Lbr Sistema Comercial

LBR Qué es el Short Skirt Trade? Una falda corta es un comercio de cuero cabelludo rápido en la dirección de la tendencia a corto plazo. La configuración se produce después de que el SampP haya realizado un movimiento brusco de impulso. El patrón tiende a parecerse a un indicador de continuación en un gráfico de 1 minuto. Lo llamamos una falda corta porque el comercio suele durar entre 2 y 10 minutos. El concepto es rápido y rápido sin ser atrapado. Tratamos de buscar configuraciones de falda corta que tengan el potencial de un mínimo de tres puntos en el comercio. Se coloca un STOP inicial de 3 puntos desde el precio de entrada al comercio. El objetivo para el comercio es una nueva prueba de la oscilación anterior alta o baja, a pesar de que el mercado a menudo hace una nueva pierna hacia arriba o hacia abajo. Nuestro sistema mecánico que operamos en Trade Station tiene un índice de ganancias / pérdidas de 66. Sin embargo, a través de filtros de volatilidad propietarios y algún reconocimiento básico de patrones, nuestro historial en tiempo real en los últimos tres años en nuestra sala de operaciones en línea, Los miembros de la habitación, ha sido 90. Cómo entras tratos de falda corta Esperamos un retroceso de precio de 2 a 4 puntos de la más reciente formado oscilación alto o bajo. Para un ojo no entrenado, puede ser útil observar el promedio móvil exponencial de 20 períodos en un gráfico de 1 minuto, aunque el precio no siempre retrocede hasta ese punto. A veces las reacciones que van de lado en lugar de volver a la EMA pueden ser los mejores oficios. El retracement inicial del precio dura cerca de 5 minutos. Cuando la reacción comienza a estancarse, usualmente entramos en un orden de mercado. Es ideal para entrar en el comercio antes de que el precio comienza a retroceder en la dirección de la tendencia original. También es más eficiente para trabajar una oferta o oferta como el precio es la corrección de nuevo hacia abajo, pero a veces el tipo de orden utilizado es una cuestión de estilo personal. Dado que el precio ya ha corregido de nuevo 2-3 puntos cuando un comercio se introduce, es raro que la parada inicial de 3 puntos se golpea. Apretamos la parada después de que el comercio se mueve a nuestro favor. Después de que el comercio comience a funcionar, tire inmediatamente de su parada hasta el último columpio alto o bajo en caso de que el mercado no vuelva a realizar un reevaluación completo. Estos patrones se toman directamente de los gráficos clásicos (Schabacker, Edwards amp Magee, etc.) y han resistido la prueba del tiempo. Las banderas son un patrón de continuación en un mercado de tendencias. Se encuentran en todos los marcos de tiempo, todos los mercados, y ofrecen una de las mejores relaciones de recompensa de riesgo para las configuraciones de comercio. La formación de una bandera debe estar precedida por un polo o movimiento inicial en la dirección de la tendencia. La consolidación resultante tiende a ser relativamente poco profunda. Los patrones de continuación son mucho más cortos que los patrones de reversión. Cuanto más larga sea una bandera hacia los lados, mayor será la probabilidad de que se convierta en un patrón de inversión en lugar de conducir a una nueva pierna en la dirección de la tendencia. Qué es un comercio del Grial El comercio del Santo Grial fue descrito originalmente en mi libro de Smarts de la calle. La configuración se produce cuando la tendencia de los mercados ha sido lo suficientemente fuerte como para hacer que un ADX de 14 períodos aumente por encima de 30. Cuando el precio vuelve a la EMA de 20 periodos, las probabilidades favorecen una nueva prueba del último o más reciente. Qué es un Anti Setup El anti se parece a un toro pequeño o patrón de bandera de oso que se produce ya sea en el medio de un rango de comercio o justo después de que un mercado se ha invertido de un movimiento de tendencia sostenida. Las banderas clásicas del toro o del oso son patrones de continuación que pueden ocurrir solamente en un mercado que tenga una tendencia bien definida. A veces, un anti se verá como el retroceso medio de un patrón A-B-C. Por lo tanto, somos capaces de obtener un objetivo de movimiento medido que se basa en el swing anterior. El anti debe ser precedido por un movimiento de IMPULSE a corto plazo. Comprar Antis es más frecuente que Sell Anti setups. Las operaciones largas tendrán las mejores probabilidades de éxito si la anterior pierna arriba es MAYOR que la anterior pierna abajo. El reconocimiento del patrón del oscilador basado en el oscilador 3/10 o en una combinación de estocásticos de 7 períodos K, 16 períodos / D también se puede usar para identificar esta configuración. Qué es Momentum Pinball Momentum Pinball fue introducido originalmente en el libro de Street Smarts como configuración para indicar un Día de Compra o un Día de Venta de Ala George Douglas Taylor. Taylor parecía ir corto después de 1-2 días de rally, y cubrirse e ir mucho después de 1-2 días de disminución. El indicador de pinball se calcula usando un RSI de 3 periodos del cambio neto diario. El libro Street Smarts contiene una descripción completa y detallada de este comercio. (Momentum Pinball, Anti, Holy Grail, barras 80/20 y 90/10 y señales ROC de 2 periodos son algunos de mis conceptos ORIGINALES.) Se me ha señalado repetidamente que hay individuos en Internet que ofrecen boletines y cursos basados ​​en En mis materiales originales de copia-escritura protegidos. Por favor, tenga en cuenta que no tengo ninguna afiliación o asociación con estas entidades.) Qué es un Oops Comercio Oops es una expresión originalmente acuñada por Larry Williams. La configuración se produce cuando el precio de apertura se encuentra fuera del rango de días anteriores. Una parada de compra (o venta) se coloca justo dentro de la gama de días anteriores en caso de que el mercado luego cierra la brecha, lo que indica una inversión. El comercio es mejor tratado como un comercio de cuero cabelludo y salió antes del cierre. Este patrón no tiene un valor pronóstico a largo plazo. Cuáles son los principales indicadores que utiliza en sus gráficos? Utilizamos los mismos indicadores en todos los mercados, todos los plazos. Utilizamos un EMA de 20 periodos (promedio móvil exponencial), un oscilador de precios y un ADX de 14 períodos. El oscilador que usamos es la diferencia entre un promedio móvil simple de 3 y 10 periodos, con una media móvil simple de 16 periodos de 3/10. También usamos los canales Keltner basados ​​en un ATR 2.5 centrado alrededor de la EMA de 20 periodos. Tenga en cuenta que los indicadores son sólo una muleta para decirle lo que ya está allí en los gráficos de barras. Muchos comerciantes lo hacen mejor cuando aprenden a leer gráficos de barras sin el uso de indicadores, osciladores, etc. Qué es el modo Breakout? Utilizamos una estrategia de modo breakout cuando el mercado ha tenido alguna forma de contracción de rango. Un día de tendencia, o un día de expansión de gran amplitud, a menudo sigue períodos de contracción de alcance, o rangos diarios promedio pequeños. Cuando estamos en modo breakout, usamos estrategias para entrar en la dirección en que el mercado se mueve, en lugar de esperar una reacción en el precio. Cómo se mide la amplitud del mercado, el ratio de llamadas ponderado y el volumen? La amplitud del mercado se controla examinando el número de emisiones adelantadas menos el número de emisiones decrecientes en la NYSE. Los datos de put / call son proporcionados por los intercambios individuales. Nos fijamos en la equidad sólo ponen relaciones de llamadas, además de las relaciones de índice de volumen de llamada puesto. Para los datos de put / call actualizados cada media hora, puede usar este enlace a Chicago Board Options Exchange: cboe / MktData / default. asp Observamos el volumen en la NYSE y lo comparamos con las lecturas realizadas al mismo tiempo en días anteriores. Cuáles son los marcos temporales? Nuestro análisis nocturno inicial siempre se realiza fuera de los marcos de tiempo diarios y semanales. Durante el día de negociación, utilizamos gráficos de 15, 30, 60 y 120 minutos. Para los futuros SP, los gráficos de 1 y 5 minutos también son útiles. Lo más a menudo posible, sin embargo, tendemos a mirar el último precio. Un comerciante, que puede supervisar el soporte básico y los niveles de resistencia observando la acción de cinta, a menudo será un paso por delante del comerciante utilizando gráficos de barras. También es más fácil monitorear múltiples mercados y mercados internos simultáneamente al mirar una tabla de cotización en lugar de gráficos. Por favor defina TICK, TIKI, TRIN y VIX. TICK: Este es el cambio neto de todas las acciones de NYSE en un uptick menos todas las acciones de NYSE en un downtick. Más o menos 1200 tiende a ser una lectura extrema. En un ambiente de mercado de tendencia extremos en las garrapatas se puede utilizar como un indicador de impulso que indica movimiento de precios adicionales para venir en la dirección de la tendencia. Sin embargo, cuando el mercado está en el modo de consolidación, después de que ya ha tenido un gran movimiento, las garrapatas marcará los extremos de las oscilaciones a corto plazo hacia arriba y hacia abajo. TIKI: Esta es la diferencia entre todas las acciones de DOW en un uptick menos todas las existencias DOW en Un downtick Más 24 o menos 24 tienden a ser lecturas extremas. TRIN: El TRIN también es conocido como el Índice ARMS después de su creador, Dick Arms. Se calcula de la siguiente manera: (Problemas de avance / Problemas decrecientes) / (Volumen ascendente / Volumen descendente). Observamos la dirección que TRIN se está moviendo para indicar la tendencia general del mercado. Por ejemplo, si el TRIN va de 0,80 a 1,00, esto indicaría que la venta está entrando en el mercado. VIX: Este es el Índice de Volatilidad que se basa en la volatilidad implícita de las colocaciones y llamadas de OEX de dinero. La mayoría de los datos en tiempo real transmiten estos indicadores. Sin embargo, diferentes fuentes de datos pueden utilizar símbolos diferentes. Si tiene alguna pregunta sobre el código de símbolo, póngase en contacto con su proveedor de datos directamente. Qué es un día Z? Un día Z es un día de consolidación que a menudo sigue un día de tendencia. El período de la mañana se caracteriza por una prueba de ida y vuelta en la acción de precios. Utilizamos un conjunto diferente de estrategias comerciales en estos días que en otros días. Uno de nuestros oficios favoritos es el comercio de la banda de bollinger. Qué es un día NR7? Un NR7 es un día en el que la gama diaria de hoy (precio alto de hoy menos precio bajo) es más estrecha que los seis días anteriores. La importancia de este patrón es que representa una marcada disminución de la volatilidad de los precios. La expansión de la gama y un aumento en la volatilidad de los precios tienden a seguir un día NR7. Un día NR4 es similar a un día NR7 excepto que representa un día en el que el intervalo es el más estrecho que los tres días anteriores. Toby Crabel presentó originalmente los conceptos de NR4, NR7, WR7, etc. en su Market Analytics Letter escrito en los años ochenta. Le damos crédito por haber iniciado investigaciones en esta área. Sus artículos originales fueron publicados en la revista, Technical Analysis of Stocks and Commodities. Qué es un día WR7? Un WR7 es un día en el que el rango diario de hoy (el precio alto de hoy menos el precio bajo) es más amplio que el rango de los 6 días anteriores. La importancia de este patrón es que representa una expansión en la volatilidad de los precios. Un comerciante a menudo puede comprar o vender una prueba de los días WR7 alta o baja, al día siguiente para un comercio de cuero cabelludo. Cuál es la ROC de 2 periodos? La tasa de cambio de 2 periodos es ahora cerrada menos el cierre hace dos días. Por ejemplo, para obtener FRIDays 2-período ROC, se restaría los miércoles cerca de viernes cerca. El ROC de 2 periodos es útil para destacar un ciclo de comercio de dos a tres días como se explica en la técnica de Taylor Trading. El impulso crudo es el único derivado del precio que hemos encontrado para ofrecer resultados estadísticamente significativos en nuestra investigación cuantitativa. Nuestros resultados con este indicador han demostrado ser duraderos y robustos en todos los mercados. Welles Wilder, en su libro New Concepts in Technical Trading Systems, introdujo el promedio de True Range (ATR). ATR es una medida de la volatilidad, y es un componente del indicador ADX. ATR se calcula por encontrar el mayor valor de: 1. La