Two months ago, I wrote a blog that many people are still talking about. It was about a trading rule I learned over 30 years ago in the pits of Chicago and one I still use today.
How this amazing rule works is way beyond my pay scale, but I can say without hesitation that it works.
It works on intraday charts, daily charts, weekly and monthly charts. I do not know why it works in the financial markets, and through all my reading and research I've never found a reason that explains why this particular rule works.
Anyway, I'm going to show you in this intraday video on gold how this rule works. I also recommend that you watch the video I made two months ago using the exact same tools on a daily gold chart.
This is something that you should really look for when a market has a correction, as it will allow you to enter a position with very little risk.
So enjoy, there is no charge or registration required to watch this video. This is part of MarketClub's educational trading video series to help you achieve greater success in your own personal trading.
All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub
I have a question about the use of Fibonacci.....you showed examples of the 50% retrace and those looked quite impressive. But what type of price action is going to tell you its time to enter?
and more importantly, if you do enter, how much room should you give it?
Because in the forex market, it could be hundreds of pips between 50% and 62% and these retracements always look great after the fact but I have always had a hard time timing them.
Rich,
Thank you for your feedback and you pose some interesting questions.
To answer your first question you must look at the charts, after a long run up there is an inevitable pullback that follows. You can measure the distance of the pullback using the Fibonacci tool. However this is an art and there is no exact science that tells you with 100% degree of certainty that you are going to be your right.
To address your second question, how much room to give it? I would have to say this, if you're buying at the 50% pullback area is possible that the market may actually go further back to the 62% area. I would say if the market exceeds 62% to say 65%, I would say I would probably be out for market.
Thank you very much for your feedback. I recomend that you just start trading your eye to watch for these pullbacks, because they really are quite amazing to see.
All the best,
Adam
Adam,
As usual you are spot on. Thank you for your insight. I hope you will continue these video segments. Each pattern you show us makes us better at using the charts. Although we realize pattern failure is always possible, you give us an incredible edge.
Alex,
Thank you for the kind words. Our mission at MarketClub is help as many traders as possible take advantage of the many opportunities that are available in the world markets.
Look for a lot more videos coming your way.
All the best,
Adam
Angela,
Thanks for you feedback.
Here's the link to the article I wrote 2 months ago:
http://club.ino.com/trading/2008/12/30-years-ago-i-learn-this-market-secret/
I also put this link in the first sentence on the blog posting. Thank you for your suggestion.
Adam
Uh, could you post a link to the blog post from two months ago?
thanks!
Two months ago, I wrote a blog that many people are still talking about. It was about a trading rule I learned over 30 years ago in the pits of Chicago and one I still use today.
Derek,
Good Day. Thanks for your positive comments. I recommend that you contact customer support at
su*****@in*.com
, or you can give us a ring at 410-867-2100.
Cheers,
Adam
Say would you interested in complementing your US model with an Australian Version, say with Aus stocks etc
I Love this stuff, please keep them comming, say would you like to set up an Australian version to complement your US model ?? I sure would be interested !
Derek,
See my comments below.
We do carry the Aussie Dollar and various related cross rates.
Cheers,
Adam
You opened a new vista!!
Hey Thanks.
Glad we were able to shed some light.
Adam
Adam,
This is a general question and not directly related to this video. I am considering purchasing a membership to MarketClub and I have watched a few of your videos. I have found them interesting. I have been very frustrated in this bear market as I only go long; I do not sell short and I only buy equities, no forex or commodities. My question: In this bear market, will I be able to find, through MarketClub, equities that are in a healthy uptrend? What I mean is they don't simply bounce up for a few days and then resume a downtrend.
Thank you,
Jeff
Jeff,
Thank you for your feedback. There have been a number of ETF and equities that have bucked the bear trend last year. The best way to find them is with our Smart Scan tool which is part of the MarketClub suite of trading tools.
I suggest you take a 30 Day Risk-Free trial and see if MarketClub fits your trading style. I think you may be pleasantly surprised at the results.
Adam