TC2000 Time Segmented Volume Indicator Webinar

TechniTrader has a NEW TC2000 LEARNING CENTER with 4 webinars available to watch when you Sign Up. The “Time Segmented Volume Indicator WEBINAR” is one of them located at TechniTrader.com and is described below.

screen shot of the time segmented volume indicator webinar - technitrader
This webinar is for all TC2000 Users who want to learn all the new patterns that form on the Time Segmented Volume Indicator TSV due to the Dark Pools, Professional Traders, and High Frequency Trading HFT action.

This powerful Volume Oscillator leads price most of the time, providing earlier entries and exits for higher profits.

TSV patterns signal a bottom has started even before price.

Learn Accumulation, Rotation, and Distribution Patterns for earlier entries and much more. 

Sign Up for full access to the TechniTrader.com Learning Center CLICK HERE TO BEGIN

Trade Wisely,
Martha Stokes CMT

Chartered Market Technician
Instructor and Developer of TechniTrader® Stock and Option Courses
TechniTrader DVDS with every course.

©2016-2017 Decisions Unlimited, Inc. All Rights Reserved.
TechniTrader is the Registered Trademark of Decisions Unlimited, Inc.

Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor, it is strictly an educational service.

The Brexit Lesson

England Vote Presented Uncertain Future

England had a historic vote and half the population was ecstatic, believing things would get better overnight while the other half was wondering what it really means for their country.

The reality that will settle in for the British people is that there will be no instant change in terms of economic growth, prosperity, and happier citizens. Instead the future is fraught with more uncertainty than has been present in England since WWII.

Revolutions sound wonderful, until the hard work of adjusting to massive changes begins. For the US Stock Market, the impact will be specific to corporations who are heavily vesting in the United Kingdom or have more than 10% of their revenue income from England.


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Those corporations who do not have a strategic interest in Britain, will continue to grow on their original business cycle path with minimal disruption.

England, being an island nation imports heavily but the US is not its largest import country. 



The US is one of the more important countries for exports for the United Kingdom.


The changes going on in England could potentially cause the British pound to fall in value against the US dollar, making imports cheaper from the UK for US citizens, companies, and corporations.

England Exports:

1. The mainstay of England’s exports are Professional, Scientific, and Technology Services.  As a small island nation, services are a huge part of its economy.

2. Information and Communication Technology are the second largest export from the UK to the US. If the pound loses value which is likely, then these services will be cheaper for US corporations.

3. Financial and Insurance Services are the third largest export. This is a big part of the financial industry, and again lower pound values will make these services less expensive to US corporations, and the financial industry in the US.

However the percentage of UK exports to the US is small by comparison to the  exports to Russia, Canada, India, United Arab Emirates, Germany, China, Hong Kong, and other countries. The US does not import or export heavily with England.

Although the US Stock Market sold off sharply on the day of the news of the Brexit vote passing with a small majority, the overall long term impact will likely be less than many traders and investors believe.  

Watch webinars for trading and investing in the stock market, leading and popular indicators, as well as a wide variety of other topics on my main website at TechniTrader.com.

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The hardship will be felt mostly in England as the total reinvention of their economy, financial system, Trade Agreements with other countries, Treaties, and standing in the world will be changing slowly over a far more extended period of time than many British may realize.

Summary

Change is exciting to imagine, but in reality change of this magnitude is always much harder with many surprises, disappointments, and challenges.

Most US companies are well postured to weather the storm of news media hype which inspires panic, fear, greed, and volatility in the markets. After the people of the world tire of this story, the markets will return to the underlying fundamental values that drive economies worldwide.

Want deeper detailed facts about the British Brexit Vote? How it could impact your held stocks? TechniTrader will email you a courtesy PDF file packed with specifics of the magnitude, long lasting and far reaching effect this vote presents.

For extensive research by Martha Stokes CMT go to TechniTrader & Sign Up, then in the Sign Up window text box request “Brexit PDF.”

Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDS with every course.

©2016-2017 Decisions Unlimited, Inc. dba TechniTrader.  All rights reserved. 
TechniTrader is also a registered trademark of Decisions Unlimited, Inc.

Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only. 

Worden Leading Indicator Balance of Power

Changes to Market Structure Alter Indicator Interpretation

TC2000 users have a huge advantage over other Retail Traders as they have the power of Worden Indicators at their disposal. However recent changes to the Market Structure have altered how Traders should interpret these indicators.This is because of the changes to how large lots buy and sell stocks, the various Market Participant Groups who use large lots, and the Order Types available to them.

