Question:
In calculating the pivot points where do you find/locate (easiest)
yesterday's O, H, L, C, details?
Answer:
At the CME...use the big S&P settlement numbers.
Question:
When trading a 30 min breakout range are you working in 30 minute
blocks, i.e.
9:30 - 10:00
10:00 - 10:30
10:30 - 11:00 and so on.... so
that you are adjusting your high and lows for each period throughout the
day and looking for a breakout at these levels in the subsequent
periods?
Answer:
This confuses everyone for some reason...No, you do not make any
adjustments. Once you have the numbers, that’s it.
Here is another problem that inexperienced traders have with this trade.
For example when it crosses over the 30-minute high for the day, and
then crosses back under the line...they think this is a set-up to go
short... not on your life. Same problem if it was at the low.
Question:
Do you use the 10 MA for other time frames charts or only on 10 min
chart ?
Answer:
I use the 10-period Simple Moving Average on my 5-minute
charts...the ES, Dow, Compx. On my 15 minute chart I only use the MACD
(default settings). When I do take the time to look at a 10-minute chart
I still only use the10-period Simple Moving Average. Please note I
use the default settings on all my charts. The one exception is when I
trade the Open... and this is not in the manual, it is something I am
experimenting with created Cj...On my 5-minute chart running the 24 hour
session I use Stochastics set at 8,3.
Question:
When using ask and bid to enter or exit...do you pull the trigger
the first time you see your number or wait for it a second or third
time?
Answer:
You must try to see who is winning the war... this takes lots of
practice. Sometimes it’s very fast and you may miss your target if you
take to long. The entry is not so hard it’s the exit that gets tough.
Question:
I'm still struggling to know how to use Closing a short you ask then
take etc, Since I am placing market orders what difference does it make
to me? I had an e-mail from PFG saying Globex would be cancelling
all GTC orders at end of trading 9/27/02. What are GTC orders?
Answer:
GTC = Good till canceled.
When you use a market order you will click send...when you see the
number for your exit using the Bid and Ask to take it. It should be real
close...it takes about 4 — 7 seconds to get filled, you should take the
time to practice and see what your slippage is using this technique. I
have the Bid and Ask window next to my trading platform...when I see who
is winning the war or see my number, I try to give it a little room and
pull the trigger. Just takes practice.
Question:
When has the trend changed? ie: After an hour I could see the trend
had turned up but before that was still looking for shorts.
Answer:
The trend can be looked at in two ways...the longer, overall
trend, and what I call the immediate trend. The immediate trend is
either above the moving average line (up-trend) or below the moving
average line (down trend). When we look for an opportunity to take
a trade we want to trade with the immediate trend if at all
possible...but we have to keep in mind the overall trend and other
factors, i.e. time, momentum, in sync, and we have to realize that it
may just be a pullback.
Question:
I notice you indicated the RED ZONES (eastern time): 9:30 - 9:50,
11:15 - 2:15. Does that mean it's going continuously from 11:15 -
2:15...or just at that specific 11:15 and then again starting from 2:15
? The reason i am asking is I see in the Yellow Zone (3rd reversal):
1:25 - 1:35...
So, I would like to know if the Red zone is overlapped with the Yellow
zone?
Answer:
All times are eastern and yes there is an overlap on the 3rd
rev. You will have to watch these time zones to learn the personality of
each zone. Just take your time and use a snap shot of the chart after
the close. Use a Highlighter and look and study each reverse. Red
zone is from 11:15 - 2:15 with the exception of the 1:25 reversal. Watch
it and you will get a feel for it after about 90 days or so.
Question:
If a candle is both above and below the line, does it
count. Do I need two candles completely below the MA?
Answer:
If you have a candle that is penetrating the line by more 3/4
you don't have to wait ... And the next bar would be the second bar
below the line.
But to use the strategy and to make it work, we must look at other data,
such as the dow, nasdaq, and the hour...and of course momentum!
