Wednesday, September 29, 2010

Sample post from CarlFutiaRealTime

I know many of you are wondering what you can learn in my new trading seminar, CarlFutiaRealTime.

Here is one of the ten posts I made yesterday:

I know that I have been throwing a lot of information at you in this seminar. Can't be helped. You have to learn to listen closely to hear the market's message.

Still, I want to get you started on the path to understanding the market's message so you will be able to operate independently in the markets.

Here are a few suggestions.

First, decide upon your main chart. If you have a full time job during the day then I suggest you get started with the daily bar chart as your main chart. If you want to learn how to take positions during the day (even if job responsibilities prevent this now) you might instead want to focus on the 30 minute bar chart.

In either case, update your chart (or charts) every evening by hand.

The next step is to start looking at midpoints of daily ranges, both 24 hour and day session. The former is the most important for the daily bar chart. In any case it is the 24 hour range that matters for identifying response and initiation.

Remember these rules:

  • higher daily close is buying, lower daily close is selling
  • a higher close on a day with more than half of its 24 hour range above the midpoint of the previous day's 24 hour range shows initiating buying. Otherwise a higher close shows responsive buying
  • a lower close on a day with more than half of its 24 hour range below the midpoint of the previous day's 24 hour range shows initiating selling. Otherwise a lower close show responsive selling.

An uptrend begins with initiating buying which moves the market up more than the biggest rally in the preceding downtrend.

A downtrend begins with initiating selling which moves the market down more than the biggest break in the preceding uptrend.

Practice applying these rules on your daily chart. If you are using a 30 minute chart to see more detail during the day try to figure out how you might make trades based on your trend identification.

That's enough for now. In future posts I will make more suggestions.

1 comment:

R said...

if you are looking at day session and overnight session together, don't you have to make corrections for the contango effect between the E mini futures and the day sessions sp 500.