One of the most common mistakes when using Balance of Power is to assume that long red bars represent distribution. This is a highly oversimplified analysis of one of the most powerful indicators ever written. Watch a webinar specifically for interpreting and using the Balance of Power indicator.
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balance of power indicator study webinar - technitrader

To use Balance of Power properly Traders must also analyze the following:

1. Where in the trend is Balance of Power showing color or is it neutral gray
2. How long are the bars and the length of time they are a color
3. The relationship between price patterns and Balance of Power bars
4. Liquidity and shares traded
5. The current Market Condition

Here is a chart example with an explanation of how to properly use the Worden Indicator Balance of Power, which is in the bottom chart window. The indicator signal may look totally off track, but that is simply because you may not know how to read this indicator. Let me take you step by step, by first noticing the Trend. This stock has been in its own bearish Downtrend for a year now, and a Weekly Chart View shows the classic top.

weekly chart view shows the classic top - technitrader

Also see that it is at a prior low, and that Balance of Power had a lot of red bars that turned gray recently over the past couple of weeks. This is NOT distribution. This is the final capitulation selling by Smaller Funds who trade very similarly to the retail crowd, because they have a lack of technical education and their Volume Weighted Average Price orders trigger AFTER a High Frequency Trader Volume spike. 

I have noted the Volume spike on the chart for you with a red arrow. High Frequency Trader downside action with high Volume, triggers automated Volume Weighted Average Price orders which are overly popular with Small Funds Managers. They accidentally are SELLING, against the giant lot Institutions who are buying.

Note also on this Weekly Chart View, that Volume is LOWER during the capitulation period and rising as giant lot Institutions start buying in Dark Pools.

Now let’s look at the Daily Chart View for the same stock.

chart example with huge HFT order spike on volume turning into BOP RED and long - technitrader

It is easy to see the huge High Frequency Trading order spike on Volume, which also turns Balance of Power bars RED and long.

Look at the relationship between price action after the High Frequency Trader Volume. See how Balance of Power has a “Shift of Sentiment™” pattern as the Dark Pools quietly accumulate shares, as Smaller Funds are dumping. Giant lot orders are firing off as the Smaller Fund Volume Weighted Average Price orders, sell into the Dark Pool Buy Zone™ of the giant Institutions buying.

This slowly shortens the indicator bars, AND turns them gray. Always use gray bars not yellow bars as the neutral color for this indicator. Gray is commonly a neutral color, while yellow usually means caution. You should not be reacting cautiously at this point.

The “Balance of Power” which is what this indicator is named after, suddenly stops the downtrend and begins the Bottoming Formation. Watch a webinar on Trade Management Planning which includes determining personal share lot size, how many trades are needed to meet goals, number of stocks to trade, risk tolerance, and price range for tradng and investing.

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Once you understand how to read this indicator, it is easy to find excellent stocks to trade that will have sudden Momentum Runs out of a Bottom Formation action. Why does momentum occur after Dark Pools have been quietly accumulating? 

The answer is because giant Buy Side Institutions use Time Weighted Average Price orders to incrementally buy huge share lots of the stock. They are liquidity takers, not liquidity makers. So Professional Traders and High Frequency Traders can discover this liquidity decline, and react by trading the stock up suddenly causing momentum action that YOU can trade.

Summary

The Worden Indicator Balance of Power is one of the most powerful indicators available to Retail Traders. Usually this type of highly sophisticated indicator is only available to Professional Traders using proprietary trading platforms. It has changed over the years as the market has changed. Learning to read the new patterns is not difficult, but it is very important. Knowing where the Dark Pools are accumulating, can help Traders find excellent momentum stock picks BEFORE price begins to run.
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Followers may request a specific blog article topic by emailing: info@technitrader.com

Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDS with every course.

©2016 Decisions Unlimited, Inc. dba TechniTrader.  All rights reserved. 
TechniTrader is also a registered trademark of Decisions Unlimited, Inc.

Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only. 

Use Dark Pools Chart Patterns for Higher Profits

Stock Trading as a Home Business

An area of Technical Analysis that has not made its way into most stock market books, articles, and information available on the internet is to use Dark Pools Chart Patterns for higher profits. The reason why Dark Pool technical patterns aka footprints are not yet part of the Technical Analysis standard of teaching is that these are NEW chart patterns.