All of this comes with experience...time in the saddle! The more you
watch it...and keep a trade log and diary, the easier it becomes.
Question:
1. When you say - take the 2nd candle above the MA - where is the
exact point of entry??
- a) jump right in at the start no matter what ?
- b) after the first - or second minute is over going upwards ??
- c) wait till it has grown 0.5 pts upwards ?
- d) wait till it is half as big as the first candle over the MA ??
Or any clues??
Of course, I am also looking out for the NAS and the DOW to be over the
MA, for the Magic Numbers and the timezones.
2.Regarding all the lines we are drawing troughout the day - isn't it
SIMPLY RIGHT TO CONCENTRATE on the strategy of the MA-trade - no matter
what line comes next - except the high and low of the day. Otherwise -
very often - you always have a line next to wait and wait and hesitate
... and discussing with yourself. - I hope you know what I mean?
3. The MA crossover as an exit-signal and also the MA as a resistance
line can only work if the ENTRY is not further away than your S/L for
the trade, right? So if I use a 2pt S/L I should take the trade on the
second candle - and not further away from the MA than about 1,5 pts -
1,75 pts. Otherwise you can get stopped out before the MA
crossover.
Answer:
This trade is very subjective...and no one answer will suffice.
For the most part you will look for the opportunity when you see a
double bottom and then the break over the line. the second candle breaks
to the top of the previous bar, you would pull the trigger if you have
confirmation and not near a rev. time zone.
The M/A strategy works well when the market is trending most of the
day...For the most part it will give you an opportunity 30% of the time.
You will be trading when the market is not volatile...so you will be in
a trickle trade. More emotion than you might think. But it does work,
except in a choppy market. It’s one strategy you can practice everyday.
You will learn the personality of the strategy...when to get in (second
candle) and when to exit...by protecting your entry.
Question:
What are your settings for the MACD on your ES 15 min, and your
settings on the stockastics on the ES 5 min.
Answer:
You may be looking at way to much stuff ... screens are way to
small. I would use the 17" monitor for your charts, you can have all 4
charts set up on it. Look at my website and see how I have mine all set
up. It really works out great. You may want to get a display card and
run two monitors off of one computer; that way you can have paltalk up
and not take up much room. You mention using a 10-minute dow chart? I
use a 5-minute. You can review my set-ups in the manual. My MACD on my
15-minute ES chart is the quote.com default ... 12 - 26 - 9. For
stochastics I use Cj's set-up, which is 8 - 3. I can't get his exactly
like his because he uses TradeStation ... His is 8 - 3 - 3 or what they
call the Classic Stochastic setting. You will miss my yakking about the
US Stock Market Watch window. It's one of my most valuable tools.
The Study Guide and Time will Tell article are in the manual; in the
back towards the end.
Question:
1) I setup paltalk and went to your "room", however I only heard you
talk today.. I did see 1 student send a text message about the
availability of your cd.. other than that I did not hear anyone ask you
questions that you seemed to respond to.. was this right, did they send
you private messages, or do I need to 'fix' this paltalk?
2) I also noticed that your voice was distorted from time to time.. is
this normal with paltalk?
Answer:
The CD is the manual...and live charts using Camtasia. It
records the chart and is then played back on the CD so you can see
exactly what I saw when it happened. Bonus strategies will also be on
the CD. At the present time I do not know when it will be
finished...soon I hope. We are having some problems with the recording,
and I don't want to release the CD till those problems are resolved. The
Website be available for anyone who wants to download the basic manual
for free and then it will be locked. Students will have access to any
new strategies, up-dates, charts, tools, and discounts to new Workshops.
Question:
At the end of your manual you have a 10 day course and on your
website you have a 5 day course. Is there a difference? I am wanting to
profitably trade at the open and throughout the day.. I have a small
account balance (will this strategy still work?) I previous took another
course and learned after taking it that I require a larger account
balance to mitigate the risk of each trade.
