since 1994
since 1994
Tips for Intra Day (Real-Time) Trading
Set up a 30-Min chart as long term frame, (LTF), add AbleTrend1 and AbleTrend2 on the 30-Min chart. Set up a 5-Min chart as short term frame (STF), and add AbleTrend1 and AbleTrend2 on the 5-Min chart.
When AbleTrend1 on 30-Min Chart gives a big blue dot, this is a pre-condition to buy. In order to avoid side way market, it is the key to use the LTF to decide the directions. For example, 5-Min vs. 30-Min, AbleTrend1 on 30-Min chart does a much better job in identifying a decent trend than AbleTrend1 on 5-Min does. So use 30-Min AbleTrend1 to decide direction, but you don’t want to wait till the close of 30-Min bars to get the signal, it will be too late by then. The key is to get the AbleTrend1 signals as early as possible.
At the early stage of a decent trend, pullback is common before the real move begins, so wait for a pullback on 5-Min chart near the AbleTrend2 stop dots, the pullback could be green or red bars on 5-Min chart.
Is the current pullback a retrace or reverse? That is the key in determining the entry. AbleTrend2 on a 30-Min chart can help to identify a retrace from reversal. After the 5-Min chart form a pivot low, take look the 30-Min chart to see if the AbleTrend2 stop on 30-Min still exists or not. If AbleTrend2 30-Min stop disappeared, it is more likely that the market reversed, if it still exists, it’s more likely a retrace. To test this phenomenon, open a 30-Min chart for S&P market with AbleTrend2, exam the early stage of the moves, you will find that AbleTrend2 does a good job in distinguishing a retrace from a reversal. What time frame is the best in distinguishing retrace from reversal for your market? A simple test can help. Change time frames on the 30-Min chart with historical data, look at the early stage of trends, to see AbleTrend3 on what time frame can best distinguish between retrace and reversal.
There are two ways to enter the market. You may choose one of those that fits your trading style. Below is for "buy" case:
Enter at two ticks above the high of the pivot low bar of the 5-Min chart, use a limit order to enter the market. If your order cannot be filled in the next move, cancel the order. This method is more conservative, you enter the market only the market start move toward the previous trend again after the retracement. The pivot low will be your stop, which has to be relatively larger.
Enter when the 5-Min AbleTrend1 has blue bar and agrees with the AbleTrend2 dots (light blue dots) which also in agree with the 30-Min direction.
Agreed with the direction of 30-min chart, wait for the market pull-back in 5-min chart near the AbleTrend2 stops. When the bar turns back to blue, and wait for the 5-min bar close. This will be the entry pinpoint. If next a few bars price closed below the AbleTrend2 stops, then exit the trade.
30-Min AbleTrend2 stops can be shown on your 5-Min chart as immediate reference to help you distinguish between retrace of reversal. This will be very visual! The following procedure will help you to do just that.
Data1 and data 2
Press Ctrl-N for new chart. Fill-in the symbol, setup as 5-min chart, then "Add". This data1.
Fill-in the same symbol again, setup as 30-min chart, then "Add". This is data2.
Highlight data2 (click data1, then data2) > Subgraph 1 > check box "None" (not display).
Click OK to show the chart. You will only see the 5-min chart.
Insert AbleTrend2 based on 30-Min hidden to the 5-Min chart
Click "An" icon.
Highlight data2
Choose AbleTrend2, then Add
AbleTrend2 dots will show up on the 5-min chart (data1)
The following combination of the time frames may prove useful to intra day users as well. Use 15-Min for long term frame with 3-Min for short term frame; Use 60-Min for long term frame with 5-Min for short term frame; Use daily bar for long term frame with 15-Min for short term frame. Some traders use several time frame for the long term frame, such as 15-Min, 20-Min, 25-Min and 30-Min on one workspace, any of these chart get a AbleTrend1 signal, that is a pre-condition to buy. If more than one chart AbleTrend1 triggered, it confirms the buy condition.
For Forex trading, make sure to use 60-min chart or above to be your guidance chart.
Tips for Position Trading
To trade stocks, it is very important to avoid thin markets. Only trade the volatile and large volume markets. Thin markets have the potential problem of not getting a good fill price when exiting.
Set up a daily chart with all five indicators: AbleTrend1, AbleTrend2 and AbleTrendSig. Set up a weekly chart, and add: AbleTrend1, and AbleTrend2.
If AbleTrendSig of daily chart gives a buy signal, this will be a buy setup. Set "Enable alert", so that it will give a sound alert when it is triggered.
Enter a buy position only when two current weekly bars are blue. Because the current bar is not closed, it is subject to change, it is important to have at least one bar closed blue. There are "Dy" (daily) and "Wk" (weekly) icons at the Toolbar near the top. If there is a buy signal on the daily chart, simply click the "Wk" icon to change time frame to weekly chart. You may easily switch back and forth between "Dy" and "Wk" charts.
Avoid entering the market near the current high or long term Resistant Line, even when you get a buy signal from daily AbleTrendSig and confirmed by weekly chart.
