Monthly Archives: April 2015

Trend Trading is Like Chasing Ghosts (7,681 Pips Using Our Signal To Signal Method)

Trend Trading Using Catalyst Signals Within Smart Volume Spread Analysis

Smart Volume Analysis Software – Catalyst Signals For Quick EOM Trades

If you’ve read any of the articles about Smart Volume Analysis you know I normally suggest taking quick Catalyst trades to our one bar EOM Targets as shown in the screenshot to the right however, the aim of this article is to show just how easily you can consistently trade larger moves with just a few simple steps.  This article was inspired by a recurring conversation I have with many traders on trend trading.  Enjoy.

Why is Trend Trading Like Chasing Ghosts?

I hear a lot of people say I trade trends.  Trend trading is one of the most damaging myths in the trading world. I liken it to “Chasing Ghosts” The trend is your friend?  Yeah… Sure it is.  That quote gets bandied about a bit but the problem is most people don’t usually hear the full quote.  The complete quote is ‘The trend is your friend… until it ends.’  It paints a different picture when you hear the end of the quote included doesn’t it?

It’s not that trend trading is a bad thing or that you will always fail but rather that trends are very difficult to trade correctly and consistently and stay profitable over the long haul. Unfortunately many traders lose a lot of their capital trying to catch these waves and eventually give up in disgust.

Trying to catch a trend?  You are chasing ghosts and you will likely lose a lot of money while you hunt.

How could you possibly know when a trend is ending?  Many times traders enter long on a nice up move and get creamed in short order.  They scream “but the trend was up!” Don’t get me wrong, trends (large moves up or down on longer time frames) do exist and are great trades when you get in them however they are notoriously hard to identify and trade correctly.  Even with so-called trend trading software and tools you will likely fail more than you should.

The trend may be your friend but Smart will always invite you to the best parties.

So what is the secret to successful trend trading?  How can you know when the trend is going to end?  If you could figure that out you’d be very wealthy and probably wouldn’t need this article…

It is not only possible, it’s very easy to get in early on a large move in price and ride it all the way to the next major reversal and take it back the other way.  We prove it again and again in our articles and it’s actually very easy to do.  When you trade using Smart Volume Analysis, you can clearly see where these large moves start and turn around.  They are often preceded by what I call Catalyst Signals. All signals are clearly marked on the chart and when a catalyst signal appears, we know that the start of a large price move is about to begin.  We can enter the trade with confidence and ride the complete move, then exit safely on the next catalyst signal and if conditions are right, take the trade in the opposite direction for another large move the other way.   You can do this day in and day out.  Take a look at the following screenshot.  I marked the longer moves and noted the signals that preceded them.  Do you see the repeating patterns?  Each of the colored bars on the chart is a Smart Volume Spread Analysis signal but a few are a very special brand of signal that we call catalyst signals. These are the signals you want to trade… When you see them set up in real-time, you are always in a prime position to consistently get in, and stay in these larger price moves.

Easy and Profitable Trend Trading Prowess Using Smart Volume Spread Analysis Catalyst Signals

Easy and Profitable Trend Trading Prowess Using Smart Volume Spread Analysis Catalyst Signals


Text from screenshot:

This is how simple Volume Based Trend Trading can be:  Long Term Catalyst Trades (Signal To Signal Validated by Trade Advisor)
Occasionally you get a great exit and reversal signal at the same time but usually you get out shortly before the reversal. I noted the exit signals if exited before the next entry signal.  To be clear… We are only taking Catalyst Signals with Trade Advisor Validation. This should be clear to anyone that uses Smart and Trades the Catalyst Signals but for those that don’t I have marked whether the trade is taken to the next signal or if exited at a Reverse Catalyst Signal.

  • 1 to 2. 546 Pips
  • 2 to 3. 879 Pips
  • 3 (Exit at RUT). 1012 Pips
  • 4 to 5. 1071 Pips
  • 5 (Exit at SS). 694 Pips
  • 6 (Exit at SB Warning). 149 Pips (Only trade with DD for more than one bar)
  • 7 to 8. 317 Pips
  • 8 (Exit at RSO). 155 Pips
  • 9 (Exit at RUT). 916 Pips
  • 10 to 11. 1536 Pips
  • 11 to ?. 406 Pips (? Trade is still open)

Total pips from all trades is an astounding 7,681 Pips From Only One Chart

It should be noted… Trade Catalyst Signals work on any time frame and any market.  I used this chart specifically to illustrate how safely trades can be taken for longer term moves providing you enter on a Catalyst with the Smart Trade Advisor validation.  It couldn’t be easier because everything you need appears on your chart in real time.

