|
Chart Pattern Watch
10/19/2010 How to Turn Commodity Charts Into Massive Profit Generators Without Having To Guess The Market's Next Move! Please note, if you cannot see the charts, CLICK HERE for the web page version Good day to you, and welcome to this edition of the Virtual Trading University Chart Pattern Watch. The watchful eye chartist who keeps you updated on the profit pulling power of trading chart patterns. Please Note: The trades in this publication are not to be entered as most have moved beyond safe entry points. For timely trading advise with daily updates consider joining our futures and option trade alerts. We have trades for everyone regardless of your trading experience or account size! Home | Courses | About Us | TRADE ALERTS | Contact "Seeing is Believing" Chart Pattern Watch is a service for commodity futures and option traders produced by Archie Johnson, president and founder of the Virtual Trading University. For trading education, there is no exception for experience and wisdom when trading the markets. A watch full eye and good trade entry and exit criteria is proven to make you much more money than you lose from trading. Seeing is believing and Chart Pattern Watch is your watchful eye for developing chart patterns in 34 active commodity markets. There are 32 chart patterns that we look for and each has its on unique trading rules. For a full description of the chart patterns we look for and how we trade them, get my course today and I'll show you how to trade what you see and not what you think or hear. If you are like many traders who feel your trade selection and profit exit methods need improvement, Click Here to get my course and Chart Pattern Watch today. You'll find an exciting way to put more money in your pocket without trading on hearsay or other's advise. Markets You Should be Looking at Right Now: Please note, if you cannot see the charts, CLICK HERE for the web page version The dollar strengthened after Treasury Secretary Geithner late yesterday (10/18/2010) said the US will preserve confidence in its currency and "will not engage" in currency devaluation. Has the US Dollar reached a bottom, or at least a mid term low? What will this mean in relation to the current bull market in commodities? The commodity markets in general have made really good moves higher in recent months due to several factors. Supply/demand issues for the grains and cotton have fueled the flames of the rally, but the rally was also fueled by a declining US dollar which makes US exports cheaper for importers due to the exchange rates from their currency into US dollars. So yes, if the US dollar rises it will have a negative affect on basically all commodities and precious metals like gold and silver. The decline of the dollar has, in large part, been due to the overall weakness in the world economies and the widely expected second round of quantitative easing, or, as it's called, QE2. This second QE plan by the Fed's is widely expected to become fact at the November 03, 2010 Fed meeting, but the markets, for the most part, have already priced this in. If a sustained rally in the US dollar does occur it would be time to lighten up on long positions in corn, wheat, silver and gold. This would also be time to consider selling opportunities using chart patterns as entries, and also provide the needed pullbacks in markets with solid supply/demand fundamentals. So, for this issue we will look closely at the US dollar charts to get a technical view of where this market may be headed. First we'll look at the December 2010 US Dollar daily chart:
The December US Dollar is well entrenched in a down trend but is certainly due a short covering rally possibly back to the down trend line. We feel that the current market price action is more of a short covering rally due to the oversold nature of the market and not yet a trend changer. However, a rally back to the trend line is substantial but prices should remain in a down trend at least until after the Nov. 03 Fed meeting. December dollar Weekly chart:
The weekly chart where one bar is one week's trading activity shows prices approaching the December 2009 lows near 74.210. Notice the lower portion of the weekly where the commitment of traders (COT) shows a decline in Large Traders activity (blue line) and the commercial traders (red line) are decreasing short positions and on the sidelines or beginning to lean to long positions. Open interest (solid black line) is also increasing which indicates more than just short covering by these traders. This type of symmetrical triangle in the COT report often leads to a breakout higher (more buyers) considering the dollar is near one-year lows. Of course the COT data lags behind current market price action but it does give the trader a view of the possibilities. If the US economic data such as housing starts, unemployment numbers and company earning reports are positive they can also lift the dollar as the overall economy improves. A short covering rally only for the dollar will be a welcome event giving us the opportunity to enter new long positions in those markets with solid fundamentals like corn, soybeans, cotton, wheat, gold and silver. In fact, this may be the break we have been waiting for to enter new longs in gold! We'll keep watching this situation and alert course members and trade alert subscribers as new trades unfold. Trading what you see on the charts rather than what you think or hear (other's advise) has been my trading philosophy for the past thirty-years and, It continues to provide me with more trading profits than any other method I've traded. The 32 known chart patterns I look for have specific rules to follow for each chart pattern. These rules take away the fear and greed that cause traders to lose money. Once I locate any of the 32 chart patterns, I simply refer to the rules for trading the pattern for either or both futures contracts and options, and that's that. There is no guess work and no worry about the market's next move. Each of the chart pattern trading rules tells me:
If you are beginner or one of the many traders who don't have a trading plan and are tired of losing money, I challenge you to become a chart master. You'll find that trading what you see rather than what you think or hear (other's advise) is a much more rewarding and stress free than any other trading system you've seen. The beauty of this trading method is that it's simple to learn. You simply give yourself a few days to learn the 32 patterns and the four step trade selection and money management rules, and your on your way. Do you need expensive charting software to trade chart patterns? Actually no. A pencil, ruler and printed free charts off the Internet can get you started. However, a charting software that both pin points trading opportunities with accuracy, and gives you a complete educational course within its self will both educate you and pay for its self in a very short period of time. [ side bar ] I have used Gecko Software's Track N' Trade Pro charting software exclusively for years now in my own trading and teaching here at VTU. I highly recommend it for beginners because it's very easy to use and it educates you along the way, and for you more experienced traders, you'll find features in Track N' Trade Pro that you'd expect to find in software costing way more. Take the time to download or request a free demo CD, it comes with historical charts so you can practice finding chart patterns for free. CLICK HERE to download or request your free demo CD today. It's free and you are under no obligations to purchase anything. [ side bar ] I hope you found this edition of Chart Pattern Watch helpful, and if you would like learn more about trading chart patterns, Consider joining my VTU Lifetime Membership Course Group. We'll supply you with everything you need to make your trading less stressful and more rewarding. We'll keep Chart Pattern Watch, Trend Tracker Charts, and futures and option trade alerts coming to you on a continual basis for no extra fees ever. And best of all, you can get everything today for as little as $84.00. [ side bar ] The lifetime membership is, of course, our best complete trading program, however, if you already have trading strategies and would like to add chart pattern trading with futures and/or options to increase profit potentials with lower risk, consider our trade alerts only.
Have a blessed day, Archie Johnson Home | Courses | About Us | TRADE ALERTS | Contact
Disclaimer and Disclosure of Risk Statement All traders should understand that trading in the futures and or options markets is not for everyone. All traders should understand that there is substantial risk of loss when trading futures and or options. All traders should carefully evaluate whether trading in the futures and or options markets is appropriate for them, as such trading is speculative in nature. When trading futures, traders may sustain losses which may exceed their margin deposits. Option purchases may result in the entire loss of premiums paid for such options. Past performance is no guarantee of future success. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
©Copyright 1997-2010 Virtual
Trading University All Rights Reserved |