distancia de hoy a la alta de hoy. 2. La distancia de los ayeres cerca de la altura de hoy. 3. La distancia desde ayer hasta la mínima. La diferencia principal entre ATR y el rango diario sencillo es que ATR toma en cuenta las lagunas. Qué es una divergencia? Una divergencia se produce cuando un indicador de momento u otro instrumento no confirma un movimiento en la acción del precio del mercado observado. Por ejemplo, si los futuros de SP producen un nuevo bajo precio, pero el oscilador 3/10 no logra hacer un nuevo momento bajo, entonces se dice que el SP diverge del oscilador. Del mismo modo, si los futuros de SP producen un nuevo mínimo que no se ve confirmado por nuevos mínimos en un mercado o índice relacionado (por ejemplo, el SP versus el Dow Industrials, o el SP versus el TICK), esto también se considera una forma de divergencia. Las divergencias son útiles porque advierten de una pérdida de impulso y, a menudo, preceden a una inversión de precio. Qué son los canales de Keltner Los canales de Keltner son una forma de bandas comerciales trazadas directamente en la parte superior de una tabla de precios, a diferencia de debajo de la tabla de precios como en el caso de un oscilador o volumen. Las bandas se basan en una función ATR centrada alrededor de un promedio móvil. Utilizamos un valor de 2,5 ATRs añadido y substraído de una media móvil exponencial de 20 períodos para crear nuestras bandas. Cuál es la diferencia entre los canales de Keltner y las bandas de Bollinger Las bandas de Bollinger se basan en una función de desviación estándar. Muy a menudo, usted verá épocas donde el mercado se está moviendo MAYOR pero la venda inferior de Bollinger está declinando. Esto no sucede con los canales de Keltner. Aunque ambos se basan en funciones de volatilidad, los canales de Keltner mantendrán una anchura más constante que las bandas de Bollinger y, por lo tanto, los encontraremos más agradables para nuestro ojo. También hemos tenido mucho mejor éxito en el uso de funciones de rango en nuestro modelo cuantitativo en oposición a las funciones de desviación estándar, especialmente al crear sistemas de temporización a corto plazo. Bollinger Band usamos 2.5 bandas de desviación estándar centradas alrededor de un promedio móvil de 20 periodos para hacer operaciones el día siguiente a un día de tendencia. Hacemos estos oficios en la sesión de la mañana solamente. El concepto detrás de esto es que un empuje a la banda superior o inferior establecerá un comercio de tendencia inversa. El objetivo es un empuje al promedio móvil. No se utilizaron paradas en nuestras pruebas, sólo utilizamos una salida de cada vez que el comercio afectó a la media móvil o al final del día en el peor escenario posible. A-B-C es un término tomado de la terminología de Elliot Wave que denota un patrón de corrección de tres ondas que se encuentra a menudo en medio de una tendencia. Las ondas A, B y C son a menudo de la misma magnitud en precio y tiempo, y el patrón tiende a tener la apariencia de un zigzag. Cuáles son los parámetros para el oscilador 3/10? Para construir este oscilador, primero restar una media móvil simple de 10 periodos de una media móvil simple de 3 periodos. A menudo nos referimos a esto como la línea rápida. A continuación, cree un promedio móvil de 16 períodos de la línea rápida - nos referimos a esta línea como la línea lenta. También es útil trazar una línea horizontal en el valor cero. Trazamos las tres líneas juntas en nuestras cartas debajo del precio. Para algunos indicadores, como el oscilador 3/10, ofrecemos a los suscriptores archivos de código TradeStation descargables. Qué es una EMA Cuando nos referimos a la EMA, siempre nos referiremos a una media móvil exponencial de 20 períodos. Esta línea puede ser pensada como un proxy para una regresión a la media en un mercado de tendencias. Tiene poco valor en un mercado de rango comercial. A diferencia de una media móvil simple, que toma el precio medio de los últimos períodos X, el método EMA toma una media ponderada del precio más reciente y el precio medio de la barra antes. Qué tamaño de paradas usas En general, usamos una parada inicial de 5 puntos en los futuros de SP a menos que se especifique lo contrario. Para operaciones de cuero cabelludo en los SP, usamos una parada de 3 puntos. En los mercados de futuros domésticos, usamos una parada fija de 500 por contrato a menos que se especifique lo contrario. Si hay una inusual expansión en la volatilidad, utilizaremos paradas más amplias y reduciremos nuestro apalancamiento. Las paradas deben ser reforzadas como un mercado se mueve en su favor. En las acciones, recomendamos el uso de paradas para limitar las pérdidas a no más de 2 de su capital de trabajo. Cómo se introducen las posiciones Al determinar si se deben utilizar las órdenes de stop de mercado, de límite o de descanso para atraernos a un comercio, evaluamos las condiciones de liquidez y el tipo de entorno de mercado (es decir, tendencias, etc.). PROPIO estilo que funciona mejor para ellos con el tiempo. Tienes órdenes de parada de descanso en el mercado? La gran mayoría de las veces mantenemos nuestras órdenes de parada descansando en el mercado. Las excepciones tienden a ser cuando se espera una brecha de apertura, en cuyo caso dejamos que el mercado se establezca primero y luego coloquemos nuestras paradas justo fuera de la gama de la madrugada. La otra excepción es cuando las condiciones actuales de liquidez son pobres y tenemos una posición grande en. Esto ha sido el caso en ciertos mercados como el café, donde es preferible dejar que el corredor trabaje una orden de salida dentro de una ventana de tiempo fijo. Cómo hacer sus pedidos en los futuros SP? Llamamos a la mayoría de los pedidos directamente a la fosa de futuros. Sin embargo, en los últimos años hemos estado utilizando el e-minis con entrada de órdenes electrónicas también, especialmente como la liquidez ha estado cambiando a este mercado. Qué quiere decir cuando se refiere a la prima? La prima de valor razonable es el precio de futuros teóricos menos el precio índice de efectivo. El valor razonable describe hasta qué punto el contrato de futuros debe negociarse por encima o por debajo del índice de efectivo dado el ingreso de dividendos esperado para las acciones del índice, el número de días a expirar para el contrato de futuros y la tasa de interés a corto plazo. Cuando los SP se negocian con una prima o un descuento, nos referimos a una situación en la que los futuros se negocian por encima o por debajo de su valor razonable. Cuál es la razón de volatilidad histórica Esta es la relación entre dos longitudes diferentes de volatilidad histórica (por ejemplo, la relación entre la volatilidad histórica de 25 días y 100 días). Utilizamos este indicador para alertarnos sobre los momentos en que la volatilidad a corto plazo ha disminuido por debajo de la volatilidad a más largo plazo en un determinado umbral porcentual. Estas señales son a menudo precursores de la creciente volatilidad. Cuál es la BO / BO - en su hoja de comercio Estos son los parámetros para un sistema de ruptura de volatilidad propietario que comercializamos durante ciertos períodos. Una compra se activa en una ruptura por encima del número superior y el corto se activa en la ruptura por debajo del número inferior. Qué es el Golf System Golf es un sistema propietario que entra en el futuro de SP en el CERRAR. LBRGroup publicó este sistema en un servicio de asesoría entre 1993 y 1998. También lo comercializamos sobre una base mecánica para nuestro programa de futuros gestionados. Dejamos de negociarlo mecánicamente cuando la volatilidad de la noche a la mañana se volvió demasiado grande durante la crisis asiática, aunque todavía lo usamos como un indicador de tiempo. Se basa en parte en el ROC de 2 períodos y los patrones de gráficos de barras. Qué es el comercio de 2 puntos de la tarde? La jugada de 2 puntos no es un patrón de gráfico. Es algo que empezamos a hacer en tiempo real en octubre de 2004. No es un sistema mecánico, ya sea, ya que no hay parada fija, además de un tiempo de parada. El tiempo de parada es de 24 horas. Es una tendencia basada en el reconocimiento de patrones (número de días arriba o abajo y grado de tendencia). Es algo que empezamos a hacer por nosotros mismos originalmente, y otros miembros han comenzado a usarlo también. Las operaciones se inician en la reapertura del contacto de Emini después de que el mercado se cierra (es decir, el inicio de la sesión de Globex). Muy a menudo el objetivo de 2 puntos es alcanzado en la sesión de Globex, razón por la cual no trabajamos estos oficios para la sala, sino simplemente ponemos lo que serán para su propio conocimiento. Ha habido momentos en los que el objetivo de 2 puntos no se logra hasta la sesión del día siguiente. Por supuesto habrá atimes donde el objetivo no se logra en absoluto, también. Cuál es el comercio de la RAT El comercio de la Rata es un comercio de la fractura de la tarde que hacemos en los SPs en los días donde hay actividad institucional pesada. No se basa en una formación de gráfico específica, y los parámetros y filtros para este comercio son propietarios. Qué es el comercio de la Última Convocatoria Este es un comercio hecho en la última hora del día en los futuros de índices. Es similar a la hora de empujar en la hora del mediodía que hacemos en la mañana. (Los miembros pueden hacer referencia a esto en la configuración de la biblioteca comercial). La configuración de Última llamada se basa en una combinación de reconocimiento de patrón de gráfico de barras y parámetros de amplitud de mercado. Qué es un Punto de Pivote? Este puede ser un oscilación anterior alto o bajo, o un punto de gráfico visible tal como el alto o el bajo de un área de hueco. Los máximos y bajos de Globex, junto con los días previos altos y bajos, son formas de Pivot Points. No usamos números Fibonacci ni cálculos arbitrarios. Estamos interesados ​​en los niveles que todos los participantes del mercado son conscientes de, como sería el caso con una clave alta o baja. Cuáles son los patrones Red Green Red en los gráficos de barras que publica? Esta regla de color se basa en una función de rango real promedio añadida o restada del swing anterior alta o baja. Es una variación de la parada parabólica y fórmula inversa publicada por Welles Wilder en su libro, New Concepts in Technical Trading Systems. Encontramos que proporciona un reconocimiento de patrón útil al destacar las oscilaciones a corto plazo en un gráfico de barras. General Trading Preguntas relacionadas Tick Gráficos vs Intervalo de tiempo en la mayoría de las aplicaciones de software una carta de 1600 tick de la sps sería equivalente a un gráfico de 5 minutos. Y un gráfico de tick de 3600 es similar a un tiempo de 15 minutos. Nosotros preferimos usar este tipo de gráficos de la señal en la sesión temprana de la mañana puesto que ajustan el comercio del globex relativo al nivel de la actividad. Día de sesión sólo gráficos en un intervalo de 5 minutos puede ser demasiado chapucero, mientras que los gráficos de 5 minutos en una base de 24 horas tienden a ser distorsionado. Qué es la fuerza relativa y la relativa debilidad de la que hablamos en las salas de comercio en línea En pocas palabras, una acción o un sector que muestra fuerza relativa está funcionando mejor que un índice relacionado, como el SP500 o Nasdaq. La debilidad relativa sería un sector o acción que está sub-desempeñando un índice de referencia. Con las materias primas, el líder relativo de la fuerza es el que está realizando el mejor en el día. Los líderes de la fuerza temprana de la mañana por lo general continúan realizando el mejor a lo largo del día. Cómo ves tantos mercados? La mayoría del tiempo, vemos una tabla de presupuestos que nos da el último precio en lugar de ver gráficos en cada mercado individual. De esta manera podemos monitorear numerosos niveles de precios, además de varios índices de mercado y mercados internos. Si queremos ver los gráficos en un mercado en particular, sacamos una pantalla que tiene los marcos de tiempo de 30, 60 y 120 minutos. Los SP y ocasionalmente los bonos suelen ser los únicos mercados en los que veremos los gráficos en un plazo más corto. Posiciones en la mayoría de los otros mercados se introducen con la intención de llevar una posición ganadora durante la noche. Por qué mirar a tantas existencias Las acciones que son líderes del mercado a menudo pueden girar antes de los futuros de las acciones de hacer. Esto es particularmente cierto con respecto a las existencias de alta velocidad beta. El seguimiento de los