TPP Total Market Sync (TMS) Continuation Pattern: Part 3

Part 3 : Continuation Pattern (click on chart to enlarge for greater detail)

This post is the final part in our three-part series highlighting TradePilot Pro's proprietary Total Market Sync (index of indexes).

Today's focus is Continuation Pattern (sell example)...Let's get to the details:

First of all it is assumed that price is in an established trend (bullish or bearish)...This example price is in an established downtrend with the following conditions applying:

1.) Price < 34 ema and 34 ema < 200 ema
2.) Price < Market Midpoint (intra-day bull/bear line in sand)
3.) Price <= Continuous Volume Trend (VWAP)

The conditions above are fairly easy to see but there is a bit more observation before a trade setup and entry appears. Typically following an initial breakout from a prior level price will find a temporary stopping point where it consolidates so market participants can re-assess current valuation. If there is indeed a "shift" in value to lower levels (in this example) then price will "continue" its current down leg until traders agree upon a new level of "fair value" forming new support.

So how do we enter?

It's during the temporary consolidation phase that we check the above conditions to determine if they are still valid. If they are we are looking for an entry in trend direction when the 8/13 ema begins spending more time beneath the 34 ema (see chart for additional detail). We are not looking for the perfect entry here, just one that keeps us in-sync with trend. Look for trade entry within the Coil Finder Zone...this will provide a level where specific risk parameters can be measured for position sizing. The best timing of the entry is when the 8/13 ema "kisses" a downward sloping 34 ema (see chart)...which will typically precede a break of the consolidation pattern and the primary trend accelerates further. Profit targets are calculated by TPP traders (moderators)...Volatility Trailing Stops are preferred in managing a winning position.

Our goal at TradePilot Pro is to offer subscribers premier unbiased market intelligence and trading guidance combining over 35 years of financial industry experience.

If you are interested in learning more about what TradePilot Pro has to offer, you are cordially invited for a FREE TWO-WEEK TRIAL to the TPP real-time e-mini trading room simply by sending an e-mail request to freetrial@tradepilotpro.com and request a temporary password.

You can also follow us on Twitter for live intra-day trading updates @ http://twitter.com/tradepilotpro

Good Trading

Webinar Thursday June 4, 2009

TradePilot Pro will be conducting a Webinar co-sponsored by Zaner Group LLC Thursday June 4, 2009 at 4:15 pm EST.

Topics to be covered include:

Market Structure and Symmetry
Cycle Trend Analysis
Volume Analysis
Balance Chart
Total Market Sync (TMS)

and much more...

All attendees will receive a complimentary free two-week trial to the TPP real-time e-mini trading room to learn more about our trading methodology.

To sign up for Webinar go to: https://tradepilotpro.ilinc.com/register/jhcjctj and fill in required fields.

We look forward to seeing you

Sincerely,
Joe Baker and David Dube