FYI | Feb 03 2011
FNArena has added another video to its Investors Education section on the website.
ATW's Jerry Simmons explains how a technical based set-up before opening of markets can give daytraders an edge. In this video Simmons uses crude oil and gold as examples. Total duration 44 minutes.
Summary
This is an educational video in which Jerry Simmons, Lead Mentor and Co-Founder of the Advanced Trading Workshop, Inc. explains how each morning at about 6 am ET, 3.5 hours before the markets open, those markets are highlighted where most of the price action is expected to be that day; their structure is analysed and setups are highlighted that will develop if clearly defined conditions are met. He uses two of three markets prioritised that morning, namely Crude Oil and Gold, as examples.
Comments
Crude Oil
At about 6 am ET Crude Oil Futures were trading at about $85.80/barrel. During that pre-market analysis online, a confirmed break-out above $86.50 was stated, in the written “Markets of Interest” notes, to be a confirmed reversal off a local Double Bottom, likely to result in a sustained move up. The confirmed break-out above $86.50 happened at about 9 am; prices then rapidly moved up to $89.73 at about 11:15 am, a move of $3.23/barrel or $3,230 per 1000 barrel contract.
Gold
The pre-market analysis at about 6 am that day analysed gold to be forming a major Double Bottom and a local inverse Head & Shoulders pattern. Any break-out below $1,320 was stated to invalidate the bullish setup. The upside target was calculated to be at the 1,385 – 1,395 level. The reversal confirmation point was stated, in writing in the “Markets of Interest” notes, to be $1,350-1,355. An entry at say $1355, a completion target at say $1395 and a stop at $1350 would result in a $40 reward and a $10 risk, i.e. a very good 4:1 reward to risk ratio. A move of $40 an ounce results in a profit of US$4,000 per 100 oz contract.
To view the ATW Strategic Prep Video (originally from November 29, 2010) titled "Review CL n GC" click HERE or visit the FNArena Investors Education section of the website.
Here's the direct link: https://www.fnarena.com/index2.cfm?type=dsp_front_videos
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW). ATW recently set up shop in Australia through the establishment of ATW Australia (since mid-2010).
FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.
The above mentioned videos can be accessed via the FNArena Investor Education section at https://www.fnarena.com/index2.cfm?type=dsp_minc_education)
About ATW Australia
Founded in June 2010, ATW Australia is a “one-stop-shop for all a trader needs to succeed”: quality education for new traders, superb advanced trading education, fast unfiltered data, a world-leading trading platform, customer oriented competitive brokerage, quality ‘Made in the USA’ specialized trading computers, trading magazines, and the all-important psychological mentoring and coaching for traders. The trading educational products are provided by the Advanced Trading Workshop, Inc. in New York, all other services are provided by a network of partners that were chosen based on their superior products and services in their specific field of expertise. FNArena is one such partner.
To learn more visit www.advancedtradingworkshop.com.au.
