Author Archives: Manesh Patel

Sector Analysis: What is strong? What is weak? Going into summer!

Posted on May 6th, 2018 by

Sector Analysis: What is strong? What is weak? Going into summer!   Sector analysis is key to trading US Stock market.   For example, when the financial market took a hit in 2008, technology led us out.   We do sector analysis every month to know where our trades should be positioned.

Summary


Here is a weekly chart of the XLY vs XLP.   The strongest vs the weakest sector for pairs trading.

 


$XLK: Technology ETF

The first sector we will analyze is the Technology Sector ETF.  It is the sector that is had been leading the market.    Below is the weekly chart for the XLK ETF.  The green bullish setup occurred in late 2015.   The bullish trend started in 2016 and has yet to experience a major pull back.

Here is the zoomed in chart version below.    It shows that in 2018, we are in a bullish consolidation range between 63.53 and 68.35.    Probabilities are still towards the bullish side until we break the major support at 63.53 which will indicate a possible major pull back can occur.

 


 

XLF: Financial ETF

The second sector we will analyze is the Financial Sector ETF.  It is the sector that took down the markets.  The bullish setup triggered in Aug 2016.   It has been in a bullish trend with no major pull back yet.

The zoomed in chart shows two resistances.   There is high probability for the financial sector to go through its first major pull back as long as the resistance at 28.10 holds.    To start this major pull back, the support at 26.78 has to break.

 


 

XLI: Industrial ETF

The third sector we will analyze is the Industrial Sector ETF.  The bullish trend started in late May 206 and has yet to go through a major pull back like the other two sectors.

 

The zoomed in chart shows we have a high probability of a major pull back as long as the resistance at 76.14 holds.   The support that is stopping it is at 72.26 and we are right at it now.


XLB: Materials ETF

The fourth sector we will analyze is the Material Sector ETF.  The bullish trend started in late May 206 and has gone through a weak major pull back to 56.13.    It is consolidating now between 59.72 and 56.13 which is not a good sign for the bulls.    It has to break the resistance at 59.72 very soon or the consolidation at these levels could destroy the major pull back and cause a bearish trend to occur.

Below is zoomed chart.   It shows the two resistances.   The one controlling the major pull back is 59.72.


$XTL: Telecom ETF

The next sector is the XTL, the Telecomm sector.   Below is the weekly chart.   It is consolidating between 67.92 and 73.31.    It is neither bullish or bearish.    The consolidation pattern started in November 2016 from a bullish trend.   As a result, there is a higher probability more towards the bearish side now.


 

$XLV: Healthcare ETF

The next sector is the XLV, the Healthcare sector.   Below is the weekly chart.   It started a short term bullish trend June 2017 but then went through a weak major pull back this year.     We are now consolidating at the major pull back level which is not good for the bulls.    A couple of months of this consolidation, a bearish trend can possible occur.


$XLU: Utilities ETF

The next sector is the XLU, the Utilities sector.   Below is the weekly chart.   Many times, it has tried to start a long term bullish trend but it would never hold for a long time.     For the first time since 2015, we got a bearish setup.     The major resistance for this setup is 52.20.   As long as this resistance holds, we have a possibility of the bearish trend to trigger at the blue dots.


$XLY: Consumer discretionary ETF

The next sector is the XLY, the Consumer Discretionary sector.   Below is the weekly chart.   This is the strongest sector so far.   It started the bullish trend 2017 after a long period of consolidation.

Here is a zoomed chart.   The supports are going up which indicate the bullish trend is still very strong.   It has a high probability of retesting the high and breaking it.


$XLP: Consumer Staples ETF

The next sector is the XLP, the Consumer Staples sector.   Below is the weekly chart.   Notice we have not had a bearish red shared area since 2009.    We now have one.

Here is a zoomed chart.   You can see price has hit the blue breakout dots and triggered the entry for the bearish trade setup.     It was triggered last week and it followed through this week.


$XLE: Energy ETF

The next sector is the XLE, the Energy sector.   Below is the weekly chart.   It is a long term consolidation pattern between 64.58 and 76.97.   The middle is 71.43 which as broken 3 weeks ago.  Therefore, the probability to retest the top is high now.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE.

Risk Disclosure:  https://www.ichimokutrade.com/c/disclaimer/

$BTCUSD: Will it go back up? If so, why?

