Video Update: 27 May

Welcome to the video update for Thursday, May the 27th. If you trade gold, remember to roll to the August (Q) contract. Grader Rick starts with the EUR/USD pair weekly chart where we continue to monitor an ab=cd pattern with a D target of about 1.1400. With price trading outside the keltner channel on a large timeframe we know the downtrend is firmly in place. The daily EUR/USD chart shows a baby slingshot and now a possible double bottom. If price takes out the high of last Friday we will watch for a potential dragon pattern. One reason we may see higher prices in the near term is the 60 minute chart showing a possible completion of 5 waves down.

Next up is the weekly Canada chart where price is currently testing a support band between 9212 and 9300. On the 1800 tick chart we are monitoring an ab=cd pattern which has bullish implications.

If you are a crude trader take a look at the daily chart and see if you recognize the candlestick from Tuesday’s trading. What are the implications? IF price moves higher, what are the overhead resistance levels? The 60 minute day session chart shows price traded completely outside the upper keltner channel in Wednesday’s trading.

Moving to the stock indexes, first chart up is the 13500 volume ER chart where we find price in the buy zone after making a slight new high in early trading on Wednesday. In the ES, Trader Rick shows the 129600 vol chart where price found support at the .618 fib. If price rallies see where overhead resistance may come in. Last chart up is the 60 min day session ES chart and overhead resistance is pretty clear on this timeframe. See if the MACD is telling us to look for a buying or a selling opportunity.

Good trading!

Video Update: 24 May

Welcome to the video update for Monday, May the 24th. Continue to trade conservatively while volatility remains in the markets. First chart up is the EUR/USD weekly chart. Price broke the lows back in late 2008 so we shall see if price finds support here, resulting in a short term rally in to the overhead sell zone. Note the target of the ab=cd pattern if that plays out. Be sure to look at the daily and 60 min charts if you trade this forex pair.

If you trade the Canada please note the near term support levels. The dragon pattern remains intact which means we have unmet overhead targets. Also, when I point out setups on currency charts that they apply to the related forex charts. So when I talk about the Canada charts, look at the USD/CAD forex charts for similar setups. I heard from one trader who took full advantage of the 9/30 conservative short setup on the daily Canada chart but traded it on the forex. Great job, by the way!

Trader Rick discusses the weekly crude chart and points out near term support levels. Overhead resistance levels are pointed out on the daily chart.

In gold, watch where price closes this month on the monthly chart. We have a possible doji forming along with a bearish divergence. If you trade gold please remember we are rolling to the August contract (Q) later this week.

Next up are the stock index charts with the Dow monthly chart up first. It is quite possible price will find support in the buy zone before continuing higher but we are in area of resistance at these levels. On the weekly chart we are watching the 9835 level for support. If that is taken out, look for a possible trend change to the downside.

Note that the Dow (YM) and the NQ did not make a new low this past week while the ES and ER did make new lows since the May 6 crash low. Trader Rick shares two possible patterns that may be forming.

Final charts are the ES weekly, 203 minute and 60 minute charts.

Good trading!

Video Update: 21 May – 9/30 results

Welcome to the video update for Friday, May the 21st. In last weekend’s video update Trader Rick showed 4 9/30 setups on the daily chart…so let’s see how they turned out. First up is the eurostoxx 50 daily chart and we had a conservative 9/30 short setup. Initial target of 2560 was hit this week. Next up is the Canada daily where we had another conservative 9/30 short setup. 9794 was the trigger and the initial target was the 9610 area which was hit. Full target came within 12 ticks in overnight trading tonight.

Next chart is the ER daily where we had another conservative 9/30 short setup which was triggered at 704.30. How did this one turn out? Finally, the ES had a 9/30 but it was of the aggressive variety. Take a look at this short setup on the ES daily chart. Initial target was hit, plus much more. We are now testing the ‘crash’ low.

In Thursday’s trading, Trader Rick gives two illustrations how a trader might jump on a strong trending market with relatively low risk. He takes a look at the ER and ES 5 minute charts with a common pattern….the ab=cd pattern. This is a trend continuation pattern and, as you will see, afforded a safe entry.

Good trading!

Video Update: 17 May – 9/30 setups

Welcome to the video update for Monday, May the 17th. 9/30 setups on the daily chart are opportunities for both the position trader and the day trader and in this video update we have some great examples! First chart up is the eurostoxx 50 daily chart where we had a conservative 9/30 short setup in the sell zone. Take a look at the chart and see for yourself as these examples have favorable reward to risk ratio setups. On this chart, note the MACD is telling us to sell the next swing up.

Trader Rick takes a look at the EUR/USD pair weekly chart where price reaches full target in overnight trading. This is not the place to establish short positions tho. Look at the ab=cd pattern to find downside targets, if price continues lower.

Next chart up is the EUR/JPY pair weekly chart where price is at near term support. See what pattern Trader Rick is looking at that may lead to a much lower price. Once again, the MACD, as taught in the Traders Club, alerted us to sell the next swing up which worked out well.

The daily Canada chart had a conservative 9/30 short setup that was triggered in trading on Friday. Crude traders should note we are approaching possible support levels on the weekly chart. If you dial down to the daily chart you will see price has been trading outside the keltner channel for over a week now. Watch for a trade opportunity if price retraces in to the sell zone.

In the stock indexes, 9/30 setups also happened on the daily chart for the ER and the ES as illustrated by Trader Rick. Check them out! See how Trader Rick dialed down to find a lower risk short setup on the 203 minute ES chart.

