Hubert Senters here.
Hey, this is Mark covering for Hubert while he travels a few days this week. Let’s take a look at a strategy that absolutely nailed the sell off yesterday in the stock market. This is a strategy that Hubert learned from a couple of contacts he had in the forex industry that was doing very well in trading Forex.
So he would asked if we could take a look at the strategy and make some modifications. So we’ve made some customizations on our side. And he wanted to see and so did I. How this would apply to stocks and options and futures markets specifically?
So this is an example of the SPY ETF on a two minute chart here. You can see that absolutely nailed the sell off yesterday. The opens right up here. The session I covered the session cyan. You can see just what happened on Monday.
And you can see very quickly prices sold after the first red solid line here. That is a sell signal right there. Once prices cross below that that’s your short and then hit profit target one right below that and then profit target two very quickly thereafter and then continue to fall all the way through the close of the session and that’s way over here on the right hand side.
So the strategy, very simple to use just simply calling out if you will the sell level and the breakout level on the downside prices quickly fell to that level and crossed it initiating the short position again being generating a lot of profits and yesterday’s down move in the stock market.
Now, tomorrow I’m going to show you another indicator that actually was forecasting or bearish coming into yesterday’s session. And those two working together are a great one, two punch.
I’ll show you that together and how those two tools are very powerful working together to capture profits in the markets and also show very easy to use buy signals or entry signals and exit signals as well.
Thanks for watching and good luck trading.