Posted on April 21st, 2018 by

$BTCUSD: Will it go back up? If so, why?  After reaching 20k, it has dropped drastically and people are puzzled.

Let’s analyze the charts and see what is going on.

Here is the weekly chart from $coinbase.

 

The weekly chart shows that we had a major bullish trend and now we are trying to go through a major pull back to the cloud.   As long as the resistance at 11445.09 hold, a major pull back can occur.   This major pull back is showing a consolidation pattern instead of sharp movements.    It seems like it wants to consolidate to the cloud in the range of 7374.69 and 11445.09.

Here is a daily view:

The daily is supporting the weekly time frame.  It shows a bearish trend and it bottomed out and now we are going through a major pull back.   We are the critical resistance of the major pull back.    If a bullish green setup occurs and it breakout, a bullish trend will start to the resistance at 11535.20.   If it breaks that then we broke out of the bullish consolidation pattern.

 

 

 

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE.

Risk Disclosure:  https://www.ichimokutrade.com/c/disclaimer/

$NIFTY What is the status of the market and forecast?

Posted on April 21st, 2018 by

$NIFTY What is the status of the market and forecast?   The indian stock market has been in a bullish trend for a very long time now.  It hasn’t even gone through a major pull back at all.

Here is the monthly chart for the $NIFTY:

The market did a minor pull back to the major multiple time frame support at 10089.87.    It is holding this level so far.

Here is the weekly time frame.   It will give us more details.

The chart is in a major bullish trend.   It tried to go through a major pull back but the support at 9959.88 held it.   As long as this support holds, the market will not go through a weekly major pull back.     The resistance is at 10724.23 which is stopping the market from retesting the high and continue with the bullish trend.

Let’s look at the daily time frame now:

The daily time frame hows the market is controlled by the weekly time frame.   The daily entered a bearish trend but stopped due to the weekly support.     It bounced off it and trying to get the weekly resistance.     If price gets to the weekly resistance and a bullish setup occurs, there is a high probability of breaking it.

 

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE.

Risk Disclosure:  https://www.ichimokutrade.com/c/disclaimer/

Deep analysis of the US stock market. How will the end of April end?

Posted on April 21st, 2018 by

Deep analysis of the US stock market. How will the end of April end?   We are the beginning of Q2CY2018 for the trading calendar year.    April is almost over which is the first month of the quarter.    It is time for a deep analysis of US Stock market.

Let’s first start with the US Stock markets.    We are looking at mid to long term view of the markets so we will analyze only the Daily, Weekly, and Monthly Timeframes.     Forecasting of the US Stock market can best be seen through two products.   One is the $ES Emini-SP500 and the $VIX Volatility Index.

 

 

 

Here is the monthly chart for the $ES, Emini-Sp500.

We are in a nice bullish trend.    It is very strong because we are holding the red line which is the 9 month support at 2638.   There is a multiple time frame support at this level.    As long as we close above this level every month, we will maintain a strong bullish trend.

Lets now look at the weekly time frame to get a closer perspective if we have any chance of breaking the monthly support.

The weekly time frame is showing a major bullish trend too.   However, there is a high probability of a major pull back to the cloud to occur as long as the resistance at 2704.50 holds.     The support that will cause the major pull back to occur will be 2575.25.     Therefore, we are ranging between 2575.25 and 2704.50 with earnings season just beginning.

Let’s look at the daily chart and see if we can get a better view:

The daily tried 3 days ago to go bullish because it closed 2 day in a row above the cloud.   The sentiment went from consolidation to bullish when this occurred.   However, there was no bullish momentum at all!.   Therefore, a pull back occurred.       The daily is showing we are consolidating between the weekly support and resistance.    However, the daily is indicating that if we can break the resistance, we will have a high probability of starting a bullish trend because momentum will finally be on the bulls side.

In conclusion, patience is the key.    Long term the view is bullish.   However, caution has to be taken because we are not far from the major support which can cause a weekly major pull back.     We will be looking for both day and swing trades both bullish and bearish but more heavily towards the bullish side.

Let’s examine the $VIX, to see if we can get a better insight.   The $VIX has an inverse relationship with the US Stock market.   What does this mean?   If the $VIX goes up, the stock market goes down.   The opposite is true too.

