Very Strong Short Alert - Sell Rallies!
Very Strong Long Alert - Buy Dips!
All Trades Start as a Regular "Short / SELL" or "Long / BUY" Signal.
Overtime, the alert may develop into a:
- SCREAMING SHORT
- OR SCREAMING LONG!
Draw Channel Lines to view Possible Turning Points Within the Trend. Also review my critical levels chart posted every morning. These pivot points will provide much needed guidance for profit taking or possible trade entry opportunities. You must understand price action well if trading without blackFLAG FTS.
Below is a great example going LONG from a SCREAMING SHORT Set up to a Long Entry Set Up as the US Session Opens. This Long entry then develops into a 50 handle move up on the S & P 500. (Expand image to full screen to view details)
Change in Trend / Price Action
As a technical analyst, a trader can easily fall pray to a predetermined analysis. Prior to a market session open, traders draw charts, considering trends, channels, intersecting lines, critical levels of support and resistance and based on the review develops an expectation of price action.
Price Action can change at a moments notice. This can occur due to a news event (domestic or international). As changes in market environment are assimilated by price, trends will continue the trend or change the trend. Being able to adjust positions from Short to Long and vice versa is critical to trading success.
DO NOT GET ATTACHED TO YOUR PRIOR ANALYSIS AND READ PRICE ACTION!
TAKE ACTION ACCORDINGLY! With blackFLAG© FTS, the system will alert the change in market sentiment allowing a trader to take appropriate action!
Draw Channels / UpTrend / DownTrend / Intersecting Short & Long Term
Understand Support / Resistance / Channel Breaks / Price Action
Use blackFLAG© Futures Trading System
Set Up Your Trading System
Have a Clear Trading Plan and its proper rules to follow
Trade The Plan
Yes, my system has been under development from my office built inside my garage!... I do not have much of a commute to work!
Opportunities for the day
Day Trend / Symbol
Example Below: OIL FUTURES
CHARTS AND ANALYSIS PRIOR TO A TRADE
- While some day and swing traders prefer a cleaner chart, for me chart detail is critical to trade success. Charts and channels are very important but the blackFLAG FTS set of tools make the trade entry, stop loss management and profit taking much easier. It takes a lot of the guessing out of the equation.
- Currently, I use a grid with 5 sets of charts for each of the 3 instruments traded.
- 1 Hr / 4 Hr - A clean channel chart without any tools (just the channels)
- 30 Min - A chart with channels and a basic set of blackFLAG FTS Pivot Levels.
- 5 Min - One chart with channels plus a blackFLAG FTS Steps
- 5 Min - One chart with channels and a series of Moving Averages plus a day price range tool
- 5 Min - One chart with channels plus the full blown set of tools in blackFLAG FTS.
MONITOR #1 Setting Up My Trading System
Currently, I have 3 symbols which I follow. They include S & P 500 (/ES), Crude Oil (/CL) and Gold (/GC). For each symbol, I have a 5 chart set up as discussed above.
MONITOR #2 Daily Routine
- 6:30 - 7:00 AM Update from my cell / mobile phone to twitter
- Daily Chart & 10 Min Charts
- 7:30 - 7:45 AM Update from my desktop to twitter
- 1 Hr Channel Chart
- 30 Min Channels Plus Levels Chart
- 7:45 - 8:00 AM Update blog with above information
- 8:00 - 8:15 AM Update Trading Opportunities Checklist for S & P 500 /ES, Oil /CL and Gold /GC
The Maximum Stop Loss when using the blackFLAG© Futures Trading System is $500.00 Per Contract (ideally). The most common stop size ranges from $200 to $300 per contract.
Remember that this exposure is for a short period of time (usually 10 to 20 minutes) As price moves in the expected direction, back tests and then fails, the stop can then be adjusted to break even.
Sometimes due to price action and volatility, the stop size may be increased to $400 or $500 per contract. This is only for experienced traders! This may occur at major turning points where volatility increases greatly. Some traders may even use $1,000 stop per contract. It all depends of the set up.
I do not use large stops. It is best to allow price to set up and enter from a support or resistance level once the trend is on its way.
MONITOR #3 Considering to Enter Trade?
How To Make An Entry Decision?
Some traders use fundamental analysis to make a trade entry / exit decision. Others use technical analysis. Both processes require significant knowledge and both have significant risks associated with them. There are ways to mitigate the risk but the risks are always there.