First lets get to the markets..Over hanging geo-political tensions feel like they helped push the markets down today, But the key word here was helped..As we were technically pushing up against the top channel line of the 1-2-3 pattern. But the combination of the outside events just made the markets feel uncomfortable and going into the weekend I was holding off on the S&P etf trading I wanted to do today. Expecting a little more down side Monday but maybe just enough to take out Fridays lows. Lets see if any news breaks over the weekend that will give us a better read come Monday.. I feel the larger pattern playing out is not a topping pattern and expect in the near future we take out the recent highs. But we might have to fulfill this new channel that is developing... More info in this weeks video
Using the Tradeometer to trade the S&P500, $SPX, $SPY, or any associated ETF’s
The Tradeometer is unique indicator I developed for the HPS Methodology. It is used in conjunction with 5 of the core indicators on a short time frame trading the S&P 500, ES mini and/or any related trading vehicle that tracks the SPX. The alerts are generated by tracking the multiple time frames of the $SPX and signaling a visual and audio alert when an overbought or oversold criteria met by the multiple time frames at the same time.
Below is what you will see when you open up the pack
A fast description on what is you get with the tradeometer
Trading Algo X is a 3rd party premium indicator from our partners at Trading Algo X
Their proprietary algorithm performs analysis on the underlying 500 stocks of the S&P500 index in real-time, looking for topping and bottoming patterns in each stock. The aggregated results are displayed as real-time over-bought and over-sold oscillators, marking the high-probability reversal areas in the market with vocal alerts.
The Breadtholizer is a gauge to measure Breadth which is advancers of a session minus the decliners.
The Tickometer is similar to breadth, tick is a simple idea, showing traders the number of stocks on the up-tick minus the stocks on the down tick. Uptick is observed if the last sale of the stock is higher than the previous sale, and vice versa for the downtick.
This Lesson will be directed toward the Tradeometer
This alert should be considered a indicator and used like one. and with the HPS Methodology a HPS tradeable zone is where 3 or more indicators line up at the same time. I give a constant class each day in the markets so you will see these areas outlined live on the chart.
The Rules to keep you out of trouble:
The Tradeometer is my favorite way to identify tradeable zones in the market especially related to the S&P, but I have back tested it enough to see the obvious results are staggering when the alert is combined with the Trend or channel lines, Volume Profile areas (Which are always identified on the chart in Orange) Market support and resistance areas which are also plotted on the chart.
Any of those combinations of indicators are always a HPS Setup. But I would consider the Tradeometer and Channel or Trend lines and the Volume Profile areas to be highest on my list personally.
The Tradeometer is timing tool and works best in an environment that has no news that could push the markets to a extreme bullish or bearish zone. These are where most automated trading systems that use a counter trend strategy start to fail. The Tradeometer is not an auto pilot buy and sell signal, it is a confirmation or an additional HPS indicator added to any of the other 5 indicators and should be used in conjunction with them.
This is an entry and short term scalping tool for both longs and shorts. Exits will not identified and those depend on market environment and longer term outlook and chart..and when i mean longer term I a still very short term but 5 min chart will mostly be used to capture more of a extended move. More on exit strategies later…
The Chart below shows how each buy alert was followed by a move but each move varied in distance and follow through. Remember this chart because you will see this market reacts to those moving averages 20,50, and 200 time and time again. These moving averages will be key in your exit strategy.
In each case I only took the trade when the Tradeometer signals on the trend line. Each case will be different and in some cases the market will be pressured up or down past any alerts. If that pressure seems obvious or feels looming then paper trade it and add it to your statistics and save that tums for the next time.
Today I recorded a few videos explaining the Tradeometer in action This gives you a better feel for what to look for and the confidence I have in this alert. With an adjustment made on the overnight data was skewing the early morning alerts..The indicator is dialed in perfect for me now and will really use it going forward.
This videos are unedited and raw but worth watching if you want to get ready for next week. The First video outlining the early buy signals seems to be corrupted and I had to delete it the videos pick up on the sell signal around noon.
I would watch them from the YOUTUBE site for easier and larger screen options
The Next Video turned out to be a single alert not lining up with any other HPS indicators but it reacted in a positive way
This one picks up right at the next Alert and as you can see the previous on reacted but not as well as you would see if it was lined up with 2 or more HPS zones
And the final one was classic also but this one is a little longer
I want to add one last educational video I released on the Tradeometer some of you probably have already seen but want to add it here to complete this little series.