More articles and information on our software is available at our website. SmartVSA.com

 

Stop chasing ghosts and start trading Smart.

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Trend Trading is Like Chasing Ghosts

Trend Trading Using Catalyst Signals Within Smart Volume Spread Analysis

Smart Volume Analysis Software – Catalyst Signals For Quick EOM Trades

If you’ve read any of the articles about Smart Volume Analysis you know I normally suggest taking quick Catalyst trades to our one bar EOM Targets as shown in the screenshot to the right however, the aim of this article is to show just how easily you can consistently trade larger moves with just a few simple steps.  This article was inspired by a recurring conversation I have with many traders on trend trading.  Enjoy.

Why is Trend Trading Like Chasing Ghosts?

I hear a lot of people say I trade trends.  Trend trading is one of the most damaging myths in the trading world. I liken it to “Chasing Ghosts” The trend is your friend?  Yeah… Sure it is.  That quote gets bandied about a bit but the problem is most people don’t usually hear the full quote.  The complete quote is ‘The trend is your friend… until it ends.’  It paints a different picture when you hear the end of the quote included doesn’t it?

It’s not that trend trading is a bad thing or that you will always fail but rather that trends are very difficult to trade correctly and consistently and stay profitable over the long haul. Unfortunately many traders lose a lot of their capital trying to catch these waves and eventually give up in disgust.

Trying to catch a trend?  You are chasing ghosts and you will likely lose a lot of money while you hunt.

How could you possibly know when a trend is ending?  Many times traders enter long on a nice up move and get creamed in short order.  They scream “but the trend was up!” Don’t get me wrong, trends (large moves up or down on longer time frames) do exist and are great trades when you get in them however they are notoriously hard to identify and trade correctly.  Even with so-called trend trading software and tools you will likely fail more than you should.

The trend may be your friend but Smart will always invite you to the best parties.

So what is the secret to successful trend trading?  How can you know when the trend is going to end?  If you could figure that out you’d be very wealthy and probably wouldn’t need this article…

It is not only possible, it’s very easy to get in early on a large move in price and ride it all the way to the next major reversal and take it back the other way.  We prove it again and again in our articles and it’s actually very easy to do.  When you trade using Smart Volume Analysis, you can clearly see where these large moves start and turn around.  They are often preceded by what I call Catalyst Signals. All signals are clearly marked on the chart and when a catalyst signal appears, we know that the start of a large price move is about to begin.  We can enter the trade with confidence and ride the complete move, then exit safely on the next catalyst signal and if conditions are right, take the trade in the opposite direction for another large move the other way.   You can do this day in and day out.  Take a look at the following screenshot.  I marked the longer moves and noted the signals that preceded them.  Do you see the repeating patterns?  Each of the colored bars on the chart is a Smart Volume Spread Analysis signal but a few are a very special brand of signal that we call catalyst signals. These are the signals you want to trade… When you see them set up in real-time, you are always in a prime position to consistently get in, and stay in these larger price moves.

Easy and Profitable Trend Trading Prowess Using Smart Volume Spread Analysis Catalyst Signals

Easy and Profitable Trend Trading Prowess Using Smart Volume Spread Analysis Catalyst Signals


Text from screenshot:

This is how simple Volume Based Trend Trading can be:  Long Term Catalyst Trades (Signal To Signal Validated by Trade Advisor)
Occasionally you get a great exit and reversal signal at the same time but usually you get out shortly before the reversal. I noted the exit signals if exited before the next entry signal.  To be clear… We are only taking Catalyst Signals with Trade Advisor Validation. This should be clear to anyone that uses Smart and Trades the Catalyst Signals but for those that don’t I have marked whether the trade is taken to the next signal or if exited at a Reverse Catalyst Signal.

  • 1 to 2. 546 Pips
  • 2 to 3. 879 Pips
  • 3 (Exit at RUT). 1012 Pips
  • 4 to 5. 1071 Pips
  • 5 (Exit at SS). 694 Pips
  • 6 (Exit at SB Warning). 149 Pips (Only trade with DD for more than one bar)
  • 7 to 8. 317 Pips
  • 8 (Exit at RSO). 155 Pips
  • 9 (Exit at RUT). 916 Pips
  • 10 to 11. 1536 Pips
  • 11 to ?. 406 Pips (? Trade is still open)

Total pips from all trades is an astounding 7,681 Pips From Only One Chart

It should be noted… Trade Catalyst Signals work on any time frame and any market.  I used this chart specifically to illustrate how safely trades can be taken for longer term moves providing you enter on a Catalyst with the Smart Trade Advisor validation.  It couldn’t be easier because everything you need appears on your chart in real time.