Good trading!

Video Update: 13 May

Welcome to the video update for Thursday, May the 13th. Let’s begin with the weekly gold chart where price is making new highs. A possible important target was hit in Wednesday’s trading. What is the 60 minute chart telling us?

How did the Greece bailout that was announced on Monday affect the euro/dollar chart? Take a look at the daily chart. Price has given up all the gains made in initial trading on Monday morning.

Trader Rick looks at the crude daily and 60 minute charts where he is watching two scenarios. One is an abc correction and the other is what to look for when price is trading outside the lower keltner channel.

If you are an ER trader take a look at the daily chart. Price is now in the sell zone. The ES daily chart doesn’t look as strong as the ER daily chart. Price is approaching overhead resistance in the 1173 to 1177 area. The 203 minute chart shows price in the sell zone but keep in mind we are in a trading range between 1140 and 1177.

Good Trading!

Video Update: 10 May – volatility returns

Welcome to the video update for Monday, May the 10th. With the plunge in the stock indexes in Thursday’s trading, it is imperative to protect your trading account by reducing your position size if you trade multiple contracts. Widen your stop loss and reduce your position size, or stand aside until the volatility dissipates.

First chart up is the eurostoxx 50 weekly chart where we have an ab=cd pattern with a 1.27 fib extension.

If you watched last Thursday’s video update, Trader Rick pointed out a buy on the yen daily chart. The very next day the yen skyrocketed higher when the stock market crashed. Not very often do we get instant gratification off a daily chart. At the time of the last video update an opportunity to get long off the 60 minute chart was shown. See how this setup played out if you took the entry.

Next chart up is the EUR/USD pair weekly chart where price tested the last major swing low back in March of 2009. This is not a good place to go short but any bounces will be analyzed for high potential shorting opportunities. Be patient!

Take a look at the EUR/JPY pair weekly chart. Great example of support becoming resistance. Check it out.

Next chart is the gold weekly where price moved higher again last week, approaching the overheard 1.618 fib target of $1250.

Crude dropped considerably this past week, putting in an outside week. See where the near term targets are to the downside. If you trade crude look at the daily chart where price is currently trading outside the lower keltner channel. Trader Rick shows how to take advantage of price trading outside the keltner channel by dialing down to smaller timeframes. Don’t miss this. If you understand this concept you will have a trading edge nobody else knows about.

Be sure to watch Trader Rick discuss the stock indexes. This could be a very important juncture in the markets. We have not seen a change in the price action to the upside as price continues making higher highs and higher lows. From a technical point of view, damage was done this past week with the big decline.

Remember the megaphone pattern Trader Rick pointed out a the end of April? Be sure to watch this. This pattern does not happen often but it is important to pay close attention when it does.

Good trading!

Video Update: 6 May – dragon patterns

Welcome to the video update for Thursday, May the 6th. First chart is the yen daily where the potential for a dragon pattern is beginning to be seen. See what part of the dragon has formed and what to look for next. Today also gave an aggressive buy signal, based on the double bottom pattern and the candlestick that formed in Wednesday’s trading. Dial down to a 60 minute chart to see the potential for a change in trend here.

Weekly crude in 3 short trading days has created an outside week with price currently in the buy zone. Trader Rick looks at the 525 tick crude chart where a dragon pattern may also be forming.

The ER and ES both had ab=cd patterns mentioned in the weekend update so today’s video updates these patterns. In the ER, price reached the 1.618 extension of the ab=cd pattern in early trading on Wednesday. See where overhead resistance is. In the ES, in the first hour of trading on Wednesday, price reached the 1.27 extension just below 1157.00. We also had a 1.618 fib of a swing coming in at 1157, creating a confluence of fib levels. Overhead resistance lies in the 1176 area which was previous support.

Good trading!

Video Update: 3 May 2010

Welcome to the video update for Monday, May the 3rd. We will start with the eurostoxx 50 weekly chart where an ab=cd pattern may be forming. Keep in mind we are in the buy zone.

Take a look at the EUR/USD weekly chart. What candlestick do you see for last week? Does it have any implications?

Trader Rick takes a look at the weekly gold chart where price continues higher, closing above the swing high in mid January of this year. The daily chart has a pattern worth looking at. We may have a rising wedge forming which has bearish implications.

Look at the weekly Canada chart where price put in an inside week this past week. The two previous weeks were both outside weeks! Dragon pattern continues to unfold. If you trade the Canada, please look at the 60 minute chart where an important trend line lies overhead.

Next up is the weekly crude chart where price put in an outside week. We are closing in on the .50 fib at just above $90. On the 60 minute chart, look for a possible 9/30 long if we get a pullback in to the buy zone.

Moving to the stock indexes, the first chart is the monthly DOW chart where we had a very narrow range for the month of April. What does this possibly mean? The daily DOW chart shows near term support. The NQ monthly is different than the DOW chart. Take a look. The NQ daily shows near term support. Price could be rolling over here or simply we are moving in to a trading range.

If you trade the NQ please look at the 60 minute chart where an ab=cd pattern may be forming. If the D level holds, price should move back higher. The ER 60 minute chart also has an ab=cd pattern forming possibly, with the D target not far away.

Trader Rick ends with the various ES charts…the weekly, daily, 60 minute and the 203 minute chart. The megaphone pattern continues to be a possibility. Keep an eye on it!

Good trading!