individual price bar which confirms the shift in direction in price. Within the screenshots you can have multiple examples, but we will require 10 screenshots to be sent in. You are not required to show every shift in your individual screenshot, however the more examples and reps you get in at identifying this concept will serve you more benefit.
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
When anticipating areas to Break or Hold-- You will need to work through all of the charts... You can see immediate reasons for things to break or hold BUT when you put all of the charts together, then you'll really have a solid idea of what areas should break or what areas should hold.
When assessing whether an area should break or hold, there are variables from all charts which are taken into consideration at the same time. You really will be combining everything that we have learned throughout the curriculum, paying attention to the overall strength of the market, strength of the price, MACDs, EMAs. Are there any divergences presenting themselves at these areas? Are all the charts in agreement and showing us the same thing? All these things will be important to know and recognize together.
This may be overwhelming to think about all at once, but staying in the present moment and watching what is happening in front of you will help keep your mind clear and focused. Screentime will of course improve your assessment and predictions in the market. Seeing opportunities, chart patterns and certain looks of the charts in different environments will gradually compound in your memory and your intuition and read of the market will continue to improve.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
The final homework of the curriculum!
Okay guys this is where we put together everything that we have learned. We are combining each bit of technical analysis to asses whether areas that price is heading towards are more likely to break, or whether they have a good chance of breaking. You will using all three charts at the same time and annotating the charts to show all of the clues and signs that an area has a great chance of breaking or holding. Draw arrows, circle areas, inform us of everything you see which is helping you evaluate the strength of areas.
For this homework we will be requiring 12 examples (You can have up to 2 examples per screenshot).
Screenshots showing a variety of different area breaking or holding:
- 2 Examples of EMAs Holding
- 2 Examples of EMAs Breaking
- 2 Example of Price Support Holding
- 2 Examples of Price Support Breaking
- 2 Examples of Price Resistance Holding
- 2 Examples of Price Resistance Breaking
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
When looking to determine signs of struggle and signs of strength-- you will need to use more than one chart to really understand why turn arounds happen in certain areas. You may have one chart that seems to be struggling, while other charts are flowing well. This may mean to be careful in certain areas because pullbacks could happen often and waiting for the right time to trade will definitely pay off.
No chart will "lie" to you-- you will have the proper flow for each chart... The smaller the chart, known as the quicker chart, the more moves it tends to move when the bigger charts seem to be struggling. When the bigger charts are struggling to reach areas, paying attention to the moves on the smaller charts will give you more determined entries and exits. They will be moving MUCH quicker.
If the smaller charts are struggling, it is sign of a slow down but not always a turn around on the bigger charts. It is time to watch and be cautious.. pay attention to when things might be shifting in the other direction. Just know what signs to look for-- things that tell us we may have a change.. What would those be you ask? Well-- we've already discussed some of these, but let's look at them again--
Support and Resistance
Slides and Dips
Snap Backs
Divergence and Retracement Divergence
Patterns in the Market and
Patterns in the Price (aka Reversal Patterns)
All of these patterns happen on a large scale as well as a small scale. Paying attention to the patterns and the movement of the market keep you on the right side of things and help you pinpoint your entries and exits when the time is right!
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
When looking to determine signs of struggle and signs of strength-- you will need to use more than one chart to really understand why turn arounds happen in certain areas. You may have one chart that seems to be struggling, while other charts are flowing well. This may mean to be careful in certain areas because pullback could happen often and waiting for the right time to trade will definitely pay off.
No chart will "lie" to you-- you will have the proper flow for each chart... The smaller the chart, known as the quicker chart, the more moves it tends to give you when the bigger charts seem to be struggling. When the bigger charts are struggling to reach areas, paying attention to the moves on the smaller charts will give you more determined entries and exits. They will be MUCH quicker.
