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

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.

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.

Traderelayer Results update and some information/updates posted to the news section of the site: http://goo.gl/NpZcYb

A new post regarding the upcoming launch of our advanced alert service: http://goo.gl/TTWxoB

Even though this article is detailing the traderelayer service, I know many of you check in at this site only so I am pasting it in here as well.

Here is the post text and screenshot from the TR article.

Sorry for the lack of updates recently regarding the advanced Trade Alerts but it’s all been mainly testing and not much to report as a result.

Here’s another example of a Smart Volume Analysis Catalyst Signal using two distinct methods for trading (Explained in our client documents) All trades are considered/taken save those with warnings.  The screenshots details the results.

One Catalyst Signal (Smart Upthrust) One Chart Using Smart Advisor – One method nets 40 pips – Another method nets 173 pips

Text from screenshot:

One Catalyst Signal (Smart Upthrust) on One Chart Using Smart Advisor. One method nets 40 pips. Another method nets 173 pips

This chart looks at one signal. There are many others but for this article only the Smart Upthrust is looked at. The Smart Upthrust is a very strong weakness signal but when some warnings are present will almost always fail. When using EOM Targets each trade with no warnings was closed at target except one for a combined total of 40 pips. Signal to signal as a method would have netted approximately 173 with no losses and one trade possibly still on (total assumes close prior to weekend) at the time the screenshot was taken.

No Warning Present:
1. Profitable (EOM and STS)
2. Profitable (EOM and STS)
3. Profitable (EOM and STS)
4. Profitable (EOM and STS)
5. Fails on EOM 4 Step Trade four but continues using STS and is profitable for approximately 50 pips

Warning Present
6. Fails with Warning Trade not taken.
7. Fails with Warning Trade not taken.
8. Fails with Warning Trade not taken.
9. Fails with Warning Trade not taken.
10. I missed this one on the chart originally so it’s out of order. This one worked even with warning which happens at times of course. Just as some trades with no warnings fail occasionally. Personally with my experience on these signals (One of my favorites) I would likely have taken this short anyway.

You can clearly see the difference in how each signal reacted and why the Smart Advisor warnings are so important.

Trading Smart Volume Analysis Using Catalyst Signals and the Smart Advisor (512 pips combined on 7 trades)

Catalysts signals are any signal that precede a larger move in the market.  These can be different depending on which chart and time frame you are looking at but generally with very little effort you can spot and begin trading these powerful signals right out of the gate.  We offer a very easy way to learn and identify them using our software and a few minutes of your time.  The examples below were not cherry picked.  These are real trades you could have taken using our software.

The chart below is the EURUSD but these patterns exist on every chart and timeframe.  As always if you have any questions please use the support link to reach us directly.

Screenshot:

Text from screenshot:

Trading Smart Volume Analysis Using Catalyst Signals and the Smart Advisor (512 pips combined on 7 trades)
1. Smart Upthrust (Signal to Signal worth nearly 100 pips)
2. Smart Upthrust (With Warning) No Trade
3. Smart Selling at a top (Short for 24 pips Signal to Signal)
4. Smart Shakeout after a big move down (83 Pips Signal to Signal or 107+ pips at Smart Level close)
5. Smart Upthrust (A favorite of mine… You can see why. 156 pips SIgnal to signal)
6. Smart Upthrust (Part of a Spinning Rowboat Multiple Bar Signals. Good for 35 pips)
7. Smart Selling (Signal to signal for 72 pips)
8. Smart Selling (Signal to signal for 18 pips)

Smart Catalyst signals are any signal(s) that precede a large move (Up or down) in the market. They are very easy to recognize and trade using Smart.

You can see trading catalysts signal to signal can be very safe using the advisor warnings. Only trades allowed by the advisor were taken and referenced here. The advisor helps keep you out of trades that will likely fail and is based on our own experiences trading Smart Volume Analysis using our signals and concepts. With a little experience you can even counter some of the advisor warnings for even more profitable trading.

For more information on our software please refer to our website or contact us via the support link on our website.

Trading Smart and the Smart Advisor:

Our Smart Volume Analysis Software (Smart Trader) shows you very quickly and effortlessly which patterns are valid, what their profit targets are thanks to our proprietary EOM concepts and the Smart Advisor module, the software even warns you of potential dangers based on our research and experience which include the easily observable rules within the advisor module as shown 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 need 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. As patterns emerged 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 Smart 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

I have gotten a lot of the questions regarding the Smart Volume Analysis Trade Alert Service (advanced account) testing results for Traderelayer and wanted to answer some of the more common questions I have receive regarding the new subscription option:

Results:
We are up nearly 9000 pips since April 23rd (this is being posted on July 10th). The results include FX trades only.

The account was started with 5000.00 on April 23rd and is now 13904.00 as of this morning (July 10th). Quick update to the post yesterday… I just closed one trade a short while ago for +64 and one last night for 30 odd ( which gave us the additional 100 pips I was expecting) Drawdown has been very low as mentioned in previous results posts.

Lot Size:
The Lot size, to ensure results (in pips) quoted are correct is dollar per pip (.10). I use this lot size just as I do for the other account options and the copiers to make result reporting and setup of the copier easier. As you may know, some pairs at .10 are not truly 1.00 per pip so it’s a rough estimate but it’s close enough for our purposes.

Reporting and Verification of Results:
A myfxbook account has been running since the beginning and is verified. A link will be provided upon launch but keep in mind this is HFT type trading mainly and has had a lot of testing (back-end system integrity checks for example) too. As a result there are just under 2000 message in the alert feed (the alert feed include for each trade an open alert, close alert, and the myfxbook verified daily total alert)

I will likely start a new account at launch for verified results of the service that would not include the above mentioned test trades. So… If you are reading this two or more months from now, the results will be different from the above.

Risks:
Upon launch you would need to determine if you want to accept all the trades or not and this may impact your results (more on this as we approach launch or submit a ticket for the details)

Price:
We have not decided yet on a price for the advanced option and the currently available account options may be joined or phased out all together as well. Anyone already subscribed to standard (fully subscribed currently) and possibly basic (subscriptions available) would likely be grandfathered in. Submit a ticket if you have any questions.

Subscriptions Available Now:
Standard and Basic options are currently running and basic has a few slots open. Standard is fully subscribed but may have slots available again depending on when you are reading this. Contact us to be certain.

Launch Date:
I am awaiting some tools to help select trades faster than I can do manually but may launch prior to those being available. I expect to launch within the new week or so to a very limited number of beta subscribers. I already know the systems work as we have been running them for our existing options for a while now. Beta is mainly to hammer down setup issues that may affect different clients and their preferences.

If you have any questions about the Traderelayer service please submit them via the support link on our website (http://goo.gl/HxkpeM)

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