Here is the weekly chart of the $VIX

The weekly shows bearish even though the sentiment is bullish (above the cloud).  The reason is the green 26 week line is a resistance.  It should be a support with a bullish support.   As long as this resistance holds, the $VIX has a high probability to get below the cloud and change sentiment to bearish.     This is the same thing that the $ES was telling us.   There is also a bearish timing influence until the end of the month.

Here is the daily chart:

It clearly shows bearish with the multiple time frame resistance at 20.24.    We retest the last low but we did not break it due to momentum.   However, if we retest the low again, the momentum will be on the bearish side and a bearish trend will have a high probability of occurring.

Between the $ES and $VIX indicate the bigger rewards is for towards the markets going bullish.    This is why we will be looking towards bullish trades this week from both short term and long term.    We will look for bearish trades but we will be very conservative on our approach.

Here are the stocks that are bullish in the stock market:

 

Here are the bearish trades in the market:

We will look at the monthly seasonality of $ES provided by www.alerttrades.com for free!.

Below is the daily chart of the $ES with the seasonality included on it.

Seasonality shows there a 90% probability of the $ES being bullish at the end of the month.    The SIV which stands for Seasonal Index value indicates that the market will consolidate.   We need the SIV to be above 10 in order to indicate a trending month.  Therefore, it will be a bullish consolidation month.

The predication shows an average % movement of 3.2% with draw down of 1.6%.     The reward/risk is 2.   Look at the chart, we had a draw down of 3% this month.   With a reward/risk of 2, it shows the average reward if past patterns repeat will be retesting the high which is the top of the consolidation pattern.

The seasonality of May is the same i.e. bullish consolation with a worse reward/risk.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE.

Risk Disclosure:  https://www.ichimokutrade.com/c/disclaimer/

Power of the $iMTF® Indicator with Small Caps Low Risk/High Reward

Posted on January 11th, 2018 by

 

Power of the $iMTF® Indicator with Small Caps Low Risk/High Reward.  Everyone talks about single time frame analysis with an indicator.   No one really talks about multiple time frame analysis.  Some do but they only look at one time.    Our technology looks at ALL timeframes from 1 minute to 1 month.

Why is that important?  There are 3 types of traders in the market.   Day traders, Swing traders, and Long term.  No one know when they come and go and trade.  Therefore, you have to understand the way each of those traders are thinking.

This is been virtually impossible before but NOW it is with the iMTF®.

Let’s demo the the power of this indicator with a $smallcap stock $POTN.   This is a Cannibus stock too.   All these elements make this instrument a very volatile instrument.

Here is a 30m chart setup.  It is zoomed out so you can see the entire picture.   Here is the legend for the chart:

  • Green Shaded area:  Bullish setup
  • Red Shaded area:  Bearish Setup
  • Black Cross:  When Swing/Long term Traders thinking of same Support/Resistance (60m to Month)
  • Purple dot:  When Day/Swing Traders thinking of same Support/Resistance (1m to 60m)
  • Blue dot:   Breakout entry in the setup zone.
  • Green Dot:  Trailing stop once a trade enter.

Let’s zoom into the 30m green shaded area for a bullish setup that started the bullish trend.   First step is wait for a shaded area for a setup.  In this case, you got a green shaded area which is a bullish setup.   Second setup, find the highest probability setup.    The highest is when you have Purple Dots and Black Crosses in the shaded area.   This tells you that all the traders i.e. day, swing, and long term are thinking the same way.     If you get that, you can put a pull back trade that level.

You look for a situation where the purple dots and black cross line up at the same value or close to it.  In this instrument, here is the setup.,   The initial stop is the green dots and the preserve mode is at 3:1.  At preserve mode, we take 50% or 75% positions off.

Once you enter the trade, you keep it simple.  Use the green dots as a trailing stop.    If you followed this rule, here is the trade exit:

This was a low risk and high reward.   Here are two other videos on how to use the indicator for small caps.

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

For educational purposes only. 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. View our full risk disclosure: https://www.ichimokutrade.com/c/disclaimer/

 

Take advantage of the Holiday to pay for your Gifts with Stock Market

Posted on December 24th, 2017 by

Take advantage of the Holiday to pay for your Gifts with Stock Market.   What does this mean?    A real trader does not think about saving money.   They think about generating revenue.

In the Internet bubble of 2000, I lost everything in the “crash”.     This is because I did not have the correct “mindset”.   I was gambling instead of trading!

