Friday (4.24.09) had all the makings of "Fed Day". Overall trade was quiet yet progressively positive as traders anxiously awaited the details from Fed regarding the banking system's "stress-test" methodology. It was "buy the anticipation, sell the announcement", followed by "buy the drop and sell the pop" type action. Program trading kicked in as price moved from fair-value to extreme discount up to extreme premium. In the end, the S&P closed near its high for the session.
Though we admit this type of volatility can be challenging to trade, we at Trade Pilot Pro (TPP) follow a disciplined approach to trading. The above chart is our core Balance Chart which provides the trader with all the critical levels needed to make intelligent knowledgable trade decisions. The sub-graph labeled TPP Cycle Trend is our proprietary buy and sell filter. As you can see on the chart the Cycle Trend accurately identified profitable trade opportunities without getting whipsawed by the algorithmic programs.
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Blending Market Structure, Fibonacci, and Volume Analysis
Joe Baker
Founder of Trade Pilot Pro, business entrepreneur for past twenty-two years in Real Estate & Financial Industry. Self-taught trader and Financial Software developer, member of Market Technicians Association, working on CMT designation
David Dube
Professional Trader for over twenty-five years having held Senior Trader positions at Lehman Brothers and UBS Investment Bank. David's knowledge and experience of Global Markets brings a unique trading perspective to Trade Pilot Pro's members. Currently living in Connecticut with his wife, he is an avid aviator holding Commercial and Instrument Ratings.
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- Enhancing Trader Performance: Steenbarger
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Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. We are not registered investment advisors. This information is a general publication that reflects our own opinions and is not a specific recommendation to any one individual. You must consult your own broker or investment advisor for investment advice. Past performance is not a guarantee of future success. Controlling risk through the use of protective stops is essential.