Did you see the pattern?

Nov 12th , 2010

In our nightly videos the last few days we have been pointing out to our members the pattern on the 60 minute charts had odds of coming down and today the NQ went only 2 points lower than our target level. Is this important? Well, the target was from when the NQ's were at 2175.50 and it was a 54 point drop to the target. Not only did we have the target we also had blue bars on the 10 minute chart to confirm the level.

Are you a bull or a bear? Does one or two days change your outlook?

When the market is in a uptrend we know that there will be pullbacks along the way. Knowing that is one thing but understanding how to trade it in a way that is repeatable is a different story. We do not let one or two days change our outlook unless the move does damage to the pattern. It is best to actually buy in the pullbacks and then sell when we make a new high at the targets. Have you ever heard the saying "buy low and sell high". It is a obvious thing to say but more importantly it is you knowing how to actually do it.

Do you go into the day without a outlook on what you think might happen and why? We are not asking if you have a gut feeling , everyone has those. What we are saying is do you know where we are at in the pattern and what time frame is in play and what to look for to see if the pattern is broken?

Are you trading obvious highs and lows? Just think, everyone can see those levels so do you think they are that important? Actually the more obvious levels are the most risky. Trading is not as easy as pulling up your chart and buying the last high or shorting the last low, do you agree? It is you understanding the odds of what is actually going on and having two outlooks and as the bars print you gain odds on which one is going to play out.

What our members are saying:

"I have been working hard and since the last email I sent to you I had a revaluation with the wave pattern and I have been understanding it in much more depth. I have been focusing on the NQ (but watching the other markets as you suggested) as I feel more comfortable trading it. I have had success everyday with your setups and if I have not it has only been because I have tried something else. I went live a few day's ago, and because of a few trades on the RUSS I went down 110 dollars but yesterday I traded the NQ and made 15.5 point. I have enclosed a chart. (you went over it in detail that evening in the nightly video which was nice) The first trade closed out at BV I took this trade off a major support/C level on the 60min chart and wait for the 10 min to go green. The next 2 trades went well".

" Thanks for taking the time the last two days on the IM. I have never seen someone break down the market the way you do and it has helped me to confirm what I was already thinking. Your outlook, levels and direction for the next day is spot on and over 90% correct. The videos are something that every trader should watch every night. I still cant figure out how fast you are on the IM watching all three markets in real time."

To get a copy of the last two days worth of instant messenger alerts email us and we will send you a copy. They are time stamped so you can go back on your charts and see how we read the markets.

Happy Trading,

www.eMiniSchool.com