sectores individuales y la fuerza relativa pueden aportar información valiosa sobre la condición técnica general del mercado. Limitamos nuestra base de datos sólo a las 250 principales existencias comerciales. Intervalo de negociación Cuando usted entra en un rango de negociaciónLinda 17:16:00 usted tiene a menudo los marcos de tiempo en conflictoLinda 17:16:04 uno sobre compróLinda 17:16:06 un oversoldLinda 17:16:17 hasta que todo tiene que volverse abajo a ese aburrido Lateralmente neutral LÍNEA PARA TENER EL CAMBIO DE TRENDING AMBIENTE A TRADING RANGELinda 17:13:32 usted tiene que tener el mercado le da la reacción significativa en la dirección opuesta Usted verá lo más a menudo que la configuración: Linda 16:58:47 alto osc en uno Time frameLinda 16:58:53 oversold osc en otro marco de tiempoLinda 16:58:57 en un rango de negociaciónLinda 16:59:02 no lo verá en un mercado de tendenciasLinda 16:59:05 en el mercado de tendencias Linda 16:59:08 it Es MUY fácil toLinda 16:59:19 buscar turn ups en los osciladores intradíaLinda 16:59:23 (o rechazar) Linda 16:59:35 es el entorno de comercio gama que se vuelve trickierLinda 16:59:38 y en mi OpiniónLinda 16:59:42 donde las herramientas tales comoLinda 17:00:02 buscando la resistencia de la ayuda, las impresiones únicas, los bolsillos, etc. se hacen más importantes Cuadros de tiempo / tendencia para resumir: Linda 17:14:53 el marco de tiempo corto siempre Punta de primeraLinda 17:14:59 aumento en el volumen y el rango en el tiempo corto frameLinda 17:15:11 ciclos de tiempo más alto obtener se retiró upLinda 17:15:17 ya sea por osciladores horarios o diarios, etcLinda 17:15:25 Otras cosas pueden dejar huellas suchLinda 17:15:45 como tendencia fuerte en los internos del mercado como TICKs VIX, breadthLinda 17:16:20 Sin embargo, Linda 17:16:28 NO anticipar una condición de volatilidadLinda 17:16:35 cuz the BEST moves Son a menudo outlyers REACTLinda 17:39:38 No PREDICTLinda 17:39:54 La historia de la predicción es bastante triste. Linda 16:25:52 si el marco de tiempo más alto osc está a punto de subir, Linda 16:26:08 busca comprar div, anti o primer cruce en el marco de tiempo inferior como entryLinda 16:26:19 si el tiempo más alto parece equilibrado Para dar vuelta para arriba, pero, Linda 16:26:24 de hecho hizo nuevos lúmenes del momentoLinda 16:26:32 NO MIRA para comprar en poco tiempo frameLinda 16:26:39 Si usted tiene un rango que negocia y dice, Linda 16:26:46 Comprar divergencia en los 30 minutos o 15 minutos, Linda 16:26:51 NO busque banderas de oso en 5 minutosLinda 16:26:55 mayor tiempo es dominanteLinda 16:27:05 debe dejar que las divergencias jugar en mayor timeframeLinda 16: 27:10 siempre debe estar buscando: Linda 16:27:18 cuál es el patrón técnico DOMINANTE en el marco de tiempo más altoLinda 16:27:26 y luego trabajar el marco de tiempo más bajo alrededorLa clase 16:27:31 el técnico DOMINANTE son Linda 16 : 27: 40 donde está el patrón de oscilador LIMPIO tal como Linda 16:27:47 30 minutos comprar o vender divergencias, o Linda 16:28:00 60 minutos toro o oso flagLinda 16:28:03 toma práctica, yLinda 16:28: 08 no siempre es fácil de verLinda 16:28:15 y, a veces, el mercado es sólo chop en que casoLinda 16:28:24 tienes que salir a un tiempo aún más altoLinda 16:28:29 Si no ves patrón LIMPIO, Linda 16:28:33 entonces eso significa que hay ruido. Un poco 16:28:46 La única manera de superar el RUIDO es seguir saliendo a marcos de tiempo más altos hasta que veas a Linda 16:28:57 la estructura principal o las olas. Linda 16:41:11 Diario rechazando, Linda 16:41:14 vuelta semanal hacia arribaLinda 16:41:27 en cuyo caso usted tiende a conseguir ambiente de gama comercial Linda 16:41:38 Paso siguiente si usted tiene patrón fuerte o limpio en Gráficos o osciladoresLinda 16:41:53 es mirar a otros mercados relacionados para confirmación. Linda 16:42:05 si varios índices tienen diariamente divergences de ventaLinda 16:42:15 entonces voy a ser mucho más agresivo para el lado corto Linda 16:43:09 SIGUIENTE: Linda 16:43:15 bajar a 120 60, 30 minutos gridLinda 16:43:22 cuál es el STRUCTURELinda 16:43:27 hay comprar o vender divergencesLinda 16:43:32 o, bear flagsLinda 16:43:39 y en algún momento, los mercados perderán su volatilidadLinda 16:43:43 y el ADX caeráLinda 16:43:48 como el mercado encuentra un punto de equilibrioLinda 16:43:59 SÓLO PORQUE HAY UN BAJO ADX no significa un breakout Linda 17:00:40 Otra cosa para aclarar: Linda 17:00:45 Usted puede estar en un downtrendLinda 17:00:49 y tener Divergences BuyLinda 17:00:56 y, no significa que usted no puede hacer un LONG tradeLinda 17:01:01 la tendencia de 1 minuto no tiene Para ser upLinda 17:01:11 todo lo que te dice es que estás siendo mucho más agresivoLinda 17:01:13 en tu tradingLinda 17:01:24 y las probabilidades no pueden favorecer lado largo tanto como usted thinkLinda 17:01 : 29 Las divergencias se ven muy bien después de la realidadLinda 17:01:30 peroLinda 17:01:42 mucha tendencia fuerte - se pueden obtener múltiples divergencias falsas firstLinda 17:01:56 A Higher low seguirá en downtrendLinda 17:02:03 this Es mejor el comercio entonces la divergencia rectaLinda 17:02:15 pero sigue siendo agresivo Linda 17:02:28 Si un ABC UP (venta de energía) Linda 17:02:33 no logra llevar a una nueva pierna hacia abajoLinda 17:02:38 y en su lugar aparece Para empezar a girarLinda 17:02:52 este es un comercio aún mejor en términos de ser un poco más conservador Linda 17:02:55 al lado largoLinda 17:02:58 el más conservadorLinda 17:03:07 está comprando el Primera inmersión o pausaLinda 17:03:12 DESPUÉS de la tendencia se ha convertidoLinda 17:03:31 puedes ver la línea que dibujéLinda 17:03:52 Ese es el comercio más conservador que puedes hacerLinda 17:03:53 meaningLinda 17:04: 00 probabilidades más altas de un winLinda 17:04:07 no necesariamente GRANDE winLinda 17:04:12 pero probabilidad alta tradeLinda 17:04:14 y otra vez, Linda 17:04:34 el marco de tiempo más alto como la carta de la señal 1600 miramos Había hecho nuevas máximas de impulso en ese momento, asíLinda 17:06:02 hay una preguntaLinda 17:06:05 no estoy seguro de entenderLinda 17:06:17 si hay tendencia inversa, entonces por qué hacer el comercio de tendencia inversa después de tres empuja upLinda 17: 06:23 la razón seríaLinda 17:06:30 si la estructura de tiempo más alto apoyado itLinda 17:06:32 por ejemplo, Linda 17:06:35 cada hora en downtrendLinda 17:06:40 tienes 15 minutos vender div orLinda 17: 06:43 15 minutos AB CLinda 17:07:08 luego bajar al corto período de tiempo y empezar a buscar div vender, tres empuja hacia arriba o primer menor de alta para la venta corta en el marco de tiempo más alto estructuraLinda 17:07:33 la compra En el gráfico de un minuto que señalé fue sólo que Linda 17:13:12 Todo el mundo encuentra ritmo propioLinda 17:13:17 propia manera de ver las cosasLinda 17:13:21 y los marcos de tiempo propio para trabajarLinda 17:13:27 Puede tener Un comerciante que trabaja del lado cortoLinda 17:13:30 otro que trabaja del lado largoLinda 17:13:34 y ambos hacen el dineroLinda 17:13:53 que usted necesita apenas ser muy claro en cuál es usted que está mirando y que juega paraLinda 17 : 14: 11 y luego tener la paciencia para ver ese swing en particular en el tiempo de juego. Paradas Linda 16:12:27 POR QUÉ utilizamos paradas en primer lugarLinda 16:12:28 yLinda 16:12:32 Sé que No todos los usanLinda 16:12:46 No los uso TODO el tiempo y yo sería un comerciante más provechoso si lo hice./Linda 16:12:52 Los casos principales para NO usar paradas son: Linda 16:12: 58 pedidos de descanso en mercados menos líquidosLinda 16:13:00 confía en míLinda 16:13:09 no quieres una compra o venta de parada en 200 contratos de caféLinda 16:13:22 A veces, tienes que trabajar con un mercado menos líquido y pieza Linda 16:13:31 Piensa en ser más pequeña si las cosas no funcionan bien. Linda 16:13:44 Otra razón para NO usar una parada, es si estás escalpelando en un marco de tiempo tan corto, Linda 16:14 : 02 que vas a salir antes de que puedas incluso poner o cancelar la paradaLinda 16:14:10 La tercera razón de que mucha gente no usa stops, Linda 16:14:20 es que la plataforma de ejecución que están usando es Demasiado pesado yLinda 16:14:33 se tarda demasiados clics del ratón para poner en las paradas o lo que seaLinda 16:14:38 Mi consejo para usted, Linda 16:14:49 si sus plataformas no es tan fácil de usar Linda 16:15:02 CAMBIAR CORRETORES O COMENZAR USANDO UN PLATFORMLinda diferente 16:15:07 Ahora, tan lejosLinda 16:15:20 estamos hablando de una primera parada protectoraLinda 16:15:35 Aquí están las mejores razones para colocar una parada. Linda 16:15: 55 Mercado se mueve más rápido que sus reflejos pueden - y eso es especialmente cierto con los mercados electrónicos ahoraLinda 16:15:58 Siguiente - Linda 16:16:23 puede obtener BLINDSIDED por evento outlyer o mover, en cuyo caso congelar y movimientos del mercado Más adelante contra usted entonces usted habría deseadoLinda 16:16:40 por último, Linda 16:16:49 si usted consigue parado hacia fuera, Linda 16:17:01 usted puede SIEMPRE conseguir detrás derecho otra vez con un tecleo del ratón. Linda 16: 17:10 Si no tuviera parada y el mercado se ejecuta a través de ustedLinda 16:17:25 usted no tiene el lujo de evaluar la situación de una manera objetivaLinda 16:17:37 Para una PARADA INICIAL, Linda 16:17:56 siempre recomendamos 2.5 - 3 ATRsLinda 16:18:11 Eso pertenece al marco de tiempo que estás negociando en Linda 16:18:19 Así que, si estás negociando un gráfico de SP de 5 minutos, Linda 16:19:04 y el rango promedio de un 5 minute bar is 1 1/2 pointsLinda 16:19:10 (taking out today8217s type of action)Linda 16:19:24 3-4 points initial stop is just fineLinda 16:19:39 this may seem wideLinda 16:19:52 but if you get in the habit of placing an INITIAL stop of 3 points Linda 16:20:02 it will not be SO tight initially that you get stopped out in NOISE, Linda 16:20:20 but once the stop is in, you can quickly tighten it down according to how the market is tradingLinda 16:20:21 andLinda 16:20:37 you might just want to scratch it if the trade is not working out before even bothering to tighten it down. Linda 16:20: 49 ENOUGH SAID ABOUT an initial stop placementLinda 16:21:04 And by the way, if it is a COUNTERTREND trade made off SELL or Buy divergencesLinda 16:21:19 then your stop MUST go just a few ticks below or above that ABOSLULTE swing high or lowLinda 16:21:37 this is a case where you would NOT want to risk 2/5 ATRS since it is against the main trend and lower oddsLinda 16:21:53 the sell divergences that do not work lead to much bigger moves in the opposite direction Momentum Linda 16:23:16 Impulse is supply demand imbalance Linda 16:59:21 impulse - MomentumLinda 16:59:29 and should happen in the direction of the main trendLinda 16:59:36 the first pause or consolidation after impulseLinda 16:59:41 should lead to continuationLinda 16:59:47 and so forth and so forth and again, theLinda 16:59:50 exception to the rulesLinda 17:00:03 or rather, the LOW odd scenario is when Linda 17:00:16 impulse is retraced or reversed. Linda 17:00:27 or also same as bull or bear trap or V spike Linda 17:06:48 Any more QsLinda 17:08:14 TikiLinda 17:08:16 do not use thatLinda 17:08:17 PremiumLinda 17:08:20 Do not use thatLinda 17:08:43 Use Vix a lot more 2 time frames Linda 16:11:16 going to start out reviewing KEY CONCEPT. Linda 16:11:17 and that isLinda 16:11:36 first off, with two time frames, the goal is to use shorter time frameLinda 16:11:51 to enter into higher time frame pattern or playLinda 16:11:56 In a trending market, Linda 16:12:06 there will always be sell divergencesLinda 16:12:08 that is a givenLinda 16:12:18 but if the next higher time frames have new momentum highsLinda 16:12:27 then those divergences are going to get run overLinda 16:12:34 If say, you have 800 tick sell divLinda 16:12:44 but new mo highs on 1600 and 3200 tick, etc. Linda 16:12:53 you are unlikely to see full retracement to the 800 tick EMALinda 16:13:02 and more likely to only get retrace back to 400 tick EMA Divergences Linda 16:37:03 DivergencesLinda 16:37:21 I have very strict criteria for a divergenceLinda 16:37:26 First offLinda 16:37:45 do NOT look for divergences when all time frames are trending in same direction Breakouts Linda 16:39:16 and what do you seeLinda 16:39:19 big trading rangeLinda 16:39:26 prices trade both sides of that line Linda 16:39:30 COIL action, OKLinda 16:39:48 If you were looking at market profileLinda 16:39:51 you have VALUE AREALinda 16:40:00 market has come to agreement about the priceLinda 16:40:06 the longer it trades in rangeLinda 16:40:11 the stronger that