In 2002, when I started to trade again, I did not have much money.    Due to my situation, I would trade my lunch and dinner money in the market.   If I won, I would eat…     If I lost, I would eat only a protein bar or protein shake.    With this thought process, failure was not an option.  It forced me to become consistently profitable.

Today, I still work off the same principle.    Everything is my life has to be paid from the market.   I do not hesitate in spending because I am always thinking how to generate profits in the market to pay for what I spend.

Thanksgiving and Christmas is a perfect example.    During the holiday’s, everyone is spending money on family and friends.    There is no escape for anyone in spending money.   Once the new year comes about, everyone then tackles how to pay for all the expenses.

Why not take advantage of the holidays and make money in the holiday so when the new year comes, the market has paid for everything!    Lot’s of people do not think of that.   I do not know why! The holiday season is the perfect time to make money.  Why?    Everyone is spending.   All you have to do is to OBSERVE your surrounding!

Go to the stores, the shopping malls, etc and see what people are doing.

This Thanksgiving, I was in Atlanta for “Black Friday”.    On Thanksgiving day, all the stores opened at 5pm.    My friend and I decided to go the North Georgia Outlet malls because my friend needed to buy some cloths.   As a result, we began our one hour drive to the outlet malls.    For me, i do not need to buy anything until I make the money in the market.   I venture out at the crazy hours to observe what people are buying and where.

When we arrived, it was crazy.  It took us close to 30 minutes just to find a parking space.   In walking around, there were some very very very long lines at certain stores.    The Nike store along with all women pursues like #Coach, Micahel #Kors, etc had long lines where lot of people waiting a long time just to get inside the store.   Women pursues seems to be in real demand.   We noticed this in Macy’s department store too.

This observation research, now told me to look at companies that sell women’s pursues.

Here is a daily chart of KORS. I have placed a vertical line on Thanksgiving day.   The chart shows we are in a bullish trend already.   There is no setup on the daily time frame so we have to look for an opportunity on the lower time frame to minimize the risk and maximize the reward.

Here is the 240m chart.    The bullish breakout has already triggered before Thanksgiving.

All the swing and long term charts are already in a bullish trend.   Therefore, we are going to have to look for a day/swing trade and enter with a risk of a day/swing timeframe and then hold that stop to trade the higher time frame.

Below is the 60m chart.  The vertical line shows Thanksgiving.    The bullish trend is already established with some purple dots.  The purple dots are day/swing support.    We setup a pull back trade at these day/swing support with a small stop of 0.50 cents.   With Stock options, this is half a delta risk on any option we choose.

To keep our risk minimal, we traded it with options.   This risk is off the 60m but we want to trade the longer time frames because we want this trade to last to the next earnings.    Earnings is in February 2018 so any option February or further is good to trade.    We choose a strike price 1 or 2 levels OTM depending on the volatility.    An alert was placed so we know when to exit this position if it reverses.

Below is the current daily chart.   it shows that the stock has moved 14%+ in 19 days!    The options are over 3:1 reward/risk.    In fact, we have taken 50% of the positions already so the rest of the positions are “free”.    Our stop is now off the daily time frame too so we do not give back all our profits.

This one trade has paid for expenses that have occurred during the holiday season!    I did not have to worry about paying for expenses after the New Year!

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

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.

The Battle: $Bitcoin vs $iMTF®

Posted on December 10th, 2017 by

The Battle: Bitcoin vs iMTF.    Bitcoin has corned the media market.  Everyone around the world has been talking about it.    In the month of December, I have been traveling the world.   Every country I go, Bitcoin is the major talk on the stock market channels.

With the crazy returns, everyone is trying to get involved.   Non-professional and professional traders too!    This reminds me all the “bubble” we have experience in history.     When everyone is buying, there are no sellers so the price just keeps going and higher until the “bubble” busts.

Remember the recent “Gold” Bubble?

The magical question everyone is asking how do you trade it.    No one knows when this “bubble” will end.   No one knows how far it will go.    Therefore, you have to trade it in a very low risk manner.

This is our iMTF® technology is very useful.   It analyzes multiple time frames to find the major support/resistance.

In order to trade $Bitcoin, you have to trade pull back with multiple time frame supports.     With the instrument going higher, there are not many opportunities.    However, when the opportunity does come, it is low risk and high reward.

