Webinar

‘Mechanical’ trades and ‘camouflage’ entries have received a great deal of emphasis in recent months, mainly because they consistently deliver winners with relatively little entry risk. During this session, we stay on the cutting edge of Hidden Pivot tactics by combining the two methods in single trades. As you will see, this greatly increases entry opportunities along the path of ABC-type patterns, especially very large ones.

We identified several camouflage trade set-ups during this session, although none triggered under our scrutiny. The lesson is useful nonetheless, since each opportunity was closely rationalized according to our criteria for camouflage trades. We also considered two “counterintuitive” entries of the sort I have increasingly emphasized over the last several months. Rounding off the session are some set-ups in real time that utilized ‘mechanical’ bids and offers.

Our focus during this lesson was on thinking small, and we used several trading set-ups that took shape in real time to do this. Most of them involved opportunities on charts of five-minute degree or less. I won’t spoil the suspense by telling you which trades succeeded and which didn’t, but you are likely to find details that instruct and enlighten regardless.

This session continued an emphasis on mechanical trades, with examples drawn from real-time price action in such favorites as the E-Mini S&Ps, Comex Gold and some of the institutional ‘lunatic’ stocks. Counterintuitive entry tactics are also on display, and although there were no set-ups that allowed us to pull the trigger, you’re bound to find the clarity of the examples instructive.

We typically use Hidden Pivot patterns to project price targets for stocks, commodities and index futures. But were you aware that ABC patterns work just as well for purposes of forecasting the highs nd lows of puts and calls? With the goal of buying swing lows and taking precisely timed profits in options positions, we looked at the charts of puts and calls associated with some of the stocks covered regularly in Rick’s Picks. Tradestation makes it easy to call up option charts for this purpose, but most trading platforms offer a similar feature.

During these weekly session, I have increasingly emphasized what I would call 'workarounds' -- mainly mechanical and 'counterintuitive' trades that exploit the increasing tendency of the algos and math majors to use ABC patterns the way we used to use them. The new methods add some powerful tools to our trading arsenal without requiring much additional knowledge, since they are adaptations of what you already know. Check out this recording for a potpourri of trading set-ups in real time. (Note: I’ve skipped the August 26 recording because it was pretty boring.)

The mechanical trades we’d hoped to find were in short supply on this particular day, but we found plenty of countertrend entry opportunities at p and p2. We also looked at some ‘counterintuitive’ trades, the best example of which, in crude oil, can be found toward the end of the recording. For a demonstration of how to force a trade when opportunities are scarce, check out the final 15 minutes.