agreementLinda 16:40:15 so when that is BROKENLinda 16:40:21 and one side gets the upper handLinda 16:40:26 the market is out of balanceLinda 16:40:29 and must trendLinda 16:40:36 until there is sharp price rejectionLinda 16:40:41 or a new value area is establishedLinda 16:40:47 you will almost ALWAYSLinda 16:40:52 get false divergencesLinda 16:40:57 when the market first breaks outLinda 16:41:02 Another observation:Linda 16:41:08 Breakouts Momentum moveLinda 16:41:12 when you have momentum moveLinda 16:41:19 you RARELY get nice retracement to enter onLinda 16:41:25 until move is 2/3s overLinda 16:41:29 so don8217t sit back and sayLinda 16:41:35 I will wait for first 5 minute bull flag to enter onLinda 16:41:44 because you aren8217t going to get it till too lateLinda 16:41:53 first come first serve at this gameLinda 16:42:01 go down to tiniest time frame, if you get pause, Buy Linda 16:42:04 about all you can doLinda 16:42:34 So you see market formed bit of new range after the markupLinda 16:42:39 before reversing down againLinda 16:42:45 it did not form very big rangeLinda 16:42:50 so it was not a good value areaLinda 16:42:58 the market really likes its previous homeLinda 16:43:09 yes, Linda 16:43:14 went right back to Home base todayLinda 16:43:31 Another mistake with DivergencesLinda 16:43:43 looking for them in flat dull trading rangeLinda 16:44:08 THAT Linda 16:44:11 in the middle of the screenLinda 16:44:16 is not a good divergenceLinda 16:44:23 middle of rangeLinda 16:44:35 often can have low ADXLinda 16:44:50 Good Divergence comes at the END of a swingLinda 16:44:54 and is a LOSS of momentumLinda 16:45:11 just getting rid of those trendlinesLinda 16:45:16 3600Linda 16:46:05 you can see the difference between the divergences that form on the right for the buyLinda 16:46:46 on one handLinda 16:47:02 I LIKE the divergences that come when price is well into those keltner channelsLinda 16:47:06 and again, Linda 16:47:13 I like them when market is in broad trading rangeLinda 16:47:21 this whole chart is in a trading range Linda 16:51:34 remember I said to be CAREFUL about looking for a divergence when the market is just breaking from a sideways line linda 16:51:03 grails test out with about linda 16:51:10 67 win loss linda 16:51:20 just like most retracement strategies dolinda 16:51:35 grails do best when you got market making new lows or new all time highslinda 16:51:40 and do worst in trading range Linda 16:53:01 GrailsLinda 16:53:12 are trades for retest on scalp ONLYLinda 16:53:15 two grails Linda 16:53:21 retracements back to moving averageLinda 16:53:24 play for retestLinda 16:53:38 after the market has shown IMPULSE Or momentumLinda 16:53:54 here is easy GRAIL trade:Linda 16:54:07 Look for the relative strength leader on the boardLinda 16:54:16 wait for 15 minute bull flag to form Linda 16:57:46 i ALWAYS like to see three bumps in the 3 tenLinda 16:57:55 and the three waves MUST be after the market has broken outLinda 16:58:18 ADX will be low when there is a trading rangeLinda 16:58:27 you see the blue at the bottom of the screenLinda 16:58:32 Low ADX highlights a sideways lineLinda 16:58:34 or value areaLinda 16:58:43 market more often then not comes out of that with three drives Linda 16:59:55 too often people use TOO short of a time frameLinda 17:00:00 look at the OSCILLATORLinda 17:00:07 when I go to a 2 minute chart of GOLDLinda 17:00:15 it is useless Linda 17:00:20 too many wiggles and jigglesLinda 17:00:38 meaningless hooks up and downLinda 17:00:51 lets contracts that with a Clean time frameLinda 17:01:22 120 minute ChartLinda 17:01:25 nice readable SwingsLinda 17:01:30 GREAT roadmapLinda 17:01:34 you see the differenceLinda 17:01:41 you always need a GOOD higher time frame roadmapLinda 17:01:47 that is well above the noise 5ma Linda 17:06:39 (7 closes above the 5 simple period moving average)Linda 17:06:45 we play the retrace gameLinda 17:06:55 look to buy after the first close back BELOW the 5 SMA Linda 17:07:56 but this was my copper short from yesterday, Linda 17:08:01 a tad too soon, Linda 17:08:02 butLinda 17:08:10 stats test out on thisLinda 17:08:34 market had had 11 CLOSES below the 5 SMALinda 17:08:43 yesterday was the first close back ABOVE itLinda 17:08:46 and todayLinda 17:08:51 you see you get the close back downLinda 17:09:08 we covered half our short and will see if we get a bit of downside follow through tomorrow (or not)Linda 17:09:37 by the wayLinda 17:09:37 YesLinda 17:09:44 the 5 SMA trade is very similar to pinballLinda 17:09:53 although you can get pinball even if no extended run V spike Linda 17:13:14 VERY importantLinda 17:13:25 the one rule that TRUMPS all the other rulesLinda 17:13:28 V Spike reversalLinda 17:13:38 you HAVE to recognize that after EXTERME buy or sell climaxLinda 17:13:49 the momentum shifts and there is a vacuum in the opposite directionLinda 17:13:56 (as was the case with V spike two days ago)Linda 17:14:10 let me show you a multiple time frame GRIDLinda 17:14:38 CanadaLinda 17:14:46 Finger trade as it is well knownLinda 17:14:55 temptation is always to look to BUY the first pullbackLinda 17:15:04 here is good rule of thumb thoughLinda 17:15:10 at least it works on the daily charts:Linda 17:15:43 one at the bottomLinda 17:15:44 one at the topLinda 17:15:54 IF you have a bar that is the widest range bar of the past 4 daysLinda 17:16:06 and the LOW Of that bar is taken out within next one or two days Linda 17:16:14 you got reversal signalLinda 17:16:20 so at the topLinda 17:16:24 you see a VERY extreme barLinda 17:16:56 the kiss of deathLinda 17:17:04 was not just the new momentum lows on the lower time frameLinda 17:17:14 because very often you can have what LOOKS like a new momo lowLinda 17:17:18 but it is just a flushLinda 17:17:25 it was the lower low in the oscillatorLinda 17:17:34 now with that saidLinda 17:17:40 nothing goes straight down 2 ROC linda 16:32:43 looking at 2-period ROC:linda 16:32:58 1) Breakout Mode ALWAYS takes precedent over 2 period ROClinda 16:33:06 in other words, if you have NR7 or 2 NR7slinda 16:33:13 or 3 bar triangle breakoutlinda 16:33:27 it does not matter if the 2-period ROC is already down 2 dayslinda 16:33:34 market can still come out the downside linda 16:38:41 trick is always:linda 16:38:55 when do you know you are in trading range and when are you starting down out of trading range linda 16:38:12 In a trading range, nothing works better then sentiment linda 16:52:51 so much of this game, is your own concentration levellinda 16:53:06 ability to switch gears, stay flexible linda 16:53:29 maybe if there are 8 great opportunities during the day, you capitalize on 1-2. linda 16:53:41 don8217t let any one trade get out of hand. linda 16:53:56 you guys have to realize what an ADVANTAGE you have trading off the screenlinda 16:53:59 the money flowslinda 16:54:01 the big fundslinda 16:54:16 fidelity, rydex, institutions. cant be as nimble as you Pivots linda 17:01:19 Pivotslinda 17:01:24 what do you mean by pivotslinda 17:01:44 only pivots I like are previous day high, low and the opening and closing priceslinda 17:01:55 all else totally arbitrary in my booklinda 17:02:06 and the big problem with the floor trader pivotslinda 17:02:23 is that they are calculated off the previous days levels which does not account for range expansionlinda 17:02:39 so I see more traders getting mowed over trying to fade the pivots on a range expansion daylinda 17:02:50 yeah yealinda 17:02:57 r1 r2 etc linda 17:03:00 just for laughslinda 17:03:10 imagine paul tudor jones using those levelslinda 17:03:12 NOTlinda 17:03:53 day session high and low and 24 hour session highs and lowlinda 17:04:00 use the points that everyone seelinda 17:04:10 cuz then you can judge the volume and psychology around those pointslinda 17:04:31 as an aside. linda 17:04:40 though I make fun of pivots and fib and stufflinda 17:04:47 you need to have a reference pointlinda 17:05:01 it is the only way you can gauge momentum against the current pricelinda 17:05:13 how quickly something is moving in one direction towards or away from a levellinda 17:05:31 so any arbitrary point is better then no point at all. Volatility Breakout Systems Volatility Breakout Systems by Linda Bradford Raschke Breakout systems can actually be considered another form of swing trading, (which is a style of short term trading designed to capture the next immediate move). In other words, the trader is not concerned with any long term forecast or analysis, only the immediate price action. Volatility breakout systems are based on the premise that if the market moves a certain percentage from a previous price level, the odds favor some continuation of the move. This continuation might only last one day, or go just a little bit beyond the original entry price, but this is still enough of a profit to play for. A trader must be satisfied with whatever the market is willing to give. With a breakout system, a trade is always taken in the direction that the market is moving at the time. It is usually entered via a buy or sell stop. The bit of continuation that we are playing for is based on the principle that momentum tends to precede price. There is also another principle of price behavior that is at work to create trading opportunities. That is, the market tends to alternate between a period of equilibrium (balance between the supply and demand forces) and a state of disequilibrium. This imbalance between supply and demand causes 8220range expansion8221, (the market seeking a new level), and this is what causes us to enter a trade. There are several ways to create short-term volatility breakout systems. I have found that different types of systems based on range expansion test out quite similarly. Therefore, whichever method you choose should be a matter for your own personal preference. In designing a system, one can choose to place an entry stop off either the opening price or the previous day8217s closing price. This entry stop can be a function of the previous day8217s range or a percentage of the previous 2.10-day range, etc. Mechanical exits can range from using a fixed objective level to using a time function such as the next day8217s open or close. Most of these systems function best when a very wide stop is used. Another way of trading the breakout mode is by using 8220channel breakouts8221 which is simply buying the highest high of the last seven days in the case of a 7-period channel or the highest high of the last 2 days in the case of a 2-period channel breakout. In the case of an inside day breakout pattern where one buys the high or sells the low of the previous bar, a 1-period channel breakout is actually being used for the trigger. The most famous long-term breakout system adapted by Richard Dennis for training the 8220Turtles8221 was the 4-week channel breakout originally designed by Richard Donchian. Other breakout systems can be based on chart patterns (i. e. Curtis Arnold8217s Pattern Probability System), trendline breaks, breakouts above or below a band or envelope of prices, or variations of simple range expansion functions. Training Benefits for the Novice Trader Derived from Trading a Volatility Breakout System: Trading a short-term breakout system can be one of the best exercises to improve your trading. First, it teaches you to do things that are hard to do 8211 buying high or selling low in a fast moving market For most people, this feels quite unnatural Second, it always provides a defined money management stop once a trade is entered. Not adhering to a defined money management stop is the most common cause of failure among traders. Third, it teaches a trader the importance of follow-through once a trade is entered, as most breakout systems perform best when the trade is held overnight. Last, it provides a great means for traders to improve their execution skills. Most volatility breakout systems are fairly active compared to a long-term trend following system. A trader can gain skill in placing orders in a diverse number of markets. Having a mechanically defined entry point is sometimes just the thing needed to overcome a trader8217s fear of pulling the trigger. The order is placed ahead of time and the market then automatically pulls the trader into a trade if the stop level is hit. Even if a person prefers to ultimately enter orders using discretion, trading a mechanical volatility breakout system can still be an invaluable exercise. It should at least increase a trader8217s awareness of certain types of price behavior in the marketplace, especially if one is conditioned to entering on