Tips on how to take money out of the market using JSAnalytics
Trading Tips
We live in a world of information overload, which for a discretionary trader can become paralyzing. The richness in data however, with the right tool can be the difference in using an x-ray verses an MRI to diagnose a condition. JSAnalytics are unique in that they provide a comprehensive fact based “truth” of what the technical condition of the market “is”. Color-coding and qualified structure are used to condense a wealth of quantitative data into a picture that can be processed “at a glance”. By acquiring a little knowledge to understand how to interpret the analytics you gain a resource to “fact-check“ emotional responses and subjective biases, to see the “truth” of what is happening now. This transparency affords you the ability to stay grounded in the moment for a clear intuitive execution of a trade plan. When you standardize your trade tactics to a fact foundation you create a structured trading approach that is aligned with what is most likely to occur improving consistency and resulting in a sustainable trade plan.
TIP 1. R LEVEL Bias
The R LEVEL identifies the dynamic point of equilibrium for the trade period where liquidity is the highest, risk is the lowest and opportunity the greatest. The positon of this price point impacts the market state condition and can be used to improve entry, trade selection and size management.
- @ Risk Entry
- Trade Selection
- Size Management
TIP 2. MarketColor State
Most traders have a black and white view of a markets state as either trending or non trending. Markets do not follow this basic construct and are complex and need to be viewed in HD to have the necessary resolution to succeed. JSServices provides this granularity which improve a traders vision to anticipate opportunity.
- State Characteristics
- Momentum Bias
- Trade Vision
TIP 3. Market Structure Bias
The Market Structure Bias (MSB) defines the STRUCTURE alignment of the market STATE and its Sentiment Bias. These facts enhance awareness by identifying where shifts in STATE will occur as well as how the Sentiment Bias will skew the characteristics of the STATE. The Market Structure Bias can be used to standardize trade and size management tactics to create a structured trading approach.
- Market Structure
- State Skew
- Strategy Selection
TIP 4. The CriticalRange
Many traders struggle because they lack structure and end up getting chopped up in the middle. They have no context to understand why a support\resistance level worked one day but not another. Every trade is the same “I hope it works today” dice roll, verses knowing the facts of what is more likely to occur, so trades can be qualified and anticipated. The CriticalRange is the foundation structure of the PriceMap and offers a framework to create a structured trading approach.
- Market Structure
- Risk Parameters
- Anticipate Opportunity
TIP 5. Market Metrics
Creating a unified trading approach that can be applied across all markets is simplified by using standardized risk and reward metrics. JSServices Market Metrics provide the quantitative facts that define what the current opportunity is and the risk associated to attain it. The metrics are presented in tics which makes it easy to standardize an approach as the metrics adjust to the associated volatility levels of the market. The Risk metrics define the boundary area surrounding each PriceMap level which can be used to standardize the entry and exit risk levels with ratios that are tied to exit Reward metrics.
- Reward Metrics
- Risk Metrics
- Balancing Risk and Reward – Practical Application
TIP 6. Trade Tactics
Different trading conditions and market structures call for different tactics. In terms of trading momentum most execution tactics can be summed up as either a FADE, BREAKOUT or REVERSAL tactic. Understanding the true nature of strategy Trade Tactic improves awareness of how they should be applied as well as the market structure alignment they will work best in.
- FADE tactic overview
- BREAKOUT tactic overview
- REVERSAL tactic overview
