Trading Secret #2 has arrived

9 thoughts on “Trading Secret #2 has arrived”

1. Setting targets(objectives)is very important, yet overlooked, part of trading. Using previous price action for this purpose is a simple, yet elegant method, that withstood the test of time. I would only add, that making the objective a little smaller, say 75% of projected move, improves odds dramatically. Very good lesson.

2. Hi Adam,

   How do I find out such setups using Marketclub. I try to use smart scan (strong DMA trends - asumming may be incorrectly that these stocks are now ready to break-out/down froma W/M formation) and then check all the charts. DO chart analysis score and chart setups have any correlation.

   Thanks,
   Trikaal

   1. Dear Trikaal,

      The Chart Analysis scores have an absolute correlation with chart set-ups. You can look at a score and quickly understand a great deal about how this market is charting.

      +/- 10: Tells you how this market's price is pulling intraday. Are we having an intraday term run up with momentum?

      +/- 15: Will tell you what direction the daily "Trade Triangle" is pointing. (This is not always the case. For example: if we reach a new high and then have a sharp pullback that surpasses the previous three day low, then "Trade Triangle" may still be pointing up, but a -15 will be factored into the score to represent a new three day low. This occurance may happen more frequently when we are in a very flat movement).

      +/-20: Tells you how this market's price is pulling for the intermediate term. Are we having an intermediate term run up with momentum based on the price above or below the 20 day moving average?

      +/-25: Will tell you what direction the weekly "Trade Triangle" is pointing. (This is not always the case. For example: if we reach a new weekly high and then have a sharp pullback that surpasses the previous three week low, then "Trade Triangle" may still be pointing up, but a -25 will be factored into the score to represent a new three week low. This occurance may happen more frequently when we are in a very flat movement).

      +/-30: Will tell you what direction the monthly "Trade Triangle" is pointing. (This is not always the case. For example: if we reach a new monthly high and then have a sharp pullback that surpasses the previous three month low, then "Trade Triangle" may still be pointing up, but a -30 will be factored into the score to represent a new three month low. This occurance may happen more frequently when we are in a very flat movement).

      ---

      So yes, the Chart Analysis score is based on the chart set-ups in terms of "Trade Triangle" direction with the inclusion of two other variables.

      If you have any further questions please don't hesitate to contact the support team at [email protected] or give us a call in the office at 1-800-538-7424.

      Best,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

      1. Hi Lindsay,

         Thanks for the detailed reply. The chart score makes more sense now.

         Regarding the first question, how do I find out W/M setups using Marketclub. Are there chart scores (or range of chart scores) which have a higher probability to correspond to a W/M setup.

         Thanks,
         Trikaal

         1. Dear Trikael,

            I'm glad that my response helped. I think that you should spend some time using the recent "Trade Triangle" page. This tool will help you search for new monthly "Trade Triangles" once it gives you a list, I would look at the score and if it is a +100, +90, +75 (rarely not a weekly triangle), I would consult each Chart Analysis score to see if the variable for +/- 25 if pointed up or down. If it matches in the direction of the Monthly Trade Triangle, then you have a market that is primed for a long-term more.
            Best,

            Lindsay Thompson
            Director of New Business Development
            INO.com & MarketClub

         2. Hi Lindsay,

            Appreciate the quick reply.

            I have been using the SmartScan (StrongDMATrends) but not paying much attention ot the scores. Can I use [SmartScan->StrongDMATrends->Vol greater than 500000] to narrow down the list of stock I see when I click on Recent Trade Triangles. I feel the list is too long and I would like to weed out penny stocks and thinly traded stocks. I am trying to find out how I can up up witha list which will give a good probablity of finding setups.

            Thanks,
            Trikaal

3. Thanks Adam, this is a great way for us take advantage of your knowledge and skills. Thanks!

4. Adam, Wondering if there is a certain timeframe for the scenarios illustrated here. Is it a daily chart you're referencing in order to get the 90% success rate, or do short term charts behave consistently as well? I'm assuming the broader the scope the more accurate it becomes?

   1. Morris,

      Thanks for your feedback.

      The setups in Lesson 2 can be used in all time frames. The bigger the time frame, weekly compared to 60 minute charts the more powerful the move.

      Now remember nothing is ever guaranteed in investing. Sometimes the set ups do not work and that is why you diversify and use money management to protect capital.

      All the best,
      Adam

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