If the smaller charts are struggling-- it is sign of a slow down, but not always a turn around on the bigger charts. It is time to watch and be cautious.. pay attention to when things might be shifting in the other direction. Just know what signs to look for-- things that tell us we may have a change.. What would those be you ask? Well-- we've already discussed some of these, but let's look at them again--
Support and Resistance
Slides and Dips
Snap Backs
Divergence and Retracement Divergence
Patterns in the Market and
Patterns in the Price (aka Reversal Patterns)
All of these patterns happen on a large scale as well as a small scale. Paying attention to the patterns and the movement of the market keep you on the right side of things and help you pinpoint your entries and exits when the time is right!
_____________________________________________________________________________________________
RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Explore section 3 with live trading videos and trade walkthroughs, then master risk management to preserve capital using a favorable risk-to-reward setup, followed by backtesting and bar-by-bar analysis.
In part 1, we will be covering the basics of Bar by Bar, how to get set up and carry out the procedure in the most optimal way. This will be in order to avoid any frustrations that can arise when misplacing the cursor through this process. We discuss: bar size, chart sizing, crosshairs and keyboard shortcuts.
Alright, now it is time for Bar by Bar. This is an incredibly useful tool for all traders - the new AND the seasoned ones. Bar by Bar is great to be the first step to hone in on your skills while getting familiar with the price action and the MACDs all while being able to move the market along at your own pace. Now Bar by Bar will not reproduce the emotions felt during the live market, and that is a GOOD thing. We really want to get our feet wet before trying to swim the Atlantic channel.
Bar by Bar should be the first steps we take so we can get familiar with using your chosen three charts while also put together everything that we have leaned throughout the curriculum. This is important in order to give you your first understanding of how it all the pieces work together. The live market can move pretty fast at times and can cause our brains to freeze up, or even go blank, if we do not know what we should be putting our attention on. So, its important to take baby steps to recognize the patters that we need to look for in a extremely controlled environment first.
Some may already have some market knowledge and choose to skip this step, and that is okay. This is your process and you take it as you need it. But if you're brand new to trading, or especially to NinjaTrader, we recommend this step HIGHLY in order to feel comfortable to know what you're looking for when you're working with a moving market-- be it a market replay (where you can control the speed) or the live market (where you get the speed that it is running at that time).
Either way, consider this as an important step to recognize the patterns we have been learning and what the trade should look like when you encounter a moving market.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
In part 2 we run through a few Bar by Bar examples, giving a brief insight into how to navigate the charts, identify opportunities and mark the charts while going through the process. This video gives a glimpse into the next section on signals and patience. This will be by showing the top down approach on the market, waiting for key indications such as price slow downs, MACD behavior and using the reversal bars to assess potential trade opportunities.
Alright, now it is time for Bar by Bar. This is an incredibly useful tool for all traders - the new AND the seasoned ones. Bar by Bar is great to be the first step to hone in on your skills while getting familiar with the price action and the MACDs all while being able to move the market along at your own pace. Now Bar by Bar will not reproduce the emotions felt during the live market, and that is a GOOD thing. We really want to get our feet wet before trying to swim the Atlantic channel.
Bar by Bar should be the first steps we take so we can get familiar with using your chosen three charts while also put together everything that we have leaned throughout the curriculum. This is important in order to give you your first understanding of how it all the pieces work together. The live market can move pretty fast at times and can cause our brains to freeze up, or even go blank, if we do not know what we should be putting our attention on. So, its important to take baby steps to recognize the patters that we need to look for in a extremely controlled environment first.
Some may already have some market knowledge and choose to skip this step, and that is okay. This is your process and you take it as you need it. But if you're brand new to trading, or especially to NinjaTrader, we recommend this step HIGHLY in order to feel comfortable to know what you're looking for when you're working with a moving market-- be it a market replay (where you can control the speed) or the live market (where you get the speed that it is running at that time).
