continuing from the previous post in this series we have two setups now talked about in detail:
fading HOD/LOD in the direction of the trend and the "V" formation
today we will be speaking about the CEOD (cheapest entry of the day) formation :
1.) Scan: evaluate weekly or daily trend - are we long/sideways/short
2.) Scan: evaluate pre market to determine a high probability of a daily condition:
a. Trend day (TD)
c. sideways directional
-fading HOD/LOD in the direction of the trend
-"CEOD" cheapest entry of the day
e. sideways counter directional
the definition of this setup is fairly simple
but don't be fooled its hitrate and efficiency is not only based on a simple moving average s/r bounce as it might seem-there is multiple edges coming together but i have reduced its applicability in these fairly simple laymen terms-just back test this entry tool and you will find astounding results-it is ideally to be applied to the 5 min time frame and highly liquid instruments-it is easy to be executed since it requires a limit order and in combination with a quad exit highly profitable and most of all low risk with tight stops
the setup: for a long setup prices must be trading at least for 90 minutes below a 40 simple moving average to imply direction
(this trade is a counter directional trade)
than prices need to penetrate the 20 simple MA and ideally touch the 40 simple MA
priced now heading in their original direction again returning to the 20 simple MA find their entry exactly at the tough of the 20 simple MA
(so you set,and adjust throughout time if necessary,a limit order one tick above the price of the MA line)
for short setups all instructions in reverse
here are some examples
x=marks the spot of entry
20 simple MA is yellow
40 simple MA is turquoise
there are derivatives that are based on the same principle
here are some examples:
here is an example of ES and NQ in a premarket environment
these examples are mainly to illustrate the extreme low risk entry point location
the highest hitrate can be found on sideways days and an entry time in the doldrums
(charts are courtesy of TradeStation )
All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.
RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.
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 THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.