For years now, everyone asks “Why does your method work?” The reason is it is simple, use technical analysis, incorporate money management, incorporate psychology, etc. It must have all the components to be consistently profit.
Let me “walk” you through a simple routine I did today.
The US stock markets are down drastically today. However, the higher time frames are still bullish for the E-mini SP500 futures. Here is the daily chart with the major support at 2054.25 holding it bullish.
On the news, everyone is negative. However, we are allowing the “actions” people take to dictate everything. Since all the higher time frames are bullish, we are still looking for bullish opportunities for the Nasdaq and the SP500 which are most bullish.
In Ichimoku, the sentiment is determined by price in respect to the Cloud. If price is above the cloud, the sentiment is bullish. If price is below the cloud, it is bearish. We are going to take this simple concept and use it for trading.
Since we are looking for “true” bullish opportunities, we are going to setup our scanner to look for price to be above the cloud for the following time frames: 30m,60m,120m,240m,Daily,Weekly, and Monthly. The sentiment is bullish but some may be going through a pull back. Here is the result for the SP500. The RT Scanner can scan the entire globe in matter seconds across 7 time frames for opportunities!!! No one looks at 7 time frames as we do. Looking at various time frames is the key to trading….not looking at one and figuring that out!
This is not a big list. The market is going through a pull back so we are looking for pull back for these opportunities. When you deal with pull backs, we want to find the institutional multiple time frame support/resistances i.e. iMTF (Ichimoku Multiple time frames). If the pull back to the iMTF levels does not have price below the cloud for ANY time frame, then these boundary conditions are very strong.
Let’s talk ACE, the first example from above. This is a MTF for 10/30/60/120/240/D. Here is the Daily chart. NOTE: ALL CHARTS ARE FROM THINKORSWIM from TDAmeritrade.
Here is the 4h chart for ACE:
Here is the 2h chart:
Here is the 1h chart:
Here is the 30m chart:
Here is the 10m chart:
Notice, the pull back to the MTF will NOT get any time frame below the cloud. Notice, it is the boundary conditions for the 10m between consolidation and bearish. The MTF is the “true” boundary condition i.e. institutional support!!!!!!!!!!!!!!!!! Put the order there with a “tight” stop and wait patiently for the probabilities.
This method is very simple. Too simple to a point, people don’t believe it! Go back to my twitter/facebook and look at my posts. Go back to the blog and look at all the posts dating back to 2007 (when I first started to blog). If you keep it simple, YOU WILL GET THERE. No excuses.
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.