counter-trend retracement patterns. It can8217t but help impress upon one the power of a true trend day. Pros and Cons of Trading a Breakout System: Like most systems, volatility breakout systems will clean up in volatile or runaway markets but tend to thrash when conditions get choppy or volume dries up. I believe they are still among the most profitable type of system to trade, and I also feel they will continue to be profitable in the long run. They are 8220durable8221 and 8220robust8221, though they tend to deteriorate when too large of an order is placed (i. e. greater than 50 contracts). However, so that you do not get the impression that there is a Holy Grail of systems, the following considerations should be kept in mind: Entries can be nerve-racking, especially when the market is in a runaway mode. The best breakouts won8217t give you retracements to enter on. You are either on board or you are not If you conceptualize that the best breakouts turn into trend days, and are most likely to close on the high or low for the day, then it is not so difficult to enter. Usually it is best to have a buy/sell stop already resting in the marketplace. Sometimes a market gaps open outside your initial entry level. These often turn into the best trades. They can also turn into the most aggravating whipsaws. Big gaps test out that one should still take the trade, but they will definitely add more volatility to your bottom line. If your trade gets stopped out and an new signal is given in the opposite direction, this reversing trade usually more than makes up for the first loss. Whipsaws are a drag but they are also inevitable when trading a breakout system. Many times I have bought the highs and sold the lows. It takes a great deal of 8220confidence in the numbers8221 to trade this type of system. System testing should always be done for a minimum of 3 years, preferably 10. Be sure to then examine out of sample data to see how the system performed. On balance, a volatility breakout system can be traded on most all markets. However, a market might be very profitable one year and yet perform mediocre at best the next. A portfolio of 10 to 12 markets seems to work well. The problem with trying to trade too many markets at once is that it can become quite difficult to keep up with the activity level if your parameters are fairly sensitive. Many times in systems development, people overlook what one person can realistically manage. Enhancing a Basic Volatility Breakout System: Adding filters can sometimes create further enhancements. Examples of types of filters include: indicators to determine whether or not a market is in a trending condition, seasonality, days of the week, or degree of volatility contraction already present in the market. Periods of low volatility in the market can be defined by a contraction in true range, a low ADX, or a statistical indicator such as a low historical volatility ratio or a low standard deviation. A system then might look something like this: Initial volatility condition true Buy or Sell on a stop based on the current bar8217s open, plus or minus a percentage of the previous day8217s range. Initial Risk management stops once a trade is entered. Exit strategy. Types of variables which can be used in a simple range expansion breakout system: Period 8211 is the breakout based on a function of the previous day or the previous 10-day period, for example Range 8211 does it use the average range for that period or the largest, smallest, or total range Percentage 8211 what percentage of the range is used It is possible, for example, to use 120 of the previous 3-days8217 total range. Base 8211 is the range function added to the previous day8217s close or the current day8217s open. This function may also be added to the high or low of the previous bar or a previous period such as the last 10 days. As a general rule of thumb, the greater the percentage factor used, the greater the percentage of winning trades will be. However, the overall system may be less profitable because fewer trades are taken. Once again, an example of an initial condition might be: Enter a trade only on a day following the narrowest range of the last 7 days. Or, take a trade only if the market has made a new 20-day high or low within the last five trading days. Whenever you add a filter to a system, be sure to compare the results to a baseline and examine the difference in activity level. Time based (2nd day8217s close, 1st day8217s opening) First profitable opening (Larry Williams) Target or objective level (1 average true range, previous day8217s high/low) Trailing stop (displaced moving average, parabolic, 2-day high/low) RISK: Controllable Risk 8211 the amount of risk which can be predetermined and defined by a money management stop. Types of money management stops: fixed dollar amount function of average true range price level (i. e. bar high/low) Overnight exposure (close to open risk). You cannot exit a position when the market is not trading. Thus, you are subject to adverse gaps, which can be exaggerated by news or events. Slippage risk. Fast market conditions or thin, volatile markets often cause a trader to get filled at prices much worse than expected. In general, the numbers behind most systems are very dependent upon capturing a few good trades. You can8217t afford to miss the one good trade that can make your month. Here are some tips for trading this or any other system: Gain confidence by first trading a system on paper. Make sure you can successfully trade a system mechanically before attempting to add any discretion. Track your actual performance against the mechanical system at the end of each day, rating your success by whether you can match the system8217s performance. Monitor performance over an adequate sample, perhaps 100 trades or a set number of weeks. Do not let a down week or trade deter you. Manage the exits rather than filter the entries. It is impossible to tell in advance which trades will be the good ones. The one entry skipped might be the BIG ONE, and one can8217t afford to miss it. Managing the exit means two things: The first, learn when it8217s okay to let that occasional great trade run an extra hour or two before getting out the second (which really depends on one8217s skill level), learn to recognize a bit sooner when a trade is not working and exit just before the stop is hit. All systems display subtle nuances and insights into the market8217s behavior over time. Keep a notebook of your observations and patterns you notice. In this way you truly 8220make the system your own8221. Never be concerned about how many other people are trading systems. If slippage seems excessive, it often suggests a significant breakout from a triangle or period of congestion. Remember: Something had to drive the market far enough to penetrate the breakout point in the first place If you are interested in reading more on the principle of range expansion/range contraction, Toby Crable pioneered some of the finest research in this area. I would strongly recommend his book Day Trading with Short Term Price Patterns and Opening Range Breakouts . The research in this book provides one of the most solid platforms for developing volatility breakout systems based off the opening price. Toby is a CTA who now manages over 100 million dollars based on some of these techniques. Another excellent value is Curtis Arnold8217s book, PPS Trading System . He discloses a different type of system based on breakouts of traditional chart patterns as identified in Edwards and Magee8217s book Technical Analysis of Stock Trends (another classic book which should be in every serious market technician8217s library). Curtis8217s original system sold for over 2,000. The book is essentially the same thing and sells for less 50 These books, in addition to many others can be ordered through our bookstore. Patterns, Set-ups, Analysis What is the Short Skirt Trade A SHORT SKIRT is a quick scalp trade made in the direction of the short-term trend. The setup occurs after the SampP has made a sharp impulse move. The pattern tends to look like a continuation flag on a 1-minute chart. We call it a Short Skirt because the trade usually lasts between 2 - 10 minutes. The concept is - quick in and quick out without getting caught. We try to look for Short Skirt setups that have the potential for a minimum of three points in the trade. An initial 3-point STOP is placed from the trade entry price. The objective for the trade is a retest of the previous swing high or low, even though the market often makes a new leg up or down. How do you enter Short Skirt Trades We watch for a price retracement of 2 to 4 points from the most recently formed swing high or low. For an untrained eye, it may be useful to watch the 20-period exponential moving average on a 1-minute chart, though the price does not always retrace that far. Sometimes the reactions that go sideways instead of back to the EMA can be the best trades. The initial price retracement lasts about 5 minutes. When the reaction back starts to stall, we usually enter a market order. It is ideal to enter the trade BEFORE the price starts moving back in the direction of the original trend. It is also most efficient to work a bid or offer as the price is correcting back down, but sometimes the type of order used is a matter of personal style. Since the price has already corrected back 2-3 points when a trade is entered, it is rare that the initial 3-point stop is hit. We tighten the stop up after the trade moves off in our favor. After the trade starts to work, immediately pull your stop down to the last swing high or low in case the market does not make a full retest back down. What is a Bull/Bear Flag These patterns are taken directly from classical charting (Schabacker, Edwards amp Magee, etc.) and have withstood the test of time. Flags are a continuation pattern in a trending market. They are found on all time frames, all markets, and offer one of the better risk reward ratios for trade setups. A flag formation should be preceded by a pole or initial momentum move in the direction of the trend. The ensuing consolidation tends to be relatively shallow. Continuation patterns are much shorter than reversal patterns. The longer a flag goes sideways, the greater the odds that it will turn into a reversal pattern as opposed to leading to a new leg in the direction of the trend. What is a Grail Trade The Holy Grail trade was originally described in my Street Smarts book. The setup occurs when the markets trend has been strong enough to cause a 14-period ADX to rise above 30. When the price then retraces back to the 20-period EMA, odds favor a retest of the most recently formed high or low. What is an Anti Setup The Anti looks like a small bull or bear flag pattern that occurs either in the middle of a trading range or just after a market has reversed from a sustained trend move. Classic bull or bear flags are continuation patterns that can only occur in a market that has a well-defined trend. Sometimes an Anti will look like the middle retracement of an A-B-C pattern. Thus, we are able to get a measured move objective that is based off the prior swing. The Anti MUST be preceded by a short-term IMPULSE move. Buy Antis are more frequent than Sell Anti setups. The long trades will have the best odds of success if the prior up leg is GREATER than the previous down leg. Oscillator pattern recognition based on either the 3/10 oscillator or a 7-period K, 16-period /D combination of stochastics can also be used to identify this setup. What is Momentum Pinball Momentum Pinball was originally introduced in the Street Smarts book as setup to indicate a Buy Day or a Sell Short Day ala George Douglas Taylor. Taylor looked to go short after 1-2 days of rally, and cover and go long after 1-2 days of decline. The pinball indicator is calculated by using a 3-period RSI of the daily net change. The Street Smarts book contains a complete and detailed description of this trade. (Momentum Pinball, Anti, Holy Grail, 80/20 and 90/10 bars, and 2-period ROC signals are some of my ORIGINAL concepts. It is repeatedly brought to my attention that there are individuals on the internet offering newsletters and courses based on my original copy-write protected materials. Please note that I do not have any affiliation or association with these entities.) What is an Oops Trade Oops is an expression originally coined by Larry Williams. The setup occurs when the opening price gaps outside the previous days range. A buy (or sell) stop is placed just inside the