Here is the current daily chart.    On November 29, 2017, $Bitcoin dropped and our price alerts got triggered.    We had a price alert at 8587.00.    This was the last multiple time frame support that has been seen on the daily timeframe.

 

After that pull back to that level, price has gotten all the way to 19642.  This is 130% increase in 9 days.

This is a low risk, high reward trade.   Once you enter the trade, you use a good “trailing” stop so you do not give up your profits and do not lose!

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

For educational purposes only. 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. View our full risk disclosure: https://www.ichimokutrade.com/c/disclaimer/

 

$WMT vs $SPY $Pairs Trade

Posted on December 10th, 2017 by

$WMT Walmart vs $SPY SP500 ETF $Pairs Trade.  One of the hidden strategies most people don’t talk about is “pairs trading”.   Some people talk about it but still the concept is not done right.   I learned this powerful strategy in the institutional world.

What is pairs trading?   Pairs trading is a hedge based strategy.    The goal is to trade one instrument and hedge with another instrument.    For example, if you like to trade Apple stock, you buy that instrument.   To hedge it, you should sell their major competitor.    As long as you limit your risk and make sure you get a 3:1 ratio, you will make money.   This strategy is executed every quarter so it starts to create a “residual” income every quarter.

The key is to make sure at least one of the instruments move in your direction.  To do this, we use technical analysis to determine the following:

  • Which/When instrument to buy
  • Which/When instrument to sell

This month, we are looking at $WMT vs $SPY.

Below is the weekly chart.   The vhart broke out bullish long term.   It is now going through a pull back.   We are looking to setup a bullish pull back trade on the weekly time frame.

 

Update $JPM vs $COF:

The trade never triggered so we canceled it.   Below is the current 240m chart.

 

Update $CAR vs $HTZ:

Below is the current monthly chart.   The trade has triggered and we are at a minor resistance now.   If this resistance break, we will get to the 3:1 reward/risk.

 

 

 

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

For educational purposes only. 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. View our full risk disclosure: https://www.ichimokutrade.com/c/disclaimer/

 

$NIFTY $SENSEX December Monthly iMTF™ Market Update

Posted on December 10th, 2017 by

$NIFTY $SENSEX November Monthly iMTF™ Market Update. The Indian stock market continues to make new high’s.  In November, we made another high too.

Note:  All charts are provided by TradingView for this article

Below is the monthly chart.

Since Feb 2004, the India stock market has been in a long term bullish trend.   There was a medium pullback in 2016 but the market has yet to experience a major pull back.

Here is the current monthly chart.     Since the market has been making all-time new high, we have to use $Fibonacci extensions for resistances.    The next major resistance is 10528 with a support 9733.    In November, we got close to reaching this value but missed it by a couple of points.    The lower time frames will tell us if we still have a possibilty of reaching it.

 

 

Below is the weekly chart.  The weekly is strong and shows no signs of weakness at all right now.  There is a multiple time frame support 9970.00.  As long as this support holds, no major pullback in regards to long term will occur.

Below is the daily chart.  It shows a multiple time frame resistance at 10378.

 

In conclusion, the Indian remains in a strong bullish trend short and long term.    If the multiple frame support at 9970, then the market will undergo a short term pull back.    If the multiple time resistance at 10378 breaks, the market will proceed to next major resistance making new high again.

Trade Opportunities

Here is a list of India stocks that are completely bullish.

Here is a list of India stocks that are completely bearish.

With the Indian market making new high, it is very hard to find a good bullish trade with a good reward/risk.   The reason is you do not know if the market will keep on making new high.   Therefore, you have to minimize your risk and trade pull back or breakout on lower time frames.

We are approaching the end of the year.   One of the things we like to do is example instruments that did not do good this year.    These companies could possible recover next year and have a good reward/risk in the process.

In looking at the bearish list above, lets examine $Drreddy.eq-nse.   Below is the quarterly chart.  We are examining quarterly because the monthly has been registered to be bearish.   We need to find the long term support which is the higher time frame.

The chart is bullish very long term.   It is trying to go through a major pull back which is why all the lower time frames are bearish.  The major support at 1906 is holding.    This is the 61.8% Fibonacci many traders are paying attention too.

The resistance holding this bearish trend is 2471.00.

Here is the monthly chart.  The bearish setup has triggered but no follow up has occurred.    As long as the resistance holds, the monthly still can go bearish.

