Kwik*POP and MY TRADES ROOM
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Greetings,
On our last update we discussed a 'Lower High Sell Signal' on the ES contract. In this update we dicsuss a 'TWO UP' Buy Signal on the euro currency futures contract (6E). One tick on the Euro Currency Futures contract is worth $12.50. As you'll see from the chart below, this market can periodically make some big intra-day moves. The term 'TWO UP' references two lines on our chart ... the upper breakout band (thin black lines) and the middle of the E-Bands (Yellow line). The signal sets up as we are ending a selling cycle (red candlesticks). Notice the red candlesticks on the chart below. As prices started to hook back up the candlesticks turned YELLOW. That's the warning sign that momentum is now starting to reverse back up again.
Before we buy we want to be certain that there are more buyers than sellers in the market. When the candlesticks turn Blue that tells us the ratio of buyers to sellers has turned positive, but that is the first test. We want to buy on strength. The market must exhibit strong upside momentum before we charge in there and risk our money. The Blue candlesticks must CLOSE above two barriers ... the upper break out band (thin black line) and that yellow line which we call the 'Mean'. The first blue candlestick to close cleanly above those two lines (two up lines) triggers our buy order. The last test is the background color of the chart and the slope of Snapback (the first histogram in panel two below price). Study the rectangle on the chart below as that was the trigger for a two up BUY.
1) 1st open blue candlestick that closed above both lines
2) Background color of the chart turned Blue
3)Slope of Snapback had turned up (positive)
That's a 'TWO UP' Breakout Buy Signal. It works the same on all futures contracts.
NINJATRADER USERS: We've added KPTRIGGERLINEVMA back into our indicator list. Please go tour our download page and run the installer. Select YES TO ALL when prompted to overwrite. PLEASE READ AND FOLLOW THE INSTRUCTIONS ON THE READ ME FILE.
SUMMARY OF TRADE ALERTS ON ES CALLED IN MTR WEEK ENDING 01/08/10
Harry, our room moderator targets specific trading patterns every
morning from 9:30 A.M until 11:30 A.M. Eastern (US) time. Typically,
the first two hours of trading every day offer the best opportunities
as the market defines a new trading range and short term trend. A TRADE
ALERT is called out in the room for initiating a short or long trade
based upon the set up patterns offering the greatest odds of success.
These are Kwik*POP pattern trades and momentum continuation trades
(slapshot patterns etc.). Periodically a counter-trend momentum trade
may also be targeted.
Once a position is taken Harry calls out
stop placement and targets for profits to demonstrate how to manage a
trade efficiently. Members in MY TRADES ROOM are encouraged to use a
Trade Simulator to practise trade timing and trade management
disciplines. Many members use real money on these "Trade Alerts'.
That's your prerogative as long as you thoroughly understand the risks
involved in trading volatile markets such as the ES. In order to
accommodate traders of all budgets our 'Hypothetical Performance
Results' are based upon trading only 3 contracts on every 'Trade Alert'
called out in the room.
Harry defines the risk and trade
management guidelines for the members based upon trading only three
contracts per Trade Alert. The results below assume that you executed
the trade based upon Harry's call and followed his trade management
procedure for stop placement etc. as he calls it out in the room. We
don't know, or care whether you actually take the trade as the mission
is to 'Alert' you to the trading opportunity and show you how to manage
the risk and maximize the gain on each 'Trade Alert' called out.
Monday-January 4th
Trading Range 09:30 to 11:00: 8.50 points
Trade Alert #1: Continuation entry Long Entry 1121.25@09:35 3t 2c +4tics = +8tic; Runner Exit at 1125.00@09:50 +19tics 1c:
Total +27tics or +$ 337.50
Trade Alert#2: Continuation Entry: Long Entry 1125.75@10:28
4t 2c = +8tics; Runner Exit at 1127.50@10:57 +15tics 1c:
Total +15Tics or $187.50!
Summary
TradeAlert#1: +27tics + $337.50;
TradeAlert#2: +15tics + $187.50
Morning Total +42 tics + $ 525.00 3 contracts per trade
Tuesday-January 5th
Trading Range 09:30 to 11:00: 7.75 points
Trade Alert #1: CounterMove Short E 1027.50@09:37
3t 2c = +6tics, Runner Exit -1t 1c = -1tics
Total +5tics or $ 62.50.
