Blending Market Structure, Fibonacci, and Volume Analysis

Saturday, May 16, 2009

TPP Total Market Sync (TMS) Sell Structure: Part 1



In the next few posts we will take a more detailed look at the TPP Total Market Sync (TMS) which is an "index of indexes" and the various Buy and Sell structural patterns that are formed repeatedly and with a high degree of success. One word of caution to traders implementing strategies using TMS..."Don't Fight the Total Market Sync".

Let's proceed with Part 1: Sell Structure (click on chart to enlarge for greater detail)

First consideration is to identify major, intermediate and minor support and resistance (S&R) levels. Traders must know where their "edge" is going to come from and prepare for the opportunity. Knowing S&R levels is a critical piece of information. TradePilot Pro distributes "Daily Pivot Levels" pre-opening for the ES, NQ and YM identifying all the important zones.

Once the trader has identified the S&R levels then it's onto observing how the TMS responds to those levels. In today's example of Sell Structure price (green bars) rallied higher in the early morning session only to encounter stiff resistance at the 15 minute 200 ema (intermediate resistance). Now if there is to be a price rejection at this level (which we don't know for sure...that is why we observe the action), then there are some specific criteria that will need to take place before the trader can take action. We will list criteria below...please reference chart for additional supporting commentary.

Sell Structure Criteria:

1.) Price transitioning from green to red perhaps with yellow caution bars
2.) Red price bars with 8 ema crossing 13 ema from above (early warning signal)
3.) Red price bars continue to weaken and 8/13 ema cross 34 ema (confirming weakness)
4.) 34 ema typically has peaked and now is sloping lower
5.) 8,13,34 ema cross below 200 ema which is the "death-cross". (price accelerates lower)

Trades can be considered at 8/13 cross or when 8,13 ema cross 34 ema. The entry method can vary, so it is up to individual trader how entries are handled. One method TPP utilizes is using the TPP Coil Finder (see lower subgraph). The Coil Finder is basically a temporary price plateau or congestion level that offers the trader entry zone with limited controlled risk. Once the lower edge of coil is breached price typically accelerates in direction indicated by TMS. Price targets (not shown here) are dynamically projected by room moderators.

If you want to learn more about TradePilot Pro, please send an e-mail to freetrial@tradepilotpro.com and request FREE two-week trial to our real-time ES e-mini trading room. We will be happy to provide you with a temporary password.

Good Trading