The Mini Dow Futures market is always in one of four market conditions. Let's start with the Dow opening tommorrow with a strong
Uptrend. After that
Uptrend will occur at least one
Uptrend Ends market condition. After each
Uptrend Ends, the Dow will either keep rising or finally sell off into a
Downtrend.
After the Dow starts a
Downtrend (after the
Uptrend Ends)...there will be at least one
Downtrend Ends condition. Traders consider closing out short positions each time a
Downtrend Ends condition appears and initiating long positions. Based on some time and price rules daytraders WAIT for the automated market condition to appear then consider a low risk entry at the new market condition.
After watching and backtesting the trading rules for a couple weeks, most changes in market condition ~ and their related trade entries ~ should appear to you within seconds of each occurrence.
#1 DOWNTREND
The Green line crosses under the Red line (automated alert sounds) and the market penetrates the light blue dash line. The market is now likely in a
Downtrend and significantly lower lows are likely. Short at the recommended orange and pink dots via market order, set your stop loss at the orange dot value. As the market makes lower orange paintbars, notice if the magenta paintbars start to plot equally or higher during future price cycles.
#2 DOWNTREND ENDS
The light blue dash line descends below the current market (automated alert sounds). The market is now likely in a
Downtrend Ends, and should start firming support and going higher. Exit current short positions and consider entering long positions between the current two green lines that are now rising. Stop loss is the lower green line, highest long entry is the higher green line. Your entry should be filled when a white dot is plotting at the current green line. Use a 'bracket order' and enter via limit or market. After you are filled, adjust the bracket stop to coincide exactly to the green line value of
ULTRA DAYTRADER 2.#3 UPTREND
After
Uptrend Ends occurs, the green line will continue to increase ~ The market is now in an
Uptrend; each time the white dots plot at the higher green line, a recommended long entry is suggested; set the stop loss just below the green line or at the previous lower green line, depending on specific market conditions you will be trained to see.. The light blue dash line stays below the market and is untouched by low prices.
Users of
ULTRA DAYTRADER 2 are long from their initial entry during
Downtrend Ends and continue adding long positions during the subsequent Uptrend recommended trade entries. You can really rack up the profits quickly since you understand how the market 'shifts gears' from one market condition to another market condition.
#4 UPTREND ENDS
An
Uptrend follows a
Downtrend Ends. It only makes sense that a
Uptrend will precede a
Uptrend Ends, right? (All good things must come to an end sometime!). All
Uptrends will stay above the light blue dash line. Once that dash line intersects the
Uptrend (automated alert sounds), the upward party is over and a reversal downward is in the cards.
Uptrend Ends is a warning to daytraders to prepare to take all long profits of the
Uptrend off the table and consider a reversal when the market changes to a
Downtrend.