Answer:
I no longer teach the 10 day course ... I found that a student
gets brain cloud. It's best to look at the 5 day workshop. I have a
Basic Training and an Advanced Powertrading workshop. The difference
between the two workshops is the 40 points on the Study Guide. In most
of the Basic Workshops I do show when a powertrade is taking place. The
workshops are done repetitiously ... that way if you miss something one
day you will catch it the next. I also continue with on-going email and
chat room support as time permits. If you wanted the one on one 10 day
course, I can do it with a break in between, so you can retain what you
are learning. All the workshops do for you is to save you time, and you
can ask me questions while we watch the live charts together. Most find
the workshop invaluable.
Tom Loge who is with PFG,
has offered my students a special rate ... $8.00 round turn, and very
low margins. You can open an trading account with only $1000.00;
although I would recommend using $2500.00 as a minimum.
Question:
1. In the study guide I see chart 4.1 ... for example - but no chart
- is there anyplace I can see these examples?
2. CJ's 30 min. breakout trade- I follow the whole thing but I see it
tied to first 30 min. high and low and then the first breakout. Then I'm
lost when you say you can trade this 2-4 times a day . Here my
confusion. After the first breakout - what are the new H/L parameters
that your using to base the next setup. Each time there is a breakout -
don't you need new high/low paramets rather than first 30 min. trading
day?
3. Curious - do you know of anyone successfully trading off of a dial
-up connection?
Answer:
Let me answer the the 3rd question first...I have never asked,
and no one ever said that they have or have not been able to make it
work. I would ask in the chat room or on the forum.
Cj’s 30-minute breakout...first of all the high number during the first
30 minutes is going to be there during the whole day...as is the
30-minute low. Those lines create the set-up. For example at 10:30 let’s
say that it moved back down 3 or 4 points from the 30-minute high and is
now starting to trend back up and over the 30-minute high. We would let
it keep moving up and then wait for a pullback below that 30-minute
high. Now when it starts moving back over the 30-minute high for the
second time...we would pull the trigger, as long as we have confirmation
from the Nasdaq and Dow, and moving with momentum. This could have
happened at anytime all day long. As many time as it pulls back below
that 30-minute high and then breaks out again. Over and over again. The
same scenario would hold true for the 30-minute low.
Question:
Gap Open...when the market opens up from the day before..we are
looking for the market to continue up for a couple of bars after the
open.. right?
Answer:
I don't know about that many bars ... but we will see it
continue to the up-side on a gap up and on the downside on a gap down. I
only look for
1-1-25 points. If I see an opportunity to capture or trail my point I
try. Of course we need confirmation and I also like to see my magic
numbers.
Question:
After entering a trade and it is going in my direction...I have been
focusing on the indicators and not the ES. Is this what I should be
doing...I watch Nas 1st Dow 2nd and Tick 3rd for reverse and exit. I
have been doing same for entry. Am I carrying the confirmation thing too
far?
Answer:
You must stay focused on the ES ... you can make quick glances
at the naz and dow. Also use the Bid and Ask to see who is winning the
war. Now that takes practice but it's worth it.
Question:
During class you mentioned that Tony (Snake-eyes) convinced you
that the best way to manage the number of contract you "put-on" was to
....exit the trade with the same number of contracts as you
entered....... versus putting on a position then "taking-off" a few
contracts at a target then trailing the remaining number of contract
until the market takes you out. What was it that he said (his logic)
that convinced you ?
Answer:
Regarding Tony...he advised me to take everything off the table
when I was ready to exit. He said that is the way most successful (Pros)
traders did it. He said try to keep track and see which way made you the
most money. And that is exactly what I did; and that is why I teach
everyone what he said. It seems to work the best.
Cj advises the same technique...but says there are times when he takes
some off the table, and I would have to ask him to clarify that for us
to see his prospective of why he would do it only sometimes.