More articles and information on our software is available at our website. SmartVSA.com

 

Stop chasing ghosts and start trading Smart.

The post Trend Trading is Like Chasing Ghosts appeared first on Smart Trader.

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Smart Volume Analysis Trade Update (Combined 890 Pips): Trade Using Our Unique Visual Background Scanner and Smart Zone Levels For Trade Validation

Smart Volume Analysis Trade Update (Combined 890 Pips): Trade Using Our Unique Visual Background Scanner and Smart Zone Levels For Trade Validation

This article is about two “framework” modules included with our VSA software. One is named the Proprietary Visual Background Scanner, and the other is our Proprietary Smart Zones Concept based in part on Supply and Demand Zones.

Many of you know my thoughts on standard VSA (many of you came to the same conclusions before finding Smart) and these modules bring our Smart Volume Analysis tools to a whole new level and give our clients a renewed perspective on how to properly analyze volume.  We are now free of the contradictory nature of the “old way” and as a benefit, our volume analysis is far more accurate than any other volume analysis software.

When using thesetools in conjunction with Smart Volume Analysis Signals you can see from the following chart you were on the right side of each trade for the entire move down in EURUSD (890 Pips)

These examples are not cherry picked, the screenshots included in this article are real World examples selected from all of the charts I watch where the signal(s) and or concepts being discussed appeared at the time this article was written.

If you have any questions please refer to the links at the bottom of this article.

Smart_volume_analysis_trading_

[text from screenshot]

Smart Volume Analysis Trade Update (Combined 890 Pips on EUR USD): Trade Using Our Proprietary Visual Background Scanner and Smart Zone Levels For Signal Validation

1. Proprietary Visual Background Scanner Weakness Indication (Hollow Red Circle)

2. First Weakness Signal – Smart Upthrust (Red) After VBS Change (Entry #1)
3. Reverse Upthrust (Blue) Strength and No Selling Pressure (Pale Yellow) Strength but Counter to VBS (No Trade)
4. Same as #3
5. Unconfirmed No Demand (Pink) Weakness and No Demand (Confirmed) (Entry #2 or simply hold initial)
6. Price Breaks Back Into Smart Zone (Red Line Upper Level) and falls straight through.
7. Exit when price hits the bottom of the Smart Zone (Blue Line Lower Level) (550+ Pips)
8. Proprietary Visual Background Scanner Weakness (Hollow Red Circle) Combined with Reverse Shakeout (Lite Gray) Entry #1
(We do have a Visual Background Scanner Strength Indication (Hollow Blue Circle) but no strength signal – no trade)
9. Close at Lower High Volume Zone (Green Areas) and Strength Indication (Proprietary Smart Buying)
10. New Proprietary Visual Background Scanner Weakness Indication (Hollow Red Circle) NO Weakness Signal No New Trade

Each VSA signal and indication within our software has it’s own color.  SMART Trader itself is painting these colors which makes these patterns and setups much easier to see and act on.  Using Smart VSA you can profit from these examples day in, and day out.  There is no guesswork.  If a signal is shown, it is valid.  It really is that simple.

Trade setups are verified using our proprietary visual background scanners and EOM concept module which are included with the system.

For more information or if you have any questions about SMART Volume Spread Analysis (VSA) and our Software please visit the following link

Smart Trader VSA (Volume Spread Analysis) Software you can also visit our Live and Free VSA (Volume Spread Analysis) Chat, Trading Rooms, and our other free volume spread analysis resource sites (linked below) to learn more.

For information on our real time, volume based trading alerts, Click here.

If you have any questions regarding Smart VSA or our software please submit a ticket using the support link on our website (http://www.smartvsa.com)

Good luck trading and see you in the markets.

The post Smart Volume Analysis Trade Update (Combined 890 Pips): Trade Using Our Unique Visual Background Scanner and Smart Zone Levels For Trade Validation appeared first on Smart Trader.

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3 Reasons Why Trading Patterns Is Killing Your Account and The One Thing You Can Change To Drastically Improve Your Results

3 Reasons Why Trading Patterns Is Killing Your Account and The One Thing You Can Change To Drastically Improve Your Results

Pattern Trading is the basis for most trading software and systems but patterns themselves are not enough to form a winning trading method.  If they were, everyone that could recognize a simple pattern would be hugely successful. So, what is the missing piece of the puzzle that most traders fail to learn about and focus on? The answer is volume, and more specifically smart volume analysis. Smart Volume Analysis gives us the ability to see and profit from the hidden meaning within these patterns day in and day out with very little effort.

