Hubert Senters here.
Hey, this is Mark covering for Hubert while he’s traveling this week continuing the conversation yesterday introducing you to a very cool new strategy that Hubert was able to get from his friends in the forex field or industry that had worked pretty well and that side of things and we see a lot of potential and we see the strategy working really well with stocks options and futures as well.
So today I’m going to show you a really cool complimentary tool that you can add to that strategy and this is called the top tick trader which is the color bars on the top. We see green up here for bullish more buying or red for more selling.
And this is also keyed into are related to this tool on the bottom here the top tick tracker. All of this is related to the NYSE tick index right here which is measuring the activated buying power if you will across the board on the New York Stock Exchange versus the activated selling power.
So in theory all of this you crunch this up come over and this is calculated right here into the top tick tracker and then all this is used to color the price bars make it really easy to read on top here with the chart.
So we take just a color bars here. We can actually apply that as an overlay on how we trade the strategy. So we would have known yesterday coming into the session. I’m sorry from Monday. That would do for Monday coming into session right on the open the bars were already red from the end of last week.
So we would have known that the sellers were starting to creep into the market and they were stronger in the buyers and this would have caused us to start looking for sell signal which came shortly after the open on Monday profit target one as we know was hit profit target two was hit shortly thereafter.
And then we saw that we closing obviously in the carry through on Tuesday. So this is a very powerful one, two punch strategy. It’s called Confluence Strengthening a signal with alternative or other types of analysis.
In this case the NYSE tick was very helpful both flashing red obviously and generating a nice sell signal on the breakout strategy that Huber got from his friends in the forex space.
Looking at these charts of IBM weekly. This is today’s market to watch. You can see we’re in a fairly well defined pennant pattern right here and we should we’re testing the lower boundary line right now if we get a confirmed break down through that we should see a fairly strong move to the downside.
If it fails then we should go right back up and challenge the upper boundary line here. Taking this all the way up close to the $140 per share level. So that’s one stock you’re one to watch, draw the trend lines on your weekly chart and you could see it could be a pretty good trading opportunity right now.
Thanks for watching. And good luck trading.