Dark Pools did not exist in the 1980’s, 1990’s, or early 2000’s decades. These are relatively new trading venues for the giant Institutions who demanded obscurity, due to the rise of the High Frequency Trading Firms HFTs in the mid 2000 decade after the switch from fractions to decimals. Basically HFTs morphed out of the Small Order Execution System SOES Bandits, during the rouge Floor Traders era.

Just as an interesting note, did you know that the Flash Crash of May 2010 was caused by an error in an Institutional order? Instead of using a Time Weighted Average Price TWAP order, the fundamental trader used a Volume Weighted Average Price VWAP order. VWAPs trigger on rising Volume, which then triggers more and more orders. TWAP is the appropriate order for Quiet Rotation™ and Quiet Distribution, as well as Quiet Accumulation.

A Retail Day Trader can no longer see the large lot activity on their level 2 screens, as nearly all large lots are transacted nowadays on the hidden venues called Dark Pools which are used by giant Institutions. However what can not be hidden, is the easy to identify Dark Pool footprints on the stock charts. Watch a webinar on the leading indicator Time Segmented Volume TSV for early entry and higher profits, which is shown in the middle chart window in the chart example.

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time segmented volume indicator for tc2000 webinar - technitrader

There are many different types of Dark Pool footprints the giant Institutions leave on charts, due to their preferred professional Order Types.

One of the more common footprints happening is the “Basing Bottom Formation,” which is a brand new type of bottoming formation. In order to use Dark Pool Chart Patterns for higher profits, the key element in this pattern is to identify the Dark Pool Quiet Accumulation before the stock runs up with an early entry. 

chart example of a "basing bottom formation" - technitrader


However early entry can be problematic if a trader is using Price and Time Indicators, and both Momentum and Price Oscillators. You may get an early crossover, but then the stock moves sideways up and down in a choppy pattern that causes whipsaw exits and losses.

Another problem getting in early is that many Retail Traders wait and wait for signals from Momentum Indicators, which gets them into the stock very late in the run. This means instead of a high profit trade, the Retail Trader takes a meager profit. Watch a webinar about using Stock Leading Indicators for early entry and higher profits, and avoid getting into a stock late.

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stock leading indicators webinar - technitrader

True profit is one big part of trading that most traders fail to include in profit evaluation. How to calculate the true cost of your trading is considering more than just the cost of Charting Software, Broker fees and charges, and possibly subscriptions to Newsletters.
To accurately calculate whether a trade is profitable or not, you must also include ALL of the normal business expenses for Stock Trading as a Home Business. Otherwise you are deluding yourself as to your profitability in trading.

Stock Trading as a Home Business includes the following:

1. You MUST pay yourself something for your time. How much could you make an hour, working for a corporation in your field of expertise or your degree? That is the minimum amount you should use as a base for trading expense as an hourly wage.

2. You must also include the average losses. You must take an average of your losses each month and divide it into your trades per month, and subtract that loss from your profits of every profitable trade.

3. Other expenses include your computer, printer, and other hardware depreciation.

4. In addition there is the office space in your home, electricity, internet, phone, and office expenses such as paper, pens, and journals.

5. Finally add up the cost of time attending webinars, the reading articles, and also if you pay a a simulator fee.

Summary

If you did an accurate and thorough calculation of your TRUE trading costs, you would find that taking a .25 cent profit on a 100-1000 share trade is not at all profitable. You are actuality losing money every time you trade.

Recognizing Dark Pools Chart Patterns and using leading indicators to enter a stock trade earlier is crucial for higher profits, and can turn your trading hobby into a career that all your friends envy and admire.
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"Learning Center Webinars"

learning center webinars - technitrader

Followers may request a specific blog article topic by emailing: info@technitrader.com

Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDS with every course.

©2016 Decisions Unlimited, Inc. dba TechniTrader.  All rights reserved. 
TechniTrader is also a registered trademark of Decisions Unlimited, Inc.

Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only. 

7 Tips To Consider When Choosing Indicators

Stock Leading Indicators 

Stock Indicators are one of the most useful tools for Retail Traders. However choosing the right indicators for your Trading Style and strategies can be a daunting task because there are over 250 indicators available for stock, index, market, and options analysis. Most beginners simply use what they hear about in a weekend seminar, or read about on the internet. Unfortunately, just because an indicator is popular does not mean it is the best indicator for your Trading Style.

