The first step is to understand how the rigging is being done and the underlying market force of the bias. Identifying the market bias in terms of different levels of view can be very helpful.
I call these:
1. The side walk view of the market
2. The helicopter view
3. The airplane view
We all know how a city street looks different from these different altitudes- from standing right on the sidewalk to being above the city in a helicopter and flying into a city from a jet, perhaps coming back from a trip. The side walk view of the market bias is achieved by learning to read what I call -The High 5. This is the Down Jones Industrial average, the Nasdaq 100, the Transportation index and the Advance/Decline ratio. Learning how to read these and correlate them is the first step for US stock index futures traders. Without knowing the High 5, you are not truly looking at the market bias. Below is a screen shot of my High 5 shown along with the key futures contracts as well such as Crude Oil and Gold.
[You must be registered and logged in to see this image.]
For day trading the stock indexes it is also important to understand the reading of the higher time-frame charts. I consider these to be the 5 minute chart, 13 minute, 30 minute, 60 and 135 minute chart. You must know what is going on with the higher time-frames while you are scalping or micro scalping the lower-time frames. It will help keep you on the right side by viewing things from a helicopter view. The airplane view of the markets is seen by understanding the Volume Weighting of Price levels, known as the VWOP, along with calculating the average volume ratios over a 4 day periods, put/call ratios and daily key, higher-moving averages.
It’s hard work in the room but we have a lot of fun too scalping away at the markets each day. Come join us and begin your advanced trading education. Odds are, you will learn more about the US stock market and futures indexes in 2 days in my room then you will in 2 years searching all over the web.If you have a deep thirst for trading and learning about the markets I invite you to explore my Mohan’s Precision Trading Services, including my well known Boomerang Day Trader software. Boomerang Day Trader is the first day-trading software in the history of the markets that Guarantees 90% winning trades following the simple method/rules that I teach for using the software. Our more than one thousand users tell me, daily in their emails, that trading has never been easier and more profitable.
Do you often ask yourself:
- How can I simplify my trading?
- Is there a way to consolidate all of the markets information into an easy to read method where I can get steady, winning trades? I am proud to say that my Boomerang Day Trader software can help you there.
[You must be registered and logged in to see this image.]
Using simple method and just 2 rules you can achieve a very high degree of winning day trades .