7 Ticks of Risk / 40 Ticks of Profit!!

Hello Traders,

Dec,19th,2009

We had a great question emailed to us today and would like to answer it in the blog so everyone is aware of the answer. The question was "Does your indicators and methods work on Range Charts?". The answer is YES, all of our methods and indicators work on all time frames with any style of chart meaning; they will work on second, minute, tick, range, volume, daily, weekly and Monthly charts.

Here is a example of a 4 Range with the TF (Russell) on Dec 18th.

The blue bars came in at the low of the move warning us that a big move was about to happen. Once the move started and we see that is a up move we wait for the 2nd set of Green bars for our long entry. Using a 4 Range chart we know that are stop will be MAX 8 ticks which is 2 bars. No matter if there are 5 red bars or just 1, as soon as the bars go back to green we know that is our defined signal to enter the trade long.

Notice how the bars stayed green all the way up and so does our Moving Average, this will give us a visual that we are trading in the proper direction and it is easier to hold the trade. From the Blue bar low telling us a big move is going to happen then the price goes up 45 Ticks, then we ultimatley get stopped out of the trade with 40 Ticks as we move our stop to the low of each now blue bar that is printed. This gives us a defined exit just like we had a defined entry. Once a bar closes it will never turn back to a different color meaning; once the bar closes green it will always be green FOREVER, we know allot of systems change the bar back to another color even after 3 or 4 more bars have been printed. Our system does not do that.

The 4 main things to look at on this chart is (1) How big the stop was (2) How much drawdown we took on the trade (3) the blue bars gave us a great "heads up" as to when the move was starting and ending (4) the risk to reward on the trade. Seeing how the bars stay green and red for confidence in realtime is also another great thing to take note of.

If you have any questions regarding our indicators or trading methods feel free to email us at anytime at trade@eminischool.com

Happy trading!

Turbo Scalper Shorts +8.00

Hello Traders,

12/17/2009

Today we hade 2 nice Turbo Scalp Trades to the short side. The first trade was from 1102.00 with the price falling down to 1097.00 on the first push down. The second trade was from 1098.00 down to 1094.00. Each trade had a max gain of +4.00 points or +8.00 points taking both trades.

When looking at the chart we are not only wanting to point out the profit potential but really the most important part is seeing where are stops were on both of the trades. We place our stops 1 tick above the last high (the green bars before the short signal fired off). As the price falls we lower our stops and follow the trade down.

We always want to confirm our Turbo Scalp Trades to make sure we are only taking trades in the direction of the 3 and 10 Min Kill Zone charts. If both the 3 and 10 minute are not saying the same thing (which would be short in this example) we skip the trade. We always want Multiple Time Frame confirmations that we are scalping in the proper direction. Then we take our direction then narrow the entry down by using the Turbo Scalp Trading Methods.

Our Rule is 2 Winners in a Row , Stop Trading and Bank the profits for the day!!

For more information on the Turbo Scalp and Kill Zone Trdaing System please go to www.eminischool.com or contact us at trade@eminischool.com

Happy Trading!

When the ES is slow....

Hello traders,

Today i wanted to write a quick article on trading with regards to taking trades out of boredom or frustration when the ES is choppy and not moving fast enough to keep you intrested. One of the worst things you can do as a trader is to take trades out of boredom, it will program very bad habits and you will most likly lose on the trade as even if you enter in the right direction it is very hard to hold the trade to the profit target if the markets are trading slow. So what this will do is alter your risk / reward on those trades.

When the ES is trading slow try looking at the Russell symbol (TF) as most of the time the TF will trade faster than the ES. Each full point in the TF is worth $100.00 unlike the ES where each full point is worth $50.00.

Also the TF seems to break harder one way or the other if you are a breakout trader. We are not breakout traders we always want to enter on pullbacks, but if you are a breakout trader the TF is a great contract to trade. We beleive the reason whey the TF breaks out harder than the ES is because there is not as much hedging going on in the TF as there is in the ES. This is just something we have noticed in our years of trading.

The TF also trades more stocks if you like trading stocks. The TF trades like a AAPL or GS something that really moves throughout the day and the faster it moves the quicker you can bank your profits. Some people will say the TF is too thin, but this can work to your advantage if you are on the right side of the trade, plus unless you are trading more than 100 lots we would not be concered about the TF being thin.

Keep an eye on the TF if you feel like you are getting bored or frustrated during the day trading the ES if the ES just seems to be chopping back and forth for the day.

The chart above is a 3 Minute TF chart. We had a very nice sell signal (the 2nd set of reds) for a nice 6.00 point winner on the short side. Also notice how on both legs down the blue bars came in at the low of each of the moves to give us a very high odds of a turning point which nailed the low of both of the moves down. Looking at the chart would you trade long against our sell signal? It is very key in your trading to have a real time visual on the market to keep you trading in the right direction!

Happy Trading!

www.eMiniSchool.com

ES Day Trading!

Hello Traders,

Fridays action was back and forth but our Blue bars did a nice job of telling us we were at the High of the day and at the Low of the day with our Blue Bars.

With Thursdays sell off at the close we had a very nice sell signal on the 10 min and the 3 min then the market dove into the close with Blue bars Nailing the Low of the day on thursday as well.

If the ES stays above the 1075.00 level we have a good chance of breaking to new highs with our upper targets being 1126.00 then 1162 then the highest target being 1234!

We are getting a negative divergence at this high but going into next week we will be watching how Tuesdays market closes.

Happy Trading!

www.eMiniSchool.com