More often than not when a trader uses an indicator that is widely promoted, they are unknowingly setting themselves up for chronic mediocre profits and whipsaw trades. 
Here are 7 Tips To Consider When Choosing Indicators:

1. What Market Data is present and used in the formula? Traders do not need to be mathematicians or learn how to write indicators, but they do need to know what data is included in the indicator. Price and Time indicators tend to lag as Price must first move before the indicator can display the pattern in a line or histogram.  Volume and Time indicators in our automated marketplace tend to lead to some extent, due to how giant Institutions buy and sell. Volume, Price, and Time indicators are the new hybrid Stock Leading Indicators that are leading price, because they incorporate all of the market data into their formulas. Watch a webinar on these kinds of indicators for the current Stock Market.

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stock leading indicators webinar - technitrader

2. What is the Market Condition?  This is not the Uptrend or Downtrend, but the overall condition of the market which is derived from the Market Participant Cycle. There are 9 Market Participant Groups. Where, when, and how they buy or sell dictates which of the 6 Market Conditions is present at any given time. Usually a Market Condition will dominate from several weeks, to several months or longer. The Market Condition above all else, dictates what indicators will work ideally at that time.

3. What was the indicator writer’s intent?  This is critical to know because each writer developed their indicator based on a specific Market Condition that was present at the time. They saw Price and Volume behaving a certain way, and wrote an indicator to expose that pattern and what it meant for investing or trading.

4. What are the limitations of the indicator? Every indicator has strengths and weaknesses. As an example, it has been proven empirically that MACD only works during a Momentum Uptrend. It fails dismally for Selling Short, and creates whipsaw trades during Trading Range and Platform Market Conditions. Knowing the limitations helps traders avoid using that indicator in the wrong Market Conditions. Watch a webinar on how to improve MACD for today's Stock Market.

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macd stock indicator for stock trading webinar - technitrader

5. How old is the indicator or when was it written?  Indicators written 50 years ago were written for an entirely different Market Structure. On Balance Volume and Stochastic Indicators were written during a time when there were no Retail Traders, online brokers, or internet. There were no Pension Funds allowed to invest in the Stock Market. There were far fewer Institutions, and the Independent Investor only invested for the long-term. Therefore these older indicators were not designed for the automated marketplace, and are not appropriate for many modern Trading Styles and strategies.

6. Do High Frequency Trading Firms HFTs use the indicator in their algorithm strategies?  This is a huge factor many retail traders never consider. HFTs use the overly popular indicators such as MACD, Stochastic, or Moving Averages in their algorithms to find Cluster Orders that they can exploit on the millisecond time scale. Since Retail Traders are not allowed by law to trade on the millisecond scale and since their trading platforms do not show the millisecond tick or price, using these indicators is significantly higher risk. Cluster Orders are anomalies that form when many Retail Traders are all using the same indicator, trading strategy, trading system, or other popular entries. Cluster Orders are easily recognized by the HFTs algorithm and used to trade against the mass of Retail Traders all trading the same way.

7. Does the indicator expose where the giant Institutions are quietly accumulating?  With the largest institutions now using Dark Pool venues for their transactions, it is imperative that Retail Traders use indicators that reveal where the giant Institutions are quietly moving in or out of a stock. Specific indicators such as Balance Of Power BOP and Percent Shares Held By Institutions PSHI, can identify this important Market Participant Group.MACD Indicator for Stock Trading Webinar"

The chart example below shows quiet accumulation in the bottom chart window, of a stock prior to its Earnings Release.
chart example showing quiet accumulation in the bottom chart window - technitrader

Summary

Choosing indicators should not be about using what is most popular, what your online broker recommends, or what your charting software promotes but what is best for your Trading Style and strategies. If you use a very popular indicator, be aware that HFTs are now employing algorithms that quickly identify large groups of Retail Traders all trading with these indicators. Learning the new hybrid Stock Leading Indicators that are leading price and are written for the automated market with the new Market Structure, will lower risk and increase potential profits.  

The Market Structure has changed more in the past decade than in the prior 100 years. Using outdated indicators leaves Retail Traders struggling with chronic weak stock picks, disappointing results, and whipsaws. Improving your trading by taking some time to update your trading indicators to the modern indicators that lead price will be worth the effort.

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Followers of this blog may request a specific article topic by emailing: info@technitrader.com

Trade Wisely,
Martha Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDS with every course.

©2016 Decisions Unlimited, Inc. dba TechniTrader.  All rights reserved. 
TechniTrader is also a registered trademark of Decisions Unlimited, Inc.

Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.