Monday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

I hope you are early risers as we’re being served a healthy breakfast of high protein setups – great start of the week. The spoos once again near the 25-hour SMA. After months of posting early morning updates I wonder if this is coincidence or if the pre-NYSE hour is one of the best times to get positioned in equities and perhaps across the board – at least for short term and swing traders.

NQ stuck between opposing Net-Lines – the NLSL is riding the 25-hour – great context.

YM – not as juicy right now but it should be good to go in an hour or two.

Crude is pushing against quite a bit of overhead resistance – only interested in a short right now with a stop above 96.07ish.

More to come – please step into my trading lair:

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Public Service Announcement: Some of you die hard rats may have noticed the lack of a Sunday post and if you think I’ve been slacking off you couldn’t be more wrong. Actually the sacrifice will be well worth it as I just completed the alpha version of Ivan’s price patterns based trading system.

Here you see it running a trend trade shooting star entry but taking profits after three candles based on not having met 1R in profits. Yes it would have really taken off in the end but the rules are the rules and they have been statistically proven to work over the past decades (i.e. Ivan’s ingenious money management rules which I have come to appreciate quite a bit). The dotted red line in the current trade is the ISL (initial stop loss) which is automatically propagated lower as the campaign pushes into profits. Running behind the scenes are clearly structured profit management rules which take the system out of trades as soon as momentum begins to lag. Below you see a new fangled volatility indicator which I wrote for Scott and which really has ripped the lid off our statistical research in regards to what type of setups work best in which market environment.

What this means for you guys is that I will be able to cycle through charts very quickly and test them against Ivan’s patterns in real time – offering more price pattern based entries as well as exits as the setup progresses. My current plan also includes a new subscription product that will send you guys alerts across a selected group of FX and futures symbols. Those systems will be run against medium term charts (i.e. 360-min and daily) thus giving you plenty of time get in and out of trades.

Despite having been successfully traded for several decades now (as far as I know) Ivan’s patterns have never been implemented into a fully managed auto-trading system. The current code has grown to 2300 lines and is probably the most advanced system I have ever built. As you can imagine I am extremely excited about this as it will provide us with myriad opportunities across many markets. I am convinced that this will advance our game to the next level and I hope you’ll keep coming around to participate.

Cheers,