previous days range in case the market then closes the gap, indicating a reversal. The trade is best treated as a scalp trade and exited before the close. This pattern has no long term forecasting value. What are the main indicators you use on your charts We use the same indicators on all markets, all time frames. We use a 20-period EMA (exponential moving average), a price oscillator, and a 14-period ADX. The oscillator that we use is the difference between a 3 and 10 period simple moving average, with a 16-period simple moving average of the 3/10. We also use Keltner Channels based on a 2.5 ATR centered around the 20-period EMA. Keep in mind that indicators are just a crutch to tell you what is already there on bar charts. Many traders do best when they learn to read bar charts without the use of indicators, oscillators, etc. What is the Breakout Mode We use a breakout mode strategy when the market has had some form of range contraction. A trend day, or large range expansion day, often follows periods of range contraction, or small average daily ranges. When we are in breakout mode, we use strategies to enter in the direction the market is moving, instead of waiting for a reaction in the price. How do you measure market breadth, put call ratio, and volume Market breadth is monitored by looking at the number of advancing issues minus the number of declining issues on the NYSE. Put/Call data is provided by the individual exchanges. We look at the equity only put call ratios, in addition to the index put call volume ratios. For put/call data updated every half hour, you can use this link to Chicago Board Options Exchange: cboe/MktData/default. asp We look at the volume on the NYSE and compare it to readings made at the same time on previous days. What time frames do you look at. Our initial nightly analysis is always done off the daily and weekly time frames. During the trading day, we use 15, 30, 60 and 120-minute charts. For the SP futures, 1 and 5 minute charts are also helpful. Most often, though, we tend to watch the last price. A trader, who can monitor the basic support and resistance levels by watching the tape action, will often be one step ahead of the trader using bar charts. It is also easier to monitor multiple markets and market internals simultaneously when looking at a quote board instead of charts. Please define TICK, TIKI, TRIN, and VIX. TICK: This is the net change of all NYSE stocks on an uptick minus all NYSE stocks on a downtick. Plus or minus 1200 tends to be an extreme reading. in a trending market environment extremes in the ticks can be used as a momentum indicator indicating further price movement to come in the direction of the trend. however when the market is in consolidation mode, after it has already had a big move, ticks will mark the ends of the short term swings up and down. TIKI: This is the difference between all DOW stocks on an uptick minus all DOW stocks on a downtick. Plus 24 or minus 24 tend to be extreme readings. TRIN: The TRIN is also known as the ARMS Index after its creator, Dick Arms. It is computed as follows: (Advancing Issues/Declining Issues) / (Up Volume/Down Volume). We watch the direction TRIN is moving to indicate the overall trend of the market. For example, if the TRIN goes from .80 to 1.00, this would indicate selling is coming into the market. VIX: This is the Volatility Index that is based on the implied volatility of the at the money OEX puts and calls Most real time data feeds transmit these indicators. However, different data feeds may use different symbols. If you have any questions regarding symbol code, please contact your data vendor directly. What is a Z Day A Z day is a consolidation day that often follows a trend day. The morning period is characterized by a testing back and forth in the price action. We use a different set of trade strategies on these days than we do on other days. one of our favorite trades is the bollinger band trade. see bollinger band explaination in the FAQ What is an NR7 day An NR7 is a day in which the todays daily range (todays high price minus low price) is narrower than the previous six days. The significance of this pattern is that it represents a marked decline in price volatility. Range expansion and an increase in price volatility tend to follow an NR7 day. An NR4 day is similar to an NR7 day except that it represents a day in which the range is the narrower than the previous three days. Toby Crabel originally presented the concepts of NR4, NR7, WR7 etc. in his Market Analytics Letter written in the 1980s. We give credit to him for initiating research in this area. His original articles were published in the magazine, Technical Analysis of Stocks and Commodities. What is a WR7 day A WR7 is a day in which the todays daily range (todays high price minus low price) is wider than the range of the previous 6 days. The significance of this pattern is that it represents an expansion in price volatility. A trader can often buy or sell a test of the WR7 days high or low, on the following day for a scalp trade. What is the 2-period ROC The 2 period Rate-of-Change is todays close minus the close two days ago. For example, to get Fridays 2-period ROC, you would subtract Wednesdays close from Fridays close. The 2-period ROC is useful in highlighting a two to three day trading cycle as explained in the Taylor Trading Technique. Raw momentum is the only derivative of price that we have found to offer statistically significant results in our quantitative research. Our results with this indicator have proven to be durable and robust across all markets. What is Average True Range (ATR) The Average True Range (ATR) was introduced by Welles Wilder in his book, New Concepts in Technical Trading Systems. ATR is a measure of volatility, and it is a component of the ADX indicator. ATR is calculated by finding the greatest value of: 1. The distance from todays high to todays low. 2. The distance from yesterdays close to todays high. 3. The distance from yesterdays close to todays low. The main difference between ATR and the plain daily range is that ATR takes into account gaps. What is a divergence A divergence occurs when a momentum indicator or other instrument fails to confirm a move in the price action of the market under observation. For instance, if the SP futures makes a new low in price, but the 3/10 oscillator fails to make a new momentum low, then the SP is said to be diverging from the oscillator. Likewise, if the SP futures make a new low that is not confirmed by new lows in a related market or index (for example the SP versus the Dow Industrials, or the SP versus the TICK), this is also considered a form of divergence. Divergences are useful in that they warn of a loss of momentum and often precede a reversal in price. What are Keltner Channels Keltner Channels are a form of trading bands plotted directly on top of a price chart, as opposed to beneath the price chart as in the case of an oscillator or volume. The bands are based on an ATR function centered around a moving average. We use a value of 2.5 ATRs added to and subtracted from a 20-period exponential moving average to create our bands. What is the difference between Keltner Channels and Bollinger Bands Bollinger Bands are based on a standard deviation function. Very often, you will see times where the market is moving HIGHER but the lower Bollinger band is declining. This does not happen with Keltner channels. Though both are based on a volatility functions, Keltner Channels will maintain a more constant width than Bollinger Bands and thus we find them more pleasing to our eye. We also have had much better success in using range functions in our quantitative modeling as opposed to standard deviation functions, especially when creating short-term timing systems. Bollinger Band trades we use 2.5 standard deviation bands centered around a 20 period moving average to make trades on the day following a trend day. we do these trades in the morning session only. the concept behind this is that a push to the upper or lower band will setup a countertrend trade. the objective is a push back to the moving average. no stops were used in our testing, we just used an exit of whenever the trade hit the moving average or end of day in the worse possible scenario. A-B-C is a term borrowed from Elliot Wave terminology that denotes a three-wave corrective pattern that is often found in the middle of a trend. Waves A, B and C are often of the same magnitude in both price and time, and the pattern tends to have the appearance of a zigzag. What are the parameters for the 3/10 oscillator To construct this oscillator, first subtract a 10 period simple moving average from a 3 period simple moving average. We often refer to this as the fast line. Next, create a 16-period simple moving average of the fast line - we refer to this line as the slow line. It is also useful to plot a horizontal line at the zero value. We plot all three lines together on our charts beneath the price. For some indicators, such as the 3/10 oscillator, we provide subscribers with downloadable TradeStation code files. When we refer to the EMA, we will always be referring to a 20-period exponential moving average. This line can be thought of as a proxy for a regression to the mean in a trending market. It has little value in a trading range market. Unlike a simple moving average, which takes the average price of the last X periods, the EMA method takes a weighted average of the most recent price and the average price from the bar before. What size stops do you use In general, we use an initial stop of 5 points in the SP futures unless specified otherwise. For scalp trades in the SPs, we use a 3-point stop. In the domestic futures markets, we use a fixed 500 stop per contract unless specified otherwise. If there is an unusual expansion in volatility, we will use wider stops and lower our leverage. Stops should be tightened up as a market moves off in your favor. In stocks, we recommend using stops to limit losses to no more than 2 of your working capital. How do you enter positions In determining whether to use market, limit or resting stop orders to pull us into a trade, we assess the liquidity conditions and the type of market environment (i. e. trending, choppy, etc.) Each trader must ultimately find their OWN style that works best for them over time. Do you have resting stop orders in the market The great majority of the time we keep our stop orders resting in the market. The exceptions tend to be when a gap opening is expected, in which case we let the market settle in first, and then place our stops just outside of the early morning range. The other exception is when current liquidity conditions are poor and we have a large position on. This has been the case in certain markets such as coffee, where it is preferable to let the broker work an exit order within a fixed time window. How do you place your orders in the SP futures We call most of orders directly to the futures pit. However, over the past few years we have been using the e-minis with electronic order entry as well, especially as liquidity has been shifting to this market. What do you mean when you refer to premium The fair value premium is the theoretical futures price minus the cash index price. Fair value describes how far the futures contract should be trading above or below the cash index given expected dividend income for the stocks in the index, the number of days to expiration for the futures contract and the short-term interest rate. When the SPs are trading at a premium or a discount, we are referring to a situation where the futures are trading above or below their fair value. What is the historical volatility ratio This is the ratio between two different lengths of historical volatility (for example, the ratio between 25-day and 100-day historical volatility). We use this indicator to alert us to times when short-term volatility has declined below longer-term volatility by a certain percentage threshold. These signals are often precursors to increasing volatility. What is the BO/BO - on your trade sheet These are the parameters for a proprietary volatility breakout system that we trade during certain periods. A buy is triggered on a break above the upper number and short is triggered on break below the lower number. What is the Golf System Golf is a proprietary system that enters the SP futures on the CLOSE. LBRGroup published this system in an advisory service between 1993 and 1998. We also traded it on a mechanical basis for our managed futures program. We