Either way, consider this as an important step to recognize the patterns we have been learning and what the trade should look like when you encounter a moving market.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Understanding the basic concepts of Risk to Reward is fundamental for all traders. This lesson will delve into the basic concepts and help emphasize the importance of Risk to Reward by showing some basic math. There will be countless times throughout your trading journey where you can see reasons for a trade entry, but you do not take the trade due to a poor perceived Risk to Reward.
Everything is based around money management - Can we preserve our capital until the odds are in our favor - For us this entails being patience and waiting for opportunities to show themselves which have a favorable risk to reward ratio.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
In this part of Risk to Reward, we go into more detail on targets and how we can adapt our targets while still maintaining a favorable Risk to Reward ratio. Dependent on the market environment, the targets we aim for will differ. In a strong trending environment, when trading with the overall trend, there is a higher probability of the trend continuing. This could mean a larger profit potential going with the overall trend, thus making it seem a more sensible decision to trail a second contract.
On the other hand - during a tight range bound market, it would most likely appear more favorable to have set targets at the opposing side of the range. This is as the market environment could currently dictate that there is a lower chance of trend continuation. meaning that we should be more conservative with targets.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Now - To understand how to use the ATM strategies. Of course, you will want to know what kind of trader you are, your risk to reward ratio and have a solid grasp on your trading plan before you begin to set these up-- but knowing how to do it when the time comes is extremely important. ATM Strategies are great for automating your stop placement and target placements. Settings can be adjusted to move your stop to breakeven once price has moved a set amount of ticks towards your target. As you start off on your trading journey you may find it more beneficial to have set targets and as you progress you can start adjusting your target location. Ultimately - retaining a good risk to reward will be of the highest importance.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
HERE WE GOOO!!!!
We are most likely entering the part of the course that you have all been eagerly awaiting - time to start finding those trades in a moving market environment! :)
This video will be covering the basics of trading signals, the realities of trading signals and discussing some nuances that need to be taken into consideration when we are deciding if we should be entering into a position.
We are now going to be combining everything we have learned. We going to be starting off - as per the usual - starting from the top and working our way. We're going to going to work down, from the highest tick chart, all the way down to the smallest.
Now is the time that you're going to want to pay extra close attention to our trading chart (the middle chart), and trading the signals that are being presented to you. During this time, you will want to be extra careful to not get drawn in too much to our entry chart (the smallest chart)- Remember - It is your ENTRY chart and not the signal chart. Therefore you are using it for your final bit of confirmation to get into the trade, while also using it to have a safer place to place your risk.
Basically, it will be first things first-- what does your trading chart tell you? If it is telling you that there is a move to look for -- then you start to work your way down the line of charts in order to pinpoint the entry.
Reversal bars at the entry will be your signal. You will know it is time by the final, refined, slow down... Which is the Reversal Bar. You may have several, and on occasion, it may move too fast for you to be able to work with it. If it does, that is fine. Your skill and execution will increase as time goes by. The more time you spend with it, the better you will get at it.
Just remember-- everything you have learned until now has led you to this point. We are just taking all the pieces of the puzzle and NOW putting them together in order to trade with the best amount of knowledge that you now have behind you. This is so you can come out of here with profits and the confidence to make responsible decisions with your market evaluation!
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Signals & Patience Video 1:
This example will look at slow and roll on the 10946 with a Retracement Divergence on the 1597, combined with some entry chart confirmation showing some divergence on the 233.
This video also goes into some detail explaining how to calculate/visualize where the risk needs to go. In addition to discussing the limit order.