Trade Alert#2: counterMove BuyStop Breakout
LE 1129.00@10:13
3t 2c = +6tics RunnerExit +6t 1c =+ 6tics,
Total +12tics or + $ 150.00
Summary
Trade Alert #1: + 5tics + $ 62.50;
Trade Alert#2: +12tics + $ 150.00
Morning Total +17tics + $ 212.50 3 contracts per trade
Wednesday-January 6th
Trading Range 09:30 to 11:00: 4.00 points
Trade Alert #1: HL LE 1131.50@09:59
3t 2c = +6tics, RunnerExit 3t 1c = +3tics
Total +9 tics or + $ 112.50.
Summary
Trade Alert #1: +9 tics, $ 112.50;
Morning Total +9 tics $ 112.50 3 contracts per trade
Thursday-January 7th
Trading Range 09:30 to 10:30: 5.00 points See Note
Trade Alert #1: Breakout SellStop Short E 1030.75@09:46
3t 2c = +6tics, RunnerExit +7t 1c = +7 tics
Total + 13tics or $ 162.50.
Trade Alert#2: HL LE 1129.25@10:08
2t 2c = + 4tics RunnerExit: 0t 1c =+ 0 tics,
Total +4 tics or $ 50.00 3 contracts per trade
Note: InitialTarget Lowered 2 tics, BE Stop as market was extremely slow follow thru.
ATT Technician was disconnecting Harry from Internet service for repairs. Trade Setup was exited prematurely for this reason forgoing significant multiple 20 tic runner.
Summary
Trade Alert #1: +13 tics, $ 162.50; Trade Alert#2: 4 tics $ 50.
Morning Total + 17tics +$ 212.50 3 contracts per trade
Friday-January 8th
Trading Range 09:30 to 11:00: 5.75 points
Trade Alert #1: HL Long E 1034.50@09:47 -3t 3c= - 9 tics Loss
Total -9 tics or - $ 112.50 Loss.
Note: Moved IntitalStop from - 8 tics to -3 tics below EntryPrice
Trade Alert#2: HL continuationEntry Long LE 1135.25@09:57
3t 2c = +6tics RunnerExit +3t 1c =+ 3tics
Total +9 tics or + $ 112.50.
Summary
Trade Alert #1: -9tics -$112.50 Loss; Trade Alert#2: +9tics $ 112.50.
Morning Total 0 tics $ 000.00 Breakeven Day
Summary January 4 - 8, 2010
Monday: Range: 8.50
Totals: 2 Win 0 Loss, +42 tics + $ 525.00
Tuesday: Range: 7.75
Totals: 2 Win 0 Loss, +17 tics + $ 212.50
Wednesday: Range: 4.00
Totals: 1 Win 0 Loss, + 9 tics + $ 112.50
Thursday: Range: 5.00
Totals: 2 Win 0 Loss, +17 tics + $ 212.50
Friday: Range: 5.75
Totals: 1 Win 1 Loss, +0 tics + $ 000.00
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Trades: 9 Total : 8 win 1 Loss
Contracts: 27 contracts
Total Tics: + 85 tics
PnL: + $ 1,062
AverageTrade: $ 118.00
Average/day: $ 212 includes Friday
Average Morning Range: 6.20 points
Note:
T, tics, ticks: minimum move or tick size for the ES emini S&P500 Futures contract
One Tick: 0.25
Tick value: $12.50 per tic
www.cmegroup.com
THE COMMODITY FUTURES TRADING COMMISSION. ( C.F.T.C.) This brief statement does not disclose all of the risks and other significant aspects of trading in futures and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts ( and contractual relationships ) into which you are entering and the extent of your exposure to risk. Trading in futures and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Some of the examples used are hypothetical. Hypothetical trading results have many inherent limitations and may not reflect actual results since they are done with the benefit of hindsight and do not accurately reflect market conditions and the traders emotional level while under the stress of trading. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
For More information on MY TRADES ROOM go to www.mytradesroom.com
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