stopped trading it mechanically when the overnight volatility became too great during the Asian crisis, though we still use it as a timing indicator. It is based in part upon the 2-period ROC and bar chart patterns. What is the afternoon 2-point trade The 2-point play is not a chart pattern. It is something that we started doing real time in October 2004. It is not a mechanical system though either, since there is no fixed stop other then a time stop. The time stop is 24 hours. It is a tendency based on pattern recognition (number of days up or down along and degree of trend). It is something that we started doing for ourselves originally, and other members have started using it as well. Trades are initiated on the reopening of the Emini contact after the market closes (i. e. the beginning of the Globex session). Very often the 2 point objective is hit in the Globex session, which is why we do not work these trades for the room, but just put in what they will be for your own knowledge. There have been times where the 2 point objective is not achieved until the day session the next day. Of course there will be a times where the objective is not achieved at all, also. What is the RAT trade The Rat trade is an afternoon breakout trade we make in the SPs on days where there is heavy institutional activity. It is not based on a specific chart formation, and the parameters and filters for this trade are proprietary. What is the Last Call trade This is a trade made in the last hour of the day in the index futures. It is similar to the Push into the Noon Hour time frame that we make in the morning. (Members can reference this in the Trade Library Setup). The Last Call setup is based on a combination of bar chart pattern recognition and market breadth parameters. What is a Pivot Point This can be a previous swing high or low, or visible chart point such as the high or low of a gap area. Globex highs and lows, along with the previous days high and low are all forms of Pivot Points. We do not use Fibonacci numbers or arbitrary calculations. We are interested in levels that ALL market participants are aware of, as would be the case with a key high or low. What are the Red Green Red patterns on the bar charts that you post This color rule is based off an average true range function added or subtracted from the previous swing high or low. It is a variation of the parabolic stop and reverse formula published by Welles Wilder in his book, New Concepts in Technical Trading Systems. We find that it provides useful pattern recognition in highlighting the short-term swings on a bar chart. General Trading Related Questions Tick Charts vs. Time Interval on most software applications a 1600 tick chart of the sps would be equivalent to a 5 minute chart. and a 3600 tick chart is similiar to a 15 min time frame. we prefer to use these type of tick charts in the early morning session since they adjust the globex trading relative to the activity level. day session only charts on a 5 min interval can be too gappy, while 5 min charts on a 24 hours basis tend to be distorted. What is relative strength and relative weakness that we talk about in the online trading rooms Simply put, a stock or sector that exhibits relative strength is performing better than a related index, such as the SP500 or Nasdaq. Relative weakness would be a sector or stock that is under-performing a benchmark index. With commodities, the relative strength leader is the one that is performing the best on the day. The early morning relative strength leaders usually continue to perform the best throughout the day. What are the SPY amp QQQ The SPY and QQQ are Exchange Traded Funds. They represent a basket of stocks mimicking the composition SampP 500 and Nasdaq100 stock indexes. They trade on an exchange just like individual stocks and can be sold short on a downtick. In essence, they allow you to trade the entire stock index much like the SP or Nasdaq futures. However, unlike futures contracts, the QQQ and SPY do not expire and are not leveraged instruments. How do you watch so many markets The majority of the time, we watch a quote board which gives us last price instead of watching charts on each individual market. This way we can monitor numerous price levels in addition to various market indexes and market internals. If we want to look at the charts on a particular market, we pull up a screen that has the 30, 60 and 120-minute time frames. The SPs and occasionally the bonds are usually the only markets where we will look at charts on a shorter time frame. Positions in most other markets are entered with the intent of carrying a winning position over night. Why do you look at so many stocks Stocks that are market leaders can often turn before the stock index futures do. This is particularly true of the high beta momentum stocks. Monitoring individual sectors and relative strength can add valuable information regarding the overall technical condition of the market. We limit our database to only the top 250 trading stocks. What kind of broker should I use Avoid brokers with browser-based order entry systems. Use a broker that offers a fully integrated trading platform (stand alone software) with point and click order routing and execution. You will have to do your own research in deciding which company to do business with. If you are not happy with your current broker, it is very easy to try another. We maintain accounts at multiple firms and feel that it is important to have multiple relationships in case there is ever a problem with one firm or a geographic disruption in one part of the country. What data feed and software programs do you use Real Time Data feeds: How can I see what happened each day in the online trading rooms For LBR Futures Live and LBR Stock Beat, we post transcripts of each days activity on our website. These transcripts are available in the Members Services section of our website. For LBR Currencies we do not archive transcripts. However our Currencies room will be open 48 hours, giving members the ability to easily reference the previous days information. I want to join your service. What do I have to know about the stock market Though prior knowledge and experience are not strictly required, it is important that you understand that trading involves risk. Our online trading service is educational in nature and will be of best value to you if you can monitor the markets real time. I still have another job. Can I trade part time Yes. You decide on the pace of your learning. You might start out part-time and decide later on whether this could be the start of a new career for you. Remember that the time and energy you put into learning will pay off down the road. However, we have yet to come across a trader able to consistently support themselves by trading part time. Ultimately trading is a full time job, and many people new to the business are often surprised by the long hours professional traders devote to their study of the markets. How many trades do we make each day There is no normal day, and the number of trades varies with the volatility of the stocks and futures contracts that we are trading. However, we find it better to be patient and wait for a few well thought out high probability trade setups, than to settle for marginal trades. We find that when traders start overtrading, they get sloppy and make mistakes. I cant be near a computer all day - do you have any other suggestions for me Our Basic Online membership offers set-ups and trading ideas that can be implemented without the need for watching the screen during the day. These trades include option plays and longer-term stock swing trades. How long does it take to learn to trade successfully In our experience, the average length of time it takes for a person to be able to trade with the consistency and confidence necessary to make a decent living is about three years. Some people are never able to do this, as they are unable to master the mental side of the game. A few people have been able to find their niche quickly and show consistent profitability after just 6 months. This is the exception though. What are the most important things a day trader needs to succeed What methods are available for accessing the chat rooms We offer all members two methods for accessing our live chat: 1. Stand-alone software method 2. Browser based method Both methods offer the same connectivity speed and deliver the same information. We find that most people prefer the stand-alone software method for its features, such as multi/single window viewing modes. After you login (click on Futures Live, Stock Beat or Currencies buttons located in the upper left side of our home page ) you will come to a page with complete information for accessing both methods, including instructions for downloading our stand-alone chat software. Note: our live chat system will not permit running both methods simultaneously. Nor can you run our chat system on two separate computers, simultaneously. What is the video feature all about, and how do I access it Begining in June 2006, we upgraded our stand-alone chat software to include a direct video feed into Lindas computer. All members of Futures Live and Stock Beat will have access to this feature, at no additional cost. This feature enables you to see the actual charts and indicators Linda and her staff uses as they set up trades and make calls in the chat rooms. For mor information about this feature, click here. Do I need the latest version of your chat software to access the video feature Where do I download the latest version of your chat software The latest version is available by clicking on either the Futures Live or Stock Beat buttons located in the upper left side of our home page. After you enter you username and password, you will be given an opportunity to download the program file. Can you show me in more detail how to log on to the Browser Based chat system For full instructions, click here. How do I get web links (aka hyperlinks) to work in the chat window I click on them, but nothing happens. When you place your mouse over a link in the chat rooms, the link will not change its appearance like you would normally see on a standard web page. Do not be alarmed, this is normal. You need to place your mouse directly over the link, and then double click. Your Internet Explorer browser should then open. ALSO -- the link must be all on one line in the chat window. If the link is broken up over two lines, then simply re-size your window to get the link back to one line of text. I cant get the chat software to work. If you are using any kind of pop-up blocker or firewall devices on your computer, this may adversely affect and possibly even prevent the chat software from functioning. Check to make sure you have the latest Java Runtime Environment (JRE) installed. The latest version can be found here . Note our minimum system requirments: - High Speed Internet Connection (DSL or Cable modem) suggested - Win98, NT, 2000, XP - Java-enabled Internet browser (may require Microsoft Java Virtual Machine to be updated or installed or the SUN Java Runtime Environment: java. sun/getjava/) NOTE to System Administrators: Our live chat applications were designed to use direct Internet connection. If you are using NAT and/or a firewall system, it should permit outgoing connection to the port 8523 of our server (lbrgroup). Also port-mapping may be used on your Internet gateway. What are Open Forum rooms used for Open Forum rooms are special rooms just for members to talk amongst themselves. These rooms will have a blank text field beneath the window, where you may input your comments. After typing, to send your comments to the room, simply hit your Return or Enter key on your keyboard. How do I send a private message You may send private messages to other members as well as to the room moderators. Simply place your mouse over the name of the person you wish to send a message to, and right click. Then select Private Session. This will open up a new window for you to send and recieve your private message. After typing your message in the text field located at the bottom of the chat window, hit your keyboards return key to send the message. Note that the list of member names and moderator names will only apear in the Open Forum rooms, on the right hand side. How do I adjust the font size Both the stand alone and the browser based chat methods allow you to adjust your font size. Simply place your mouse over any text area within the transcript window, then right click your mouse. You can then select a custom font size from the list. What other user-controlled adjustments can I make on the stand alone software In the stand alone software, place your mouse over the small blue icon located in the upper left hand corner of the chat window. Next, select any of the following controls: - Multi Window mode . changes from single window mode to multi-window mode. - Always on Top . keeps the software from becoming obscured by other software applications running on your computer. - Play Sounds . turns on and off all room audio sounds. - Play EMA . turns on and off the subtle typing sound when messages are being broadcast into the main rooms. How do I enable the copy, cut and paste functions in the chat applications This requires adjusting the security settings on your web browser (Internet Explorer). Please click here to access a PDF file with detailed instructions for changing these settings. File requires Adobe Acrobat viewer. General Website Questions How can I cancel or change my service In the Member Services area of our web page, you will find links to Modify my Profile . How do I ask questions Sending us an email is the easiest way. Please see the Contact Us area of our web site. How do I print text found on your web site pages To print the class transcripts, guest lectures or other text items (without also printing all the formatted headers and other content on the page) heres what you do: 1. Simply select the text with your mouse (i. e. highlight the area you want to print). 