SPX Wave and Trend Trading

Wednesday, January 18, 2012

SPX Signal Chart on New Site...

www.trendtradepro.com

Wednesday, January 11, 2012

This Blog Has Moved!

www.trendtradepro.com

This blog welcomes you to a leap in daily chart study analysis.

Bigger Charts
Easier Reading
Clearer Detail
Organized for Quick Looks

Contents:

Daily Interval Chart Analysis on SPX, SPY, ES, DX using Elliott Wave, Fibonacci Price and Time measures and a wide range of other technical indicators.
(SPX) and (SPY) Alert Indicators with Trade Guidelines for Entry's and Exits .
EMA Trend Line Analysis designed to protect Long Term Investments.

Additional Feature:
Warnings and Results

Trendtradepro records and saves each chart with periodic notes and dates. Charts are displayed with a documented history at a later date for history analysis.

No hype. No sales pitch. No advertising. Just organized Index charts with comprehensive technical analysis and alert signals with basic guidance and opinion.

Tuesday, January 10, 2012

(SPX) Example of a Signal Trade Before Disaster...

(SPX) July 25th 2011 - A Signal Warning Before Disaster

(SPX) August 8th 2011 - The Result

Friday, May 14, 2010

the "Final Ten Minutes of Trading" concerning Color Candle Entries and Exits...

EXAMPLES of why we "WAIT" till the Final Ten Minutes of the Trading Day when working with Color Candle Alerts...
TOP: Example 7/2: Following a GREEN CANDLE, I may have taken some profit. But what happened in the final ten minutes caused me to remain "Bearish"... 7/2
BOTTOM: Example 12/29: This 2m SPX Chart signaled the Last RED Candle trade was "TRUE" (according to guidelines)...

Thursday, May 13, 2010

BACKTESTED EXAMPLE using TRADING GUIDELINES

WAVE TRADING the ALERTS

1) TRADE WITH THE TREND
For Trend Direction, pay attention to the Black and Red EMA Lines.
Black on Top=Trend Positive.
Black on Bottom=Trend Negative.

2) Trade the candle the "day after" the Color Alert.

3) Make your decision to trade in the "final ten minutes" of the trading day if conditions are met.

CONDITIONS:
3a) TRUE SELL --If the candle is a Sell Alert, wait to trade the following day. If the Close in the final ten minutes is LOWER than the close of the Sell Alert candle, execute the action to Sell or Short depending on the trend lines.
If the current Close is NOT LOWER, then stay in the trade. This usually signals that the preceding Sell Alert Candle is "false" and another Sell Alert should follow "higher" in the near future giving another opportunity to Exit or enter Short.

3b) TRUE BUY --If the candle is a Buy Alert, wait to trade the following day. If the Close in the final ten minutes is HIGHER than the close of the Buy Alert candle, execute the action to Buy or Buy-to-Cover depending on the trend lines.
If the current Close is NOT HIGHER, then stay in the trade. This usually signals that the preceding Buy Alert Candle is "false" and another Buy Alert should follow in the near future "lower" giving another opportunity to Buy or Buy-to-Cover.

TIP#1: Have a BULL or BEAR ETF ready to trade when you CLOSE a position based on the Guidelines. In other words, if you "exit SPY-a BULL ETF", also "enter SH-a BEAR ETF". SH will rise when the SPX falls. This strategy fits the more (non-trend) risky trader and should be evaluated according to your risk tolerance.

TIP#2: If you "SELL SHORT", your entries would be on the days following the Alert Candles according to Guidelines. Your "BUY to COVER" would be on the days following the Buy Alert Candles according to Guidelines.

4) SET STOP LOSSES according to your risk tolerance.
Never forget this: There aren't ANY perfect trading systems available anywhere.

5) ETF 2x-3x. These are "risky" funds and should not be traded by an inexperienced trader. Do not hold double or triple ETFs for a long time, no matter where the market goes. They are subject to price erosion by design. Trading Candles are meant to be a short to mid-term trading program depending on the trend. I don't recommend trading Direxion ETFs. Never buy an ETF after a "reverse split"...

TRADE ACCORDING TO GUIDELINES!!!

TREND TRADING the EMA 13, 21 and 34 Day Lines

1) These Lines work best on determining "Index" Trends.
2) It is best to enter after the first trend crossover, after a long trend in the opposite direction.
3) Entry Process: After the Lines cross, wait for the price to return to the lines and then reverse. After a reverse on a "Daily"chart (based on the Close of the Previous Day > if Long Entry, < if Short Entry.
4) IMPORTANT:
If the lines cross, and the price returns but does not reverse, the trend should continue in the current direction. This usually happens in a minimal trend correction. A confirmation of the continuation would be another EMA cross in the original direction of the trend. (This is called an "Attempted Crossover").
5) These lines help determine the "TREND DIRECTION". You should develop your own "Exit Strategy", although you could use the lines to determine a Trend Exit based on a crossover. (see live chart example).