Video Update: 2 July – a look at 9/30 setups

Here is your video update for Friday, July the 2nd. This video update will focus on the EUR/USD pair and the ES charts. Note the 9/30 setups! On the EUR/USD pair weekly chart, price is rallying in to the sell zone. Trader Rick shows the overhead resistance levels to watch. This is a bear market rally. On the daily EUR/USD pair chart, a 9/30 long was triggered on Thursday, rallying over 200 basis points. Next resistance is 1.2671.

Trader Rick will show a progression of varous timeframes of the ES beginning with the daily chart. This is what he looks at prior to the open to get a feel for the current market structure. The daily chart shows price trading outside the lower keltner channel, as well as below the previous swing low. The two bar per day chart is also trading outside the lower keltner channel. The 60 minute chart is bearish too. Trader Rick also looks at the overnight globex range and makes note of the market profile value areas in relation to the open. In this case, price opened well below the lower value area.

Take a look at the intraday 9/30 setups that occurred in Thursday’s trading, both from the short side and from the long side. Hopefully this helps to see how an expert trader approaches the trading day, incorporating market structure to find high probability setups.

Good trading!

Video Update: 28 June – doji everywhere

Welcome to the video update for Monday, June 28th. Trader Rick will start with the monthly EUR/USD pair chart where the month of June is going to finish completely outside the keltner channel, indicating current momentum is strong to the downside. Note the D target of the ab=cd pattern. The weekly chart shows overhead resistance levels.

The EUR/JPY pair monthly chart shows a divergence to be aware of. Bullish? The monthly Canada chart is up next and you will see what candle is currently forming. Underlying support is very clear on this chart. The dragon pattern on the weekly Canada chart is still in play.

Trader Rick discusses the monthly and weekly gold charts where price is trading just above the 1.618 fib.

The next chart is the monthly crude where we are currently in a trading range and price is in the buy zone.

Moving to the index charts, the theme of these charts is the doji candlestick. Take a look at the Dow, the S&P cash, and the ES charts and you will see doji. On the daily ES chart, is the dragon pattern still intact?

Good trading!

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: 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: 30 April – Megaphone on the ES?

Welcome to the video update for Friday, April the 30th. First chart up is the EUR/USD daily chart. If you are not using fibonacci levels in your charting, hopefully this chart will sway you to at least consider using fibs. This chart has an ab=cd pattern where price stopped right at the 1.27 fib extension at 1.3691. Price then turned down to continue the trend, finding near term support at the 1.27 fib, also known as a butterfly. Using fibs may give you a competitive edge in your trading.

Next up are the stock index futures and Trader Rick reviews the longer timeframes as the month of April comes to a close. First up is the monthly YM chart where price is approaching the .618 fib. The month of April traded completely outside the keltner channel. The weekly, daily and 60 minute charts are also discussed. If you trade the YM, look at the 60 min chart at the open of Friday’s trading to see if price dips in to the buy zone.

Of the 4 index futures, the NQ is the strongest. Same situation on the 60 min NQ chart where traders should look for a buying opportunity IF price dips in to the buy zone. Are you realizing how beneficial it is to know when price is in the buy or sell zone? Great edge!

Final charts are the ES monthly, weekly and 203 minute chart where a megaphone pattern may be developing. See what the alternate pattern is.

Good trading!

Video Update: 15 April – failed pattern reviewed

Welcome to the video update for Thursday, April the 15th. Trader Rick reviews a failed pattern that was originally discussed in the video update of April the 8th. The ES 129,600 volume timeframe had the potential for a head and shoulders pattern, but how did that turn out? Be sure to take a look. Remember, a failed pattern is a pattern in of itself.

We are watching a possible ab=cd pattern with a 1.27 fib extension on the EUR/USD daily chart. So far, price has tested the 1.27 fib extension of this pattern. Do we have any signs of pattern completion?

Next chart up is the daily crude where price this week tested previous resistance which is now support, setting up a 9/30 long.

Trader Rick reviews the stock index charts, staring with the S&P cash weekly chart. As price continues higher with strong momentum (no volume tho!), the target at 1230 area is not far away. Dialing down to the 60 minute timeframe, take a look at the NQ chart. Traded the entire day outside the keltner channel. Trader Rick illustrates how to find high probability setups when price is trading outside the keltner channel. Same illustration using the 60 minute day session only ES chart. Great examples of being very selective in the trades you take!

Last chart is a good example of a measured move that took place on the 43200 volume ES chart recently. Target was achieved in late trading today.

Good trading!

Video Update: 12 April

Welcome to the video update for Monday, April the 12th. We will start with the EUR/USD weekly chart where price is moving in to the sell zone in the overnight market. Note Trader Rick’s concern on taking a short setup if presented. On the daily chart Trader Rick is looking at a possible ab=cd pattern with a fib extension. Be sure to watch the end of the video update to see a review of the 60 minute chart from last Thursday’s update. We got the trend reversal as outlined by Trader Rick on Friday.

Price is in the sell zone on the weekly EUR/JPY chart. If price moves thru the immediate overhead resistance level, see where price may go next. Otherwise, price is in position to roll over at the current level.

Next up is the gold weekly chart where price was up $35 this past week and closed at its highest level since December of 2009. It appears the abc correction is complete. The daily chart shows the current momentum strength as price traded outside the keltner channel all last week!

The weekly Canada chart shows price moving higher this past week and is approaching the dragon pattern target.

Next chart is the weekly crude chart where price is moving closer to the .50 fib which is at $90.35. Be sure to catch the commentary on the 60 minute crude chart where a gap may be providing support in an uptrend. Trader Rick also talks about counting waves in a retracement. Most waves are simple abc corrections but often we see a complex correction and this is a good example of an abcde retracement.

Next up are the stock indexes with the first chart being the S&P cash weekly chart. Also discussed is the NQ weekly, the 13,500 volume ER which you want to watch and the weekly/daily ES.

Good trading!

Video Update: 29 January – two trading tips

Welcome to the video update for Friday, January 29th.  With the end of the month Trader Rick offers two trading tips based on the position of the price in relation to the keltner channel.  In preparation for the trading day consider looking at your higher timeframe charts to see where price is trading.  As trading closes for the week and the month, look at the weekly and monthly charts too.  This information can help you trade in the direction of the prevailing trend, if there is one.

First chart is the crude monthly where we may have the lowest close since last September.  See what pattern may also be forming.  On the daily crude chart, price is trading outside the lower keltner channel, telling us very important information.  Trader Rick walks thru 60 minute and 15 minute charts pointing out high probability setups.

The ES daily chart is similar to the crude daily chart in that price was trading outside the lower keltner channel, providing high probability short setups on the 15 minute and 60 minute charts.

Knowing where price is trading can keep you out of low probability countertrend setups and spot high probability, with trend, short setups.

Good trading!