Introduction of TWO BIAS LINES to Assist in Trade Entry Decisions

On the chart below: When Price Action starts to cycle below the short term Bias Line, your short position is safe. If price action starts to close above the short term bias line, it is time to consider closing the position if you have not done so yet.

On the above chart, the upper stepping line (trending down) is the longer term bias. The bottom stepping trending line is the short term bias line.



Multi Wave Event

Very Strong Short Alert - Sell Rallies! Several Arrows of different colors.

Single Wave Event:

Very Strong Short Alert - Sell Rallies! Several Arrows of different colors.

Multi Wave Event

Very Strong Long Alert - Buy Dips! Several Arrows of different colors.

Single Wave Event:

Basic Short Alert - Sell Rallies! Single color Arrows of same color. Small move.

All Trades Start as a Regular "Short / SELL" or "Long / BUY" Signal

Overtime, the alert may develop into a:


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.  


TAKE ACTION ACCORDINGLY!  With blackFLAG© FTS, the system will alert the change in market sentiment allowing a trader to take appropriate action!


Study Trends

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

Over 8,000 hours have been invested into the study, design, testing, implementation, calibration, testing again, etc, etc.  Fortunately, I have always had the support of my wife and family to do this!

During the study and evelopment, my days Started at 2:50 AM (Miami / NY) and they continued sometimes until 8:00 PM. When you love what you do, you do not feel you are working. It is awesome.

Opportunities for the day

Day Trend / Symbol

Example Below: OIL FUTURES

Any News Events which may affect volatility.


MONITOR #1 Setting Up My Trading System

Rewriting content..!

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.


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.


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.  

Investopedia Definitions

This is where blackFLAG© FTS comes in!

Buy Order ThinkOrSwim TDAmeritrade
Sell Order ThinkOrSwim TD Ameritrade

A Simple Way To Determine if An Entry is Inminent. Use The Wave Tracker. (print)