Remember - We all see the market in slightly different viewpoints. What one person may see as a good or comfortable trade opportunity, you may not like the look of.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Signals & Patience Video 2:
This example looks at a 1597 Snapback example. The Higher Tick chart is showing Retracement Divergence to the downside, the 1597 is showing us some overshooting of the 1597 Bollinger Bands with weak BBs and then we have some Retracement Divergence on the 233. The trade also takes into account the flag reversal bar which has taken place on the 1597 a couple bars previous to the entry location.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Signals & Patience Video 3:
This example we are looking at a pullback trade while we are experiencing some grindy price action. We take into account the market environment as being grindy so we cannot expect divergences to shift the overall direction, but we can anticipate it to at least pull as back to the next area anticipated to create a bounce. We are blue and up in the MACDs on the Higher Tick Chart, the 1597 is approaching the bottom Bollinger Band and BBs are showing signs of weakness as we also sat hanging out around the 233 EMAs. As the BBs start to slow down on the 233 we are leaning on them more and waiting for some entry trigger confirmation - in this case - waiting for a BB to cross the top Bollinger Band.
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
CONGRATULATIONS! You have made it through the curriculum and are ready to take on those markets. You may feel have all the knowledge from the course stored in that brain of yours, but now is the real test - Applying it to the market. Practical application of theory will now be the next best teacher for your trading journey. But before we jump into those live markets we need to get comfortable with executing trades, experiencing wins, losses, elation and frustrations. The next step of your journey will unveil traits of your personality you may have never been aware of and bring them right to the forefront as you experience the rush of executing trades.
Due to all of this - IT IS VITAL YOU TRADE ON SIM BEFORE TAKING LIVE TRADES!
Luckily for you NinjaTrader has a Market Replay feature in which you can replay any day of your choosing and trade it as if you were trading it live on the day. This is where you are set free to apply what you have learned. Give yourself permission to make mistakes, do not expect perfection, be open and willing to learn. We learn far more from our mistakes than from winning. Winning and Losing is all part of the game. Try be mindful, and enjoy the journey!
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RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CFTC HYPOTHETICAL PERFORMANCE DISCLAIMER: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
Welcome to the second part of the RDT Trading Course! We hope you're ready to dive deeper into the world of trading and take your skills to the next level. This sequel is all about fine tuning your strategies and mastering the essentials that will set you apart as a confident and successful trader.
PLEASE NOTE - If you have not completed PART1 of the curriculum we heavily advise you to complete that course to ensure you are comprehending the whole strategy before jumping into more advanced concepts!
In this course, we're going to uncover the secrets of Divergences. You'll learn how to spot them and understand what they really mean for your trading decisions. Getting on the right side of things is crucial, and we'll show you exactly how to do that by interpreting our exclusive indicators and using them to your advantage. Patience is a virtue, especially in trading. We'll guide you on how to cultivate the discipline needed to stick to your plan and keep your cool, no matter what the market throws your way. With practical exercises and real life examples, you'll develop the mindset of a seasoned trader. Risk Management is another big focus here. Protecting your capital is just as important as making profits. You'll learn effective strategies to manage your risk, ensuring you can trade confidently and sustainably. Plus, we'll be using market replay tools to back test and refine your entries, giving you hands-on experience to solidify your learning. By the end of this course, you'll have a robust trading toolkit and the confidence to make smart, informed decisions.
Here is a list of what you'll learn:
We'll teach you how to install and use our exclusive indicators.
You will be able to download and install our workspaces in NinjaTrader, as simple as that, you will se the market the same way we do.
Learn to identify Divergences, how to understand them and the right time to get in the market.
Divergence Basics.
Retracement Divergences.
Divergence Reversals.
Divergence with White MACD BBs
Divergence at the EMAs.
The market can be confusing, so you can make sure to be on The Correct Side of Things.
Learn how to identify strong areas in price, if the trend is potentially going to continue or on the other hand start changing direction.
It's important to know where to enter the market the same as to calculate how much you want to risk and earn.
When you learn about risk to reward, we'll show you how to make that automatically with your own ATM Strategy.
Practice makes perfect, we'll teach you a couple of ways to put into work what you've learned, bar by bar and market replay.
And last but not least, the importance of Patience in Trading, how to analyze the market calmly before pulling the trigger.
Join us and let's make your trading journey not just profitable, but also enjoyable.