As an example, we’ll use one common pattern that when combined with volume becomes one of ours to demonstrate why volume analysis is the missing element in your trading.  The pin bar is a very popular pattern to trade.  A pin bar typically signifies a reversal in the market. However, a pin bar by itself is fairly meaningless as they occur all over the chart. When they work, they’re certainly very powerful but trading these without any other meaningful verification will very quickly deplete a trading account.

Some people will say “but they do work most of the time”.  This is simply not true and a hard pill to swallow if you trade them.  You can identify five times where this or any pattern for that matter “worked” and I can show you ten times where they failed.  So what’s missing? How do you, or anyone know if a pattern is valid and worth trading? The answer is simple… Volume. Volume is the only real time analysis tool that will show you what is actually happening within the market at any given moment.  Just like patterns, volume too is not always enough as you will soon learn… To make it as a trader you need a comprehensive tool set capable of displaying signals and their meanings in a concise, easy to read manner right on your chart.  You also need a guiding hand from someone who knows why traders and more importantly trades fail time and time again, and how to avoid many common trading mistakes without having to get a degree in rocket science.

“Volume is the only real time analysis tool that will show you what is really happening within the market at any given moment.”

Take a look at this example chart taken in real time after a specific Smart Volume Analysis Signal. (Please open this chart in a new tab/window and follow along with the text below):

Pin-Bar-Signal-Failure-With-Warnings-2014-04-16_13h11_35

Please note that example #1 on the chart is a typical pin bar and that it is also a valid Smart Upthrust which is printed as a blue bar in our Smart Volume Analysis Trading Software.  This would normally be an excellent place to open a long position as it is a strength signal and one of the best of our so called “catalyst” signals.  A catalyst signal is simply a Smart Volume Signal that typically precedes a very large movement in price.

If you saw this pattern and you normally trade pin bars you might have taken this trade.  If you only trade smart catalyst signals, you may also have taken this trade as well but notice point #2 on the example chart…  These are the various warnings that our software printed for this particular signal based on it location in the range and other factors.  Had you avoided this trade based on our Trade Advisor Warnings, you would have saved yourself from a loss of nearly 20 pips, possibly more as the bar had still not closed when the screenshot was taken.  Now look at example #3 on the chart.  See the huge move?  This is quite a different story from example #1.  This is the same chart, same timeframe and the exact same signal as example #1 but with one key distinction…  There  were no Smart Volume Analysis warnings on this trade.  This trade ended up being a 100+ pip winning trade had you taken it.  This is the true power of smart volume  analysis and clearly shows how adept our advisor module is at keeping you away from potentially losing trades.

Smart Volume Analysis shows you very quickly and effortlessly which patterns are valid and what their profit targets are thanks to our proprietary EOM concept and chart module.  The software even warns you of potential dangers right on the chart in the form of our Trade Advisor which you can see in the above examples. That said I would add that while your percentage of winning trades will no doubt be much higher once applying our concepts and methods, we recognized that certain patterns needed additional scrutiny before a trade could be placed.  In  our own trading and the development of Smart Volume Analysis, we found time and time again even though the win rate was very high for our valid signals, there were times that they didn’t work. A pattern emerged and I was interested in identifying and cataloging these conditions so that I could avoid trades that would likely fail. Much of my initial research lead to our Dead Zone concept which improved our trading quite a bit on it’s own but that wasn’t enough. I found certain signals in a certain spot would almost never work no matter how good the signal was. These observations became the basis for what I trained many clients to look out for in the free live rooms but it’s difficult to remember these guidelines when following multiple charts. Many signals had different guidelines and we needed a way to easily report these right on the chart and in real time.  This is why our Trade Advisor Module was created. Every Smart Volume Analysis signal that appears is analysed instantly by Smart and the output if needed is available instantaneously on your chart based on our observations for that particular pattern (See example #2) . If there are no warnings, the trade is deemed safe and has a very high chance of working as expected and in hitting it’s EOM (Profit Target Levels).

As you would imagine, some warnings are stronger than others. Each warning and it’s meaning is detailed within the client documentation site so that you can familiarize yourself with them and begin applying these guidelines to improve your trading in a very short time

For more information or if you have any questions about SMART Volume Analysis (SVA) and Smart Volume Spread Analysis (VSA) the methods, or our Software (Smart Trader) please visit the following link

Smart Trader VSA (Volume Spread Analysis) Software you can also visit our Live and Free VSA (Volume Spread Analysis) Chat, Trading Rooms, and our other free volume spread analysis resource sites (linked below) to learn more.
For information on our real time, volume based trading alerts, Click here.
Good luck trading and see you in the chat (Links below).

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