When the market established an up trend and then pullback, it provides a good opportunity to add positions if the current pullback is a retrace. Is the current pullback a retrace or reverse? AbleTrend2 on weekly chart does very good job in identifying a retrace or reversal for many markets. After the daily chart form a pivot low, switch to the weekly chart to see if the pullback penetrate the AbleTrend2 stop or not. If the pullback penetrated the AbleTrend2 weekly stop, it’s more likely the market reversed, but if it didn’t, it’s more likely a retrace. To test this phenomenon, open a weekly chart, add AbleTrend2, exam the early stage of the moves, you will find that AbleTrend3 does a very good job in distinguish a retrace from a reversal.
AutoScan is used to help you searching the best candidates in the markets you monitor. It works with your "Custom Data List". You may use AbleTrend1, AbleTrend2, MACD, Volume etc to run the AutoScan.
As soon as AutoScan ran, it will "monitor" all the symbols in the custom data list in the background. In real time, it will alert you if the buy/sell conditions meet.
AutoScan can be done with daily, weekly, monthly or intraday charts (such as 5-min, 30-min etc).
From Tools > Setup AutoScan menu or simply click the "A" icon to setup your Custom Data List and select indicators for
First, enter a name for the symbol list, such as My Stocks. You may type in symbol names in the format of one per line, such as IBM, GS, HPQ…
Choose an option Daily or Weekly for the chart.
Specify Last Date and Duration for the chart
Add Indicators, select indicators, such as AT1, AT2, MACD...
Make sure to turn ON the alerts for the indicators.
Click OK, Save button to save settings of the custom data list.
Click Run AutoScan to start the scanning. We suggest to run AutoScan when market close. However, you may run AutoScan in real time in the background. When you run AutoScan, it will open a chart window with the custom data list. You can see the percentage meter of Scan Process.
After the AutoScan finished, you may click View Scan Results button or from Tools, View Scan Results menu to pop up the View Scan Results window. The results list date, time, symbol, interval, signal name and trigged price.
You may Go to Symbol Chart, Delete Line, Save As File, Print Results or Cancel by clicking the buttons on the View Scan Results window.
Tips For Options Trading
Option prices are determined by the underlying, strike price, expiration, volatility, dividends and interest rate. A trader can have hundreds of strategies to place option trades, but no matter what pricing model, volatility model or expiration date are used, traders need to pre-determine three key assumptions to initialize computer calculation for option strategy modeling. The three key assumptions are 1) volatility, how many percent for high volatility and how many percent for low volatility; 2) target price: what would be the best target price for the underlying by the expiration date; and 3) market direction, bullish, bearish, or sideways. Without inputting correct assumptions, no matter what models or strategies are used, "garbage in and will give garbage out." Some "option experts" are saying that you could win regardless the market directions by trading "Delta Neutral" etc. This is not true. You might have Delta Neutral occasionally, but it is very difficult to keep Delta Neutral with day-by-day trading.
The best way to trade options is to know the market direction and simply BUY CALLS or BUY PUTS with the "at-the-money" near term options. AbleTrend® predicts the market direction with high accuracy and objectively.
It is very important to avoid the thin markets, only trade the volatile and large volume markets. Thin markets have the potential problem of not getting the good fill price when exiting. Make sure the open interest is more than 2000 contracts and daily volume is at least 100 or more.
Set up a daily chart with two indicators: AbleTrend1 and AbleTrend2.
Set up a weekly chart, and add: AbleTrend1 and AbleTrend2.
If AbleTrend1 of daily chart gives a buy signal, this will be a buy setup.
Set "Enable alert", so that it will give a sound alert when it is triggered.
It is a time-proven rule to trade options with market direction indicated by AbleTrend®.
Buy "at-the-money" near term calls when the weekly bar shows two blues bars including the current bar and AbleTrend2 stops are BLUE. Don’t trade "cheap" far away "out-of-money" options. Use limit orders to enter or exit positions.
Buy "at-the-money" near term puts when the weekly bar shows two red bars including the current bar and AbleTrend2 stops are RED.
There are "Dy" (daily) and "Wk" (weekly) icons at the Toolbar near the top. If there is a buy signal on the daily chart, simply click the "Wk" icon to change time frame to weekly chart. You may easily switch back and forth between "Dy" and "Wk" charts.
Option trading is much more complicated than equity trading. Check your orders a few times before placing the order: Symbol, Expiration month, Strike Price, Position (Buy to Open, Sell to Close, Sell to Open, Buy to Close, Calls, or Puts), Number of Contracts, and Limit Price.
Avoid Entering Near The Resistance Line
Avoid entering the market near the current high or long term Resistance Line, even when you get a buy signal from daily AbleTrend indicators and confirmed by weekly chart.
Taking profit at major support/resistance line
Exit at major support resistant line.
For intra-day trading, in the morning, yesterday’s high, low, midpoint, and close could be today’s major support or resistance line. In the afternoon, morning’s high, low and midpoint could be support or resistance line. For position trading, weekly or monthly major support/resistance line will be good place to exit.
Exit half of the positions, let the other half run.
You may take profit at support/resistant line for half of the positions, and let the other taking their chance. Also, when market reaches a new high or new low at the second time, you need tight stops. This method taking care of the losses first, and let the profit grow with no concerns. Normally, you can hold a good position much longer and more objectively.
Exit when the market turns side ways without profit.
After entering the market, if the market goes sideways for 3-4 bars, and you hold a position with no profit or even a small loss, exit.
Risk Disclosure: Futures and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Testimonial Disclosure: Testimonials appearing on this website may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.
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