Monday, June 29, 2015

Algorithms and Directional Trading Guide

When a market is trading sideways, how do you know when it is time to jump in and catch a directional move off a support or resistance area?  Or, scalp 10 or 20 ticks in a ranging market?

You need a process that is simple and repeatable.  A process that will help you determine at a glance when a directional move can happen.  Like trading in the direction of the higher time frame trend.  Like trading when price is moving outside a previous range/value.  Like trading when price is breaking out of an opening range.  Like trading when price is expanding outside of the current developing value.

There are numerous algorithms that work.  Layering them to provide signals that will give you OPPORTUNITIES is all you can ask for as a trader.  Nothing in life or in trading is guaranteed.  But when a trader sees a window -- an opening, he or she will know what to do.  And the more experience a trader receives -- it's called screen time -- the better the trader's skill set becomes when to recognize those opportunities and convert them into profit targets.

The JATS Direction Guide template is comprised of signals when price trading with the direction of the previous close, current open and 8 EMA.  When these three things line up, the market is "directional trading" and can provide an opening to get in with a trend move, or at least provide a backdrop to scalp from.

The JATS Direction Guide template also comes with a Market Analyzer template to show the 8 EMA for the Weekly/Daily/60 Min and 15 Min charts.