Question:
Today I think you said the trade was good right from the open
because of the strong dow/nas numbers. By strong do you mean the usual
magic numbers (12 and 25) or something greater? How long do you wait to
determine this, since the dow and nas take a few moments to gap to where
they should be (as opposed to the ES which is 24hrs/not a true gap)?
This is usually just a quick 1 - 1 1/4 pt trade, correct (unless it
really takes off)? On the gap fill trade you like to get in on the
second 10 min bar. Do you try to hold thru 9:50 or do you usually get
out before the stall (I know this would depend on momentum, but was just
curious as to how you handle this)?
Answer:
The open number is my pivotal number, like you say. Most of the
time, but not this morning...it moves up and down around that pivotal
number. But once in awhile you will see the Dow and Nasdaq move way
above our magic numbers. I look for that movement and if I can catch it
I take it. Other factors influence my decision as well. The Russell was
up from the open as well as the Tick, Trin, and it felt right. All of
this is from experience...you will not be able to make it mechanical,
it’s still subjective ...and once again if you make a mistake half of
the time you can get out where you got in. If one of the Dow components
opens down, it can cause some problems after a few minutes. Try to feel
the market at the open. Just takes lots of practice. Took me over a year
to really get a good feel of how and when to enter and exit. Look only
for 1 or 1-1/4 points. The gap trade is usually filled by the 9:50
reverse. Most of the time you will see this take place at the end of the
second 10 minute bar. Or around 20 minutes after the open. Still not
that mechanical. I wait for confirmation of course.
Question:
I've always heard that picking tops and bottoms is risky.
Answer:
I've heard the same thing too. When you learn how to do it,
you'll wonder where these guys are coming from. And consider this: when
you enter right after a reversal, you're getting in on the new trend
right near its beginning, so you can have a profitable position before
the "experts" get on board. And if you do get stopped out, your loss
will be tiny compared to the experts' losses. And you're not counter
trend trading. When you make the market prove it-self, as most systems
do, you're getting in late and missing a good chunk of the move.
Additionally, your entry risk is much higher
Question:
1. In terms of judging the DOW, Nasdaq, S&P 'in synch' . For example, to
go Long you judge the DOW should be UP at least 25 pts (ALWAYS of at
least +25 pts? or just an approximate?
2. And does it measure
from yesterday's close or just count from the level of Open of the
trading day (without include the CLose of the previous trading day or
the 'ALL sesson')...and NAS should be up at least 15 pts from the Open
of the trading day or from the CLose of the yesterday?
3. Including or not
including the 'ALL session'?
4. You use only 10 simple
MA or also 10 and 8 MAs?
5. do you use Bollinger
bands also?
6. Or just the 10 MA?
Answer:
1. The important part to remember is the time zone and that they
are all in sync and moving; It is a rough rule of thumb. The Nasdaq can
just be sitting there, but if you see momentum kick in from the Dow and
it moves near our magic numbers, you would be looking to pull the
trigger. So to
answer your question...no, not always. But you will find it is a good
starting point. It really depends on the strategy you are using, and if
it’s a powertrade.
2. Yes we always use it
from yesterday's close...the number you see in the Stock Market Watch
window uses yesterdays close to compute those numbers you see there.
When you use the Trade Log...you will be keeping track of where the
level that they have been trading at. So when you see that level keep
increasing by about 25 points
you will see the ES move about a point or two. The object is to try and
catch that move.
3. I only use the All
Sessions in my open Gap trade technique
4. I only use the 10
period simple moving average.
5. I look at Bollinger
bands once in awhile...there comes a time when you want to see how that
consolidation looks...and Bollinger bands will do that for you. I can’t
keep all of the indicators up at the same time obviously.
6. All of this takes
time...you will get a feel for it after 90 days or so. Once you start
watching and thinking about the concept, and how it all fits
together...the light comes on. You will find a strategy that fits your
personality; I like the breakout strategy, and on slow, not choppy days,
I like the Moving Average strategy. When you have a day that the market
trades in a narrow sideways channel I like dips and rallies.