In conclusion, we will be looking for the resistance to possible break in 2018.   If so, this can be a good bullish trade on lower time frames with a good reward/risk.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

For educational purposes only. 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. View our full risk disclosure: https://www.ichimokutrade.com/c/disclaimer/

Most Power Trading Tool at Your Finger Tips, Use and Abuse it!

Posted on November 11th, 2017 by

 

Most Power Trading Tool at Your Finger Tips, Use and Abuse it!   What is this Tool?   Statistics!   Trading is all about probabilities!   Technical analysis is about past patterns repeating themselves over and over!  This is statistics!     The best simple statistics tool that is available in the market is Seasonality.

Why?   It tells you from a certain start date to a certain end date, what the statistics was for an instrument.     This is very powerful and simple!     So why does not everyone use it all the time to give them the edge?

There are a number of reasons.   Here is what our experience has told us:

  1.  Seasonality has become a marketing word to promote educational material.  This is fine as long as the education is from real traders.   Trader using the tool daily for any instrument and time frame.  When we say any instrument, it should be any instrument in the world!   This is currencies, futures, USA stocks, Europe Stocks, Asia stocks, etc.   If it is only for one instrument class then the strategy could be “curve fitting” which eventually not work when markets change.
  2. Huge cost.   Seasonality software can have a huge price tag.    Only for the software purchase but also for the monthly data feed.
  3.  Most of the formula for seasonality just looks at percentage move year by year.  It does not account for volatility.

DO NOT WORRY.   We are real traders and the seasonality we are going to show you how to use is Free and covers ALL Global instruments.

For our online extensive tutorial, you can go here:   http://www.imtftrade.com/course-tutorial-2-2/

Let’s take some trades that have been taken and step you through the thought process of the trade.  We are going to combine the seasonality with our IMTF technology:

 

DLTR Trade

Here is the seasonality for Dollar tree provide for free from www.alerttrades.com.   You can access the software through a mobile too!  The statistics show that DLTR for the month of November has a 86% probability of going bullish with an average move of 9.5%.    Not only that, the price action movement that occurs in the month of November is 21% of the entire year.

Anything over 10% tells you it is a trending month.     What good is a 86% probability if it only moves 0.05%.     That winning but not making money!   That is losing in theory!

Here is the 60m chart.   As traders, we notice that seasonality either occurs in the first 15 day or second 15 days when you look at a monthly seasonality.    See that is the traders in us!

We zoom down to a 60m because that is the bridge between the day traders and the swing traders.   Trading a 60m and 240m gives a trader an edge.  Did you know that?

WHat we look for in a chart.   First, we look for a shaded area.   A green indicates a bullish setup.   A red indicates a bearish setup.     Second, we look for black cross for support or resistance.   This allows pull back trades to keep our risk low compared to breakout trades.

In this chart, we got the green and black crosses,  As a result, we setup for a pull back bullish trade with over a 4:1 reward/risk.

Simple as counting 1-2-3!

Want another one!   Here is HII.  It has a 90% probability of moving 9.4% with 20% of price action occurring in November.

Here is the 120m chart.  We looked at the 60m chart but the reward/risk was not good.  Therefore, we had to go to higher time frame to get a bigger risk and bigger reward.     This was a potential of 3:1 but gave us a lot more due to earnings.

 

Here is one of the best ones.  It is ttwo.   It had a 76% probability of moving 5.8% with 10% of the price action in the year occurring in the month of November.

With this trade, it did not have a setup.   However, it was a major multiple support in the past.   Below is the weekly chart where you can see that support clearly.

Here is the daily time frame:

 

Not convinced this is useful tool for real traders.   Look at this trade.  It is TSRO which states 90% probability of going bearish with an average 15% with 23% of the price action occurring this month.

In analyzing the charts, the charts were bearish.    So we look at the seasonality as a catalyst for something to happen and looked for a bearish setup.   We got a bearish pull back that yielded over 8:1 reward/risk.

 

Here is the latest trade.   We found it in the seasonal scanner.  IT is JNPR.  It says on November 15, it has a high probability of going up for 30 days.

 

 

Here is the 60m chart.   We got the green shaded area with the black crosses.    It is struggling but we have time and statistics on our side.   If we lose, who cares!  It is low risk.   All you need is one winning trade with 3:1 or higher to take care of this loss or more.

 

Check out the software for free!   What you have to lose!

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

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