2. Right click your mouse and select copy. 3. Open up Microsoft Notepad (look under Start--gtPrograms--gtAccessories--gtNotepad) and then simply paste in the text (right click mouse and select paste). 4. Voila -- you are ready to print the text (make sure youre printer is turned on) 5. For charts simply place your mouse on top of the chart - then right click - and save as to your hard-drive. Go to the saved file, click on the file to open it, and proceed to print. How do I print Charts 1. Right click your mouse on top of the chart you want to save, and select Save Picture As. 2. Save the chart image file to your harddrive. 3. Open chart image file by double clicking on file, then select Print from the Edit menu of you software. Why do charts print with such a dark background color Virtually all charts on this site are created with Aspen Graphics software. We realize that they do not print well with a dark background. Nos disculpamos por el inconveniente. The trade off is that we are able to manipulate the color rules and write our own formulas to show you unique and useful trading patterns. Why does it say no gaps on some of your charts in the Daily Educational Charts These charts are generated by Aspen Graphics. No gaps means that the data is compressed to eliminate holidays where the markets are closed. If this function is not turned on, a gap will appear in the data for the holiday session. ADX . Trend strength oscillator originally developed J. Welles Wilder Jr. that fluctuates between 0 and 100. BEAMER . Nickname for IBM BEAR FLAG . Classic bar chart pattern that occurs in a trending market, a bearish continuation pattern. BEAR TRAP . A bear trap occurs when the market breaks below chart support, bringing traders in on the short side, then quickly reverses, trapping traders with losses. BREADTH . The difference between the number of advancing issues and the number of declining issues on the NYSE. BREAKOUT TRADE . A trade that occurs when the market breaks above or below some pre-define range, usually a nearby support or resistance levels such as the previous days high or low, or the last 60 minutes high/low. Breakouts are often associated with low volatility readings. BULL FLAG . Classic bar chart pattern that occurs in a trending market, a bullish continuation pattern. BULL TRAP . A bull trap occurs when the market breaks above chart resistance, bringing traders in on the long side, then quickly reverses, trapping traders with losses. BURNING DOG . This is the phrase used to describe the tendency for the SPs to retrace back into a gap area by N - amount after a gap of N-amount. Though we make trades off this pattern in the futures room in the morning after a gap on certain days, this phrase describes a tendency only, and is not a mechanical trade setup. COMPRESSION METER . LBRGroups proprietary volatility index used to signal potential for longer term breakouts. COWS . Nickname for the Live Cattle futures CREEPER MARKET . A market that slowly creeps higher without a significant retracement. One of the strongest types of trending action that does not catch peoples attention. DISCOUNT (SPs) . When the price of the future is trading lower than fair Value DIVERGENCE . A divergence is indicated when momentum fails to confirm a new low or new high in the price. Divergences usually show up best with oscillators such as the 3/10 and 5/35 MACD. EDGE . Term used to describe when a trader has the advantage or a favorable margin. It is even better when this margin can be quantified statistically. EMA . Exponential Moving Average. We use a 20-period setting EQUILIBRIUM LEVEL . The point at which buyers and sellers are in balance. Coincides with a neutral chart point that is often at the end of a consolidation period. EVENT RISK . The risk that some unexpected event will cause a substantial change in the market value of a security. For example, missed earnings, lawsuits, crop failures, war, etc. FADE . A countertrend trade FAIR VALUE . Fair value reflects the relationship between stock index futures and the indexs current levels. It is a theoretical estimate of where the futures should be trading based on their underlying cash index with short-term interest rates and dividends factored into the calculation. Determining the fair value relationship between the SampP 500 futures contract and the underlying SampP 500 index requires adding the cost of borrowing the money to buy the SampP 500 stocks, while subtracting the gain these stocks pay in dividends. FILL OR KILL . This means do it now if the stock is available in the crowd or from the specialist, otherwise kill the order altogether. GOLF . A mechanical trade that is made in the SP futures that is entered on the close of the day. GRAIL . A trade set-up based on a pullback to the 20 period EMA after the 14 period ADX has risen above 30. Pullback in rallies are bought, and pullbacks in declines are sold short. This pattern was discussed at lenght in Street Smarts. IMPULSE . Increase in the market momentum. Impulse moves tend to happen in the direction of the trend. On a bar chart they have the appearance of a sharp markup or markdown. INSTITUTIONS . Mutual funds, pension funds, banks, and large commercials KELTNER CHANNELS . A trading band indicator that is displayed on top of price charts. Similar to Bollinger Bands but calculated differently, using true-range rather than standard deviation. LAST CALL . Trade that setups up in the last hour of a trend day LOAD THE BOAT . Use full line of leverage MACD . An oscillator based on the difference between two moving averages. We use the difference between a 3 and 10-period simple moving average MARK UP . A Wyckoff term, used to denote the phase of the market where prices rise, from the beginning of a bull market to its top. MARKET LEADERSHIP . Market leadership refers to those sectors and industries that are currently bringing in the best returns. MARKET ORDER . An order to buy or sell a stock immediately at the best available current price. A market order guarantees execution. MIT . Market-if-touched order. An order which becomes a market order if the specified price is reached. MOC . Market-on-close order. A buy or sell order which is to be executed as a market order as close as possible to the end of the day. MOMENTUM . The difference between the last price and the price N-numbers bar. A 2-period Rate of Change (ROC) is the same as a 2-period Momentum. NAZDOG . Nickname for the Nasdaq100 index. NAZDOGGIE . Name of Linda8217s adorable little Pomeranian. See photo gallery . NR7 . The narrowest high-low range of the past seven days. OODA . The OODA Loop, often called Boyd8217s Cycle, is a creation of Col. John Boyd, USAF (Ret.). Col. Boyd was a student of tactical operations and observed a similarity in many battles and campaigns. He noted that in many of the engagements, one side presented the other with a series of unexpected and threatening situations with which they had not been able to keep pace. The slower side was eventually defeated. What Col. Boyd observed was the fact that conflicts are time competitive. According to Boyd8217s theory, conflict can be seen as a series of time-competitive, Observation-Orientation-Decision-Action (OODA) cycles. OOPS TRADE . A term originally coined by Larry Williams which refers to a market that gaps below the previous days low (or above the previous days high) and then quickly reverses its direction. OOZE . Down trending price action that slowly inches down without any upward reactions of any magnitude. One of the strongest forms of trending action. OPENING BULGE . Period after the opening when the public has a tendency to pay too high a price. OPENING PLAY . The markets first tendency of the day OUCH SETUPS . When a market Closes in the upper 75 of its range but then gaps lower the next day around the previous days low (vice versa to the upside). OVERHEAD SUPPLY . Are where the market had found support in the past but the price is currently trading lower. PEA SHOOTER DAY . Our SP brokers affectionate term for when the institutions are absent and the majority of the paper in the SP pit consists of 1s and 2s. PIVOT . A market reference point. Our most frequently used pivots are swing highs and swing lows such as the high and low of a daily bar or the highs and lows of the hourly cycles. POWER BUY/SELL . A retracement formation that combines two time frames. For a chart example of this setup, members can reference the trade library setup. PREMIUM (SPs) . When the price of an index future is trading greater than Fair Value. PUSH INTO THE NOON HOUR TIMEFRAME . Trade that setup around 11:00 EST on a trend day RAT TRADE . An afternoon breakout trade that is made in the LBRFutures Room RESISTANCE . Area where Sellers have come in the past. ROBUST . Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite curve-fit or optimized. SCALP . A Short-term trade that capitalizes on the markets smaller fluctuations. SHAKEOUT FAKEOUT . A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area. SHORT SKIRT . The name of a very short term pattern trade taken on a one-minute SampP and Nasdaq futures charts. A form of pullback trade on a very short time frame. SKIDS . Slippage or the difference between the price that a stop order was placed and the actual fill price. SLOP AND CHOP . Action in the market when institutions are absent and liquidity is poor. SMA . Simple Moving Average SPRING . Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also Upthrust. STOP ORDER . An order that becomes a market order when the price touches that level. SUMTICK . LBRGroups proprietary summation Tick index SUPPORT . Area where buyers have stepped in the past. SWEET STUFF . Nickname for the sugar futures THREE PUSHES . A characteristic pattern that occurs near important turning points. Usually three distinct test of a high or low level, followed by a reversal. 3 OCLOCK JIGGLE . A scalp trade that sets up in the SPs around the time that the bonds close. TICK . Smallest increment that a price can change. 1 tick on an e-mini contract .25 points, which is the equivalent of 12.50. TICKS . The difference between the number of issues on the NYSE that are trading UP from the last trade versus the number of issues that are trading down. TREND DAY . A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume. TRIGGER . Level at which a trade will be initiated if a market trades to that price. TRIN . The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NYSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true. UPTHRUST . Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also Spring. VIX . VIX is a weighted measure of the implied volatility for 8 OEX put and call options. VIX represents the implied volatility for this hypothetical at-the-money OEX option. VOLATILITY . The range of the price action over N - Number of bars. WEDGE . A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation. WHIPSAW . Is when the market rapidly reverses its direction several times in succession. WIRE . Nickname for the Copper Market Z DAY . A consolidation day that typically follows a trend day.